LONDON - Taylor Maritime Investments Limited (TMI), a specialist dry bulk shipping investment company, has released its unaudited interim results for the six months ending September 30, 2024, showcasing a period of strategic growth and operational strength. The company completed the acquisition of Grindrod (JO:GNDJ), turning it into a wholly-owned subsidiary, and executed vessel sales that contributed to significant debt reduction.
The interim period saw TMI's net asset value (NAV) remain stable at $1.48 per ordinary share, with a NAV return of 2.6% and a total share price return of 4.5%. Dividends of 4.00 US cents per ordinary share were declared, maintaining the previous year's level, and an interim dividend was also paid following the period's close.
On August 16, 2024, TMI finalized the acquisition of Grindrod through its subsidiary Good Falkirk (MI) Limited, which resulted in a NAV increase of 7 US cents per share and an overall profit of $49 million from the investment. The acquisition has enabled cost rationalization measures expected to save approximately $16 million annually, enhancing corporate synergies and operational efficiency.
Throughout the six-month span, TMI sold six vessels for a combined $123.7 million, with sales prices closely aligned with fair market values. Three additional vessel sales were agreed upon during the period, totaling $37.0 million. The company also exercised a purchase option for an Ultramax vessel, which was then sold and delivered into a joint venture arrangement, further optimizing the fleet.
The company has made strides in debt reduction, decreasing its look-through debt-to-gross assets ratio to 35.1% and targeting a medium-term leverage of 25-30%. TMI's chartering performance has been robust, with the fleet's time charter equivalent (TCE) rates surpassing industry indices and reflecting a solid market demand for dry bulk commodities.
Board changes included the retirement of Mr. Chris Buttery and Mr. Frank Dunne, with the appointment of Ms. Rebecca Brosnan and Mr. Gordon French as non-executive directors. Post-period, TMI announced its intention to transfer its equity shares listing category and declared a special dividend, signaling confidence in its financial position.
The dry bulk market has been supported by strong demand and ongoing fleet inefficiencies, with second-hand vessel prices reaching a decade high. While global economic headwinds are present, the medium-term outlook for the dry bulk sector remains positive, with limited supply growth and environmental regulations potentially enhancing the value of efficient vessels.
This report is based on a press release statement from Taylor Maritime Investments Limited.
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