REG - Taylor Maritime Ltd Taylor Maritime -TMI - Trading Update, Quarterly Results & Dividend

Taylor MaritimeAnnouncement

25/07/2025 07:02

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RNS Number : 5185S  Taylor Maritime Limited  25 July 2025

25 July 2025

 

Taylor Maritime Limited (the "Company" or the "Group")

 

Quarterly Results for three-month period ended 30 June 2025 and Trading Update

 

Ten vessel sales since previous quarterly trading update for total gross
proceeds of $176.3 million

Vessel sales programme fully executed with a total 49 disposals generating
gross proceeds of $806.9 million

Bank debt fully repaid and ample liquidity available providing the Company
with strategic flexibility

Dividend of 2 US cents per Ordinary Share declared

 

Taylor Maritime Limited, the specialist dry bulk shipping company, today
announces its unaudited financial and operating results for the quarter ended
30 June 2025.

Financial & Operational Highlights

 Fleet Net Book Value (NBV) 1  at 30 June 2025                    $357.2 million
 Bank Debt 2  at 30 June 2025                                     $49.6 million
 Other Debt 3  at 30 June 2025                                    $48.8 million
 Cash & Cash Equivalents 4  at 30 June 2025                       $62.4 million
 Other Net Assets 5  at 30 June 2025                              $29.3 million
 Charter Revenue                                                  $37.3 million
 Net Profit (Loss)                                                ($11.3 million)  6 
 Earnings per Share ($)                                           $(0.03)
 Adjusted EBITDA 7                                                $7.5 million
 Adjusted EBITDA per share                                        $0.02
 Average Time Charter Equivalent ("TCE") Earnings per Vessel ($)  $11,284

Commenting on the trading update Edward Buttery, Chief Executive Officer,
said:

"Having already set course to zero bank debt, a goal we achieved in July 2025,
we continued to sell vessels to defend shareholder value given our view of
further potential downside in asset values amidst steady fleet growth in the
near-term and a slowing global economy.  This approach has preserved an
estimated c.$82 million of value across 49 disposals since January 2023 which
have been achieved at an average 3.1% discount to NAV.  While we have
positioned the Company to navigate near-term volatility, we retain a positive
medium-term outlook for the dry bulk market overall.  With our sales
programme expected to complete by the end of the year, the Company is now
virtually ungeared with cash on the balance sheet and undrawn revolver
capacity providing strategic flexibility.  Our priority is to maintain our
regular quarterly dividend and we will continue to consider additional
dividends to shareholders."

 Preserving value through vessel sales
 ·             As announced on 16 July 2025, the Company agreed 5 new vessel sales during the
               period with a further 5 vessel sales agreed post period for combined gross
               proceeds of c.$176.3 million, representing an average 1.1% discount to Fair
               Market Value 8 .  4 of these vessel sales have since completed with the
               remaining 6 sales expected to complete between now and the end of December
               2025
 ·             The above sales are in addition to the 11 sales announced on 25 April 2025 for
               combined gross proceeds of c.$172.5 million, all of which have now completed
 ·             Overall, the Company has executed 49 disposals since the beginning of 2023,
               including 22 in the 2025 calendar year, as part of a vessel sales programme at
               an average of 3.1% discount to Fair Market Value.  These sales will have
               generated total gross proceeds of $806.9 million once agreed sales complete
 Fleet development and market value
 ·             The fleet comprised 18 9  Japanese-built vessels at quarter end which will
               reduce to 8 10  Japanese-built vessels after announced sales complete with a
               current average age of 10.7 years and average carrying capacity of c.43.3k
               dwt.  The Company also has 1 vessel under JV agreement and 6 vessels in its
               chartered in fleet
 ·             The Market Value of the fleet 11  decreased quarter-on-quarter by c.6.6% on a
               like-for-like basis, to c.$338.0 million.  After climbing in the spring in
               line with freight rates, Supra/Ultramax vessel values declined over the period
               despite a stable earnings environment with forecasts of an acceleration of
               fleet growth in 2025 weighing on sentiment.  Handysize vessel values,
               meanwhile, held steady through the period in line with rates
 Operating results, fleet outperforms benchmark indices
 ·             The Company generated charter revenue of $37.3 million, equating to fleet-wide
               time charter equivalent ("TCE") earnings of $11,284 per day for the period
               (versus $61.8 million charter revenue and $13,308 per day TCE earnings for the
               equivalent period last year) given a smaller operating fleet and relatively
               softer freight market environment with Handysize and Supra/Ultramax spot
               rates, respectively, c.19% and c.33% lower than the equivalent period last
               year
 ·             The Company recorded a net loss for the quarter of $11.3 million, or $0.03 net
               loss per share, which includes depreciation of $12.0 million
 ·             Relative to benchmark indices 12 , the Handysize fleet outperformed by $1,004
               per day (c.11%) and the Supra/Ultramax fleet outperformed by $2,022 per day
               (c.20%) for the period
 ·             The number of covered fleet ship days remaining for the current financial year
               stands at 60% at an average TCE rate of $12,915 per day 13  with increasing
               levels of period cover being taken while rates remain firm and before an
               expected seasonal summer slowdown
 Zero bank debt target now achieved
 ·             The Group's outstanding debt stood at $98.4 million as at 30 June 2025 (versus
               $247.1 million as at 31 March 2025) representing a debt-to-gross assets ratio
               of 20.5% (versus 38.2% at 31 March 2025).  This comprised $49.6 million bank
               debt and $48.8 million relating to financial liabilities under sale-leaseback
               transactions
 ·             Post period, the Company applied net proceeds from recently completed vessel
               sales, plus a portion of existing cash on the balance sheet, to the prepayment
               of all outstanding bank debt.  As a result, the Group's outstanding debt is
               now $46.4 million, comprising sale-leaseback transactions including a $22.4
               million purchase option which will fall away upon expiry, representing a
               debt-to-gross assets ratio of 9.7% (or 5.0% excluding the $22.4m purchase
               option) based on Fair Market Values as at end of June 2025
 ·             As at 30 June 2025, Right-of-Use (ROU) assets stood at $9.7 million while
               lease liabilities were $8.5 million.  Cash and cash equivalents 14  were
               $62.4 million and other assets, including the Company's investment in a vessel
               held under JV arrangement, stood at $28.1 million at the end of the period

