LONDON, UK: Taylor Maritime Investments Limited (TMI), the specialist dry bulk shipping company, has agreed to promote one 2006 constructed Handysize vessel and one 2011 constructed Supramax vessel for a mixed $33.3 million of proceeds, realising a premium to the Fair Market Values included within the Net Asset Value reported as at 31 December 2021.
The transactions represent IRRs in extra of 100% for every vessel and a MOIC of 1.4x and 1.7x respectively. Both of the vessels were IPO seed assets. The gross sales are anticipated to full 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 eight March 2022. Clarksons additionally recently elevated their 10-year-old 32k dwt Handysize benchmark worth to $18.5m up from $17m on the finish of 2021.
The underlying fundamentals of the Handysize sector stay unchanged with constrained provide side growth and regular demand, potentially supporting earnings. Against an inflationary backdrop, shipping has traditionally been seen as a hedge as commodity prices, freight charges and, eventually, asset values rise.
Ukraine and Russia Impact
Taylor Maritime had a Handysize vessel located in a single of Ukraine’s Black Sea ports, the place she was loading corn, when war broke out on 24 February.
With the help of the Indian government, all twenty-one crew members are now safely out of the nation and can be repatriated to India.
On the recommendation of safety experts, this communication is being issued solely after the crew have reached safety. The vessel stays at berth in port and, like all worldwide vessels in Ukrainian ports, she is unable to leave. The vessel stays on constitution and insured.
From a market perspective, Clarksons data places Ukraine (50 million tonnes) and Russia (36 million tonnes) at c.17.5% of the seaborne grain trade. Based on recent buying and selling 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 items such as grains. While there could additionally be regional commerce turbulence within the near-term, TMI expects that worldwide commerce patterns will adapt as demand must be satisfied from different sources; as present 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 involved about the battle and the tragic lack of life in Ukraine and commend our commercial and technical managers for prioritising our crew’s safety first and foremost. We proceed to monitor the situation very closely.
Notwithstanding, the market has continued to agency since Chinese New Year and we have been able to safe the sale of two assets at attractive levels, crystallising significant returns for shareholders.”
Taylor Maritime Investments Limited is a recently established, internally managed funding agency 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 that are primarily second-hand and which, historically, have demonstrated common yields in extra of the Company’s goal dividend yield of 7% p.a. (on the Initial Issue Price).
The Company’s preliminary investments comprise Geared Ships (Handysize and Supramax types) employed utilising a number of employment/Charter strategies.
www.taylormaritimeinvestments.com