ATHENS, Greece, Dec. 13 /PRNewswire-FirstCall/ -- TOP Tankers Inc (Nasdaq: TOPT), announced today that it has mutually agreed with Vitol SA to terminate four time-charter contracts for the vessels Vanguard, Spotless, Restless and Doubtless, all double-hull Handymax tankers, built by Halla Engineering & Heavy Industries Limited of the Republic of Korea.
The vessels will immediately commence a three-year time-charter contract with Glencore SA. Under the new arrangements, the vessels will receive a base rate of $15,250 per vessel per day, plus 50:50 profit sharing of the time-charter equivalent, or TCE rate, generated above the base rate.
The following table presents the Company's fleet list and employment effective from January 2007:
Profit Sharing
Year Charter Daily Base Above Base
Dwt Built Type Expiry Rate Rate
13 Suezmax Tankers
Timeless(C) 154,970 1991 Spot
Flawless(C) 154,970 1991 Spot
Stopless(C) 154,970 1991 Spot
Priceless(C) 154,970 1991 Time Q3/ $35,000 50%
Charter 2008 thereafter
Faultless(B) 154,970 1992 Spot
Noiseless(B) 149,554 1992 Time Q2/ $37,000(1) None
Charter 2010
Stainless(B) 149,599 1992 Spot
Endless(B) 135,915 1992 Time Q4/ $36,500 None
Charter 2008(A)
Limitless(B) 136,055 1993 Spot
Stormless 150,038 1993 Spot
Ellen P. 146,286 1996 Spot
Errorless 147,048 1993 Spot
Edgeless 147,048 1994 Spot
11 Handymax Tankers
Victorious(B) 47,084 1991 Time Q3/ $14,000 50%
Charter 2009 thereafter
Sovereign(B) 47,084 1992 Time Q3/ $14,000 50%
Charter 2009 thereafter
Invincible(B) 47,084 1992 Time Q3/ $14,000 50%
Charter 2009 thereafter
Relentless(B) 47,084 1992 Time Q3/ $14,000 50%
Charter 2009 thereafter
Vanguard(C) 47,084 1992 Time Q1/ $15,250 50%
Charter 2010 thereafter
Restless(B) 47,084 1991 Time Q1/ $15,250 50%
Charter 2010 thereafter
Spotless(C) 47,094 1991 Time Q1/ $15,250 50%
Charter 2010 thereafter
Doubtless(C) 47,076 1991 Time Q1/ $15,250 50%
Charter 2010 thereafter
Faithful(C) 45,720 1992 Time Q1/ $14,500 50%
Charter 2010 thereafter
Dauntless 46,168 1999 Time Q1/ $16,250 100% first
Charter 2010 $1,000 + 50%
thereafter
Ioannis P. 46,346 2003 Time Q4/ $18,000 100% first
Charter 2010 $1,000 + 50%
thereafter
Total Tanker
DWT 2,451,301
A. Charterers have option to extend contract for an additional four-year
period
B. Vessels sold and leased back for a period of 7 years.
C. Vessels sold and leased back for a period of 5 years.
Based on the above, the Company has secured approximately 58% of its estimated operating days for 2007 under time charters, earning at the base rate revenues on a TCE basis of approximately $100 million.
About TOP Tankers Inc
TOP Tankers Inc is an international provider of worldwide seaborne crude oil and petroleum products transportation services. The Company operates 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 88.2% are sister ships. Fourteen of the Company's 24 tankers are on time-charter contracts with an average term of over three years with all but two of the time charters including profit sharing agreements.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although TOP Tankers believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, TOP Tankers cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, failure of a seller to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, inability to procure acquisition financing, changes in demand for oil and petroleum products, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydocking, changes in our voyage and operating expenses, including bunker prices, dry- docking and insurance costs, changes in governmental rules and regulations including requirements for double-hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by TOP Tankers with the US Securities and Exchange Commission.
SOURCE TOP Tankers Inc
-0- 12/13/2006
/CONTACT: Investors, Michael Mason of Allen & Caron Inc, +1-212-691-8087,
michaelm@allencaron.com, for TOP Tankers Inc; or Stamatis Tsantanis, CFO of
TOP Tankers Inc, 011 30 210 812 8199, snt@toptankers.com/
(TOPT)
CO: TOP Tankers Inc
ST: Greece
IN: MAR TRN OIL
SU: CON
EW-CC
-- LAW060 --
5408 12/13/2006 13:23 EST http://www.prnewswire.com