Taylor Maritime (TMI), the former shipping fund that sailed out of the investment companies sector in January, is to make a bumper $143.4m (£107m) return of capital to shareholders early next year.

The $287m dry bulk fleet operator’s distribution of half its market value will come with a quarterly dividend of 8 cents per share taking the total amount returned to $150m.

The move comes as TMI sits on a big cash holding and is debt free after chief executive Edward Buttery said the company had “liquidated a large portion” of its fleet this year.  

Buttery said the company would consult with shareholders over the future of the company, which had appeared to transform its prospects with the acquisition of US shipping operator Grindrod three years ago.

He also said shareholders could expect a reduction in the dividend as the company shrank.

“We will retain sufficient cash to ensure smooth operations as we evaluate our strategic options during the first half of 2026.  We will continue to focus on reducing costs while maintaining a close dialogue with shareholders on capital allocation and strategic direction. We will review our dividend policy going forward given the substantial return of capital and our reduced operating platform,” he said.

The statement came alongside half-year results showing the impact of the fleet reduction. The six months to 30 September saw 21 vessels sold leaving TMI with 11 Japanese-built vessels worth just over $202m. Of these, three are held for sale and a fourth has had a sale agreed.

Adjusted earnings, or profits, came in at $18.2m, which the company said was “robust” given the reduced fleet size. The company incurred a net loss of $32.1m, driven primarily by vessel impairment of $18.8m in respect of 13 vessels and depreciation of $22.6m under the new reporting basis adopted after the company’s transition from an investment fund to a commercial company  

The shares slipped 1.1% to 86 cents on Friday, down 13% this year.