Tufton topping up funds again – Tufton Oceanic Assets launches placing after results show a flat year in NAV terms to end June 2019.
Ship leasing firm, Tufton Oceanic Assets, has just released results covering the year ended 30 June 2019. Highlights from the statement include:
- Profit of US$16.4m, or 11.94 US cents per ordinary share (10.00 US cents adjusted for C shares).
- Declared dividends of 1.75 US cents per ordinary share for each quarter.
- NAV per ordinary share decreased from 101.6 US cents at the beginning of the year to 100.5 US cents as at 30 June 2019 net of share issue costs and after dividends.
- Raised combined gross proceeds during the year of US$128.4m by way of a C Share issue in October 2018 and ordinary Share issue in March 2019.
- C Share gross proceeds of US$78.4m in October 2018 were fully invested and the C Shares were converted to ordinary shares at a conversion ratio of 1.0794 in February 2019. This was supported by strong performance of the three product tankers Sierra, Octane and Pollock.
- The company then raised gross proceeds of US$50.0m in March 2019 and has since invested 85% of the proceeds.
- Completed or committed to eleven investments totalling US$161.4m during the year ended 30 June 2019 taking the portfolio to fifteen vessels – two handysize bulkers, six containerships, four tankers and three general cargo vessels
- Unlevered cash flow run rate of over US$26m p.a. (c. 1.6x the target dividend per share of US$0.07 per annum) after capital expenditure provision and management fees as of this report date.
- Average charter length is about 3.5 years.
- Share price decreased from $1.06 per share as at 30 June 2018 to US$0.99 at the close of business on 30 June 2019.
They say – “With fourteen of the fifteen vessels employed on fixed rate medium to long term charters, the portfolio is largely insulated from geopolitical and macroeconomic shocks.”
Today, with the share price at $1.01, the company has announced that it is looking for more money. The brokers are conducting a placing at $1.01, a 2.3% premium to the current NAV.
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