REG - Taylor Maritime Ltd Taylor Maritime -TMI - Factsheet, Trading Update & Quarterly NAV

Taylor MaritimeAnnouncement

25/04/2025 07:00

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RNS Number : 1399G  Taylor Maritime Limited  25 April 2025

25 April 2025

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

 

Quarterly NAV Announcement, Trading Update and Publication of Factsheet

 

Eleven new vessel sales for total gross proceeds of $172.5 million

Previously announced vessel sale completed generating additional gross
proceeds of $13.9 million

All net proceeds to be applied to debt reduction - on course to zero net bank
debt by September 2025

TML transfers listing category after shareholders approved special resolutions

Softer asset values and payment of special dividend drive decrease in NAV
quarter-on-quarter

Interim dividend of 2 cents per share declared

 

Taylor Maritime Limited, the specialist dry bulk shipping company, today
announces eleven new vessel sales for gross proceeds of $172.5 million,
representing an average 4.0% discount to Fair Market Value 1 .  These sales
are in addition to the previously announced vessel sale in January of $13.9
million (0.5% discount to 30 September 2024 Fair Market Value) which completed
during the quarter.  One vessel sale completed post period with the remaining
ten sales expected to complete between now and the end of August 2025.  Total
gross proceeds from the 12 sales agreed and completed in the 2025 calendar
year to date stands at $186.4 million.

Once all the sales have completed, the Group's outstanding bank debt is
expected to reduce to $4.7 million, saving approximately $12.4 million 2  in
interest payments on an annualised basis.  This represents a significant
reduction in debt of $413 million 3  since the Grindrod acquisition in
December 2022.

The vessel sales put the Company on course to zero net bank debt and an owned
fleet of 19 Japanese built vessels.

 

Furthermore, the Company announces that its unaudited NAV as at 31 March 2025
was $1.11 per Ordinary Share compared to $1.28 per Ordinary Share as at 31
December 2024.  The NAV decrease for the quarter was primarily attributable
to a c.$32 million fair value loss and a c.$20 million combined interim and
special dividend payment. The Company is pleased to declare an interim
dividend in respect of the period to 31 March 2025 of 2 cents per Ordinary
Share.

The fourth quarterly factsheet of the current financial year is also now
available on the Company's website: www.taylormaritime.com
(http://www.taylormaritime.com) .

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

"Given our cautious view for 2025 amidst geopolitical and trade uncertainty,
we have accelerated divestments, capitalising on seasonal improvement in
market conditions and positive sentiment relating to Japanese-built vessels to
agree the sale of eleven vessels at an average 4.0% discount to Fair Market
Value.  Proceeds will be used to continue to deleverage toward zero net debt,
at pace, while ensuring adequate cash on the balance sheet and maintenance of
our regular dividend.  Enhanced flexibility facilitated by our transition to
a commercial company along with continued focus on operational efficiency and
cost reductions will provide further resilience through a potentially volatile
2025. In addition to general overhead savings achieved, the Board and I have
agreed a 25% reduction in my salary."

Key Highlights (to 31 March 2025)

Acceleration of vessel sales

·      Anticipating volatility given recent developments in US trade
policy, the Company took advantage of seasonal improvements in sentiment to
accelerate divestments with eleven new vessel sales announced today and a
previously announced sale completed during the quarter

·    Total gross proceeds from the 12 completed and agreed vessel sales
for the 2025 calendar year now stand at $186.4 million.  Overall, there have
been 39 agreed and completed vessels sales since the beginning of 2023 at an
average of 3.6% discount to Fair Market Value 4 , generating total gross
proceeds of $630.6 million once agreed sales complete

Fleet development and market value

·    The fleet comprised 30 5  Japanese-built vessels at quarter end and
will reduce to 19 6  Japanese-built vessels after the announced sales complete
with an average age of 9.9 years and average carrying capacity of c.44.5 dwt

·      The Market Value of the fleet 7  decreased quarter-on-quarter by
c.5.3% on a like-for-like basis, to $517.6 million.  After softening in
January in line with weaker charter market conditions, second-hand asset
prices climbed gradually from the end of the Chinese New Year holiday, despite
uncertainty caused by a dynamic US trade policy, and remain firmly above their
long-term average at the end of the period.  Values for second-hand geared
dry bulk vessels have so far remained resilient into calendar Q2 with the TML
fleet market value drop at the quarter end being attributable to the vessels
becoming a year older at the turn of the calendar year

Chartering outperformance through seasonally softer period

·      The fleet generated average time charter equivalent ("TCE")
earnings of $10,252 per day for the quarter (versus $12,150 per day for the
quarter ended 31 December 2024) with sentiment-driven freight market weakness
from the previous period carrying over into January before spot rates began
steadily improving from the end of the Chinese New Year holiday period

·      Relative to benchmark indices 8 , the combined Handysize fleet
outperformed by $1,775 per day (c.21%) and the Supra/Ultramax fleet
outperformed by $2,258 per day (c.27%)

Progress with debt reduction

·      The Group's outstanding debt stood at $250.1 million as at 31
March 2025 (vs $252.0 million as at 31 December 2024) representing a
debt-to-gross assets ratio of 38.7% (versus 35.4% at 31 December 2024).  This
comprises $187.4 million bank debt, $40.3 million relating to leases for four
ships and a $22.4 million purchase option which is treated as debt for
accounting purposes (note that it is not an obligation and will fall away upon
expiry)

