TIDMTMIP TIDMTMIP TIDMTMI
RNS Number : 1094E
Taylor Maritime Investments Limited
09 March 2022
9 March 2022
Taylor Maritime Investments Limited (the "Company")
2 vessel sales at IRRs >100%
49% rise in Baltic Handysize Index since Chinese New Year
Ukraine and Russia < 5% of TMI port calls
Crew from vessel in Black Sea evacuated to safety
Taylor Maritime Investments Limited (TMI / TMIP), the specialist
dry bulk shipping company, announces that it has agreed to sell one
2006 built Handysize vessel and one 2011 built Supramax vessel for
a combined $33.3m of proceeds, realising a premium to the Fair
Market Values included in the Net Asset Value reported as at 31
December 2021. The transactions represent IRRs in excess of 100%
for each vessel and a MOIC of 1.4x and 1.7x respectively. Both of
the vessels were IPO seed assets. The sales are expected to
complete in Q2 2022.
Market Update
Since Chinese New Year, a time of typical seasonal weakness, the
Baltic Handysize Index TCA has improved by c.49% to a level of
$26,414 per day on 8 March 2022. Clarksons also recently increased
their 10-year-old 32k dwt Handysize benchmark value to $18.5m up
from $17m at the end of 2021. The underlying fundamentals of the
Handysize sector remain unchanged with constrained supply side
growth and steady demand, potentially supporting earnings. Against
an inflationary backdrop, shipping has historically been seen as a
hedge as commodity prices, freight rates and, eventually, asset
values rise.
Ukraine and Russia Impact
TMI had a Handysize vessel located in one of Ukraine's Black Sea
ports, where she was loading corn, when war broke out on 24
February. With the assistance of the Indian government, all
twenty-one crew members are now safely out of the country and will
be repatriated to India. On the advice of security experts, this
communication is being issued only after the crew have reached
safety. The vessel remains at berth in port and, like all
international vessels in Ukrainian ports, she is unable to leave.
The vessel remains on charter and insured.
From a market perspective, Clarksons data puts Ukraine (50
million tonnes) and Russia (36 million tonnes) at c.17.5% of the
seaborne grain trade. Based on recent trading history, TMI
estimates port calls to Ukraine and Russia accounted for under 2%
and 3% respectively of total port calls by TMI vessels. The
commodities carried on TMI ships from Ukraine and Russia are
necessity goods such as grains. While there may be regional trade
turbulence in the near-term, TMI expects that international trade
patterns will adapt as demand needs to be satisfied from other
sources; as current buyers of Black Sea grain potentially look to
North and South America as a substitute, a greater proportion of
Black Sea grain will be picked up by China.
Edward Buttery, Chief Executive Officer, commented:
"We are deeply concerned about the conflict and the tragic loss
of life in Ukraine and commend our commercial and technical
managers for prioritising our crew's safety first and foremost. We
continue to monitor the situation very closely.
Notwithstanding, the market has continued to firm since Chinese
New Year and we have been able to secure the sale of two assets at
attractive levels, crystallising significant returns for
shareholders."
ENDS
For further information, please contact:
Taylor Maritime Investments Limited IR@tminvestments.com
Edward Buttery
Alexander Slee
Jefferies International Limited
Investment Banking
Stuart Klein
Gaudi Le Roux
Sector coverage
Doug Mavrinac
Hugh Eden +44 20 7029 8000
Montfort Communications TMI@montfort.london
Nick Bastin
Alison Allfrey
Notes to editors
About the Company
Taylor Maritime Investments Limited is a recently established,
internally managed investment company listed on the Premium Segment
of the Official List and traded on the Main Market of the London
Stock Exchange. The Company invests in a diversified portfolio of
vessels which are primarily second-hand and which, historically,
have demonstrated average yields in excess of the Company's target
dividend yield of 7% p.a. (on the Initial Issue Price).
The Company's initial investments comprise Geared Ships
(Handysize and Supramax types) employed utilising a variety of
employment/Charter strategies.
The Company intends to pay dividends on a quarterly basis with
dividends declared in January, April, July and October. The Company
declared its first dividend of 1.75 cents per Ordinary Share for
the initial period ended 30 September 2021 in October 2021. The
Company targets a Total NAV Return of 10 to 12% p.a. (net of
expenses and fees but excluding any tax payable by Shareholders)
over the medium to long-term.
The Company has the benefit of an experienced Executive Team led
by Edward Buttery. The Executive Team have to date worked closely
together for the Commercial Manager, Taylor Maritime. Established
in 2014, Taylor Maritime is a privately owned ship-owning and
management business with a seasoned team that includes the founders
of dry bulk shipping company Pacific Basin Shipping (listed in Hong
Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic
Shipping) (listed in Oslo BWEK:NO). Taylor Maritime's team of
experienced industry professionals are based in Hong Kong and
London.
For more information, please visit
www.taylormaritimeinvestments.com .
About Geared Vessels
The Company specializes in the acquisition and chartering of
vessels in the Handysize and Supramax bulk carrier segments of the
global shipping sector. Geared vessels are characterised by their
own loading equipment. The Handysize market segment is 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.
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