17 January 2024

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation ("MAR") which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018; as amended. Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

Tufton Oceanic Assets Limited ("SHIP" or the "Company")

4Q23 Net Asset Value, Dividend Declaration and Mid-Term Strategy Review

The Company announces that as at 31 December 2023, the unaudited net asset value ("NAV") was $427.1 million (£335.0 million[i]) and the unaudited NAV per ordinary share was $1.452 (£1.139i). The NAV total return for the quarter was 6.7% and for 2023 was 10%.

The Company is pleased to announce a dividend of $0.02125 per ordinary share for the quarter ending 31 December 2023. The dividend will be paid on 9 February 2024 to holders of ordinary shares recorded on the register as at the close of business on 26 January 2024 with an ex-dividend date of 25 January 2024.

Mid-Term Strategy Review

Since its IPO in December 2017, the Company has delivered strong results in line with its original objectives, despite the very challenging economic and operational backdrop during Covid, ongoing geopolitical events and the impact of inflation.

In light of the ongoing share price discount to NAV and the Company's forthcoming continuation vote at the AGM in October 2024, the Board, in consultation with the Investment Manager, has undertaken a review of the Company's mid-term strategy.

Continuing Investment Opportunity

The Investment Manager anticipates the investment opportunity set for fuel-efficient secondhand vessels to be very strong for the next decade as the shipping industry slowly transitions to zero carbon fuels to meet tightening regulations and decarbonisation targets. The Board and the Investment Manager believe that strong supply-side fundamentals will continue to support high yields and secondhand values, resulting in future IRRs being higher than the Company's published target.

The Board therefore believes the correct strategy for SHIP over the medium term through to 2030 is to continue investing in fuel-efficient secondhand vessels to maximise shareholder returns, intending to realise the Company's portfolio of assets starting from 2028, well before the decarbonisation of shipping accelerates.

Continuation votes will be held as planned in 2024 and 2027 to reconfirm the opportunity set and the strategy with the Company's shareholders, before the realisation period starting in 2028.

Revised Capital Allocation Policy

Acknowledging investor feedback and the current discount to NAV, the Board has also considered its capital allocation policy and use of investible cash as follows:

· With effect from 1Q24, SHIP's annual target dividend will be increased by c.17.6% from $0.085/share to $0.10/share[ii]. Based on this increased target the Company is forecast to have a dividend cover of c.1.5x over the next 18 months.

· The Board is evaluating a proposed one-off return of capital in 2Q24 representing between 5% and 10% of NAV at a price representing the prevailing NAV/share less attributable costs. Shareholders will be notified of the terms of the return of capital accordingly.

· The Company sees fleet renewal (based on age, technology, and sector outlook) as a priority. Returns from all new asset investments over a three-year holding period will be compared to the benefit from a return of capital given the prevailing share price at the time of the proposed investment and medium-term market outlook.

· The Board will annually evaluate a further return of capital using excess investible cash if no suitable investment opportunities are presented.

· The current buy-back policy is to remain in place (excess cash may be used, at the discretion of the directors, to repurchase shares should they trade at a >10% discount to NAV, as set out in the Company's listing documents).

The Company's quarterly factsheet as at 31 December 2023 will shortly be available on the Company's website in the Investor Relations section at www.tuftonoceanicassets.com/quarterly-reports.

Dividend currency declaration

The Company advises that the default payment for dividends remains in US Dollar, however, dividends are capable of being paid in GBP Sterling, provided that the relevant shareholder has registered to receive their dividend in GBP Sterling under the Company's Dividend Currency Election. A copy of the Dividend Currency Election form, which should be sent to Computershare Investor Services plc, The Pavilions, Bridgwater Road, Bristol, BS99 6BD no later than 29 January 2024, is available on the Company's website at http://www.tuftonoceanicassets.com/company-documents/.

The Dividend Currency Election Form should only be completed by shareholders who hold shares in certificated form. CREST shareholders must elect via CREST. Non-CREST shareholders wishing to receive Company dividends by electronic funds transfer directly to their bank accounts can register for Computershare's Global Payment Service at www.investorcentre.co.uk

For further information, please contact:

About the Company

Tufton Oceanic Assets Limited invests in a diversified portfolio of secondhand commercial sea-going vessels with the objective of delivering strong cash flow and capital gains to investors. The Company's investment manager is Tufton Investment Management Ltd. The Company has raised a total of approximately $316.5m (gross) through its Initial Public Offering on the Specialist Fund Segment of the London Stock Exchange on 20 December 2017 and subsequent capital raises.