Dividend declared

The Board is also pleased to declare an interim dividend in respect of the
period to 30 June 2025 of 2 US cents per ordinary share:

 Ex Date:                           7 August 2025

 Record Date:                       8 August 2025

 Last day for currency elections:   11 August 2025

 Payment Date:                      29 August 2025

Shareholders are reminded of the Company's facility for those wishing to
receive dividends in sterling rather than US Dollar, as set out at the end of
this release i .

Dry bulk market review and outlook

Despite initial concerns surrounding US tariff announcements in early April,
the direct impact on dry bulk trade has so far been limited.  An agreement
between the US and China in May to pause tariffs for an initial 90-day period
led to an improvement in sentiment and market conditions remained relatively
stable through the period as a result.  By the end of June, the BHSI and BSI
TCA were $11,426 per day and $12,796 per day respectively; up by 15% and 10%
from their period low points.  Charter rates strengthened post period with
Supra/Ultramax rates climbing considerably (BSI currently c.$16,900 per day)
as a longer than usual Brazilian soybean season coincides with the start of
the Brazilian corn export season generating strong demand.

Values of second-hand Supra/Ultramax vessels, meanwhile, declined over the
period and have not responded to the post period strengthening in spot rates
with sentiment waning given recent forecasts suggesting an acceleration of
Supra/Ultramax deliveries in 2025 and demolition rates remaining low.
Clarksons benchmark Handysize second-hand values have remained stable in line
with charter rates over the period.

Looking forward, overall dry bulk demand is expected to be modest for the
remainder of 2025 compared to the strong levels seen in 2024 amid a range of
headwinds predominantly stemming from elevated levels of trade
protectionism.  Clarksons forecast combined minor bulk and grain demand to
grow by 1.0% in 2025 with ongoing trade uncertainty expected to lead to lower
industrial activity and global GDP growth.  Meanwhile, tonnage continues to
be diverted from the Red Sea, supporting tonne-mile demand, with a return to
normal transit activity through the Suez Canal unlikely in the near-term given
renewed attacks on commercial shipping by Houthi rebels in the area.

While trade and macroeconomic uncertainty continues to create concern for
short-term demand and current forecasts for 2026 are for soft market
conditions to persist, supply-side dynamics continue to support a constructive
medium-term outlook.  Geared dry bulk fleet growth remains reasonable by
historical standards with forecasts of 4.6% and 3.8% net supply growth in 2025
and 2026, respectively. Furthermore, it is anticipated there will be fewer
deliveries beyond these dates should the steep drop in newbuild investment
(bulk carrier ordering is down 73% year to date) be maintained amid
geopolitical and regulatory uncertainty.  Meanwhile, a significant portion of
the global geared dry bulk fleet continues to approach scrapping age, with
10.1% of the current Handysize fleet and 5.5% of the current Supra/Ultramax
fleet reaching 25 years or older in 2025.  With softer market conditions
expected in 2025 and 2026 and the IMO's recent decision to implement global
market-based measures to reduce GHG emissions, scrapping activity may
accelerate, providing further supply side support.

Sustainability / ESG

The Company today released its annual report covering the period 1 April 2024
to 31 March 2025 in which is included the Company's fourth ESG disclosure.
This disclosure highlights progress made on the Group's sustainability
priorities including decarbonisation, social and community impact, and
responsible business practices.

The Company's disclosure follows guidance from the Task Force on
Climate-related Disclosure, the Global Reporting Initiative and
the Sustainability Accounting Standards Board.

