Tufton Oceanic Assets trumpeted a confident outlook for the shipping and investment climate as it rang in a profitable first half performance.
The shipowner made a $23.6m move for a container vessel this summer and has now invested 85% of its third round of capital.
“We believe the longer-term investment outlook for shipping remains attractive as financial stresses at traditional ship lenders continue to create a very attractive risk return profile,” it said.
Despite trade wars and slowing demand growth forecasts Tufton stuck with its bullish outlook.
“We continue to be sanguine about the longer term outlook as fleet growth is also expected to slow to 2.8% this year, with potential for further reduction as ships are taken out of service to prepare for compliance to IMO 2020,” it said.
Tufton Assets rang in an operating profit of $0.023 per share in the six months to the end of June. It has announced a dividend of $0.0175 per share for the period.
“Despite ongoing headline concerns about tariffs and trade negotiations, the shipping market stabilised or improved across key segments over the second quarter,” Tufton Assets said.
“Feeder containership rates stabilised as fleet growth slowed. The dry bulk market staged a dramatic rebound as Brazilian iron ore production was partially re-started and Chinese demand growth recovered, aided by stimulus measures.
“The Baltic Dry Index hit a five year high in July – led by a strong market in the larger bulkers. The product tanker market remained wellsupported over the quarter despite seasonal weakness around refinery maintenance.”
The company, which now has 15 ships in its fleet, listed a net asset value of $1.005 per share at the end of June.
“Overall fleet value increased as shipping markets stabilised but the majority of the uplift came from the acquisition of Parrot at an attractive valuation,” it said.
