TIDMTMIP TIDMTMI
RNS Number : 3888S
Taylor Maritime Investments Limited
14 July 2022
TAYLOR MARITIME INVESTMENTS LIMITED
FULL YEAR RESULTS STATEMENT FOR THE PERIOD 31 MARCH 2021 TO 31
MARCH 2022
COMPELLING SHAREHOLDER RETURNS AND STRONG VISIBILITY WITH
POSITIVE OUTLOOK
14 July 2022 - Taylor Maritime Investments Limited (TMI / TMIP),
the specialist dry bulk shipping company, announces its full year
results for the financial period ended 31 March 2022.
KEY FINANCIAL HIGHLIGHTS
-- Fleet of 31 vessels with total market value of US$546m,
comprising US$480m of vessels and US$66m of assets held for
sale
-- Average net time charter rate of US$18,600
-- Average annualised unlevered return in excess of 24%
-- Audited NAV per ordinary share of US$1.74 and Total NAV of $575m
-- NAV total return of 81.3% and share price total return of 45.5%
-- Profit before tax of $253m (US$79m operating profit and US$174m fair value gains)
-- Dividends paid in respect of the period, including special
dividend, of approximately 10% on annualised basis
-- Grindrod Shipping investment amounted to $125m of the Group's NAV
COMMENTARY
-- Taylor Maritime Investments Limited concluded a successful
initial public offering on 27 May 2021, raising US$254 million
(comprising US$160 million cash and US$94 million in consideration
shares), followed by a subsequent capital raise of US$75 million on
28 July 2021
-- At 31 March 2022, the Group's fleet consisted of 31 vessels
(including vessels contracted to sell) with a total market value of
US$546 million. Of the 31 vessels, 29 were Handysize and 2 were
Supramax. The average age of the fleet is 11.4 years
-- Audited NAV per Ordinary Share of US$1.74 as at 31 March
2022, delivering Total Net Asset Value ('NAV') return per Ordinary
Share of +81.3% for the period from the Initial Public Offering
('IPO'). This was driven by operating profit, increased vessel
values and an attractive gain on the Grindrod Shipping investment
which appreciated substantially over the investment cost
-- The Company's Ordinary Shares closed at a price of US$1.42 on
31 March 2022. The Company's Total share price return per Ordinary
Share was +45.5% for the period from the IPO to 31 March 2022
(excluding the interim dividend for the quarter ended 31 March 2022
and the special dividend which both went ex-dividend after the
period end).
-- Profit for the period before tax was US$253 million,
comprising (on a look-through basis) US$79 million of operating
profit, after finance costs, and US$174 million fair value gain
-- The fleet's average net time charter rate at 31 March 2022
was approximately US$18,600 per day, with an average duration of
six months and generating an average annualised unlevered return in
excess of 24%. This compares favourably with the same figures as at
the end of 30 June 2021 (the Company's first quarter end), when the
average net time charter rate for the fleet was approximately
US$15,600 per day, with an average duration of 10 months and an
average annualised unlevered gross yield of 20%
-- During the period, the Group completed an acquisition of a
26.6% stake in Grindrod Shipping Holdings Ltd., a dual NASDAQ and
Johannesburg Stock Exchange listed shipping business (NASDAQ: GRIN,
JSE: GSH "Grindrod Shipping") secured at an average price of
US$17.64 per share. At 31 March 2022, the Grindrod Shipping's share
price was US$25.44 per share, amounting to US$125 million of the
Group's NAV. The Group also received two dividends of US$0.72 per
share in both December 2021 and March 2022 (total dividends of
US$1.44 per share for the period) from Grindrod Shipping,
representing an annualised yield of c.16% on the investment
-- Total dividends paid in respect of the period ended 31 March
2022, amounted to 8.47 US cents, representing a dividend yield on
the Initial Issue Price of approximately 10% on an annualised
basis
-- The Group announced its commitment to achieving a long-term
target of zero carbon emissions by 2050 . Substantial technological
advances are a key element of this for the broader shipping
industry, but the Company has clearly defined near-term initiatives
with incremental progress made through the period, including
investment in vessel modifications, primarily retrofits during
regular maintenance periods and ongoing dialogue with major
customers around trialling lower carbon fuels and energy saving
measures
Commenting on performance in the full year period, Nicholas
Lykiardopulo, Independent Chair, said:
"TMI has made a dynamic and successful start as a listed
investment company as this outstanding first period of trading
testifies, with excellent levels of profitability and cashflow. Our
leading position in the Handysize dry bulk vessel segment, the
workhorses of the dry bulk shipping trade, continues to deliver
strong shareholder returns. We remain confident that market
fundamentals will lead well into 2024 and we will continue to
monitor the orderbook for indicators on market direction beyond
that period".
