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

Taylor MaritimeAnnouncement

24/04/2026 07:00

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RNS Number : 7356B  Taylor Maritime Limited  24 April 2026

24 April 2026

 

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

 

Quarterly Results for the three-month period ended 31 March 2026 and Trading
Update

 

Managed Realisation Strategy and Second Compulsory Redemption announced with
$30.0 million set to be returned to shareholders

Two previously announced vessel sales completed generating combined gross
proceeds of $32.3 million

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 March 2026.

Financial & Operational Highlights for the Quarter

 Fleet Net Book Value (NBV) 1  at 31 March 2026             $112.4 million
 Other Debt 2  at 31 March 2026                             $39.7 million
 Cash & Cash Equivalents at 31 March 2026                   $72.0 million
 Other Net Assets 3  at 31 March 2026                       $8.3 million
 Charter Revenue 4                                          $17.6 million
 Net Profit (Loss)                                          $(9.4) million
 Earnings per Share                                         $(0.03)
 Adjusted EBITDA 5                                          $0.1 million
 Adjusted EBITDA per share                                  $0.01
 Daily Time Charter Equivalent ("TCE") Earnings per Vessel  $13,823

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

"The Company's return of a further $30m to shareholders follows the decision
announced in March to pursue the managed realisation of the Company's
assets.  Taken together with the dividend declared today, past dividends and
capital return, we will have returned $0.97 per share, or $317.2m, to
shareholders since IPO.

We will retain sufficient working capital to support the Company's current
operations while preserving flexibility as to the timing of disposals of our
remaining assets, with a view to maximising the sale proceeds.  As previously
indicated, the timing of asset realisations and subsequent returns of capital
will continue to be influenced by market conditions and commercial
considerations."

Managed Realisation Strategy

·      As announced on 20 March 2026, the Board determined that a
managed realisation of the Company's assets is in the shareholders' best
interests given ongoing macro-economic market volatility, an absence of
suitable near-term investment opportunities and feedback from shareholders

·      Accordingly, the Company's strategy is to maximise proceeds from
the disposals of the Company's remaining assets and return capital to
shareholders as efficiently as possible, in tandem with an orderly
winding-down of the Company's operations

Second Compulsory Redemption

·      On 20 March 2026, the Board also announced its intention to
undertake a second return of capital of a minimum $30.0 million in Q2 2026 by
way of a partial compulsory redemption of ordinary shares

·      Today the Board confirmed details of the Company's second capital
distribution totalling $30.0 million by way of a compulsory partial redemption
of shares at a price of $85.83 cents per share.  The amount to be applied to
the compulsory redemption and the redemption price per share have been
determined by the Board with reference to the 31 March 2026 Net Asset Value

·      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 March
2026, declared today (more below)

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

Vessel sales, fleet development and market value

·      Two previously announced vessel sales completed during the
period, generating combined gross proceeds of c.$32.3 million

·      The owned fleet comprised 6 Japanese-built vessels at quarter
end with a current average age of 11.3 years and average carrying capacity of
c.45.1k dwt.  The Company also has one vessel under a JV agreement and one
vessel in its long-term chartered in fleet

·      The Fair Market Value of the fleet decreased quarter-on-quarter
by c.0.9% on a like-for-like basis to c.$123.6 million, with Handysize asset
values depreciating slightly

·      Overall, the Company has executed 51 disposals since the
beginning of 2023 at an average 3.2% discount to Fair Market Value.  These
sales will have generated total gross proceeds of $839.2 million

Operating results, firmer than expected market conditions contribute to solid
TCE performance

·      The Company generated net charter revenue of $17.6 million,
equating to fleet-wide time charter equivalent ("TCE") earnings of $13,823 per
day for the period (versus $38.4 million charter revenue and $10,558 per day
TCE earnings for the equivalent period last year).  The reduction in charter
revenue was due to a smaller operating fleet, with TCE performance remaining
healthy in line with unusually firm market conditions as robust grain
shipments, most notably US soybean exports carrying over into the New Year,
offset typical seasonal weakness

