Top Ships Inc. (TOPS) has secured a five‑year time‑charter for its Suezmax tanker M/T Eco Oceano, with the daily rate rising from $24,500 to $30,000. The amendment, effective January 1 2026, gives the charterer Central Tankers Chartering Inc. – an affiliate of CEO Evangelos J. Pistiolis – a purchase option that can be exercised in February 2027 for $70 million.
The deal was approved by an independent board committee that obtained a fairness opinion from an external financial advisor, addressing the related‑party nature of the transaction and ensuring governance standards were met.
The higher daily rate translates to an additional $5,500 per day, or roughly $1.01 million per year, in guaranteed revenue. Over the five‑year term the amendment adds about $5.1 million in daily‑rate income, while the purchase option provides a potential exit pathway that could lock in a $70 million value for the vessel. Combined, these terms strengthen TOPS’ cash‑flow profile and provide a hedge against spot‑rate volatility in the Suezmax market.
Suezmax rates are expected to remain elevated in 2026, driven by strong VLCC demand and shifting trade routes, even as spot rates softened at the start of the year. TOPS’ recent sale‑and‑leaseback refinancing in late 2025 freed $27.2 million in cash and helped reduce leverage, positioning the company to capitalize on this charter extension as part of its broader fleet‑efficiency strategy.
Analysts welcomed the announcement, noting the improved revenue certainty and the governance safeguards that mitigate related‑party concerns. The charter extension is viewed as a positive step toward stabilizing TOPS’ operating income in a market with fluctuating freight rates.
The amendment underscores TOPS’ focus on modern, fuel‑efficient vessels and its ability to secure favorable long‑term contracts, reinforcing the company’s strategy to deliver steady cash flow while maintaining flexibility for future fleet adjustments.
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