27th Mar 2020 17:28
(Alliance News) - Tufton Oceanic Assets Ltd on Friday reported a fall in its interim net asset value per share amid geopolitical challenges as it announced a new acquisition.
The stock closed 3.6% lower at USD0.81 each on Friday in London.
For the six months to the end of December, the investment company which acquires vessels and other maritime assets posted NAV per share of USD0.992, falling from 100.53 US cents recorded at the end of June. At the end of December 2018, it registered a net asset value per share of USD0.9872.
It declared three dividend payouts of USD0.0175 each, totalling USD0.0524 up 61% from a total of 0.0325 paid in the year prior.
During the period, the company posted profit of USD5.5 million, falling 6.9% from GBP6.0 million.
Geopolitical events such as the US/China trade tariffs disputes and the crisis in the Middle East and Iran hurt the bulker and containership sectors, Tufton said.
Looking ahead, it said it expects fleet growth to slow on the Covid-19 outbreak.
"The issues surrounding Covid-19 and the spread of the virus outside of China into a pandemic, together with the recent drop in oil prices, have significant implications for the maritime industry. It is also expected that the bulker and containership sectors will remain subdued during the continuation of the current reaction in the western world to the spreading coronavirus threat. The resolution of the UK's exit from the EU has not had an impact on the portfolio, and is not expected to have one going forward," said Non-Executive Chair Rob King.
Separately, Tufton said it has acquired a handysize bulk carrier for USD7.0 million, taking its fleet to sixteen vessels. The bulk carrier has a fixed rate time charter for six to eight months to an undisclosed "major" agricultural commodity trading and logistics company.
By Ife Taiwo; [email protected]
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