TOP Ships is expanding its product tanker investment programme as it redirects capital away from a proposed Dubai property acquisition and prepares to exit the megayacht business. The Athens-based owner announced on October 7 that it had agreed to acquire four companies holding contracts for Ice Class 1A MR product tankers at Guangzhou Shipyard International (GSI). Completion would increase its MR newbuilding programme from 10 to 14 vessels, with deliveries extending into the first quarter of 2030.

The latest transaction follows a series of acquisitions and disposals through which TOP Ships has assembled shipbuilding contracts, Chinese lease financing and long-term charter employment. Its withdrawal from the Dubai investment has already released capital for an earlier three-tanker acquisition, providing a direct link between the company’s retreat from property and its renewed focus on shipping.

Four Ice-Class MRs and $198 Million in Shipbuilding Contracts

The share purchase agreement, signed on October 1, covers Roman Shark XI, XII, XIII and XIV, four special-purpose companies owned by Central Mare Inc., an entity affiliated with the family of TOP Ships chief executive Evangelos J. Pistiolis. Each company holds a contract with GSI and China Shipbuilding Trading Co., Ltd. for a 49,940-dwt Ice Class 1A MR product tanker. Deliveries are scheduled for June, September and December 2029, followed by March 2030.

TOP Ships will pay approximately $34.95 million for the shares of the four companies, with payment due by December 31, 2026. The underlying shipbuilding contracts provide for instalments of $49.5 million per vessel, or $198 million in aggregate. The related-party acquisition was approved by a committee of independent, disinterested directors, which obtained a fairness opinion from an independent financial adviser. Closing remains subject to customary conditions and completion of the seller-arranged lease financing.

The $23.5 Million Shift Out of Dubai Property

The change in capital allocation became explicit on July 16, when TOP Ships announced that it would not exercise its option to acquire a portfolio of residential properties in Dubai. The proposed investment had been outlined in a letter of intent announced in November 2025. Cancelling the transaction entitled the company to the return of a $23.5 million advance payment, with no further obligations relating to the proposed acquisition. The independent board committee cited continued instability in the Gulf region and the company’s appetite for further tanker fleet growth.

The money was subsequently applied to a shipping transaction. An August regulatory filing disclosed that the $23.5 million refund had been credited against the purchase price of three companies holding MR tanker contracts at HD Hyundai-Vietnam Shipbuilding. TOP Ships signed that acquisition agreement on July 28 and announced its completion on September 30. The property withdrawal therefore provided funding for a specific addition to the newbuilding programme.

The company also announced on July 22 that it intended to sell Para Bellvm, its 47-metre megayacht built by Sanlorenzo in 2023, and leave the megayacht sector. Proceeds are intended for reinvestment in the core tanker business. The proposed sale remained part of the company’s capital redeployment plans in its October announcement, with no completed disposal reported in that release.

How the MR Programme Grew Towards 14 Ships

TOP Ships’ current GSI investment programme began earlier this year. On February 23, it announced an agreement to acquire nine single-ship companies from Central Mare, each holding a contract for a 47,499-dwt chemical/product tanker. The shipbuilding contracts had been signed on February 3, with deliveries scheduled during 2028 and 2029. The vessels were accompanied by seven-year firm charter arrangements and options for a further four years.

The owner subsequently agreed to transfer two of those projects to Rubico, another listed shipping company linked to the same controlling shareholder. Rubico announced completion of the second acquisition on October 6, taking its own MR newbuilding portfolio to three vessels. These transfers left TOP Ships with seven of the original nine GSI projects.

Meanwhile, TOP Ships added the three 49,940-dwt vessels contracted at HD Hyundai-Vietnam Shipbuilding. Scheduled for delivery in July, September and October 2029, they have five-year firm charter employment, with a one-year extension option. Their acquisition brought TOP Ships’ retained MR programme to 10 ships ahead of the latest GSI transaction. Following completion of the four-ship deal, the programme would comprise 11 GSI-built vessels and three from HD Hyundai-Vietnam.

