Top Ships, led by Evangelos Pistiolis, has ordered four new MR-type tankers from Guangzhou Shipyard International with the aim of expanding its fleet. This move increases the total number of new tankers under construction for the company to 14 and reflects the company's ongoing strategy to expand its activities in the oil market.
Details of the New Contract
This Greek owner, listed in New York, has secured this contract by agreeing to purchase four special purpose companies related to it that have contracts for 50,000 dwt tankers with ecological capabilities and scrubbers. These tankers are specifically scheduled for delivery between June 2029 and March 2030, and Top Ships will pay an amount of $34.95 million for these four companies. This contract is subject to normal financing and other conditions.
Delivery and Employment Plan
All new tankers have been connected to a large unnamed oil company for employment for seven years from the time of delivery, with options that could extend employment for another three years. Given these options, Top Ships anticipates that potential revenue from these four tankers will reach approximately $316.9 million. Pistiolis, CEO of Top Ships, has stated that this contract continues the company's strategy for reallocating capital in the tanker business and will increase the company's Ice Class 1A fleet to seven tankers.
Ongoing Fleet Expansion
This development comes just a week after Top Ships purchased three more new tankers scheduled for delivery in 2029. These tankers have been employed for five years with another option for one more year. Reports indicate that Top Ships has used freed-up financial resources from its investment in a real estate project in Dubai to finance this three-tanker package.
The original plan for these purchases dates back to February 2023, when Top Ships signed an agreement to purchase nine new 47,499 dwt tankers from a company affiliated with Pistiolis. These tankers are scheduled for delivery in 2028 and 2029 and are supported by long-term charters with Trafigura. Two tanker-owning companies were sold separately to Rubico, one of the former subsidiaries of Top Ships, which was part of a broader structural change in the tanker orders related to Pistiolis.
Current Status and Future Outlook
Top Ships currently has one fully owned MR tanker, one Suezmax, and two VLCCs in its fleet, and also holds a 50% stake in two other MR tankers. The owner is also looking to exit its only large ice-class vessel, Para Bellvm, with the proceeds intended for reallocation to its core shipping business. With the completion of this new purchase, Top Ships will have 14 new tankers lined up for delivery in early 2030, significantly strengthening the company's future fleet.