Measurable progress was made towards the Group's decarbonisation targets
during the financial year; fleet carbon intensity as measured by AER ("Average
Efficiency Ratio"), improved by 7% year on year, remaining on track with the
IMO's decarbonisation trajectory.

The Company obtained independent assurance of TML's greenhouse gas emissions
to ISO 14064-3 standards.

 

ENDS

 

 For further information, please contact:

Taylor Maritime Limited              IR@taylormartitime.com

 Edward Buttery

 Kael O'Sullivan

 Jefferies International Limited      +44 20 7029 8000

 Stuart Klein

 Gaudi Le Roux

 

The person responsible for arranging for the release of this announcement on
behalf of the Company is Matt Falla, Company Secretary.

 

Notes to Editors

 

About the Company

Taylor Maritime Limited (formerly Taylor Maritime Investments Limited) is a
shipping company listed under the equity shares (commercial companies)
category of the Official List, with its shares trading on the Main Market of
the London Stock Exchange since May 2021.  Between May 2021 and February
2025, the Company was listed under the closed-ended investment funds category
of the Official List.

The Company is focused on navigating shipping market cycles on behalf of its
shareholders, leveraging a dynamic and experienced management team with deep
relationships in the industry and an agile business model underpinned by low
leverage and financial flexibility, to deliver long-term attractive returns
through both income and capital appreciation.

The Company, through its subsidiaries, currently has an owned fleet of 14 dry
bulk vessels (including 6 vessels held for sale) consisting of 8 Handysize
vessels and 6 Supra/Ultramax vessels.  The Company also has 1 vessel under JV
agreement and 6 vessels in its chartered in fleet.  The ships are employed
utilising a mix of time charter, voyage charter, and Contracts of
Affreightment ("CoAs") to optimise fleet earnings and cargo coverage.

The Company's target dividend policy is 8 cents p.a. paid on a quarterly
basis.

For more information, please visit www.taylormaritime.com
(http://www.taylormaritime.com/) .

About Geared Vessels

Geared vessels are characterised by their own cargo loading equipment. The
Handysize and Supra/Ultramax market segments are particularly attractive,
given the flexibility, versatility and port accessibility of these vessels
which carry necessity goods - principally food and products related to
infrastructure building - ensuring broad diversification of fleet activity and
stability of earnings through the cycle.

IMPORTANT NOTICE

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events and in certain cases can be identified by the use of terms such as
"may", "will", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking statements
are subject to risks, uncertainties and assumptions about the Company,
including, among other things, the development of its business, trends in its
operating industry, and future capital expenditures and acquisitions. In light
of these risks, uncertainties and assumptions, the events in the
forward-looking statements may not occur.

References to target dividend yields and returns are targets only and not
profit forecasts and there can be no assurance that these will be achieved.

 

 1  Fleet Fair Market Value, including vessels held for sale, at 30 June 2025
was $338.0 million

 2  Bank debt prepaid in full in July 2025

 3  Financial liabilities relating to sale-leaseback transactions

 4  Including restricted cash

 5  Includes Right-of-Use (ROU) assets, lease liabilities and other assets and
liabilities

 6  Includes depreciation of $12.0 million

 7  Excluding loss on disposal from vessel sales and net changes in fair value
of financial assets

 8  Discount calculated to 31 March 2025 Fair Market Values for sales agreed
before period end and calculated to 30 June 2025 Fair Market Values for sales
agreed post period

 9  Including vessels held for sale

 10  Excluding one vessel held under JV arrangement

 11  Including vessels held for sale

 12  Since the Baltic Handysize Index (BHSI) is based on a 38k dwt type and
the Baltic Supramax Index (BSI) is basis based on a 58k dwt type, the Company
uses adjusted BHSI and BSI Time Charter Average (TCA) figures net of
commissions and weighted according to average dwt of the Group's combined
Handysize and Supra/Ultramax fleets, respectively

 13  Including projected forward Contracts of Affreightment ("COA")

 14  Including restricted cash

 i  The default payment for dividends remains in US Dollar, however, dividends
are capable of being paid in sterling, provided that the relevant shareholder
has registered to receive their dividend in sterling under the Company's
Dividend Currency Election. A copy of the Dividend Currency Election form can
be downloaded from the Company's website www.taylormaritime.com
(http://www.taylormaritime.com) . Completed Dividend Currency Election forms
should be sent to the Company's registrar, Computershare Investor Services
(Guernsey) Limited, c/o The Pavilions, Bridgwater Road, Bristol, BS99 6ZY.
CREST shareholders must elect via CREST.

Non-CREST shareholders wishing to receive Company dividends by electronic
funds transfer directly to their bank accounts can register for
Computershare's Global Payment Service at www.investorcentre.co.uk
(http://www.investorcentre.co.uk) .

 

LEI: 213800FELXGYTYJBBG50

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