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

Taylor MaritimeAnnouncement

24/10/2025 07:00

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RNS Number : 6803E  Taylor Maritime Limited  24 October 2025

24 October 2025

 

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

 

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

 

Four previously announced vessel sales complete for gross proceeds of $87.6
million

Opportunistic Handysize vessel sale agreed at 2.6% premium to Fair Market
Value

Firm spot freight rates see asset values and TCE performance slightly recover
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
30 September 2025.

Financial & Operational Highlights for the Quarter

 Fleet Net Book Value (NBV) 1  (#_ftn1) at 30 September 2025   $202.3 million
 Bank Debt 2  (#_ftn2) at 30 September 2025                    $0.0 million
 Other Debt 3  (#_ftn3) at 30 September 2025                   $41.5 million
 Cash & Cash Equivalents 4  (#_ftn4) at 30 September 2025      $139.2 million
 Other Net Assets 5  (#_ftn5) at 30 September 2025             $23.2 million
 Charter Revenue 6  (#_ftn6)                                   $31.1 million
 Net Profit (Loss)                                             $(20.8) million  7  (#_ftn7)
 Earnings per Share                                            $(0.06)
 Adjusted EBITDA 8  (#_ftn8)                                   $10.7 million
 Adjusted EBITDA per share                                     $0.03
 Average Time Charter Equivalent ("TCE") Earnings per Vessel   $13,066

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

"Further to our last quarterly trading update, we completed an additional
three vessel sales during the period, and one post period, directly bolstering
our cash position -  as we prepaid all bank debt in July - and two more
sales, already announced, will complete before the end of December.  Post
period, we agreed an opportunistic sale of a Handysize vessel at a healthy
premium to its Fair Market Value.

After a period of particularly negative sentiment early in the summer, the end
of the quarter was strong, seeing values return to near March levels.  Our
medium to longer term view of the market is unchanged and we remain
comfortable with our sale and purchase programme overall and the strategic
position we are in.  It has given us more certainty in an undoubtedly
volatile world.  Our remaining fleet gives us a degree of optionality and
exposure to the market and we remain focused on reducing costs in line with a
smaller fleet.  Given the large cash surplus, the Board will evaluate options
for capital allocation towards the calendar year end, notwithstanding our
commitment to maintaining the regular dividend."

Proceeds from vessel sales strengthen the Company's cash position

·      Three previously announced vessel sales completed during the
period and one additional sale completed post period, generating combined
gross proceeds of c.$87.6 million, with two other previously announced vessel
sales expected to complete between now and the end of December 2025 for
combined gross proceeds of c.$41.1 million

·      The above sales are in addition to four vessel sales completed
earlier in the period as announced on 25 July 2025

·      Post period, the Company agreed the opportunistic sale of a
Handysize vessel for gross proceeds of $15.3 million, representing a 2.6%
premium to Fair Market Value

·      Overall, the Company has executed 50 disposals since the
beginning of 2023, including 23 in the 2025 calendar year, as part of a vessel
sales programme at an average of /3.0% discount to Fair Market Value. These
sales will have generated total gross proceeds of $822.2 million once agreed
sales complete

Fleet development and market value

·      The owned fleet comprised 11 9  (#_ftn9)  Japanese-built vessels
at quarter end which will reduce to 7 10  (#_ftn10)  Japanese-built vessels
after announced sales complete with a current average age of 10.8 years and
average carrying capacity of c.44.0k dwt.  The Company also has 1 owned
vessel under a JV agreement and 5 vessels in its long-term chartered in fleet

·      The Fair Market Value of the fleet 11  (#_ftn11)  increased
quarter-on-quarter by c.3.6% on a like-for-like basis, to c.$207.6 million
with both Handysize and Supra/Ultramax asset values responding to
strengthening freight rates during the period

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

·      The Company generated net charter revenue of $31.1 million,
equating to fleet-wide time charter equivalent ("TCE") earnings of $13,066 per
day for the period (versus $64.1 million charter revenue and $14,210 per day
TCE earnings for the equivalent period last year), given a smaller operating
fleet

·      The Company recorded a net loss for the quarter of $20.8 million,
or $0.06 net loss per share, which includes an impairment and loss on disposal
of vessels of $18.3 million and depreciation of $10.6 million

