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    SHIP   GG00BDFC1649

TUFTON OCEANIC ASSETS LIMITED

(SHIP)
  Report
Delayed Quote. Delayed London Stock Exchange - 11/30 03:00:00 am
1.39 USD   +0.36%
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10/21TUFTON OCEANIC ASSETS : 3Q21 Factsheet
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Tufton Oceanic Assets : 3Q21 Factsheet

10/21/2021 | 02:14am EST

Tufton Oceanic Assets Limited (SHIP)

3Q21 Factsheet

KEY STATISTICS

as at 30 Sep 2021

(unless otherwise stated)

No. of Shares outstanding

280.57m

Share Price

$1.35

NAV

$383.71m

NAV per share

$1.368

Premium/(Discount) to NAV

(1.3%)

Target IRR (long-term)

12% p.a.

Target Dividend per Share

$0.08

Management Fee: 0.85% of NAV below $250m 0.75% of NAV between $250m and $500m 0.65% of NAV above $500m (no fees on cash)

Performance Fee: 20% of excess return over

12% net hurdle, partially paid after 7 years

INVESTMENT OBJECTIVES AND STRATEGY

To provide investors with an attractive level of regular and growing income and capital returns through investing in a diversified portfolio of secondhand commercial sea-going vessels.

PORTFOLIO HIGHLIGHTS

NAV total return for the quarter was 19.7% as containership and bulker values rose strongly. During the quarter, the Company agreed to divest the containership Citra with a realised net IRR of 47% and agreed to acquire a fuel efficient ultramax bulker with a fixed-rate time charter producing an annual net yield of c.21%. On 6 August 2021, the Company announced the successful raise of $12.4m in gross proceeds via the issue of 10.53m shares at a price of $1.18 per share. By the end of the quarter, the proceeds from the capital raise and the divestment of Citra were promptly invested in two fuel efficient handysize bulkers with fixed-rate charters producing an annual net yield of 25%. After these transactions, the Company will have an average expected charter cover of c.1.9 years. After the end of the quarter, the Company agreed to divest the handysize bulker Dragon. Tufton expects to invest the proceeds from the divestment promptly.

INVESTMENT MANAGER

Tufton Investment Management Ltd

70 Pall Mall, 1st Floor London SW1Y 5ES

The Investment Manager is Tufton Investment Management Ltd ("Tufton") The Tufton group was founded in 1985 to provide financial services to the maritime and energy industries and since 2000 has concentrated predominately on investment and asset management. The Investment Manager is authorised and regulated by the Financial Conduct Authority and has offices in London, Isle of Man, and Cyprus. Tufton is fully dedicated to the maritime industry with an in- house research team and Asset Manager providing operational and accounting services to each vessel within the portfolio. The Investment Manager is committed to Responsible Investment by integrating ESG principles into its investment process and since December 2018, has been a signatory of the UN Principles for Responsible Investment

Fund Managers:

  • Andrew Hampson: 43 years of experience in banking and shipping finance. Joined Tufton in 2001.
  • Paulo Almeida: 26 years of experience in fund management, investment banking and the shipping industry. Joined Tufton in 2009.

Signatory of

DIVIDEND

The Company declared a 3Q21 dividend of $0.02 per share, payable on 12 November 2021. The Company targets a total annual dividend of $0.08 per share and is forecast to have dividend cover of c.1.6x over the next 18 months despite being not fully invested from December following the divestment of Dragon. Tufton expects the forward cover will be at least 1.7x once SHIP is again fully invested.

INVESTMENT OUTLOOK

Tufton believes the shipping market is in a multi-year upcycle and offers investors inflation protection. The Clarksons newbuilding price index has risen c.19% YTD, largely driven by input cost pressures. Ceteris paribus, higher newbuilding prices drive secondhand vessel values higher.

The containership and bulker markets continued to strengthen in 3Q21, with strong underlying demand and port congestion. Benchmark 10-year-old containership prices rose c.29% while benchmark 10-year-old handysize bulker prices rose c.24% over the quarter. Despite the increase in bulker values, they are not above mid-cycle levels while annual net yields of c.20% are significantly above mid-cycle.

Earlier this year, SHIP acquired two chemical tankers. Tufton sees multiple catalysts on the horizon for improvement in the tanker market over the medium term. Oil demand continues to recover and will likely attain pre-pandemic levels in 2022. The rising cost of environmental compliance and high scrap prices suggest that the rise in tanker recycling seen earlier this year will continue. New orders remain subdued with the tanker orderbook at only c.8% of fleet which will result in very low fleet growth. While the strong yields in bulkers significantly de-risk new investments, the tanker market is likely to offer value opportunities in the coming quarters with strong capital appreciation potential. Tufton believes the shipping market continues to offer an excellent range of opportunities across the segments to provide investors with an attractive level of regular and growing income and capital returns.

All Rights Reserved. Published 21 Oct 2021

$1.80

Tufton Oceanic Assets Limited (SHIP)

3Q21 Factsheet

COMPANY INFORMATION

3rd Floor

Registered

1 Le Truchot

Address

St Peter Port

Guernsey, GY1 1WD

Listing

Specialist Fund Segment of the

London Stock Exchange

IPO Date

20th December 2017

ISIN / SEDOL

GG00BDFC1649 / BDFC164

Ticker

SHIP

Dividend

Quarterly

Frequency

ISA / SIPP

Yes

eligible?

