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

Taylor MaritimeAnnouncement

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RNS Number : 8564P  Taylor Maritime Limited  22 January 2026

22 January 2026

 

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

 

Quarterly Results for the three-month period ended 31 December 2025 and
Trading Update

 

Proposed Compulsory Redemption announced with $143.4 million set to be
returned to shareholders

Two previously announced vessel sales completed generating combined gross
proceeds of $41.1 million

Firm market conditions led to stronger TCE earnings quarter-on-quarter

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
31 December 2025.

Financial & Operational Highlights for the Quarter

 Fleet Net Book Value (NBV) 1  (#_ftn1) at 31 December 2025  $149.0 million
 Bank Debt 2  (#_ftn2) at 31 December 2025                   $0.0 million
 Other Debt 3  (#_ftn3) at 31 December 2025                  $41.0 million
 Cash & Cash Equivalents at 31 December 2025                 $187.7 million
 Other Net Assets 4  (#_ftn4) at 31 December 2025            $16.1 million
 Charter Revenue 5  (#_ftn5)                                 $28.0 million
 Net Profit (Loss)                                           $(3.2) million
 Earnings per Share                                          $(0.01)
 Adjusted EBITDA 6  (#_ftn6)                                 $5.2 million
 Adjusted EBITDA per share                                   $0.02
 Daily Time Charter Equivalent ("TCE") Earnings per Vessel   $14,177

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

"While healthy demand for key commodities provided grounds for improved TCE
earnings during the period, we remain concerned that elevated fleet growth in
2025 and 2026 is forecast to outpace demand growth, amid ongoing trade and
geopolitical uncertainty.  We have greatly reduced our market exposure and
set in motion a substantial $143.4 million return of capital to shareholders
as we see potential downside to asset values and have proactively sought to
preserve value.  Given the substantial return of capital, we will review our
dividend policy for the next financial year.  Nonetheless our remaining fleet
gives us a degree of optionality; we have a baseline operating platform, with
lower costs (aligning to a smaller number of ships) and a sound balance sheet
with a forecast cash position of c.$55 million following the proposed
Compulsory Redemption and dividend.  This will ensure smooth operations as we
evaluate our strategic options in close dialogue with shareholders on the
future direction of the Company."

Proposed Compulsory Redemption

·      On 12 December 2025, the Company announced its intention to
distribute to shareholders an aggregate amount of approximately $143.4 million
by way of a partial Compulsory Redemption of ordinary shares

·      Post period, the Board released a circular in connection with the
proposed return of capital, seeking approval from shareholders at a General
Meeting to be held on 27 January 2026 to amend the Company's Articles to
permit the Compulsory Redemption, and today announced a Redemption Price per
Ordinary Share of 94.41 cents.  The price fixed by the TML Board has been
determined by reference to the 31 December 2025 unaudited net asset value (net
of the direct costs of the proposed Compulsory Redemption) of 94.41 cents per
ordinary share

·      This return of capital will be made in addition to the regular
quarterly dividend of 2 cents per Ordinary Share for the period ended 31
December 2025, declared today (more below).  The quarterly dividend and
return of capital together amount to approximately $150.0 million to be paid
to shareholders

·      Further details of the proposed Compulsory Redemption are set out
in the separate announcement released today

Vessel sales programme nears conclusion with two further completions during
the period

·      Two previously announced vessel sales completed during the
period, generating combined gross proceeds of c.$41.1 million, with one other
previously announced vessel sale expected to complete in the current quarter
for gross proceeds of c.$15.3 million

·      Overall, the Company has executed 50 disposals since the
beginning of 2023, including 22 in the 2025 calendar year, at an average 3.0%
discount to Fair Market Value.  These sales will have generated total gross
proceeds of $822.2 million once the remaining agreed sale completes

Fleet development and market value

·      The owned fleet comprised 8 7  (#_ftn7)  Japanese-built vessels
at quarter end which will reduce to 7 8  (#_ftn8)  Japanese-built vessels
after the remaining agreed vessel sale completes with a current average age of
11.1 years and average carrying capacity of c.44.0k dwt.  The Company also
has one vessel under a JV agreement and 4 vessels in its long-term chartered
in fleet

·      The Fair Market Value of the fleet 9  (#_ftn9)  increased
quarter-on-quarter by c.2.6% on a like-for-like basis to c.$159.5 million,
with Handysize and Supra/Ultramax asset values appreciating slightly

Operating results, stronger market conditions contribute to improved TCE
earnings quarter-on-quarter

·      The Company generated net charter revenue of $28.0 million,
equating to fleet-wide time charter equivalent ("TCE") earnings of $14,177 per
day for the period (versus $46.9 million charter revenue and $11,970 per day
TCE earnings for the equivalent period last year).  The reduction in charter
revenue was due to a smaller operating fleet, with improved TCE earnings owing
to firmer market conditions

·      The Company recorded a net loss for the quarter of $3.2 million,
or $0.01 net loss per share

·      Having increased cover in the previous quarter to straddle the
typically weaker summer period, the Handysize and the Supra/Ultramax fleets
underperformed their respective benchmark indices 10  (#_ftn10) by $1,024 per
day (-7.4%) and $377 per day (-2.2%), as strong market conditions prevailed at
the end of calendar year Q3 and carried into October. Freight rates remained
mostly firm through to mid-December, initially in response to improved
sentiment following the US-China 'trade war truce' in late October and with
further support from seasonal coal demand in Asia

