TOP Ships Inc., an international owner and operator of modern, fuel efficient "ECO" MR tanker vessels focusing on the transportation of petroleum products, announced today that it has terminated the charter parties of M/T EShips Taweelah, Hull number S407 and Hull number S414 with Emirates Ship Investment Company (ESHIPS) LLC and that it has entered into new charters for these vessels with Stena Weco A/S. As a result of this termination, ESHIPS will pay the company a compensation of $500,000.
The new charters are for 3 + 1 + 1 years at $16,200 per day for the first three years, $17,200 per day for the first optional year and $18,000 per day for the second optional year. The ESHIPS charters that were terminated were for 2 + 1 years at $16,000 per day for the first two years and $17,250 per day for the optional year.
Stena Weco A/S has an option until August 10, 2014 to declare the charter of M/T EShips Taweelah to a 5 + 1 + 1 years at respective gross daily rates of $16,800 for the first five years, $17,500 for the first optional year and $18,200 for the second optional year.
"This is a very positive development for the company,” Evangelos Pistiolis, CEO of TOP Ships, stated. “Our gross contracted revenue, over the firm period of our charters, has increased by 18% to $117 million, up from $99 million under the previous charters. Including the option periods of our charters, gross contracted revenue has increased by about 25% to $193 million, up from $155 million under the previous charters.”
“If Stena Weco exercises the option for the 5-year contract on EShips Taweelah, gross contracted revenue for the firm period goes up to $130 million, an increase of 31% from the previous charters. If we include the option periods of our charters, gross contracted revenue totals $206 million, an increase of about 33% from the previous charters,” Pistiolis added. “We expect that the improvement in the visibility of our cash flow will enhance the attractiveness of our fleet from a bank lending point of view. This is an important aspect as we look to progressively arrange post delivery bank financing for vessels currently under construction."