New York-listed TEN says the 163,200-dwt Arctic (built 2007) will earn minimum gross revenues of around $20m over the duration of an extension with an existing charterer that brokers have identified as Brazilian behemoth Petrobras.
“The charter incorporates minimum and maximum levels and a 50:50 profit split for rates in between,” the Athens-based owner of 51 tankers and LNG carriers told investors in a statement Monday without elaborating further.
Chief executive Nikolas Tsakos went on to praise the “principal of rate flexibility and profit sharing” and said the strategy has become the “cornerstone” of the company’s chartering policy as it provides downside protection and upside potential.
"We remain optimistic on the outlook of tankers and we will continue to position our fleet accordingly to take advantage of the market upturn when it materializes,” Tsakos continued before applauding a backlog that amounts to roughly $1.1bn in minimum secured revenues.
TEN made TradeWinds headlines on Friday after securing a three-year deal for the 158,000-dwt Euro (built 2012), a suezmax resale that is due to rake in approximately $21,000 per day on average in a fixture with Chevron. Many believe the contract includes a profit-sharing element.
Today, brokers say suezmaxes are fetching day rates of around $7,900 in the spot market and more than double that when locked in for a year. Spot prices are 32% higher than those seen a week ago but well below the $11,500 average reported this time last year, according to Dahlman Rose.