Website

www.tuftonoceanicassets.com

EmailSHIP@tuftonoceanicassets.com

BOARD OF DIRECTORS

Robert King (Chairman)

Paul Barnes

Stephen Le Page

Christine Rødsæther

CORPORATE ADVISERS

Hudnall Capital LLP

Adam House, 7-10 Adam Street

London, WC2N 6AA

Andrew Cade: +44 (0) 207 520 9085

Singer Capital Markets

1 Bartholomew Lane, London, EC2N 2AX Alan Geeves: +44 (0) 207 496 3030 James Waterlow: +44 (0) 207 496 3031 Sam Greatrex: +44 (0) 207 496 3032

PORTFOLIO PERFORMANCE

NAV total return for the quarter was 19.7%. Operating profit was $0.027/share. The rise in charter-free values from the strong containership and bulker markets was partially offset by a drop in charter value as benchmark time charter rates rose i.e. an increase in "under-renting". The rate of increase in negative charter value slowed over the quarter as the benchmark rates in containerships and bulkers increased only moderately in September. The total negative charter value in the portfolio of $126.7m will trend to zero (i.e. increase NAV) in the medium-termceteris paribus. If market rates stay flat, the NAV impact in 4Q21 will be +c.$19.6m (c.5.1% of NAV).

$0.431

$1.60

($0.219)

$1.40

$0.027

($0.018)

($0.011)

$1.20

$1.397

$1.379

$1.368

$1.368

$1.158

$1.158

$1.185

$1.00

$0.80

NAV

Operating

Change in

Change in

Dividend

Performance

NAV

30 Jun 2021

profit

charter-free

charter

fee accrual

30 Sep 2021

values

value

FLEET NET YIELDS

The run rate yield+ on the fleet is 14.1%. Average expected charter length

(EBITDA weighted) is c.1.9 years.

19.4%

20%

15.9%

14.1%

11.3%

12.7%

15%

10%

5%

ADMINISTRATOR & SECRETARY

0%

Maitland Administration (Guernsey) Limited

Product &

Gas

Containerships

Bulkers

Fleet Avg

(per registered address above)

Chemical

Tanker

Wikus Van Schalkwyk: +44 (0) 1481 749363

Tankers

CORPORATE CALENDAR

+On market value and after capex accrual and fees, pro forma for all transactions announced

AGM

20 Oct 2021

PORTFOLIO OVERVIEW+

Reporting period end

30 Jun 2022 (FY)

Vessel Type

Charter Length

Vessel Age

Vessel Charterers

Dividend Calendar

1Q

2Q

3Q

4Q

21

21

21

21

Release

22

22

21

20

date

Apr

Jul

Oct

Jan

Ex-dividend

29

29

28

TBC

date

Apr

Jul

Oct

Containerships

< 1 year 1-3 years

5-10 years

Ten charterers

Record date

30

30

29

TBC

Product & Chem Tankers

10-15 years

Apr

Jul

Oct

Gas Tanker

3-5 years

Payment

14

13

12

TBC

Bulkers

15-20 years

date

May

Aug

Nov

Net current assets

+ pro forma for all transactions announced

Disclaimer: The information in this document has been prepared for information purposes only and does not constitute an offer or solicitation for the purchase or sale of any investment or financial instrument in Tufton Oceanic Assets Limited (the "Company") and should not be relied on by any person for the purpose of accounting, legal or tax advice or for making an investment decision. The payment of dividends and the repayment of capital are not guaranteed by the Company. Any forecast, projection or target is indicative only and not guaranteed in any way, and any opinions or views expressed in this document are those of Tufton Investment Management Ltd (the "Investment Manager"), and do not constitute investment advice and are subject to change without notice, and neither the Company nor the Investment Manager is under any obligation to update such opinions. Any potential investments identified by the Investment Manager are prospective only and there is no guarantee that the Company will proceed with any of them. Past performance is not a reliable indicator of future performance, and investors may not get back the original amount invested. Unless otherwise stated, the sources for all information contained in this document are the Investment Manager. Information contained in this document is believed to be accurate at the date of publication, but neither the Company nor the Investment Manager gives any representation or warranty as to the accuracy or completeness of the information in this document. This document does not contain and is not to be taken as containing any financial product advice or financial product recommendation. Neither the Company nor the Investment Manager accepts any liability whatsoever for any loss (whether direct or indirect) arising from any use of this document or its contents. Tufton Investment Management Ltd. is authorised and regulated by the FCA, registered in England & Wales (Registered Number: 01835984). Registered Office: 70 Pall Mall, 1st Floor, London SW1Y 5ES

All Rights Reserved. Published 21 Oct 2021

Disclaimer

Tufton Oceanic Assets Ltd. published this content on 21 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 06:13:03 UTC.


ę Publicnow 2021
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Financials (USD)
Sales 2021 82,5 M - -
Net income 2021 79,5 M - -
Net cash 2021 0,03 M - -
P/E ratio 2021 3,75x
Yield 2021 6,41%
Capitalization 427 M 427 M -
EV / Sales 2020 161x
EV / Sales 2021 3,76x
Nbr of Employees -
Free-Float 100,0%
Chart TUFTON OCEANIC ASSETS LIMITED
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Tufton Oceanic Assets Limited Technical Analysis Chart | SHIP | GG00BDFC1649 | MarketScreener
Technical analysis trends TUFTON OCEANIC ASSETS LIMITED
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TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
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Mean consensus BUY
Number of Analysts 2
Last Close Price 1,39 
Average target price
Spread / Average Target -
Managers and Directors
Robert Paul King Chairman
Stephen Le Page Independent Non-Executive Director
Paul Barnes Non-Executive Director
Christine R°dsŠther Non-Executive Director