Tufton Oceanic Assets Ltd. Divestment of Two Vessels and Extension of Charter (3063Z)
January 11 2024 - 2:00AM
UK Regulatory
TIDMSHIP TIDMSHPP
RNS Number : 3063Z
Tufton Oceanic Assets Ltd.
11 January 2024
11 January 2024
Tufton Oceanic Assets Limited (The "Company") Announces
Divestment of two Handysize Product Tankers and
Extension of one MR Product Tanker Charter
The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is
pleased to announce the Company has agreed to sell two Handysize
Product Tankers, Pollock and Dachshund, for a total of $41.75m,
which represents a 3.1% premium to the two vessels most recent
holding NAV of $40.50m (the "Disposals"). The Disposals further
confirm Tufton's NAV methodology, while also demonstrating its
ability to divest portfolio vessels at or above NAV . The
transaction is a forward sale and is expected to close during 2Q24
after the vessels complete their current charters, the Company will
therefore also benefit from the vessel earnings during this period.
The expected realised net IRR across the two vessels will be c.25%
and net MOIC c.2.0x including earnings through the assumed delivery
dates, significantly ahead of the Company's published IRR target of
12%. Following the Disposals, the Company's fleet will comprise 20
vessels.
Furthermore, the Company has successfully extended the
employment of Exceptional, a 2015 built MR Product Tanker, with its
current charterer for up to 3 years commencing 1 January 2024. The
new charter rate implies a net yield of over 15% for the firm
extension period which, when blended with the 6-month sub-market
stub end of the previous charter, will produce a net yield of c.13%
for the next 2 years. The aggregate charter length on the Company's
fleet of Product Tankers is now c.2 years (versus 1.7 years last
quarter).
For further information, please contact:
Tufton Investment Management Ltd (Investment
Manager)
Andrew Hampson
Nicolas Tirogalas +44 (0) 20 7518 6700
Singer Capital Markets
James Maxwell, Alex Bond, Angus Campbell
(Corporate Finance)
Alan Geeves, James Waterlow, Sam Greatrex
(Sales) +44 (0) 20 7496 3000
Hudnall Capital LLP
Andrew Cade +44 (0) 20 7520 9085
About the Company
Tufton Oceanic Assets Limited invests in a diversified portfolio
of secondhand commercial sea-going vessels with the objective of
delivering strong cash flow and capital gains to investors. The
Company's investment manager is Tufton Investment Management Ltd.
The Company has raised a total of approximately $316.5m (gross)
through its Initial Public Offering on the Specialist Fund Segment
of the London Stock Exchange on 20 December 2017 and subsequent
capital raises.
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