Taylor Maritime Limited, the specialist dry bulk shipping company, today announces its unaudited financial and operating results for the quarter ended 30 September 2025.
Commenting on the trading update Edward Buttery, Chief Executive Officer, said:
“Further to our last quarterly trading update, we completed an additional three vessel sales during the period, and one post period, directly bolstering our cash position – as we prepaid all bank debt in July – and two more sales, already announced, will complete before the end of December. Post period, we agreed an opportunistic sale of a Handysize vessel at a healthy premium to its Fair Market Value.
After a period of particularly negative sentiment early in the summer, the end of the quarter was strong, seeing values return to near March levels. Our medium to longer term view of the market is unchanged and we remain comfortable with our sale and purchase programme overall and the strategic position we are in. It has given us more certainty in an undoubtedly volatile world. Our remaining fleet gives us a degree of optionality and exposure to the market and we remain focused on reducing costs in line with a smaller fleet. Given the large cash surplus, the Board will evaluate options for capital allocation towards the calendar year end, notwithstanding our commitment to maintaining the regular dividend.”
Proceeds from vessel sales strengthen the Company’s cash position
- Three previously announced vessel sales completed during the period and one additional sale completed post period, generating combined gross proceeds of c.$87.6 million, with two other previously announced vessel sales expected to complete between now and the end of December 2025 for combined gross proceeds of c.$41.1 million
· The above sales are in addition to four vessel sales completed earlier in the period as announced on 25 July 2025
· Post period, the Company agreed the opportunistic sale of a Handysize vessel for gross proceeds of $15.3 million, representing a 2.6% premium to Fair Market Value
· Overall, the Company has executed 50 disposals since the beginning of 2023, including 23 in the 2025 calendar year, as part of a vessel sales programme at an average of /3.0% discount to Fair Market Value. These sales will have generated total gross proceeds of $822.2 million once agreed sales complete
Fleet development and market value
- The owned fleet comprised Japanese-built vessels at quarter end which will reduce to 7 Japanese-built vessels after announced sales complete with a current average age of 10.8 years and average carrying capacity of c.44.0k dwt. The Company also has 1 owned vessel under a JV agreement and 5 vessels in its long-term chartered in fleet
· The Fair Market Value of the fleet increased quarter-on-quarter by c.3.6% on a like-for-like basis, to c.$207.6 million with both Handysize and Supra/Ultramax asset values responding to strengthening freight rates during the period
Operating results, stronger market conditions contribute to improved TCE performance quarter-on-quarter
· The Company generated net charter revenue of $31.1 million, equating to fleet-wide time charter equivalent (“TCE”) earnings of $13,066 per day for the period (versus $64.1 million charter revenue and $14,210 per day TCE earnings for the equivalent period last year), given a smaller operating fleet
· The Company recorded a net loss for the quarter of $20.8 million, or $0.06 net loss per share, which includes an impairment and loss on disposal of vessels of $18.3 million and depreciation of $10.6 million
· Having increased period cover in anticipation of an expected seasonal summer downturn, the Supra/Ultramax fleet underperformed its benchmark index by $1,173 per day (-7.7%) during the quarter. Record grain harvests in South America and strong Chinese demand led to a firm rate environment in the Atlantic basin. Meanwhile, the Handysize fleet slightly outperformed by $35 per day (0.3%) for the period
· The number of covered fleet ship days remaining for the current financial year stands at 86% at an average TCE rate of $14,026 per day[13] with increasing levels of period cover being taken while rates remain firm
Balance sheet strength providing strategic flexibility
· Cash and cash equivalents were $139.2 million and other net assets, including the Company’s investment in a vessel held under JV arrangement, stood at $23.2 million at the end of the period
· Having prepaid all outstanding bank debt in July 2025, the Company’s outstanding debt was $41.5 million as at 30 September 2025 (versus $98.4 million as at 30 June 2025) and comprised entirely of financial liabilities under sale-leaseback agreements including a $22.4 million purchase option which will fall away upon expiry
· The Company’s debt-to-gross assets ratio was 10.6% as at 30 September 2025 (or 4.9% excluding the $22.4 million purchase option)
· As at 30 September 2025, Right-of-Use (ROU) assets and lease liabilities both stood at $7.5 million each
Shareholders are reminded of the Company’s facility for those wishing to receive dividends in sterling rather than US Dollars, as set out at the end of this release.
Dry bulk market review and outlook
Following a soft first half of 2025, freight rates strengthened with the Baltic Supramax Index (BSI) and Baltic Handysize Index (BHSI) up 49% and 23%, respectively, quarter-on-quarter. Market strength during the period was largely driven by a surge in US Gulf corn exports, coupled with robust grain volumes out of East Coast South America (ECSA) destined for China. Charter rates have remained firm post period with a prolonged ECSA grain season being supported by increased levels of Chinese forward purchasing activity as China seeks alternative sources to US supply amid geopolitical tensions.
The value of second-hand geared vessels responded to the strength in freight rates during the period yet remain well below their 2024 peaks.
While sentiment has generally improved it is yet to be seen whether a lack of long-haul US to China grain voyages typical of calendar Q4 will limit the strength of the Atlantic season. Meanwhile, broader uncertainty remains given revived US-China trade tensions with US threats to increase tariffs beyond those already due to take effect in November and China introducing export controls and port fees for US-linked non-Chinese built vessels. Global economic growth and industrial output, key drivers of dry bulk volumes, have so far proved resilient, however, while short-term effective supply tightens amidst a shifting geopolitical landscape, supporting rates.
Despite concerns for a US-China decoupling and its impact on international trade, supply dynamics continue to support a constructive medium-term outlook for the geared segment.
While an elevated freight rate environment has discouraged recycling, a meaningful number of ships in the global geared dry bulk fleet continue to approach scrapping age and despite the International Maritime Organisation’s vote on a global Net Zero framework being delayed for a year, the general trend toward decarbonisation should incentivise an incremental scrapping of older, less efficient tonnage while enhancing the value of less carbon intensive vessels.
Meanwhile fleet growth is expected to remain reasonable by historical standards despite an increase in deliveries in 2025 and forecast for 2026 given yard utilisation remains high with orders from all sectors and a steep drop in newbuild ordering (bulk carrier contracting is down c.71% year to date) amid geopolitical and regulatory uncertainty.
Source: Taylor Maritime Limited
