(Alliance News) - Tufton Oceanic Assets Ltd on Monday said it has sold three of its general cargo vessels for a total amount of USD19.3 million, and purchased a product tanker for USD13.3 million.
The product tanker acquired by the company has a fixed rate time charter for three to four years to a major commodity trading and logistics company. Tufton has also renewed the employment for the product tanker pollock with a fixed-rate time charter for three to four years.
"The acquisition and employment renewal will partly offset the reduction in the company's average fleet charter coverage resulting from the recent divestment of three general cargo vessels," Tufton said.
Following the sales and acquisition, the Guernsey-based shipping company has 15 vessels in its fleet.
Tufton said that it will continue to invest in a pipeline of opportunities across a range of sectors, adding that the proceeds realised from the sales will be redeployed to to fund further investments over the next few months.
The company said that it has around USD20 million in investable cash following the transactions. It added that the yield and internal rate of return realised after the transactions exceeds its target of 12% set in September 2018.
The stock was flat at 1.06 pence each on Monday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Tufton Oceanic. (SHIP)