Performance Shipping Secures Long-Term Charters for Two Suezmax Newbuildings, Boosting Contracted Revenue by $154M

summarizeSummary

Performance Shipping Inc. secured long-term charters for two new Suezmax tankers, adding approximately $154 million to contracted revenue and significantly enhancing future earnings visibility.

check_boxKey Events

• Long-Term Charters Secured

  Performance Shipping Inc. entered into 7-year and 5-year time charter agreements with Repsol Trading S.A. for two Suezmax newbuilding tankers, delivering in October 2028 and May 2029.

• Significant Revenue Boost

  The charters are at daily rates of $35,000 and $36,850, increasing total fleetwide contracted revenue by approximately $154 million, from $317 million to $471 million.

• Enhanced Earnings Visibility

  These agreements are expected to cover the majority of the vessels' acquisition costs and extend the company's average contract duration to 2.8 years, providing substantial future earnings visibility and reducing market risk.

auto_awesomeAnalysis

This filing announces highly significant long-term time charter agreements for two Suezmax newbuilding tankers, substantially de-risking the company's future revenue stream. The charters with Repsol Trading S.A. for 7 and 5 years, respectively, at attractive daily rates of $35,000 and $36,850, will cover the majority of the vessels' acquisition costs. For a company of this market capitalization, securing an additional $154 million in contracted revenue provides exceptional earnings visibility and significantly strengthens its financial position, extending average contract duration and reducing exposure to spot market volatility for a substantial portion of its fleet.