Oslo-listed Ocean Yield is expecting a more active sale and leaseback market in the second half as it pursues new deals.
The Kjell Inge Rokke-controlled shipowner logged a net profit of $21.5m in the first quarter, against a loss of $1.6m a year ago.
Revenue was down from $61.3m to $45.7m, but the board declared a dividend of 5.45 cents per share, up 0.15 cents from the fourth quarter.
This is the 31st consecutive quarterly dividend.
Chief executive Lars Solbakken said in a statement the company has a positive view on shipping markets for the next few years due to reduced negative effects on demand from Covid-19, a relatively low orderbook and increasing newbuilding prices.
On the hunt for tonnage
"We are actively looking for new investments in modern fuel-efficient vessels with long-term charters that can contribute to increase the dividend capacity," the CEO added.
"With respect to new investments, we experienced a market with lower volume of sale and leaseback transaction than normal in the first quarter," he added on a subsequent conference call with analysts, he added:
"We are, however, contesting more activity and are expecting a higher activity level in the second half of the year."
The company is due to receive cash proceeds of $51m from selling ships in recent months. Of this, $10m was banked in the first quarter.
"The net proceeds will be reinvested as equity into new projects," Solbakken said.
Danske Bank analyst Anders Karlsen said the company's cash pile is growing.
New interest needed to boost share price
And he added that to generate new investor interest, Ocean Yield needs to add some vessels to a portfolio that has decreased lately.
Karlsen sees this as likely in sectors like tankers, bulker and boxships.
"We believe a gradually increasing dividend is likely to support the share price," the analyst added.
The shipowner's floating production storage and offloading (FPSO) unit Dhirubhai-1 continues in lay-up in Sri Lanka.
The net loss for the vessel in the first quarter was $1.8m.
Ocean Yield is trying to offload the FPSO, but Karlsen expects the unit to hang around for some time yet.
