Top Ships Inc. Announces New Time Charter Employment at Very Strong Rate and Updated Revenue Backlog of $280 Million
TOP Ships Inc. (NASDAQ: TOPS) has signed a time charter for its tanker M/T Eco Marina Del Rey, set to begin in early 2024. The agreement is valued at approximately $22.4 million over three years, with potential earnings of $30.6 million if the charterer opts for an extension. This deal locks in a daily rate about 36% higher than the current market rate, reflecting the robust tanker market conditions. The company's total gross revenue backlog now stands at about $259 million, potentially increasing to $280 million with joint ventures included. Projected charter coverage indicates strong earnings potential for 2023 at 100% and 80% for 2024.
- New time charter for M/T Eco Marina Del Rey expected to generate $22.4 million in revenue over three years.
- Potential revenue increase to $30.6 million if charterer exercises one-year extension.
- Daily rate for new charter is approximately 36% higher than current rates, indicating strong market demand.
- Total gross revenue backlog rises to about $259 million, increasing to $280 million when including joint ventures.
- 2023 projected charter coverage is 100%, ensuring immediate revenue stability.
- Projected charter coverage declines significantly to only 15% by 2027, raising concerns about future revenue stability.
ATHENS, Greece, Feb. 13, 2023 (GLOBE NEWSWIRE) -- TOP Ships Inc. (NASDAQ: TOPS) (the “Company”), an international owner and operator of modern, fuel efficient "ECO" tanker vessels, announced today that it has entered into a time charter employment contract with a high-quality counterparty for its product/chemical tanker M/T Eco Marina Del Rey. The new time charter will commence immediately after the expiry of the present time charter employment contract in the 1st quarter of 2024 and will have a firm duration of 3 years with an additional year at the charterer’s option.
The revenue backlog expected to be generated by this fixture is about
Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said:
“We are very happy to have concluded this new fixture of M/T Eco Marina Del Rey more than a year ahead of the expiry of its present employment and at a daily rate which is about
Following the abovementioned time charters, the Company’s currently-contracted projected charter coverage is as follows:
| Year | Operating fleet |
| 2023 | |
| 2024 | |
| 2025 | |
| 2026 | |
| 2027 | |
| 2028 to Q1 2037 | |
About TOP Ships Inc.
TOP Ships Inc. is an international ship-owning company.
For more information about TOP Ships Inc., visit its website: www.topships.org.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
For further information please contact:
Alexandros Tsirikos
Chief Financial Officer
TOP Ships Inc.
Tel: +30 210 812 8107
Email: atsirikos@topships.org
FAQ
What is the new time charter for TOP Ships' tanker M/T Eco Marina Del Rey?
How much revenue could the new time charter for M/T Eco Marina Del Rey potentially generate?
What is the significance of the 36% increase in the daily rate for the new charter?
What is the total gross revenue backlog for TOP Ships after the new charter agreement?
What are the projected charter coverage rates for TOP Ships in upcoming years?
