UK shipowning fund Tufton Oceanic has said it has been protected from the effects of the coronavirus outbreak by its period coverage and diverse fleet.
In a statement, the London-listed company said it had noted the share price movements of publicly traded shipping companies and was providing an update to investors.
The shipowner said it is "pleased that its strategy of portfolio diversification and strong charter coverage" has "insulated" it from the recent market volatility caused primarily by the Covid-19 strain of the coronavirus.
As of 29 February, the estimated net asset value (NAV) was $0.976 ($) per share, compared to $0.992 per share as at 31 December.
The share closed unchanged at £1.05 on Tuesday.
Year to date, fair value losses in containerships and bulkers have been largely offset by fair value gains in tankers, Tufton Oceanic added.
The fair value decrease in the portfolio of $0.020 per share was more than offset by operating profit of $0.021 per share over the period.
Dividend paid on schedule
The dividend for the fourth quarter of $0.0175 per share was paid out on 21 February, resulting in a small estimated decrease in NAV.
The average charter length of its shipping portfolio is three years, which it said minimises spot market exposure and portfolio volatility.
Vessels which have charters expiring in the next six months represent only about 14% of NAV.
Including a product tanker acquired for $13.3m last month, the company has now fixed two tankers in the portfolio on time charters for a minimum of three years to a major commodity trading company at "mid-teen" yields, it said.
Boxship continues employment
An unnamed boxship has also extended its employment for between seven and 12 months, albeit at a lower yield than previously.
It has no void period between charters despite the vessel being positioned in Asia, the company added.
Tufton Oceanic said it 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."
The shipowning fund has $20m of cash ready for investment.
Last month, the company sold ships for the first time, offloading three general cargoships for $19.3m, cutting the number of vessels it owns to 15.
The realised yield and investment return exceeded the targets contained in the company's prospectus from 2018, it said.
The 30,000-dwt Zea Dalian (built 2004), Zea Hamburg (built 2002) and Zea Jakarta (built 2003) had been acquired from Zeaborn of Germany last year.
