Taylor Maritime posts full-year loss, progress in June quarter

(Sharecast News) - Taylor Maritime reported a full-year loss for the period ended 31 March on Friday, as softening market conditions and a decline in vessel values weighed on performance, although the group maintained its dividend policy and accelerated vessel sales to strengthen its balance sheet. The London-listed specialist dry bulk shipping company posted a net loss of $78.6m, compared with a loss of $53.5m a year earlier, including a $113m dollar loss from the revaluation of assets.

Net asset value per ordinary share stood at $1.1142, with total NAV of $366.8m, while assets under management declined to 29 vessels with a total market value of $518m from 39 vessels valued at $793m the prior year.

Despite market challenges, the company declared total dividends of 12 cents per share for the year, up from eight cents in the prior year, and confirmed an interim dividend of two cents per share for the quarter ended 30 June, to be paid on 29 August.

"The year has been marked by significant strategic progress whilst navigating considerable geopolitical and trade uncertainty," said Henry Strutt, independent chair.

"The company simplified its corporate structure after successfully gaining 100% ownership of Grindrod, transitioned to commercial company status and, with an acceleration of divestments toward the end of the period, positioned itself to fully repay the group's bank debt in July.

"With a strengthened balance sheet, the Group is on a firm footing to weather ongoing market volatility while maintaining regular dividends to shareholders."

The fleet generated average time charter equivalent earnings of $12,599 per day, with the Handysize fleet outperforming benchmark indices by $1,315 per day, or 13%, and the Supra and Ultramax fleet outperforming by $1,775 per day, or 14%.

Taylor Maritime said it completed 11 vessel sales and agreed to seven more during the year, generating $303.7m in gross proceeds, while outstanding debt was reduced by $80.9m to $247.1m, representing a debt-to-gross assets ratio of 38.2%.

"Despite a general softening of market conditions from mid-period onwards, we delivered a solid operating performance and, once again, considerably outperformed our benchmark indices," commented chief executive Edward Buttery.

"Meanwhile, we continued to opportunistically sell vessels through the year at times when values were firm and liquidity was good, generating healthy profits and preserving value.

"Proceeds from these sales along with an ongoing focus on realising efficiencies, has enhanced our ability to navigate near-term market uncertainty and capitalise on opportunities, should they arise, while retaining a core fleet of high-quality, cash-generating assets."

In a separate update for the quarter ended 30 June, Taylor Maritime reported a net loss of $11.3m and charter revenue of $37.3m, with fleet-wide TCE earnings of $11,284 per day.

The company said it had fully executed its vessel sales programme, with 49 disposals since 2023 generating $806.9m in gross proceeds.

Bank debt was reduced to $49.6m at quarter-end, and had since been fully repaid, leaving the group virtually ungeared with $62.4m in cash and undrawn revolver capacity.

"Having already set course to zero bank debt, a goal we achieved in July 2025, we continued to sell vessels to defend shareholder value given our view of further potential downside in asset values amidst steady fleet growth in the near-term and a slowing global economy," said Buttery.

"This approach has preserved an estimated $82m of value across 49 disposals since January 2023 which have been achieved at an average 3.1% discount to NAV.

"While we have positioned the Company to navigate near-term volatility, we retain a positive medium-term outlook for the dry bulk market overall."

With the sales programme expected to complete by the end of the year, Buttery said the firm was now "virtually ungeared" with cash on the balance sheet and undrawn revolver capacity providing strategic flexibility.

"Our priority is to maintain our regular quarterly dividend and we will continue to consider additional dividends to shareholders."

Taylor Maritime noted that while trade and macroeconomic uncertainty was likely to weigh on short-term demand, supply-side factors, including low levels of newbuild investment and an ageing global fleet, supported a constructive medium-term outlook.

It also highlighted progress on its sustainability goals, with fleet carbon intensity improving by 7% year-on-year in line with the International Maritime Organization's decarbonisation trajectory.

At 1211 BST, shares in Taylor Maritime were down 3.08% at 64.16p.

Reporting by Josh White for Sharecast.com.