Edward Buttery, CEO , added:
"I am delighted that the differentiated shipping investment
opportunity we have created for investors continues to deliver
sustainable yield and capital appreciation from our high quality
assets. Our focus will remain on managing the company with a
carefully balanced chartering strategy, strong liquidity and
financial prudence to deliver consistent earnings and compelling
dividends".
Outlook
We expect a continued strong market for 2022 with 2.1% tonne
mile growth for minor bulk and 2.7% for 2023 expected against net
fleet supply growth of 1.9% and -2.2% respectively and subject to
actual fleet removals (Clarksons Research). The short-term impact
of the war in Ukraine has seen a shift in trading patterns for the
shipping of necessity goods, both to source alternative suppliers
and with Russia exports shipping to different destinations. So far,
the net change to demand seems to be negligible for our segment,
once the decrease in volumes is offset by increased tonne-miles. We
expect current Covid lockdowns in China to be transitory and for
demand to rebound, as experienced following previous lockdowns.
Acknowledging uncertainty in the wider economy, we remain
optimistic about the Handysize segment given tightening supply over
the next two years and possibly longer. The orderbook remains at
historical lows and a significant uptick in newbuild contracting
remains unlikely for now given both cost inflation and pending more
deep-seated change to ship designs to meet evolving environmental
demands. This dynamic will continue to support firm asset
valuations and charter rates.
Click on or paste the following link into your web browser to
view the Annual Report.
https://taylormaritimeinvestments.com/wp-content/uploads/taylor_maritime_annual_report_and_audited_consolidated_financial_statements_31Mar21_to_31Mar22.pdf
The full results are available on the Company's website at
www.taylormaritimeinvestments.com .
http://www.rns-pdf.londonstockexchange.com/rns/3888S_1-2022-7-13.pdf
Notes to editors
Enquiries:
Taylor Maritime Investments Limited IR@tminvestments.com
Edward Buttery
Camilla Pierrepont
Jefferies International Limited
Investment Banking
Stuart Klein
Gaudi Le Roux +44 20 7029 8000
Montfort Communications TMI@montfort.london
Alison Allfrey
George Morris Seers
Sanne Fund Services (Guernsey) Limited
(formerly Praxis Fund Services Limited)
Tom Daish
Matt Falla +44 1481 737600
Notes to editors
About the Company
Taylor Maritime Investments Limited is an internally managed
shipping company listed on the Premium Segment of the Official
List, its shares trading on the Main Market of the London Stock
Exchange since May 2021. The Company specializes in the acquisition
and chartering of vessels in the Handysize and Supramax bulk
carrier segments of the global shipping sector. 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 shares offer a compelling and
differentiated investment opportunity with the aim of delivering
strong cashflow, stable income and potential for capital
growth.
The Company invests in high quality, Japanese built vessels
which are primarily second-hand and acquired at valuations below
long-term average prices and depreciated replacement cost. The
current portfolio numbers 27 vessels. The Company has a leading
position in the Handysize shipping sector and, thanks to versatile
geared vessels delivering necessity goods, provides an attractive,
defensible yield underpinned by zero long-term structural gearing,
financial discipline and an optimal balance of charter rates and
durations. It has a selective growth strategy focusing on accretive
opportunities to increase shareholder returns and recycle capital
efficiently.
The Company intends to pay dividends of 1.75 cents per Ordinary
Share on a quarterly basis representing an annual yield of 7% on
the IPO price of $1.00, with a targeted total NAV return of 10-12%
per annum (net of expenses and fees but excluding any tax payable
by Shareholders) over the medium to long-term. The Board approved a
special dividend of 3.22 US cents per share in respect of the
period to 31 March 2022 paid on 6 May 2022, which brought total
dividends declared for the period from IPO to 31 March 2022 to 8.47
US cents per share, representing a dividend yield on the IPO price
of approximately 10% on an annualised basis. This reflected excess
cash generation in what continues to be a historically strong
market and a desire to return capital to shareholders in a timely
manner.
Sustainability is at the heart of the way in which the Company
is managed and it is committed to achieving a long-term target of
zero carbon emissions by 2050. Substantial technological advances
are a key element of this for the broader shipping industry, with
near term incremental progress effected by initiatives such as
retrofitting the fleet with energy saving devices, using low
sulphur fuels and trialling biofuels.
The Company has the benefit of an experienced Executive Team led
by Edward Buttery. The Executive Team worked closely together at
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,
Singapore and London.
About Geared Vessels
Geared vessels are characterised by their own loading and
unloading equipment. The Handysize market segment is particularly
attractive, given the flexibility, versatility and port
accessibility of these vessels which carry necessity goods -
principally foodstuffs and products related to infrastructure
building - ensuring broad diversification of fleet activity and
stability of earnings.
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