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ATHENS - Performance Shipping Inc. (NASDAQ:PSHG), a shipping company with "GREAT" financial health according to InvestingPro metrics, announced Monday it has secured a 12-month time charter contract with Pakistan National Shipping Corporation for its M/T P. Aliki, a 105,304 DWT LR2 Aframax tanker built in 2010.
The vessel will be chartered at a daily gross rate of $30,000 for a period of 12 months, plus or minus 15 days at the charterer’s option. Delivery to the charterer is expected around mid-September 2025, following completion of the vessel’s third special survey and drydock. The P. Aliki recently completed a six-month charter with Seariver Maritime LLC, a subsidiary of ExxonMobil Corporation. The company maintains impressive gross profit margins of 71% and holds more cash than debt on its balance sheet.
According to the company’s press release, this charter adds approximately $10.5 million to Performance Shipping’s fleetwide secured revenue backlog for the minimum duration of the charter, bringing the total to about $250.5 million. This represents a significant portion of the company’s current market capitalization of $23.12 million, with analysis from InvestingPro indicating the stock may be undervalued.
"We are pleased to commence this new collaboration with Pakistan National Shipping Corporation, which highlights the diversity and global reach of our chartering relationships," said Andreas Michalopoulos, the company’s Chief Executive Officer.
Performance Shipping specializes in the ownership of tanker vessels and employs its fleet on spot voyages, through pool arrangements, and on time charters.
The company stated that the charter rate is expected to generate earnings above the vessel’s free cash flow breakeven level over the contracted period.
In other recent news, Performance Shipping has finalized a refinancing agreement with Alpha Bank for $29.75 million. This deal, involving subsidiaries, addresses the loan balance secured by the vessels M/T P. Long Beach and M/T P. Aliki. Additionally, Performance Shipping successfully raised $100 million in the Nordic bond market. The bonds, set to mature in July 2029, offer a fixed annual coupon of 9.875% and are partially secured by mortgages on the company’s two oldest tanker vessels. Plans are underway to list these bonds on the Oslo Stock Exchange. These developments mark significant financial maneuvers for Performance Shipping in recent times.
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