Nasdaq-listed Top Ships continues to scour the market for secondhand deals after selling an MR tanker to refinance a loan.
The Greek tanker company said in its interim results statement: “We intend to continue to review the market in order to identify potential acquisition targets on accretive terms.”
Top Ships also revealed it has agreed a deal with a “major Chinese leasing company” for the refinancing of a facility provided by charterer Cargill for the 50,000-dwt Eco Marina Del Ray (built 2019).
The sale-and-leaseback contract will see the ship bareboat-chartered back at hire rates comprising the financing principal, plus interest based on Sofr and a margin.
Top Ships added that there will be buyback options for the tanker at “below fair value”.
VesselsValue assesses the ship as worth $44.45m.
The company had a working capital deficit of $44.5m as of 30 June.
A significant part of this consisted of the outstanding $21.8m balance of the Cargill facility that matures in the first quarter of 2024, as well as the vessel fair value participation liability of $3.6m linked to the loan.
“In our opinion, we will be able to finance our working capital deficit in the next 12 months with cash on hand, operational cash flow and the anticipated successful completion of the refinancing of the Cargill facility,” Top Ships said.
For the first six months of 2023, the company logged net profit of $5.8m, against $8.6m in the same period of last year.
Revenue rose to $41.1m, against $38.8m, with Ebitda at $23.4m.
The increase was mainly due to a $4.6m boost from the employment of three newbuildings.
Fifth interim profit in a row
Total assets stood at $446.2m, with cash and cash equivalents of $13.6m.
Chief executive Evangelos Pistiolis said the result was its fifth consecutive six-month period of generating net income.
“This achievement brings us closer to celebrating our third year of sustained profitability,” he said.
“After successfully completing our newbuilding programme in 2022, we don’t have any capital commitments going forward. We now possess one of the most modern tanker fleets in the industry, with an average age of less than three years, consisting of state-of-the-art vessels equipped with the latest eco-friendly and fuel-efficient specifications and features.”
Pistiolis expects the substantial charter backlog and positive cash flow situation to extend into 2024 due to its long-term time charter strategy.
“I would like to emphasise, that in my opinion, the current trading price of our common shares does not reflect all of these positive aspects of the company,” he said.
The stock is currently trading at $0.75 per share.
The fleet comprises the MR, plus two VLCCs and five suezmaxes.
Top Ships also owns 50% interests in two other 50,000-dwt MRs.
As of 30 June, debt was $227.2m.
