Last checked at 9 Mar 2022 07:00
9 March 2022
Taylor Maritime Investments Limited (the "Company")
2 vessel sales at IRRs >100%
49% rise in Baltic Handysize Index since Chinese New Year
Ukraine and Russia < 5% of TMI port calls
Crew from vessel in Black Sea evacuated to safety
Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk shipping company, announces that it has agreed to sell one 2006 built Handysize vessel and one 2011 built Supramax vessel for a combined $33.3m of proceeds, realising a premium to the Fair Market Values included in the Net Asset Value reported as at 31 December 2021. The transactions represent IRRs in excess of 100% for each vessel and a MOIC of 1.4x and 1.7x respectively. Both of the vessels were IPO seed assets. The sales are expected to complete in Q2 2022.
Market Update
Since Chinese New Year, a time of typical seasonal weakness, the Baltic Handysize Index TCA has improved by c.49% to a level of $26,414 per day on 8 March 2022. Clarksons also recently increased their 10-year-old 32k dwt Handysize benchmark value to $18.5m up from $17m at the end of 2021. The underlying fundamentals of the Handysize sector remain unchanged with constrained supply side growth and steady demand, potentially supporting earnings. Against an inflationary backdrop, shipping has historically been seen as a hedge as commodity prices, freight rates and, eventually, asset values rise.
Ukraine and Russia Impact
TMI had a Handysize vessel located in one of Ukraine's Black Sea ports, where she was loading corn, when war broke out on 24 February. With the assistance of the Indian government, all twenty-one crew members are now safely out of the country and will be repatriated to India. On the advice of security experts, this communication is being issued only after the crew have reached safety. The vessel remains at berth in port and, like all international vessels in Ukrainian ports, she is unable to leave. The vessel remains on charter and insured.
From a market perspective, Clarksons data puts Ukraine (50 million tonnes) and Russia (36 million tonnes) at c.17.5% of the seaborne grain trade. Based on recent trading history, TMI estimates port calls to Ukraine and Russia accounted for under 2% and 3% respectively of total port calls by TMI vessels. The commodities carried on TMI ships from Ukraine and Russia are necessity goods such as grains. While there may be regional trade turbulence in the near-term, TMI expects that international trade patterns will adapt as demand needs to be satisfied from other sources; as current buyers of Black Sea grain potentially look to North and South America as a substitute, a greater proportion of Black Sea grain will be picked up by China.
Edward Buttery, Chief Executive Officer, commented:
"We are deeply concerned about the conflict and the tragic loss of life in Ukraine and commend our commercial and technical managers for prioritising our crew's safety first and foremost. We continue to monitor the situation very closely.
Notwithstanding, the market has continued to firm since Chinese New Year and we have been able to secure the sale of two assets at attractive levels, crystallising significant returns for shareholders."
ENDS
For further information, please contact:
Taylor Maritime Investments Limited Edward Buttery Alexander Slee
| IR@tminvestments.com |
Jefferies International Limited Investment Banking Stuart Klein Gaudi Le Roux
Sector coverage Doug Mavrinac Hugh Eden
| +44 20 7029 8000 |
Montfort Communications Nick Bastin Alison Allfrey
| TMI@montfort.london |
Notes to editors
About the Company
Taylor Maritime Investments Limited is a recently established, internally managed investment company listed on the Premium Segment of the Official List and traded on the Main Market of the London Stock Exchange. The Company invests in a diversified portfolio of vessels which are primarily second-hand and which, historically, have demonstrated average yields in excess of the Company's target dividend yield of 7% p.a. (on the Initial Issue Price).
The Company's initial investments comprise Geared Ships (Handysize and Supramax types) employed utilising a variety of employment/Charter strategies.
The Company intends to pay dividends on a quarterly basis with dividends declared in January, April, July and October. The Company declared its first dividend of 1.75 cents per Ordinary Share for the initial period ended 30 September 2021 in October 2021. The Company targets a Total NAV Return of 10 to 12% p.a. (net of expenses and fees but excluding any tax payable by Shareholders) over the medium to long-term.
The Company has the benefit of an experienced Executive Team led by Edward Buttery. The Executive Team have to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime's team of experienced industry professionals are based in Hong Kong and London.
For more information, please visit www.taylormaritimeinvestments.com.
About Geared Vessels
The Company specializes in the acquisition and chartering of vessels in the Handysize and Supramax bulk carrier segments of the global shipping sector. Geared vessels are characterised by their own loading equipment. The Handysize market segment is particularly attractive, given the flexibility, versatility and port accessibility of these vessels which carry necessity goods - principally food and products related to infrastructure building - ensuring broad diversification of fleet activity.