·      Having increased period cover in anticipation of an expected
seasonal summer downturn, the Supra/Ultramax fleet underperformed its
benchmark index 12  (#_ftn12) by $1,173 per day (-7.7%) during the quarter.
Record grain harvests in South America and strong Chinese demand led to a firm
rate environment in the Atlantic basin.  Meanwhile, the Handysize fleet
slightly outperformed by $35 per day (0.3%) for the period

·      The number of covered fleet ship days remaining for the current
financial year stands at 86% at an average TCE rate of $14,026 per day 13 
(#_ftn13) with increasing levels of period cover being taken while rates
remain firm

Balance sheet strength providing strategic flexibility

·      Cash and cash equivalents 14  (#_ftn14) were $139.2 million and
other net assets, including the Company's investment in a vessel held under JV
arrangement, stood at $23.2 million at the end of the period

·      Having prepaid all outstanding bank debt in July 2025, the
Company's outstanding debt was $41.5 million as at 30 September 2025 (versus
$98.4 million as at 30 June 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 10.6% as at 30
September 2025 (or 4.9% excluding the $22.4 million purchase option)

·      As at 30 September 2025, Right-of-Use (ROU) assets and lease
liabilities both stood at $7.5 million each

Dividend declared

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

 Ex Date:                           6 November 2025

 Record Date:                       7 November 2025

 Last day for currency elections:   10 November 2025

 Payment Date:                      28 November 2025

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

Following a soft first half of 2025, freight rates strengthened with the
Baltic Supramax Index (BSI) and Baltic Handysize Index (BHSI) up 49% and 23%,
respectively, quarter-on-quarter.  Market strength during the period was
largely driven by a surge in US Gulf corn exports, coupled with robust grain
volumes out of East Coast South America (ECSA) destined for China.  Charter
rates have remained firm post period with a prolonged ECSA grain season being
supported by increased levels of Chinese forward purchasing activity as China
seeks alternative sources to US supply amid geopolitical tensions.

The value of second-hand geared vessels responded to the strength in freight
rates during the period yet remain well below their 2024 peaks.

While sentiment has generally improved it is yet to be seen whether a lack of
long-haul US to China grain voyages typical of calendar Q4 will limit the
strength of the Atlantic season.  Meanwhile, broader uncertainty remains
given revived US-China trade tensions with US threats to increase tariffs
beyond those already due to take effect in November and China introducing
export controls and port fees for US-linked non-Chinese built vessels.
Global economic growth and industrial output, key drivers of dry bulk volumes,
have so far proved resilient, however, while short-term effective supply
tightens amidst a shifting geopolitical landscape, supporting rates.

Despite concerns for a US-China decoupling and its impact on international
trade, supply dynamics continue to support a constructive medium-term outlook
for the geared segment.  While an elevated freight rate environment has
discouraged recycling, a meaningful number of ships in the global geared dry
bulk fleet continue to approach scrapping age and despite the International
Maritime Organisation's vote on a global Net Zero framework being delayed for
a year, the general trend toward decarbonisation should incentivise an
incremental scrapping of older, less efficient tonnage while enhancing the
value of less carbon intensive vessels.  Meanwhile fleet growth is expected
to remain reasonable by historical standards despite an increase in deliveries
in 2025 and forecast for 2026 given yard utilisation remains high with orders
from all sectors and a steep drop in newbuild ordering (bulk carrier
contracting is down c.71% year to date) amid geopolitical and regulatory
uncertainty.

 

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 10 dry
bulk vessels (including 3 vessels held for sale) consisting of 7 Handysize
vessels and 3 Supra/Ultramax vessels.  The Company also has 1 vessel under JV
agreement and 5 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
30 September 2025 was $207.6 million

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

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

 4  (#_ftnref4) Including c.$76,000 restricted cash

 5  (#_ftnref5) Includes Right-of-Use (ROU) assets, lease liabilities and
other assets and liabilities

 6  (#_ftnref6) Net of voyage expenses

 7  (#_ftnref7) Includes impairment and loss on disposal of vessels of $18.3
million and depreciation of $10.6 million

 8  (#_ftnref8) Excluding loss on disposal from vessel sales and net changes
in fair value of financial assets

 9  (#_ftnref9) Including vessels held for sale

 10  (#_ftnref10) Excluding one vessel held under JV arrangement

 11  (#_ftnref11) Including vessels held for sale

 12  (#_ftnref12) 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  (#_ftnref13) Including projected forward Contracts of Affreightment
("COA")

 14  (#_ftnref14) Including c.$76,000 restricted cash

 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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