Rubico has completed the acquisition of its third newbuilding MR tanker, adding another long-term chartered vessel scheduled for delivery in 2029 and increasing contracted revenue visibility across its future fleet.
Key Investor Takeaways
- Rubico (NASDAQ:RUBI) closed the acquisition of a 47,499 dwt newbuilding MR tanker scheduled for delivery in the second quarter of 2029.
- The vessel has secured a seven-year time charter with a major oil trader from delivery, plus an option for another four years.
- The three newbuilding MR tankers represent approximately $226.3 million of potential gross revenue backlog when charter extension options are included.
- Including the operating fleet and assuming all available extensions are exercised, Rubico puts its total potential gross revenue backlog at approximately $374.6 million.
- The company said 85% of the shipbuilding instalments for its modern newbuilding tanker strategy are financed.
Why RUBI Stock Is in Focus
Rubico completed the previously announced acquisition from related party Top Ships Inc. of the company holding the shipbuilding contract for a 47,499 dwt chemical/product oil carrier.
The newbuilding MR tanker is being constructed by Guangzhou Shipyard International and is due for delivery in the second quarter of 2029. It already has employment secured with a major oil trader under a firm seven-year time charter beginning at delivery, with a four-year extension option for the charterer.
The transaction brings Rubico’s newbuilding MR tanker portfolio to three vessels. The other two are scheduled for delivery in the third and fourth quarters of 2029.
Rubico also confirmed completion of its previously announced stock dividend of 0.50 common shares for every common share outstanding, with the shares trading ex-dividend from October 6.
Why This Matters for Investors
The newbuilding MR tanker acquisition expands Rubico’s future fleet while increasing the amount of revenue potentially covered by long-term charter agreements.
Management estimates potential gross revenue backlog from the three MR newbuildings at approximately $226.3 million when all available charterer extension years are included. Adding contracted charters for the operating fleet takes the potential figure to approximately $374.6 million, again assuming all extension options are exercised.
That distinction matters because part of the stated backlog depends on charterers choosing to extend their contracts and therefore should not be viewed as entirely firm contracted revenue.
The financing structure may also be relevant to investors evaluating Rubico’s expansion strategy. According to management, 85% of shipbuilding instalments for the newbuilding tankers are financed, supporting fleet additions while the vessels are under construction.
The acquisition also increases Rubico’s exposure to vessels that will not enter service until 2029. Execution of the construction programme and eventual delivery will therefore remain important to converting the future charter arrangements into operating revenue.
What to Watch Next
Investors can watch progress toward delivery of the three MR tankers in the second, third and fourth quarters of 2029, alongside any updates on their financing and charter arrangements.
Another potential development is Rubico’s planned divestment of its 60-metre newbuilding megayacht, which is scheduled for delivery in the second quarter of 2027.