·      The Company recorded a net loss for the quarter of c.$9.4
million, or $0.03 net loss per share

·      The Handysize and the Supra/Ultramax fleets outperformed their
respective benchmark indices 6  by $1,076 per day (9.5%) and $2,446 per day
(19.5%)

·      The number of covered fleet ship days remaining for the current
financial year (to 31 March 2027) stands at 62% at an average TCE rate of
$12,628 per day.  The number of covered fleet ship days remaining for the
2026 calendar year stands at 68% at average TCE rate of $12,628 per day

Balance sheet strength providing strategic flexibility

·      Cash and cash equivalents were $72.0 million and other net
assets, including the Company's investment in a vessel held under JV
arrangement, stood at $8.3 million at the end of the period

·      The Company's outstanding debt was $39.7 million as at 31 March
2026 (versus $41.0 million as at 31 December 2025) and comprised entirely of
financial liabilities under sale-leaseback agreements including a $21.6
million purchase option which will fall away upon expiry

·      The Company's debt-to-gross assets ratio was 18.6% as at 31 March
2026 (or 9.5% excluding the $21.6 million purchase option)

·      As at 31 March 2026, Right-of-Use (ROU) assets and lease
liabilities stood at $0.8 million and $0.8 million, respectively

Dividend declared & dividend policy

The Board is also pleased to declare an interim dividend in respect of the
period to 31 March 2026 of 2 US cents per ordinary share:

 Ex Date:                           7 May 2026

 Record Date:                       8 May 2026

 Last day for currency elections:   11 May 2026

 Payment Date:                      26 May 2026

Following the above payment, the Company has achieved its target dividend of 8
cents in respect of the financial year ended 31 March 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 .

Following the change in strategy announced on 20 March 2026, any dividends
declared by the Board for financial periods commencing on or after 1 April
2026 will remain subject to the Company holding cash in excess of its working
capital requirement and the Board determining that distributing such by way of
an interim dividend would be of greater benefit to shareholders than by way of
a compulsory redemption of shares.

Dry bulk market review and outlook

Charter markets started calendar 2026 on a firm footing, supported by robust
grain shipments, before weakening gradually from early March, as hostilities
in the Middle East escalated, dampening sentiment.  The direct impact for dry
bulk has so far been moderate although the indirect effects of a prolonged
conflict could prove more material should energy costs remain elevated over
time, creating headwinds to minor bulk demand.

While sentiment remains fragile, geared freight rates showed signs of
stabilising in early April. Benchmark Handysize 7  and Supra/Ultramax 8 
values, meanwhile, have remained firm, retaining early-year gains before
rising above pre-war levels.

Near-term market conditions are likely to remain volatile.  Further ahead,
however, medium-term supply-side fundamentals for the geared dry bulk segment
remain constructive, supported by an ageing fleet, limited yard availability
and the general trend toward decarbonisation, which should encourage slower
steaming and the incremental recycling of older, less efficient tonnage.

 

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 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.

As announced on 20 March 2026, the Company is pursuing a managed realisation
of the Company's assets, prioritising the maximisation of proceeds from vessel
sales and future returns of capital to shareholders whilst maintaining
sufficient working capital for the Company's operations.  The timing of
disposals and subsequent returns of capital will be influenced by market
conditions and commercial factors.

The Company, through its subsidiaries, currently has an owned fleet of 6 dry
bulk vessels consisting of 4 Handysize vessels and 2 Supra/Ultramax vessels.
The Company also has one vessel under JV agreement and one vessel in its
chartered in fleet.  The ships are employed utilising a mix of time charter
and voyage charter to optimise fleet earnings and cargo coverage.

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 at 31 March 2026 was $123.6 million

 2  Financial liabilities relating to sale-leaseback transactions

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

 4  Net of voyage expenses

 5  Excluding loss on disposal from vessel sales and net changes in FV of
financial assets

 6  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

 7  Clarksons benchmark 37k dwt 10 year old Handysize vessel

 8  Clarksons benchmark 61k dwt 10 year old Supra/Ultramax vessel

 i  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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