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Tufton Oceanic Assets Ltd on Friday said it has agreed to buy a product tanker in a $31.5 million deal.
Tufton said the product tanker, dubbed 'Marvelous', is being acquired at 90% of depreciated replacement cost. Initially, the vessel will be employed in a product tanker pool where current net unlevered yield is in excess of 25%, it noted.
Tufton anticipates that the yield will remain above 20% over the next 1 to 2 years during which time it will decide if a longer term fixed rate charter ‘is more appropriate’.
‘Marvelous is in the top quartile of fuel efficiency in its market segment but will nonetheless be evaluated for further improvement, including the retrofit of energy saving devices,’ the firm said. The tanker is similar to product tanker Exceptional, which Tufton bought for a slightly smaller sum.
The transaction is set to complete in early July.
‘Following this acquisition and previously announced divestments and acquisitions, the company will be fully invested,’ the Guernsey, UK-based investment company focused on second-hand commercial vessels said.
Tufton Oceanic Assets shares were down 0.2% at $1.32 each on Friday.
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