SHIP to return $31m to shareholders and loosen investment restrictions

Tufton Oceanic Assets (SHIP) has provided more details on the proposed actions to be taken as a result of its strategic review, the results of which were initially announced on 17 January 2024.

The board will propose an amended investment policy, which will ease SHIP’s current investment restrictions, as the current policy prevents making new investments that would result in any shipping segment (i.e. Tankers, General Cargo, Containerships and Bulkers) accounting for more than 50% of NAV. The current policy has prevented SHIP from making new investments, as at the end of Q1 2024 tankers accounted for 56.5% of NAV.

The proposed policy amendments are as follows:

• the restriction on making further investments that would result in a shipping segment accounting for more than 50% of NAV will only apply where the company is invested in at least three shipping segments; and
• where the company is only invested in two shipping segments: (i) no further investment may be made that results in any shipping segment accounting for more than 75%. of NAV; and (ii) if the tankers’ shipping segment accounts for more than 50% of NAV and exposure is only to a single tanker sub-segment (i.e. Crude Tankers, Product Tankers, Chemical Tankers, Gas Tankers), no further investment may be made in such tankers’ sub-segment.

The board has also announced a one-off return of capital, following the sales of two tankers. The board intends to return $31.5m to shareholders by way of a one-off compulsory redemption, based on SHIP’s NAV as a 30 June 2024 with redemptions being made in early August. Shareholders will still be able to receive the second quarter dividend from their redeemed shares.

Shareholders will be able to vote on the proposals at the forthcoming EGM, to be held at 11 a.m. on 11 June 2024 at 1 Royal Plaza, Royal Avenue, St Peter Port, GY1 2HL, Guernsey.