UK shipping fund Tufton Oceanic Assets has posted a big jump in earnings for the second half of 2021 as its vessel portfolio rose in value.
The London-listed company said net profit to 31 December was $72.2m, or $0.253 per share, against $29.1m in the same period of 2020.
The net asset value (NAV) per share increased from $1.158 on 30 June to $1.376 or $424.8m by year-end.
The NAV total return was 22.3%, while revenue grew to $48.5m from $33.8m in the second half of 2020.
The gain in capital values was $57.2m, versus $9.8m in the year-ago period.
“Along with strong portfolio operating profit and cash flows, the company benefited from non-cash fair value gains as asset values rose,” Tufton said.
Containership values increased strongly as the market benefited from pent-up demand and inventory re-stocking, as well as port congestion and supply chain constraints.
Bulker prices also rose, with strong demand for seaborne bulk commodities including iron ore and grain, Tufton reported.
There was a gain of $80.1m in charter-free vessel values, but this was partly offset by a $22.9m fall in charter values as benchmark time charter rates rose beyond what Tufton’s ships are fixed for.
Strategy vindicated
Tufton said the results demonstrate its investment thesis and the effectiveness of its strategy.
The capital value of the container ships increased by $40.3m, and the company has sold four vessels this year to take advantage of crazy sale and purchase markets.
Its product tankers were operating on long-term charters and were insulated from the weak market.
