Taylor Maritime (TMI) results are out for the 12 months ended 31 March 2023. The company’s NAV return was 4.7%.
Some highlights:
- Dividends of 10.97 cents were declared in the year ended 31 March 2023 (31 March 2022: 3.50 cents). In addition, the company declared an interim dividend on 27 April 2023 of 2 cents in respect of the quarter ended 31 March 2023. Dividend cover was 2.6x for the year ended 31 March 2023 (excluding the special dividend). The target dividend policy is 8 cents per annum paid on a quarterly basis, with a targeted total NAV return of 10-12% per annum over the medium to long-term.
- The outstanding debt balance was $222m as at 31 March 2023 (31 March 2022: $140m) resulting in a debt to gross assets ratio of 27.8% (31 March 2022: 19.1%). The company is committed to reaching a target of 25% debt to gross assets ratio within a period of 18 months of entering into the loan facility for the acquisition of Grindrod.
- As at 31 March 2023, the TMI fleet consisted of 23 vessels (31 March 2022: 31 vessels) with a total market value of $373m, down from $546m reflecting some disposals
- The average net time charter rate as at 31 March 2023 was approximately $14,500 per day, down from $18,600 per day, with an average duration of four months (down from six months) and generating an average annualised unlevered return of 17.5% (31 March 2022: 24%).
- On 19 December 2022, it bought a 57.9% holding in Grindrod at a price of $21.00 per share. As at 31 March 2023 the Group’s total stake in Grindrod amounted to 83.2%
Grindrod
- The Grindrod investment amounts to US$362m
- Grindrod’s fleet consisted of 28 vessels with a total market value of $624m, including 13 Supra/Ultramax vessels and 15 Handysize vessels
- The company received $31.6m in dividends from Grindrod including a special dividend of $5.00 per share (about $25m) which was used to part-finance the December share acquisition
The combined fleets of TMI and Grindrod amount to 51 vessels, comprising 38 Handysize vessels and 13 Supra/Ultramax vessels, with a total market value of $997m. As at 31 March 2023, the average age of the combined fleet was 10 years (31 March 2022: 11.4 years)
Frank Dunne, senior independent director and interim chair said “The priority post the Grindrod acquisition remains to reduce debt and to realise synergies available from this investment. Now under the stewardship of our recently-appointed chair, Henry Strutt, we, as a board, keep the use of free cash under constant review and will continue to do so, factoring in the company’s share buyback policy.“
Edward Buttery, CEO, added: “This was a period during which we were able to build on a particularly robust inaugural period post IPO. TMI’s fleet consistently achieved index beating rates. At the same time, there was significant investment activity, we divested eight ships at an average IRR of 83% and executed our plan to secure a controlling stake in Grindrod, in the process, creating a larger, younger and more efficient overall fleet. This remains a compelling acquisition harnessing what remains a favourable mid-term market backdrop and despite current macroeconomic headwinds. We are focused on deleveraging and strengthening our balance sheet which should position TMI to capitalise on the structural upside we anticipate going into 2024 and beyond to deliver attractive shareholder returns.”
TMI : Busy year for Taylor Maritime leaves it with young and efficient fleet