Tufton Oceanic Assets, the UK-based shipping asset investor, reported a decline in revenue for the first half of its fiscal year, attributing the drop primarily to an increase in scheduled vessel dockings during the period.
For the six-month period the firm recorded revenue of $47.0 million. Operating expenses were $26.10 million, leaving earnings before interest and tax (EBIT) of $20.90 million. Despite the fall in top-line revenue, net income for the period increased to $33.0 million.
The company completed scheduled maintenance dry-dockings on nine vessels in the half-year, and disposed of one vessel at a price above its net asset value. Tufton said that the additional off-hire days required for these dockings reduced both revenue and operating profit for the period as the vessels were unavailable for charter during the maintenance windows.
Net income benefitted from higher charter-free values for tankers and bulkers amid a strengthening shipping market. In addition, extensions of charters on several vessels at higher rates improved the company’s forward dividend cover and provided greater visibility on cash flow.
Tufton reported that as of March 10 none of its vessels were trading in the Persian Gulf or the Gulf of Oman.
Looking ahead, the company is projecting a dividend cover of 1.6x through mid-2027 and said it remains cautiously optimistic about near- and mid-term shipping market conditions. The company highlighted the potential to benefit from higher charter rates and improved market dynamics as those conditions develop.
Contextual note: The company linked the first-half revenue decline directly to scheduled maintenance and associated off-hire days, while improved asset valuations and charter renewals underpinned the rise in net income and strengthened forward cash flow expectations.