Tufton Oceanic results for the 12 months ended 30 June 2024 show an NAV total return for the period of 20.6%. The share price rose from US$0.99 per share as at the close of business 30 June 2023 to US$1.21 per share as at the close of business 30 June 2024.

On average, the shares traded at a 27% discount to NAV over the period. Tufton Oceanic repurchased 11,386,000 shares at a cost of US$11,573,679.

The company raised its target annual dividend from US$0.085 to US$0.1 per share, which commenced from 1Q24. With the increased dividend, the dividend is expected to be about 1.7x over the next 18 months (through the end of 4Q25). As at 30 June 2024, the average charter length was 1.3 years.

A review of strategy early in 2024 concluded that the best strategy for the company through to 2030 is to continue investing in fuel-efficient secondhand vessels to maximise shareholder returns, with plans to begin realising the portfolio starting in 2028, ahead of the anticipated acceleration in shipping decarbonisation.

Transit through two key global shipping routes, the Panama Canal and the Suez Canal, was disrupted during the period.

Disruptions to sea routes

Vessel transit through the Panama Canal was disrupted from late October due to an ongoing drought in the region. While transit through the Suez Canal was disrupted as Houthi rebel attacks on vessels in the Red Sea escalated from late November. Disruption of canal transit causes re-routing of cargo via alternate routes which typically take much longer and add to shipping demand. For example, disruption of transit through the Suez Canal is estimated to add c.3% to global shipping demand growth predominantly due to re-routing around the Cape of Good Hope. As of August 2024, vessel transit through the Panama Canal is returning to normal while traffic via the Suez Canal remains at very low levels due to the ongoing risk of attacks. All of the company’s vessels remain fully insured against war perils. None of the company’s vessels have been adversely affected by the war in Ukraine or the attacks on vessels transiting the Red Sea/Gulf of Aden. The manager’s policy is that company vessels should not transit the Red Sea during this period of conflict. The Master of each vessel may refuse to allow the vessel to trade in areas where there is a heightened physical risk to the vessel or its crew. The board and the manager remain watchful in monitoring the conflicts and their consequences for shipping in general and for the company.

Continuation vote

There is a continuation vote at this AGM and then another in 2027. [Vote in favour of continuation – it is doing a great job]

SHIP : Tufton Oceanic sees opportunities out to 2030