·      The number of covered fleet ship days remaining for the current
financial year stands at 90% at an average TCE rate of $13,771 per day 11 
(#_ftn11) .  The number of covered fleet ship days remaining for the 2026
calendar year stands at 74% at average TCE rate of $13,008 per day(11)

Balance sheet strength providing strategic flexibility

·      Cash and cash equivalents were $187.7 million and other net
assets, including the Company's investment in a vessel held under JV
arrangement, stood at $16.1 million at the end of the period

·      The Company's outstanding debt was $41.0 million as at 31
December 2025 (versus $41.5 million as at 30 September 2025) and comprised
entirely of financial liabilities under sale-leaseback agreements including a
$22.4 million purchase option which will fall away upon expiry

·      The Company's debt-to-gross assets ratio was 10.8% as at 31
December 2025 (or 5.2% excluding the $22.4 million purchase option)

·      As at 31 December 2025, Right-of-Use (ROU) assets and lease
liabilities stood at $3.5 million and $3.3 million, respectively

Dividend declared

The Board is also pleased to declare an interim dividend in respect of the
period to 31 December 2025 of 2 US cents per ordinary share:

 Ex Date:                           27 January 2026

 Record Date:                       28 January 2026

 Last day for currency elections:   29 January 2026

 Payment Date:                      12 February 2026

Shareholders are reminded of the Company's facility for those wishing to
receive dividends in sterling rather than US Dollars, as set out at the end of
this release i  (#_edn1) .

Dry bulk market review and outlook

The Baltic Supramax Index (BSI) and the Baltic Handysize Index (BHSI) hit
21-month highs in September and October, respectively, as good grain harvests
and healthy demand, predominantly emanating from China, provided grounds for a
longer-than-usual East Coast South American grain season.  Following a brief
dip, market conditions reverted to relatively firm levels following the
US-China 'trade war truce' at the end of October while a seasonal pick-up in
Asian coal demand provided support for rates before the typical holiday
softening from mid-December onwards.

Asset values, meanwhile, were broadly stable with the value of benchmark
Handysize values 12  (#_ftn12) declining slightly by 1.2% during the period
while benchmark Ultramax vessel values 13  (#_ftn13) showed modest gains of
c.2.1% quarter-on-quarter.

The seasonally softer market conditions are expected to persist through to the
Chinese New Year holiday, with potential shipments of US soybeans in calendar
Q1 following the resumption of Chinese purchasing expected to provide some
cushion.  Looking ahead, Clarksons forecasts moderate combined grain and
minor bulk volume growth for the 2026 calendar year with Chinese domestic dry
bulk stockpiles currently elevated with structural challenges in the Chinese
economy providing raw material demand headwinds.  Normalisation of Red Sea
routing patterns would provide a drag on vessel demand although this prospect
remains uncertain.  Meanwhile, following the acceleration of geared dry bulk
carrier deliveries in 2025, which were absorbed largely by improved tonne-mile
demand, the global geared fleet is forecast to continue to grow by net 4.0% in
2026, potentially outpacing demand growth forecasts.

Further ahead, however, constrained fleet growth and an ageing asset base
suggest an encouraging medium-term outlook for the geared dry bulk segment.
The general trend toward decarbonisation may further incentivise further
slower steaming and an incremental scrapping of older, less efficient
tonnage.  The impact should be more pronounced in the ageing Handysize fleet
where 3.4% of the current fleet is 30 years or older.

 

ENDS

 

 

 

 

 For further information, please contact:

Taylor Maritime Limited              IR@taylormaritime.com

 Edward Buttery

 Kael O'Sullivan

 Jefferies International Limited      +44 20 7029 8000

 Stuart Klein

 Gaudi Le Roux

 Panmure Liberum Limited              +44 20 3100 2190

 Chris Clarke

 Nicholas How

 

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 8 dry
bulk vessels (including 1 vessel held for sale) consisting of 6 Handysize
vessels and 2 Supra/Ultramax vessels.  The Company also has one vessel under
JV agreement and 4 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  (#_ftnref1) Fleet Fair Market Value, including vessels held for sale, at
31 December 2025 was $159.5 million

 2  (#_ftnref2) Bank debt prepaid in full in July 2025

 3  (#_ftnref3) Financial liabilities relating to sale-leaseback transactions

 4  (#_ftnref4) Includes Right-of-Use (ROU) assets, lease liabilities and
other assets and liabilities

 5  (#_ftnref5) Net of voyage expenses

 6  (#_ftnref6) Excluding loss on disposal from vessel sales and net changes
in fair value of financial assets

 7  (#_ftnref7) Including one vessel held for sale

 8  (#_ftnref8) Excluding one vessel held under a JV arrangement

 9  (#_ftnref9) Including one vessel held for sale

 10  (#_ftnref10) The Company uses Baltic Handysize Index (BHSI-38) and Baltic
Supramax Index (BSI-58) Time Charter Average (TCA) figures net of commissions
and weighted according to the average dwt of the Group's Handysize and
Supra/Ultramax fleets, respectively

 11  (#_ftnref11) Including projected forward Contracts of Affreightment
("COA")

 12  (#_ftnref12) Clarksons benchmark 37k dwt 10 year old Handysize vessel

 13  (#_ftnref13) Clarksons benchmark 61k dwt 10 year old Supra/Ultramax
vessel

 i  (#_ednref1) The default payment for dividends remains in US Dollars,
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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