11th Sep 2019 11:52
(Alliance News) - Tufton Oceanic Assets Ltd on Wednesday announced a share placing and posted a small reduction in net asset value per share in its most recent financial year due to share placings and dividends.
Tufton invests in a portfolio of second-hand commercial sea-going vessels. As at June 30, its NAV per share stood at 100.53 US cents, having been 101.61 cents the year before.
This is because, while shareholders' equity well more than doubled to USD225.8 million from USD92.5 million, the number of shareholders also rose to 224.6 million from 91.0 million.
During its financial year ended June 30, Tufton raised a total of USD128.4 million through a C share issues in October 2018 and an ordinary share issue in march 2019. Further, The C shares were converted to ordinary shares in February 2019.
During the year, Tufton declared dividends of 1.75 cents per share per quarter for financial 2019. It declared its first dividend of 0.015 cents in July 2018. This also reduced its NAV.
The investor's profit and comprehensive income for its year ended June 30 was USD16.4 million, having been USD3.3 million for the previous financial year. Tufton's financial 2018 year started February 2017, when the company was incorporated, and ended June 2018.
Non-executive Chair Rob King said: "I continue to be encouraged by the investment manager's ability to build a diversified portfolio of vessels in a timely manner. I would also like to thank N+1 Singer and Hudnall Capital for their contribution in raising USD78.4 million for the C share issue and for raising USD50 million on 11 March 2019. There continues to be a strong pipeline of investments particularly in the tanker, bulkers, general cargo and containership segments which makes it possible to invest recent proceeds on a timely basis.
"The directors, investment manager and our advisors continue to look for new and varied opportunities and aim to increase the company size further during 2019 and beyond."
The company is planning a further ordinary share placing to make further investments in "the tanker, containership, and general cargo segments with opportunistic investments in the bulker segment".
Tufton's joint brokers, N+1 Singer Advisory LLP and Hudnall Capital LLP, will conduct the placing. The placing shares will be prices at USD1.01 per share, a 2.3% premium to its June 30 NAV after adjusting for dividends. The placing commences immediately and will likely conclude September 19, though it may be closed at the company and bookrunners' discretion.
The amount to be raised from the placing and number of shares to be issued were not disclosed.
Shares in Tufton were untraded at USD1.01 on Wednesday morning in London.
Related Shares:
Tufton Assets.