TIDMTMIP TIDMTMI
RNS Number : 6153X
Taylor Maritime Investments Limited
27 April 2023
27 April 2023
Taylor Maritime Investments Limited (the "Company")
Quarterly NAV Announcement, Trading Update and Publication of
Factsheet
Grindrod Shipping investment delivering benefits of scale and
synergies with TMI CEO Edward Buttery appointed CEO
On track to reach debt reduction target by end of June with
total of c.$64 million of debt repaid across TMI and Grindrod in
the quarter
Balanced chartering strategy outperforming index and should
benefit from market upside with continued positive outlook
Interim dividend of 2 cents per share declared
Taylor Maritime Investments Limited, the specialist dry bulk
shipping company, today announces that as at 31 March 2023 its
estimated unaudited NAV was $1.72 per ordinary share compared to
$1.67 per ordinary share as at 31 December 2022. The Company is
also pleased to declare an interim dividend in respect of the
period to 31 March 2023 of 2 cents per Ordinary Share. The NAV
total return for the quarter was 3.8%.
The fourth quarterly factsheet of the current financial year is
also now available on the Company's website,
www.taylormaritimeinvestments.com .
Key Highlights (to 31 March 2023)
-- Continuing to successfully execute on deleveraging strategy
with total of $37 million of TMI debt repaid from vessel sale
proceeds, resulting in debt to gross assets ratio of 27.7% at
quarter end and on track to reduce this to below 25% by the end of
June in line with its commitment in the Company's investment
policy. When combined with Grindrod's debt repayments during the
period, a total of c.$64 million of debt was repaid across TMI and
Grindrod
-- Overall improvement in asset values resulting in 2.7%
increase in the Market Value of TMI's vessel portfolio on a
like-for-like basis. Grindrod's NAV increased by an estimated 3.4%.
Excluding three chartered-in vessels without purchase options, the
combined fleet comprised 51 vessels with a Market Value of $999
million
-- Dividend cover for the financial year to 31 March 2023 was
2.6x (excluding the special dividend)
-- TMI's strategy of ship sales in order to reduce leverage was
supported by a strong sale and purchase market. TMI completed two
vessel sales for aggregate net proceeds of $24.4 million generating
IRRs of 35% and 68% and MOIC of 1.56x and 1.54x. As already
announced, a third vessel was declared a constructive total loss
due to the war in Ukraine with insurance proceeds used to prepay
debt. TMI's fleet therefore comprised 23 vessels at the quarter
end
-- The earnings environment improved from the second half of the
quarter, as expected. The net time charter rate for the TMI fleet
was $14,500 per day at quarter end. The Company outperformed the
adjusted BHSI (Baltic Handysize Index) Time Charter Average (net)
[1] which stood at $10,331 at quarter end. TMI's chartering
strategy mitigated the impact of a typically weaker first quarter,
given Chinese New Year. The average charter duration stands at four
months, with a large portion of the fleet positioned to capture
improving market conditions expected in the lead up to summer, and
the average annualized unlevered gross cash yield was c.17.5% at
quarter end
-- Edward Buttery was appointed Chief Executive Officer of
Grindrod with effect from 1 April 2023, securing alignment of
strategy as TMI seeks to crystallise value from its investment in
Grindrod
-- At Grindrod, one previously announced vessel sale completed
during the period. A further three vessels were contracted for sale
(completion expected by 30 June 2023). The contracted vessel sales
will fund a further $16.1 million of debt repayments once
completed
Post-Period Trading Update (since 31 March 2023)
-- TMI agreed a further sale of a 2008 built 32k dwt Handysize
vessel due to complete this quarter for net proceeds of $11.7
million to be applied to reduce debt, generating an IRR of c.63%
and MOIC of c.2.0x
-- The Company has covered 24% of fleet days for the Financial
Year ending 31 March 2024 at an average net time charter rate of
c.$16,250 per day
-- Synergies from TMI's investment in Grindrod have started to
crystallise with the relocation of respective staff in London and
Singapore into the same office space and with Edward Buttery's
leadership as dual CEO reducing overheads. Fleet marketing is now
coordinated which will strengthen the overall commercial position.
An integration plan is in progress to formally combine commercial
and technical management of the fleets in due course which will
deliver economies of scale
-- The process of recruiting a new Chairman for TMI is now at an advanced stage
Commenting on the trading update, Edward Buttery, Chief
Executive Officer, said:
"We've made solid progress to deleverage TMI's balance sheet,
benefiting from a healthy secondary market as long-term
fundamentals remain favourable for geared dry bulk. It's exciting
to see synergies already crystallising from the Grindrod
transaction - my role as CEO of both companies will enable the
execution of a clear commercial strategy. Further plans are
expected to come to fruition over the next couple of quarters and
should bring cost benefits across the fleet. We're in a strong
position to capitalise on what we expect to be a firming market for
the benefit of all shareholders."
Dry bulk market outlook
The charter market made a swift recovery from mid-February with
the BHSI rising c.60% to the end of March following an
earlier-than-usual Chinese New Year. Dry bulk earnings are expected
to improve through 2023 partly boosted by China, accounting for
c.50% of the dry bulk market, which is showing early signs of an
economic recovery and global macroeconomic headwinds potentially
easing through the year.
