LONDON (ShareCast) - (Sharecast News) - Tufton Oceanic Assets has agreed to acquire a product tanker for $30.9m and a handysize bulker for $23.6m, it announced on Thursday.
The company said the product tanker was being acquired at about 85% of its depreciated replacement cost.

It said it has a fixed-rate time charter of 12 to 24 months, producing a net yield of over 8% despite a "relatively weak" tanker market.

The firm's investment manager believed that positive drivers for both demand recovery and "very low" supply growth would "significantly increase" charter rates and values in the medium term.

Tufton said the handysize bulker, meanwhile, was being acquired below depreciated replacement cost, with a fixed-rate time charter of 18 to 24 months, producing a net yield of 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," Tufton said in its statement.

"The product tanker already incorporates some energy saving devices and other design features which have a similar or better impact on efficiency."

The board said the acquisitions, together with its recently-announced divestments, demonstrated Tufton's "commitment" to environmental, social and governance factors, and capital reallocation.

"The latter is increasingly relevant given absolute and relative movements across and within the main shipping markets since the third quarter of 2020.

"The investment manager continues to identify an attractive pipeline of opportunities."

At 1435 GMT, shares in Tufton Oceanic Assets were up 0.36% in London, at $1.375.

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