Top Ships announces time charter for two fuel-efficient 'Eco' tankers

Ships to be employed by 'oil major' for 36 months, with the option for two additional 12-month periods.



Image credit: Top Ships


Updated on 08 Jun 2018 12:42 GMT

Top Ships Inc, the owner of fuel-efficient, medium-range (MR) 'Eco' tanker vessels for the transportation of petroleum products and bulk liquid chemicals, has announced that it has entered into a time charter agreement with an "oil major" for its two Suezmax vessels currently under construction at Hyundai Samho, South Korea.

The vessels, hull numbers S874 and S875, are to be employed for 36 months, with the option of two additional 12-month periods.

The charter period is due to commence upon delivery of the ships, which is expected to take place in April and May 2019.

Top Ships says the expected revenue to be generated by the fixture, assuming all options are exercised, is approximately $96 million.

As a result of the two time charters, the company's projected charter coverage for all ships (including those partly owned) is now at 86 percent for 2019, 80 percent for 2020, 37 percent for 2021 and 5 percent for 2022.

Fleet

Greece-based Top Ships owns a young fleet of eight fuel-efficient 'Eco' tanker vessels, with an additional two newbuilds (Eco Palm Desert, Eco Holmby Hills) slated for delivery in 2018, and a further four ships (Eco California, Hull 8242, Hull S874 and Hull S875) scheduled to be completed next year. The oldest ship in the fleet is the 2014-built Stenaweco Energy.

The last vessel to enter the company's fleet was the jointly owned (with Gunvor) Eco Palm Springs, which was delivered towards the end of May and chartered out to Clearlake Shipping.

The other seven ships currently in operation have been chartered out to BP Shipping (Eco Fleet and Eco Revolution), Stena Weco (Stenaweco Energy, Stenaweco Evolution, Stenaweco Excellence and Stenaweco Elegance) and Norden (Nord Valiant).

The yet-to-be-delivered Eco Holmby Hills (50 percent owned with Gunvor) has already been secured by Clearlake Shipping; the Eco Palm Desert, Hull 8242, Hull S874 and Hull S875 have been contracted to Central Tankers Chartering; and the Eco California will be taken on by Shell.