The charters are comprised of a minimum rate and 50-50 profit share if rates exceed that level. The charters, assuming only the minimum rate, are expected to generate gross revenues in excess of $42.5 million over the corresponding period.
The vessels are expected to commence their new employment upon expiration of the existing charters in July 2008 and October 2008. In order to conform with the company’s balanced employment strategy, a third sister vessel will enter the spot market.
Nikolas Tsakos, president and CEO of Tsakos, said: These charter extensions are a vote of confidence from a world-class client like Neste and a testament to our ability to enhance our strategic relations with our major clients for the benefit of shareholders.
