Tufton Assets (SHIP) H2 2024 earnings summary

Executive summary

• NAV increased to $451.1m ($1.550/share) as of 30 June 2024, up from $412.8m ($1.365/share) year-over-year, with a NAV total return per share of 20.6% (FY 2023: -0.3%).

• Profit for the year was $76.1m (FY 2023: loss of $2.5m), driven by strong operating performance and gains in vessel values.

• Annual target dividend raised by 17.6% to $0.10/share from 1Q24, with $26.1m paid in dividends during the year.

• 11.4m shares repurchased at a weighted average price of $1.014/share; a one-off $31.5m capital return via compulsory redemption post year-end.

• Portfolio comprised 21 vessels at year-end, diversified across tankers, bulkers, and gas/chemical tankers.

Financial highlights

• Revenue was $117.7m (FY 2023: $119.9m); gross operating profit $62.7m (FY 2023: $64.3m).

• Portfolio operating profit was $52.0m (FY 2023: $56.3m); gain in capital values $24.1m (FY 2023: loss of $62.8m).

• Consolidated gearing ratio reduced to 12.0% (FY 2023: 13.8%).

• EPS was 25.89 cents (FY 2023: -0.81 cents).

• Net assets per share rose to 154.96 cents (FY 2023: 136.47 cents).

Outlook and guidance

• Management expects a strong investment environment through the decade, supported by limited shipyard capacity and high replacement costs.

• Dividend cover forecast at ~1.7x through 4Q25; continuation vote scheduled for October 2024, with next in 2027 if passed.

• Plans to begin realising the asset portfolio from 2028, ahead of anticipated shipping decarbonisation acceleration.