REG - Tufton Oceanic Asset Tufton Oceanic -SHPP - Divestment of Two Vessels and Extension of Charter

Tufton Oceanic AssetsAnnouncement

11/01/2024 07:00

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RNS Number : 3063Z  Tufton Oceanic Assets Ltd.  11 January 2024

11 January 2024

 

Tufton Oceanic Assets Limited (The "Company") Announces

Divestment of two Handysize Product Tankers and

Extension of one MR Product Tanker Charter

 

The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is pleased to
announce the Company has agreed to sell two Handysize Product Tankers, Pollock
and Dachshund, for a total of $41.75m, which represents a 3.1% premium to the
two vessels most recent holding NAV of $40.50m (the "Disposals"). The
Disposals further confirm Tufton's NAV methodology, while also demonstrating
its ability to divest portfolio vessels at or above NAV. The transaction is a
forward sale and is expected to close during 2Q24 after the vessels complete
their current charters, the Company will therefore also benefit from the
vessel earnings during this period. The expected realised net IRR across the
two vessels will be c.25% and net MOIC c.2.0x including earnings through the
assumed delivery dates, significantly ahead of the Company's published IRR
target of 12%. Following the Disposals, the Company's fleet will comprise 20
vessels.

 

Furthermore, the Company has successfully extended the employment of
Exceptional, a 2015 built MR Product Tanker, with its current charterer for up
to 3 years commencing 1 January 2024. The new charter rate implies a net yield
of over 15% for the firm extension period which, when blended with the 6-month
sub-market stub end of the previous charter, will produce a net yield of c.13%
for the next 2 years. The aggregate charter length on the Company's fleet of
Product Tankers is now c.2 years (versus 1.7 years last quarter).

 

 

For further information, please contact:

 

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

 Andrew Hampson

 Nicolas Tirogalas

 Singer Capital Markets                                                        +44 (0) 20 7496 3000

 James Maxwell, Alex Bond, Angus Campbell (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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