Further support for charter rates is anticipated from increased
seaborne grain trade with Clarksons projecting tonne-mile growth of
4.7% year-on-year in 2023, driven by robust export volumes from
Brazil, Ukraine and the US. Clarksons has revised its forecast
upwards for combined minor bulk and grain demand growth (key
drivers for the geared dry bulk segment) to 2.1% in 2023 and 3.2%
in 2024 while the Handysize fleet grows modestly by 0.4% in 2023
and is expected to contract by -1.0% in 2024. The Supramax and
Ultramax fleet is forecast to grow by 2.2% in 2023 and 1.8% in
2024.
Asset values held firm, buoyed by supply-side pressure emanating
from a historically low orderbook and recently-introduced
environmental regulations which have fuelled expectations of
greater levels of recycling and lower operating speeds. Asset
values also improved with Clarksons' 10 year old 37k dwt Handysize
values increasing from $16.5 million to $18.5 million at quarter
end (the more moderate increase in TMI's fleet value is a result of
vessels becoming one year older). We continue to anticipate support
for earnings and in turn second-hand asset values given ongoing
supply side constraints. We maintain a positive outlook through to
the end of 2024, and possibly into 2025 with the orderbook
remaining near a historical low.
Financing
TMI repaid a total of $37 million of debt with a balance
outstanding of $222 million at the quarter end resulting in debt to
gross assets ratio of 27.7%. TMI expects to reduce this to below
25% by the end of June through agreed and planned vessel sales in
line with its commitment in the Company's investment policy.
Grindrod repaid $18.6 million of debt with a balance outstanding
of $205 million at the quarter end. On a 'look through' basis, debt
to gross assets ratio was 38.9% (including TMI and Grindrod debt).
TMI expects to reduce this to c.35% by the end of June [2] .
TMI continues to be focused on ensuring a strong balance sheet
consistent with its long-term commitment to a prudent capital
structure.
ESG
TMI continues to work closely with its commercial and technical
managers to ensure the fleet is compliant with the new industry
decarbonisation regulations that came into force in January 2023,
designed to meet the IMO's 2030 GHG reduction targets. During the
period, a further five vessels were fitted with energy saving
devices including boss-cap fins, high performance paints, pre-swirl
ducts and fuel efficiency monitoring systems. TMI aims to achieve a
long-term target of running a zero-emission fleet by 2050 and is a
signatory to the Getting to Zero Coalition's "Call to Action for
Shipping Decarbonisation".
S
For further information, please contact:
Taylor Maritime Investments IR@tminvestments.com
Limited
Edward Buttery
Camilla Pierrepont
Jefferies International Limited
Stuart Klein
Gaudi Le Roux +44 20 7029 8000
Montfort Communications TMI@montfort.london
Alison Allfrey
George Morris Seers
Sanne Fund Services (Guernsey)
Limited
Matt Falla +44 1481 737600
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 specializes in the acquisition
and chartering of vessels in the Handysize and Supramax bulk
carrier segments of the global shipping sector. The Company invests
in a diversified portfolio of vessels which are primarily
second-hand. TMI's fleet portfolio numbers 23 vessels in the geared
dry bulk segment. The ships are employed utilising a variety of
employment/charter strategies.
On 20 December, the Company announced it acquired a controlling
majority interest in Grindrod Shipping Holdings Ltd ("Grindrod")
(NASDAQ:GRIN, JSE:GSH), a Singapore incorporated, dual listed
company on NASDAQ and the Johannesburg Stock Exchange. Grindrod
owns 24 geared dry bulk vessels complementary to the Company's
fleet. They are mostly Japanese built, including 15 Handysize
vessels and 9 Supramax and Ultramax vessels. Grindrod has seven
vessels in its chartered in fleet with purchase options on
four.
The combined TMI and Grindrod fleet numbers 54 vessels
(including chartered in vessels).
The Company's target dividend policy is 8 cents p.a. paid on a
quarterly basis, with a targeted total NAV return of 10-12% per
annum over the medium to long-term.
The Company has the benefit of an experienced Executive Team led
by Edward Buttery and who previously worked closely together at 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
industry professionals are based in Hong Kong, Singapore and
London.
For more information, please visit
www.taylormaritimeinvestments.com .
About Geared Vessels
Geared vessels are characterised by their own loading equipment.
The Handysize and Supra/Ultramax market segments are 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 through the cycle.
IMPORTANT NOTICE
The information in this announcement may include forward-looking
statements, which are based on the current expectations and
projections about future events and in certain cases can be
identified by the use of terms such as "may", "will", "should",
"expect", "anticipate", "project", "estimate", "intend",
"continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking
statements are subject to risks, uncertainties and assumptions
about the Company, including, among other things, the development
of its business, trends in its operating industry, and future
capital expenditures and acquisitions. In light of these risks,
uncertainties and assumptions, the events in the forward-looking
statements may not occur.
References to target dividend yields and returns are targets
only and not profit forecasts and there can be no assurance that
these will be achieved.
LEI: 213800FELXGYTYJBBG50
[1] As the BHSI index has been based on a 38k dwt type since Jan
2020, the Company uses adjusted BHSI figures weighted on the
average dwt of the Company's fleet
[2] Look through debt to gross assets includes the TMI and
Grindrod level debt over both companies' gross assets
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NAVDGGDSRXDDGXL
(END) Dow Jones Newswires
April 27, 2023 02:00 ET (06:00 GMT)
Taylor Maritime Investme... (LSE:TMIP)
Historical Stock Chart
From Apr 2024 to May 2024
Taylor Maritime Investme... (LSE:TMIP)
Historical Stock Chart
From May 2023 to May 2024