UK shipping fund Tufton Oceanic Assets posted a dip in third-quarter profit as it predicted a boost to shipping demand from Chinese fiscal stimulus measures.
The London-listed shipowner, managed by Tufton Investment Management, said operating earnings were $0.041 per share, or $11.1m, down from $13.9m a year ago.
Tufton Oceanic noted that towards the end of the quarter, the Chinese government announced a series of stimulus measures that “provide reason for optimism”.
The package, including a reduction in bank reserve requirement ratios, a cut in mortgage rates and measures to stabilise the equity market, “could catalyse shipping demand growth, especially for bulkers”, the company said.
The charter-free value of the portfolio fell slightly, mainly in line with bulker values.
The portfolio’s charter value increased, however, due to the combination of unwinding negative charter value and lower benchmark time charter rates.
At 30 September, Tufton Oceanic’s net asset value was $437.5m, the company said.
The NAV total return was 5.9% for the third quarter and 16.4% so far this year.
The company is paying a dividend of $0.025 per share for the quarter.
Earlier this month, Tufton Oceanic fixed out its two chemical tankers at what it called “attractive” rates delivering strong yields.
The 25,600-dwt Glen Cove (built 2008) and 20,000-dwt Octonaut (built 2007) have been booked for up to three years by an unnamed “leading operator”.
The deals will secure a minimum of $25m of Ebitda.
