ATHENS, Greece – – Rubico Inc. (Nasdaq: RUBI), a global shipping transportation provider, announced today an agreement to acquire a Marshall Islands-based special purpose vehicle (SPV) that holds a shipbuilding contract for a new medium-range (MR) product/chemical oil tanker. The deal, valued at approximately $4.2 million, positions Rubico to capitalize on a potentially lucrative seven-year time charter with a major oil trader, with an option for a four-year extension, potentially generating a gross revenue backlog of around $75 million.
The 47,499 deadweight ton (dwt) ECO MR tanker is currently under construction at Guangzhou Shipyard International in China, with delivery scheduled for . The acquisition is contingent upon securing lease financing and a corporate guarantee from Rubico, reflecting the complexities inherent in maritime acquisitions.
According to a company statement, the SPV is finalizing a lease financing agreement with ABC Financial Leasing Co., Ltd., a major Chinese leasing company, to cover the majority of the shipbuilding contract’s price. This financing arrangement was brokered by the seller, Central Mare Inc., an affiliate of Mr. Evangelos Pistiolis.
The seven-year time charter, secured by the seller prior to the acquisition, provides a firm revenue stream for the vessel upon its delivery. The potential for a four-year extension further enhances the long-term financial outlook for the investment. This charter agreement underscores the continuing demand for MR tankers in the global oil trade, despite ongoing geopolitical and economic uncertainties.
The transaction has been reviewed and approved by a special committee of independent directors on Rubico’s board, who also obtained a fairness opinion from an independent financial advisor. This oversight is particularly significant given the related-party nature of the acquisition, involving an affiliate of Mr. Pistiolis.
Rubico, incorporated in the Republic of the Marshall Islands and headquartered in Athens, Greece, currently operates two modern, fuel-efficient Suezmax tankers. This acquisition represents a strategic expansion of the company’s fleet and its commitment to the maritime transportation sector. The company’s common shares trade on the Nasdaq Capital Market under the symbol “RUBI”.
The deal highlights the continued strength of China’s shipbuilding industry, even amidst global trade tensions. A recent report indicated that China continues to enjoy a manufacturing boom, despite U.S. Tariffs, and remains a dominant force in shipbuilding. Guangzhou Shipyard International, the yard constructing the tanker, is a key player in this sector.
The acquisition comes at a time of fluctuating freight rates and evolving environmental regulations in the shipping industry. The “ECO” designation of the tanker suggests it incorporates fuel-efficient technologies designed to meet increasingly stringent emissions standards. This focus on environmental sustainability is becoming a critical factor in the long-term viability of shipping companies.
The need for Rubico to provide a corporate guarantee to the leasing counterparty introduces a financial risk, as the company would be liable should the SPV default on its lease obligations. However, the secured time charter with a major oil trader mitigates this risk by providing a predictable revenue stream to service the debt.
The potential $75 million revenue backlog represents a significant boost for Rubico, offering a degree of financial stability in a volatile market. The company’s Chief Financial Officer, Nikolaos Papastratis, stated that further details regarding the financing arrangements will be disclosed as they become available. The company’s website, https://rubicoinc.com/, provides additional information about its operations and financial performance.
Investors will be closely watching Rubico’s progress in securing the necessary financing and navigating the complexities of the acquisition process. The successful completion of this deal could position the company for continued growth in the competitive maritime transportation market. The delivery of the vessel in will be a key milestone for Rubico, marking the culmination of this strategic investment.