·      All net sales proceeds, plus a portion of existing cash on the
balance sheet, will be applied to the repayment of bank debt, which is
expected to reduce from $187.4 million at March 2025 to $4.7 million drawn
from the existing revolving credit facility ("RCF"), noting that retaining
some bank debt as well as undrawn capacity is beneficial for liquidity and
future financial flexibility if required.  We therefore expect the Group's
outstanding debt to reduce to $47.2 million by September 2025 (including $20.2
million of lease related indebtedness and $22.4 million purchase option),
which would represent a debt-to-gross assets ratio of 10.4% (or 5.7% excluding
the purchase option) based on Fair Market Values as at end of March 2025

Transfer of listing category, consequential changes to Company's articles and
name change

·      On 13 January 2025, shareholders approved the transfer of the
Company's ordinary shares listing from the closed-ended investment funds
category to the equity shares (commercial companies) category of the Official
List (the "Transfer"), along with consequential changes to TML's Articles of
Incorporation and a proposal to change the Company name to "Taylor Maritime
Limited"

·      The Transfer and the consequential changes took effect on 10
February 2025

Board changes

·      On 11 February 2025, Mr. Alexander Slee (Deputy CEO), Ms. Yam Lay
Tan (CFO) and Ms. Camilla Pierrepont (Chief Strategy Officer) were appointed
as Executive Directors of the Company

Post-period trading update (since 31 March 2025)

·      The number of covered fleet ship days remaining for the 2025
financial year stands at 43% at an average TCE rate of $13,117 per day with a
portion of the fleet maintained on short charters to provide optionality for
further sales

Dry bulk market review and outlook

Following the unseasonably weak end to the 2024 calendar year, charter rates
remained subdued in January, reaching a low point during Chinese New Year,
before rising gradually through to the end of the quarter with US tariff
announcements seemingly having a limited direct impact on dry bulk trade.

Second-hand asset values followed a similar trajectory to charter rates over
the course of the period yet remained well above historical averages, proving
resilient in the face of broader market uncertainty.  Lack of clarity
concerning proposed levies on US port calls by China-linked vessels did,
however, impact liquidity with trading of Chinese-built second-hand vessels
slowing during the quarter while Japanese-built ships experienced higher
turnover.  The US Trade Representative has since clarified that Chinese-built
bulker vessels under 80,000 dwt, which encompasses the Handy and
Supra/Ultramax segments, are exempt from the new measures.

The direct impact of tariffs on dry bulk trade has so far been limited.
However, the US Administration's announcement of further tariffs in early
April and retaliatory measures taken in response, particularly by China, have
increased uncertainty and led to concerns over broader macroeconomic
deterioration.  Should trade frictions escalate and lead to lower industrial
activity and global GDP growth, the dry bulk sector could face less demand
than previously forecast.  Retaliatory tariffs, however, may also result in a
rerouting of trade routes with a potentially positive impact on tonne-mile
demand.

While short-term demand uncertainty has increased, the medium-term outlook
remains positive given supportive supply-side dynamics.  Fleet growth is
expected to remain modest by historical standards with net supply growth
forecasts for the geared dry bulk segment of 4.4% in 2025 according to
Clarksons, following several years of limited ordering and newbuilding
activity.  Meanwhile, a significant portion of the global geared dry bulk
fleet continues to approach scrapping age, with 10.5% of the current Handysize
fleet and 5.7% of the current Supra/Ultramax fleet reaching 25 years or older
in 2025.  Relatively firm freight market rates in recent years have led
owners to keep older vessels in service, however, with a softer 2025 in play,
scrapping activity may accelerate, providing further support to the supply
side.

 

ENDS

 

 For further information, please contact:

Taylor Maritime Limited              IR@tminvestments.com (mailto:IR@tminvestments.com)

 Edward Buttery

 Camilla Pierrepont

 Jefferies International Limited      +44 20 7029 8000

 Stuart Klein

 Gaudi Le Roux

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's strategy is focused upon providing
investors with an attractive level of regular, stable, growing income, and the
potential for capital growth.  The Group engages in shipping activities,
optimising earnings from safely operating and trading the fleet under an
enhanced strategy, using a mix of time charter, voyage, and CoA cargo cover.

The Company, through its subsidiaries, currently has an owned fleet of 29 dry
bulk vessels (following the completion of one vessel sale post period)
consisting of 19 Handysize vessels and 10 Supra/Ultramax vessels (including
one vessel under JV agreement and 10 vessels held for sale).  The Company
also has six vessels in its chartered in fleet. The ships are employed
utilising a variety of employment/charter strategies.

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 and discharging
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  Discount calculated to 31 December 2024 Fair Market Values for sales
agreed before period end and calculated to 31 March 2025 Fair Market Values
for sales agreed post period

 2  Inclusive of savings from lease liabilities

 3  Inclusive of bank debt and lease liabilities

 4  Includes completed and agreed sales, one vessel divested on a
sale-and-leaseback transaction but excludes two vessel sales within the Group

 5  Including one long-term chartered in vessel with a purchase option,
vessels held for sale and one vessel under JV arrangement

 6  Including one long-term chartered in vessel with a purchase option and one
vessel under JV arrangement

 7  Excludes one vessel under JV arrangement.  Note FMV accounts for nine
vessels at the agreed sales price net of commission with the remaining vessels
included at brokers' valuations

 8  The Company uses adjusted Baltic Handysize Index 38k dwt and Baltic
Supramax Index 58k dwt 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

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