Greece-based ship owner TOP Ships has purchased all of the outstanding shares in a Marshall Islands company that owns a newbuilding contract for M/T Eco California.
The high specification 50,000 dwt medium range product/chemical tanker is under construction at Hyundai Mipo Dockyard in Korea from an entity affiliated with TOP Ships’ Chairman and Chief Executive Officer, Evangelos Pistiolis.
The company paid USD 3.6 million for the outstanding shares and the vessel is scheduled for delivery during January 2019. Upon its delivery, the tanker will be employed under a time charter with an undisclosed oil major for a firm duration of two years with a charterer’s option to extend for one additional year.
TOP Ships expects a total gross revenue backlog associated with this time charter of USD 15.1 million, including the optional period but excluding any upside from the profit share arrangement.
The transaction was approved by a special committee of the company’s board of directors. The capital commitments from this acquisition are estimated at about USD 13 million.
“As of today, the total gross revenue backlog for the fixed charter period of all of the company’s operating fleet, excluding any upside from profit share arrangements, stands at about $110 million and when adding the 50% of our joint venture vessels, it increases to about USD 126 million, with cash flow visibility reaching into 2021. Our business strategy remains focused on growing our fleet,” Evangelos Pistiolis, President and CEO of TOP Ships, said.