The Board of Tufton Oceanic Assets Limited is pleased to announce that the Company has acquired one Containership for $7.0m and a stainless steel Chemical Tanker for $15.2m. With these acquisitions takes the Company’s fleet to twenty-one vessels.
The container vessel has a floating rate time charter, subject to a floor and a ceiling, of at least three years to a major container line which is investment grade. It is fitted with an exhaust gas scrubber.
The yield during the charter exceeds the targets expressed in the Company’s prospectus dated 25 September 2018. The vessel’s share of expected fuel cost savings produced by the scrubber increases the yield to greatly in excess of the Company’s targets.
The Chemical Tanker will be employed in a leading chemical tanker pool where it will earn a monthly floating charter rate based on the performance of the pool of vessels overall, but where the pool has significant contract coverage. The Company’s exposure to the spot market therefore will be approximately 5% of NAV.
The expected yield from the pool exceeds the targets expressed in the Company’s prospectus dated 25 September 2018.
With these acquisitions the Company will be fully invested but nonetheless Tufton Investment Management Ltd, the Investment Manager, continues to identify an attractive pipeline of opportunities across a range of the Company’s target sectors.