The sequence reflects active reshaping of the newbuilding portfolio: TOP Ships has transferred selected projects to Rubico while adding other vessels with different specifications and charter durations. GSI remains the principal builder within the enlarged programme, alongside the Vietnamese yard in the HD Hyundai shipbuilding network.

Chinese Leasing Supports the Investment Programme

The companies holding the latest four GSI contracts are finalising financing with an unnamed major Chinese leasing company. Arranged by the seller, the facilities are expected to cover approximately 85% of all shipbuilding instalments.

Chinese leasing institutions were also involved in the original nine-vessel GSI transaction. That package envisaged financing from two major Chinese lessors, including ABC Financial Leasing or its controlled subsidiaries, covering approximately 85% of pre-delivery instalments. The disclosed structure anticipated quarterly payments over 10 years after delivery, followed by a balloon payment.

The financing arrangements attached to one of the projects subsequently transferred to Rubico offer a more detailed example. Its ABC Financial Leasing facility covers 85% of shipbuilding instalments and carries an effective interest rate of term SOFR plus 1.80%. Repayment comprises quarterly instalments of approximately $500,000 over 10 years, with an $18.2 million final balloon payment. Both Rubico and TOP Ships are to provide corporate guarantees under that arrangement.

Together, these transactions show how TOP Ships has used acquisitions of project companies to access both future vessels and their associated financing packages, rather than funding each newbuilding entirely from its own balance sheet during construction.

Long-Term Employment and a Larger Ice-Class Portfolio

For the latest quartet, the project companies have finalised the principal terms of time charters with a major oil trader. Employment is scheduled to begin on delivery, with seven firm years and charterer options for up to three additional years. TOP Ships estimates potential gross charter revenue of approximately $316.9 million if all extension options are exercised.

The earlier GSI vessels also have long-term employment attached. In its September results announcement, TOP Ships identified Trafigura as the charterer for that programme, with seven-year firm periods and options for another four years. The three HD Hyundai-Vietnam vessels carry the shorter five-year firm charters, plus one-year options, giving the owner a combination of charter durations across its newbuilding portfolio.

The newest vessels will also broaden the company’s ice-class capability. They are specified to Ice Class 1A, while the three MRs acquired under the July agreement were described in the interim report as Ice Class 1C. The four additions would bring the ice-class portfolio to seven vessels. Pistiolis said the latest ships would improve trading flexibility and broaden the company’s charterer base.

A Family-Linked Owner Refocusing on Tankers

Founded by Pistiolis in 2000, TOP Ships is incorporated in the Marshall Islands and has its executive offices in Athens. Formerly known as TOP Tankers, it adopted its current name in December 2007 and now trades on NYSE American under the ticker TOPS. The business retains close operational links with the founder’s family: Central Mare supplies executive and administrative personnel, while another family-affiliated company, Central Shipping Inc., provides technical, commercial, operational and crew management, as well as newbuilding supervision.

Its operating tanker fleet comprises one wholly owned MR product/chemical tanker, one Suezmax and two VLCCs, together with 50% interests in two additional MR tankers through a joint venture. The newbuilding programme therefore represents a substantial expansion of the company’s product tanker exposure relative to its existing operating fleet.

The company reported first-half 2026 revenue of $25.5 million, net income of $6.5 million and operating cash flow of $11.1 million. Against that operating base, the newbuilding acquisitions, the application of the Dubai refund and the planned yacht disposal form a broader effort to concentrate capital on tanker ownership and long-term charter income.

Potential Charter Revenue Reaches $1.24 Billion

Upon completion of the latest acquisition, TOP Ships estimates that potential gross charter revenue from its 14 MR newbuildings would reach approximately $997 million, assuming all available charter extension options are exercised. Including its operating fleet and its proportionate 50% share of joint-venture vessel revenue, the corresponding total would rise to approximately $1.24 billion, including optional periods.

The emerging business model combines high-specification product tankers, substantial lease financing and employment arranged before delivery. With the first vessels scheduled to enter service in 2028, TOP Ships is committing capital to a larger, more MR-focused fleet whose initial employment extends well beyond the delivery cycle. Completion of the latest financing and share acquisition is the next step in that programme.