SHIP Tufton Oceanic Assets Limited

TIDMSHIP

RNS Number : 4342N

Tufton Oceanic Assets Ltd.

30 September 2021

30 September 2021

Tufton Oceanic Assets Limited (The "Company")

Acquisition of Two Bulkers

The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is pleased to announce that the Company has agreed to acquire two Handysize Bulkers for a total consideration of $41.2 m. The vessels are being acquired at below depreciated replacement cost ("DRC") and are fuel efficient versus their peer group.

The vessels have fixed rate time charters for approximately one year producing an annual net yield (after fees and capex accrual) of 25%. They will be drydocked upon completion of these charters, and will then be fitted with energy saving devices ("ESDs"). As announced in July, we expect fuel efficiency to increase by approximately 10% and the ESDs to produce net IRRs of over 15%. ESDs will increasingly be fitted on the Company's vessels in 2022.

The vessels are being acquired with the proceeds of the sale of the Containership Citra announced in late July and cash on hand. Following these acquisitions, the Company is fully invested.

These transactions, together with the divestments announced in May and July, demonstrate the Company's commitment to ESG and capital re-allocation. The latter is increasingly relevant given absolute and relative movements across and within the main shipping markets since 3Q20.

The Investment Manager continues to identify an attractive pipeline of opportunities across a range of the Company's target sectors.

For further information, please contact:

 
 Tufton Investment Management Ltd (Investment 
  Manager) 
  Andrew Hampson 
  Paulo Almeida                                                   +44 (0) 20 7518 6700 
 
 Singer Capital Markets 
  James Maxwell, Alex Bond (Corporate Finance) 
  Alan Geeves, James Waterlow, Sam Greatrex 
  (Sales)                                                         +44 (0) 20 7496 3000 
 
 Hudnall Capital LLP 
  Andrew Cade                                                     +44 (0) 20 7520 9085 
 

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 $277.5m (gross) through its Initial Public Offering on the Specialist Fund Segment of the London Stock Exchange, on 20 December 2017, a subsequent placing and offer in October 2018, a placing in March 2019, a placing in September 2019 and tap issues in March and August 2021 .

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September 30, 2021 02:00 ET (06:00 GMT)

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