Taylor Maritime Limited, the specialist dry bulk shipping company, announced eleven new vessel sales for gross proceeds of $172.5 million, representing an average 4.0% discount to Fair Market Value. These sales are in addition to the previously announced vessel sale in January of $13.9 million (0.5% discount to 30 September 2024 Fair Market Value) which completed during the quarter.
One vessel sale completed post period with the remaining ten sales expected to complete between now and the end of August 2025. Total gross proceeds from the 12 sales agreed and completed in the 2025 calendar year to date stands at $186.4 million.
Once all the sales have completed, the Group’s outstanding bank debt is expected to reduce to $4.7 million, saving approximately $12.4 million[2] in interest payments on an annualised basis. This represents a significant reduction in debt of $413 million[3] since the Grindrod acquisition in December 2022.
The vessel sales put the Company on course to zero net bank debt and an owned fleet of 19 Japanese built vessels.
Furthermore, the Company announces that its unaudited NAV as at 31 March 2025 was $1.11 per Ordinary Share compared to $1.28 per Ordinary Share as at 31 December 2024. The NAV decrease for the quarter was primarily attributable to a c.$32 million fair value loss and a c.$20 million combined interim and special dividend payment. The Company is pleased to declare an interim dividend in respect of the period to 31 March 2025 of 2 cents per Ordinary Share.
Commenting on the vessel sales and trading update Edward Buttery, Chief Executive Officer, said: “Given our cautious view for 2025 amidst geopolitical and trade uncertainty, we have accelerated divestments, capitalising on seasonal improvement in market conditions and positive sentiment relating to Japanese-built vessels to agree the sale of eleven vessels at an average 4.0% discount to Fair Market Value. Proceeds will be used to continue to deleverage toward zero net debt, at pace, while ensuring adequate cash on the balance sheet and maintenance of our regular dividend. Enhanced flexibility facilitated by our transition to a commercial company along with continued focus on operational efficiency and cost reductions will provide further resilience through a potentially volatile 2025.”
While short-term demand uncertainty has increased, the medium-term outlook remains positive given supportive supply-side dynamics. Fleet growth is expected to remain modest by historical standards with net supply growth forecasts for the geared dry bulk segment of 4.4% in 2025 according to Clarksons, following several years of limited ordering and newbuilding activity. Meanwhile, a significant portion of the global geared dry bulk fleet continues to approach scrapping age, with 10.5% of the current Handysize fleet and 5.7% of the current Supra/Ultramax fleet reaching 25 years or older in 2025. Relatively firm freight market rates in recent years have led owners to keep older vessels in service, however, with a softer 2025 in play, scrapping activity may accelerate, providing further support to the supply side.