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(Alliance News) - Tufton Oceanic Assets Ltd on Friday said its net asset value total return for the half year 2022 was negatively impacted by losses in its bulk carrier business.
The Guernsey, England based investment company, which specialises in second-hand commercial sea vessels, said its NAV total return was negative 0.6% in the half year ended December 31, down from 22% the year prior. This attributed to "unrealised losses" in the bulk carrier business as a result of Covid restrictions in China.
Meanwhile, its net asset value per share was USD1.402 on December 31, down 3.3% from USD1.450 on June 30.
The company also declared a target annual dividend of USD0.085 per share, raised from USD0.80 per share, starting in the final quarter of 2022. Tufton's decision was encouraged by "strong visible cash flows from increased charter cover" and "continued supply-side recovery."
The company also swung to a portfolio loss of USD4.2 million from a profit of USD76.8 million the year prior, as its investments were impacted by the pandemic.
Looking ahead, Tufton said it expects the bulker market to benefit from the easing of Covid-related restrictions in China regarding supply.
The company also said it anticipates "further upside" in second-hand values of bulkers and tankers, as new build prices are rising due to limited shipyard capacity and tighter environmental regulations.
Shares in Tufton were down 1.6% at 94.02 pence each in London on Friday morning.
By Sabrina Penty; Alliance News reporter
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