Tufton Oceanic Asset - Acquisition of Product Tanker

Tufton Assets

10/06/2022 07:00

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RNS Number : 3739O  Tufton Oceanic Assets Ltd.  10 June 2022

10 June 2022

 

Tufton Oceanic Assets Limited (The "Company")

Acquisition of Product Tanker

 

The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is pleased to
announce the Company has agreed to acquire a Product Tanker for $31.5m.

 

The Product Tanker, Marvelous, is being acquired at approximately 90% of
depreciated replacement cost. Initially the vessel will be employed in a
leading product tanker pool where current net unlevered yield is in excess of
25%. We anticipate that the yield will remain above 20% over the next 1-2
years during which time we will decide if a longer term fixed rate charter is
more appropriate. Completion of the acquisition is expected by early July.

 

Similarly to the Product Tanker Exceptional, which the Company acquired at the
end of 2021, Marvelous is in the top quartile of fuel efficiency in its market
segment but will nonetheless be evaluated for further improvement, including
the retrofit of energy saving devices. Marvelous is being acquired at only a
slightly higher valuation multiple than Exceptional.

 

The investment follows earlier announcements regarding capital re-allocation,
ESG priorities and the recent strong improvement in the product and chemical
tanker markets. Following this acquisition and previously announced
divestments and acquisitions, the Company will be fully invested.

 

 

For further information, please contact:

 

 Tufton Investment Management Ltd (Investment Manager)                  +44 (0) 20 7518 6700

 Andrew Hampson

 Paulo Almeida

 Singer Capital Markets                                                +44 (0) 20 7496 3000

 James Maxwell, Alex Bond (Corporate Finance)

 Alan Geeves, James Waterlow, Sam Greatrex (Sales)

 Hudnall Capital LLP                                                     +44 (0) 20 7520 9085

 Andrew Cade

 

About the Company

Tufton Oceanic Assets Limited invests in a diversified portfolio of secondhand
commercial sea-going vessels with the objective of delivering strong cash flow
and capital gains to investors. The Company's investment manager is Tufton
Investment Management Ltd. The Company has raised a total of approximately
$316.5m (gross) through its Initial Public Offering on the Specialist Fund
Segment of the London Stock Exchange on 20 December 2017 and subsequent
capital raises.

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