TOP Tankers Inc , announced today that it has entered into an agreement with SPP Shipbuilding Co, Ltd of the Republic of Korea for the construction of four 50,000 dwt Product / Chemical tankers. The vessels will be delivered during the first and second quarters of 2009. The Company also has the option to order two additional tankers with the same specifications and delivery period.
The total investment for the Company (excluding the option) will be approximately $190.9 million, which will be funded with secured credit lines and working capital. Evangelos J. Pistiolis, President and CEO of TOP Tankers Inc., stated: "It is our strategy to modernize and expand our fleet, so we have recently sold three Handymaxes, one built in 1998 and two built in 1999. Many people in the industry consider the aggregate sale price of $127.5 million to be one of the highest prices ever achieved for such vessels. In addition, we have entered into an agreement to acquire four newbuildings for $190.9 million. Assuming we exercise our option to acquire two additional newbuildings, our current total order will increase to six vessels, or $286.4 million, all to be delivered during the first and second quarters of 2009."
The Company also announced that it has amicably agreed with Glencore for the earlier redelivery of three 154,970 dwt Suezmax tankers, the M/T Flawless, the M/T Timeless and the M/T Stopless, all built in 1991 by Hyundai Heavy Industries Co of the Republic of Korea. These three vessels had been scheduled to be redelivered on or about April 2007. Six of the Company's eleven Handymax tankers are currently chartered to Glencore under long-term charters with profit-sharing arrangements. These time charters will expire between the third quarter of 2009 and the fourth quarter of 2010.
The Company has entered into a time charter contract for the 154,970 dwt Suezmax M/T Priceless, built in 1991 by Hyundai Heavy Industries Co of the Republic of Korea, with a major oil trader. The contract, which has a base rate of $35,000 and 50% sharing of the profit generated above the base rate, expires in August 2008. The M/T Flawless, the M/T Priceless and the M/T Timeless completed their third special surveys in June, August and November 2006, respectively. The M/T Stopless will complete its third special survey in early January 2007. All of these vessels underwent extensive works to be upgraded to the highest possible standards. TOP Tankers Inc is an international provider of worldwide seaborne crude oil and petroleum products transportation services. Upon delivery of the vessel Topless to its new owners, the Company will operate a fleet of 24 tankers, consisting of 13 double-hull Suezmax tankers and 11 double-hull Handymax tankers, with a total carrying capacity of approximately 2.5 million dwt, of which 88% are sister ships. Fourteen of the Company's 24 tankers will be on time charter contracts with an average term of over three years with all but two of the time charters including profit sharing agreements.