Top Ships Inc. Announces Time Charter Extensions at Very Strong Rates and Revenue of $100 Million
TOP Ships Inc. (NYSE: TOPS) has announced significant time charter extensions for two of its vessels, M/T Eco Yosemite Park and M/T Eco Joshua Park, at improved rates. The 50% owned subsidiaries operating these MR tankers have secured 7-year time charters starting August 1, 2024, with a 12% increase in the daily hire rate to $19,500. This extension is expected to generate approximately $100 million in revenue for the firm period. The charterers retain the option to extend each charter for an additional two years. This development showcases TOP Ships' ability to secure long-term contracts at favorable rates, potentially enhancing its financial stability and revenue streams in the coming years.
TOP Ships Inc. (NYSE: TOPS) ha annunciato significativi prolungamenti dei contratti di noleggio temporaneo per due delle sue navi, M/T Eco Yosemite Park e M/T Eco Joshua Park, a tariffe migliorate. Le sussidiarie, di cui detiene il 50%, che operano questi MR tanker hanno ottenuto contratti di noleggio di 7 anni a partire dal 1 agosto 2024, con un aumento del 12% nel tasso di noleggio giornaliero, portandolo a $19,500. Questo prolungamento si prevede genererà circa $100 milioni di fatturato per il periodo fermo. I noleggiatori mantengono l'opzione di prolungare ogni contratto per ulteriori due anni. Questo sviluppo dimostra la capacità di TOP Ships di garantire contratti a lungo termine a condizioni favorevoli, potenzialmente migliorando la sua stabilità finanziaria e le fonti di reddito nei prossimi anni.
TOP Ships Inc. (NYSE: TOPS) ha anunciado importantes extensiones de chárter por tiempo para dos de sus buques, M/T Eco Yosemite Park y M/T Eco Joshua Park, a tarifas mejoradas. Las subsidiarias que opera al 50% han asegurado chárteres de tiempo de 7 años comenzando el 1 de agosto de 2024, con un aumento del 12% en la tarifa diaria de alquiler, alcanzando $19,500. Se espera que esta extensión genere aproximadamente $100 millones en ingresos durante el período firme. Los arrendatarios tienen la opción de extender cada contrato por dos años adicionales. Este desarrollo pone de relieve la capacidad de TOP Ships para asegurar contratos a largo plazo en condiciones favorables, lo que podría mejorar su estabilidad financiera y flujos de ingresos en los próximos años.
TOP Ships Inc. (NYSE: TOPS)는 두 함선, M/T Eco Yosemite Park와 M/T Eco Joshua Park에 대해 유리한 조건으로 상당한 기간의 시간 차터 연장을 발표했습니다. 이 MR 탱커를 운영하는 50% 소유 자회사는 2024년 8월 1일부터 시작되는 7년 기간의 시간 차터를 확보했으며, 일일 임대료는 12% 상승하여 $19,500에 이릅니다. 이 연장은 회사에게 약 $100 백만의 수익을 생성할 것으로 예상됩니다. 차터 계약자는 각 차터를 추가로 2년 연장할 수 있는 옵션을 보유하고 있습니다. 이 개발은 TOP Ships가 유리한 조건으로 장기 계약을 확보하는 능력을 보여주며, 향후 몇 년 동안 재정 안정성과 수익원을 향상시킬 가능성이 있습니다.
TOP Ships Inc. (NYSE: TOPS) a annoncé d'importantes prolongations de charters d'une durée pour deux de ses navires, le M/T Eco Yosemite Park et le M/T Eco Joshua Park, à des tarifs améliorés. Les filiales dont elle détient 50 % et qui exploitent ces MR tankers ont obtenu des charters de 7 ans commençant le 1er août 2024, avec une augmentation de 12% du tarif de location quotidien, passant à $19,500. Cette prolongation devrait générer environ $100 millions de revenus pendant la période ferme. Les affréteurs conservent l'option de prolonger chaque charter de deux années supplémentaires. Ce développement met en avant la capacité de TOP Ships à sécuriser des contrats à long terme à des conditions favorables, ce qui pourrait améliorer sa stabilité financière et ses sources de revenus dans les années à venir.
TOP Ships Inc. (NYSE: TOPS) hat bedeutende Verlängerungen der Zeitcharter für zwei seiner Schiffe, M/T Eco Yosemite Park und M/T Eco Joshua Park, zu verbesserten Tarifen angekündigt. Die zu 50 % im Besitz befindlichen Tochtergesellschaften, die diese MR-Tanker betreiben, haben 7-jährige Zeitcharter ab dem 1. August 2024 gesichert, mit einem 12% Anstieg des täglichen Mietpreises auf $19,500. Diese Verlängerung wird voraussichtlich etwa $100 Millionen an Einnahmen für den festen Zeitraum generieren. Die Charterer behalten die Option, jeden Charter um weitere zwei Jahre zu verlängern. Diese Entwicklung zeigt die Fähigkeit von TOP Ships, langfristige Verträge zu günstigen Bedingungen abzuschließen, was potenziell die finanzielle Stabilität und die Einnahmequellen in den kommenden Jahren verbessern könnte.
- Secured 7-year time charter extensions for two vessels
- 12% increase in daily hire rate to $19,500
- Expected revenue of $100 million from the charter extensions
- Option for charterers to extend for two additional years
- None.
Insights
The time charter extensions for M/T Eco Yosemite Park and M/T Eco Joshua Park represent a significant development for TOP Ships Inc. (NYSE: TOPS). The 12% increase in daily hire rates to
The projected revenue of
However, it's important to consider that this revenue will be recognized over seven years and that TOP Ships owns only
The charterers' option to extend for an additional two years adds another layer of potential long-term stability, which is particularly valuable in the cyclical shipping industry. This deal showcases TOP Ships' ability to secure favorable long-term contracts, potentially positioning the company well in the eyes of investors looking for stable returns in the volatile shipping sector.
The extension of time charters for two MR tankers by TOP Ships Inc. at increased rates is a clear reflection of the current strength in the product tanker market. The jump to
This deal underscores several key trends in the shipping industry:
- Growing demand for product tankers, likely driven by changing global trade patterns and increased ton-mile demand
- Charterers' willingness to lock in longer-term contracts, possibly to hedge against future rate increases or secure reliable transportation capacity
- The premium placed on modern, fuel-efficient 'ECO' vessels in a market increasingly focused on environmental regulations and fuel costs
The 7-year duration of these charters is particularly striking. In an industry known for its volatility, such long-term commitments are relatively rare and speak to the charterers' confidence in sustained demand for these vessels. This could potentially signal a shift towards more stable, long-term contracts in the product tanker segment, which would be a significant development for the industry as a whole.
However, it's important to note that while these rates are strong by historical standards, they also lock TOP Ships into a fixed rate for a long period. If market rates were to rise significantly over the next seven years, the company might miss out on potential upside. Conversely, if rates were to fall, this deal would prove to be extremely advantageous.
ATHENS, Greece, July 25, 2024 (GLOBE NEWSWIRE) -- TOP Ships Inc. (NYSE: TOPS) (the “Company”), an international owner and operator of modern, fuel efficient "ECO" tanker vessels, announced today that its
Specifically, both MRs will commence 7-year time charters on August 1, 2024 at a gross daily hire rate of
About TOP Ships Inc.
TOP Ships Inc. is an international owner and operator of ocean-going vessels focusing on modern, fuel-efficient eco tanker vessels transporting crude oil, petroleum products (clean and dirty) and bulk liquid chemicals. 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, including statements regarding the Company’s vessel acquisitions and employment.
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
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