Tufton Oceanic Assets has agreed to sell two Handysize Product Tankers, Pollock and Dachshund, for a total of $41.75m, which represents a 3.1% premium to the two vessels most recent holding NAV of $40.5m. The price helps confirm Tufton’s NAV methodology, while also demonstrating its ability to divest portfolio vessels at or above NAV.
The transaction is a forward sale and is expected to close during the second quarter of this year, after the vessels complete their current charters. The company gets to benefit from the vessels’ earnings during this period.
The expected realised net IRR across the two vessels will be about 25% and net MOIC of about 2.0x (including earnings), significantly ahead of the company’s IRR target of 12%.
Following these disposals, the fleet will comprise 20 vessels.
Tufton was also able to announce that it has successfully extended the employment of Exceptional, a 2015 built MR Product Tanker, with its current charterer for up to 3 years commencing 1 January 2024. The new charter rate implies a net yield of over 15% for the firm extension period which, when blended with the 6-month sub-market stub end of the previous charter, will produce a net yield of about 13% for the next 2 years. The aggregate charter length on the fleet of product tankers is now about 2 years, up from 1.7 years for last quarter.
SHIP : Tufton Oceanic sells two vessels