Tufton Oceanic to Acquire Product Tanker and Handysize Bulker

Source: www.gulfoilandgas.com 12/30/2021, Location: Europe

The Board of Tufton Oceanic Assets Limited (SHIP.L) is pleased to announce that the Company has agreed to acquire a Product Tanker for $30.9m and a Handysize Bulker for $23.6m.

The Product Tanker is being acquired at approximately 85% of depreciated replacement cost ("DRC"). It has a fixed rate time charter of twelve to twenty-four months producing a net yield over 8% despite a relatively weak tanker market presently. The Investment Manager believes that positive drivers for both demand recovery and very low supply growth will significantly increase charter rates and values in the medium term.

The Handysize Bulker is being acquired below DRC. It has a fixed rate time charter of eighteen to twenty-four months producing a net yield over 15%.

Both vessels are already in the top quartile of fuel efficiency in their market segments but will be evaluated for further improvement, including the retrofit of energy saving devices ("ESDs"). The Product Tanker already incorporates some ESDs and other design features which have a similar or better impact on efficiency.

The acquisitions, together with announced divestments, demonstrate the Company's commitment to ESG and capital re-allocation. The latter is increasingly relevant given absolute and relative movements across and within the main shipping markets since 3Q20. The Investment Manager continues to identify an attractive pipeline of opportunities.

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