Taylor Maritime focuses on debt amid global macro challenges
By Josh White
Date: Tuesday 23 Jul 2024
(Sharecast News) - Taylor Maritime Investments reported an audited net asset value (NAV) per share of $1.48 in its full-year results on Tuesday, with a total NAV of $485m.
The London-listed company said a significant portion of that value, $325m, was attributed to its investment in Grindrod Shipping Holdings.
During the year, TMI paid dividends amounting to eight US cents per share.
The company said its debt-to-gross asset ratio was reduced to 23.5%, comfortably within its investment policy limit of 25%.
That reduction saw outstanding debt decrease from $222.2m to $151m.
On a look-through basis, considering both TMI and Grindrod, the total outstanding debt reduced by $73.6m to $330.8m, resulting in a debt-to-gross assets ratio of 35.8%.
The combined fleet of TMI and Grindrod now consisted of 39 vessels with a total market value of $793m.
That included 29 Handysize vessels and 10 Supramax/Ultramax vessels, three of which were chartered-in with purchase options.
The fleet's average age was 10.3 years.
Over the last year, the Handysize and Supra/Ultramax fleets outperformed their benchmark indices by $1,416, or 15%, and $2,549, or 21%, per day, respectively.
However, the NAV return per share for the year was -9.0%, a decline from the +4.7% reported in the prior period.
The company's investment in Grindrod amounted to $325m at the end of March, down from $362m a year earlier.
Taylor Maritime's declared dividends of eight cents per share compared to 10.97 cents in the previous year.
Additionally, an interim dividend of two cents per share was declared on 26 April for the quarter ended 31 March, and was paid on 31 May.
"Persistent macroeconomic headwinds, with interest rates remaining high, made for a challenging period with slower economic growth impacting freight markets," said independent chair Henry Strutt.
"Despite this, the group delivered four quarterly dividends for shareholders, maintaining our dividend policy; a core commitment of the board.
"I was pleased to see our leverage reduce significantly as we continued to pay down debt."
Strutt said the company also made further progress with the integration of Grindrod, which he described as an ongoing priority.
"Indeed, following shareholder approval of the selective capital reduction and approval from the High Court of Singapore, we anticipate that the group will own 100% of the issued share capital of Grindrod which will subsequently be delisted from each of the Nasdaq Global Select Market and the Johannesburg Stock Exchange."
At 0830 BST, shares in Taylor Maritime Investments were up 0.91% at 82.14p.
Reporting by Josh White for Sharecast.com.
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