Last checked at 30 May 2022 07:00
30 May 2022
Taylor Maritime Investments Limited (the "Company")
Trading Update
Successful fixing of longer-term charters enhancing earnings visibility and cash yields
Five vessels fixed on approximately one-year time charters with an average annualised gross unlevered cash yield in excess of 30%
Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk shipping company, announces that five vessels in its fleet have been fixed on time charters for an average of 11 - 13 months, with an average annualized unlevered gross cash yield in excess of 30%. This is based on last announced fair market values and compares with an average annualized unlevered gross cash yield in excess of 24% across the fleet as at 31 March 2022.
Edward Buttery, Chief Executive Officer, commented:
"During the Chinese New Year period, a time of typical seasonal weakness, we deliberately fixed a portion of the fleet on short-term charters as we anticipated a strengthening market in the lead up to the summer. This approach has now allowed us the flexibility to capture longer-term charters for five vessels at attractive yields for an average duration of approximately one year each to high-quality charterers and is part of our strategy to secure more cover on an increasing proportion of our fleet this summer and beyond. This is consistent with our overall strategy of having the most commercially advantageous mix of charter durations to balance revenue optimisation and earnings visibility, and is key to our delivering attractive yields, stable returns and NAV appreciation to our 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
| +44 20 7029 8000 |
Montfort Communications Alison Allfrey George Morris Seers
| TMI@montfort.london |
Notes to editors
About the Company
Taylor Maritime Investments Limited is an internally managed investment company listed on the Premium Segment of the Official List, its shares trading on the Main Market of the London Stock Exchange since May 2021. 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 stock offers a compelling and differentiated investment opportunity combining growth and strong shareholder returns, its investment objective being to deliver strong cashflow, stable income and potential for capital growth.
The Company invests in high quality, Japanese built vessels which are second-hand and acquired at valuations below long-term average prices and depreciated replacement cost. The current portfolio numbers 28 vessels. The Company has a leading position in the Handysize shipping sector and, thanks to versatile geared vessels delivering necessity goods, provides an attractive, defensible yield underpinned by zero long-term structural gearing, financial discipline and an optimal balance of charter rates and durations. It has a selective growth strategy focusing on accretive opportunities to increase shareholder returns and recycle capital efficiently.
The Company intends to pay dividends of 1.75 cents per Ordinary Share on a quarterly basis representing an annual yield of 7% on the IPO price of $1.00, with a targeted total NAV return of 10-12% per annum (net of expenses and fees but excluding any tax payable by Shareholders) over the medium to long-term.
Sustainability is at the heart of the way in which the Company is managed and it is committed to achieving a long-term target of zero carbon emissions by 2050. Substantial technological advances are a key element of this for the broader shipping industry, with near term incremental progress effected by initiatives such as retrofitting the fleet with energy saving devices, using low sulphur fuels and trialling biofuels.
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.
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 and stability of earnings.
For more information, please visit www.taylormaritimeinvestments.com.