UK shipping fund Tufton Oceanic Assets has logged a "strong" first quarter result in volatile markets.
The London-listed owner said that its operating profit was $0.029 per share over the three months, equating to a 12% yield.
The estimated net asset value (NAV) of the company was $0.969 per share, compared to $0.992 per share at the end of 2019.
The operating profit was offset by a net fair value loss of $0.035 per share.
Fair value losses related to containerships and bulkers were partly offset by gains for tankers.
Including the dividend of $0.0175 per share paid on 21 February, the NAV total return was a -0.6% for the quarter.
Continued volatility
"The company has noted the continued volatility in share prices of publicly traded shipping companies and is therefore pleased that its strategy of portfolio diversification and strong charter coverage continues to insulate it from the recent market volatility caused primarily by Covid-19," it said.
Last month, Tufton Oceanic said it had spent $7m on an unnamed handysize bulker, bringing its fleet to 16 ships. It also bought a tanker and sold three cargoships in the period.
The new bulker has a fixed-rate time charter of between six and eight months with a major agricultural commodity trading and logistics company.
The average charter length of the portfolio is about three years, while vessels which have charters expiring in the next six months represent only about 16% of NAV.
There will be minimal or no void time between charters, the company expects.
"The investment manager continues to monitor the evolving situation but is very confident that its strategy will continue to result in low volatility of cash flow and NAV," it said.
The company remains on the hunt for more ships and believes the coronavirus crisis will present distressed opportunities.
The final results are due on 30 April.
