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ATHENS - Performance Shipping Inc. (NASDAQ:PSHG) has secured a 24-month time charter contract with SeaRiver Maritime, a subsidiary of ExxonMobil Corporation, for its LR2 Aframax tanker M/T P. Long Beach, according to a press release issued Tuesday. The company, currently valued at $26.16 million and trading at a P/E ratio of just 1.36, appears undervalued according to InvestingPro Fair Value estimates.
The 105,408 DWT vessel, built in 2013, will be chartered at a daily rate of $30,500, generating approximately $21.35 million in revenue for the minimum duration of the contract. The vessel is expected to be delivered to SeaRiver in mid-December 2025 after completing its current charter.
The new agreement increases Performance Shipping's fleet-wide secured revenue backlog to approximately $257 million, based on minimum charter durations as of October 1, 2025. The company reports this contract raises its fixed charter coverage to approximately 52% for 2026 and 41% for 2027. With impressive gross profit margins of 71.26% and a balance sheet that holds more cash than debt, Performance Shipping demonstrates solid financial fundamentals.
Andreas Michalopoulos, CEO of Performance Shipping, noted in the statement that the charter was secured "well ahead of schedule" and described it as reflecting "both the favorable market dynamics and a positive outlook for our sector." The company boasts an InvestingPro Financial Health Score of 3.5 (rated as "GREAT"), suggesting strong operational performance despite trading at a remarkably low Price/Book multiple of just 0.08.
Performance Shipping specializes in tanker vessel ownership and employs its fleet through spot voyages, pool arrangements, and time charters. The company's announcement comes amid what it describes as a "seasonally strong market environment" for the tanker sector.
The Athens-based shipping company did not disclose additional details about vessel deployment or specific terms beyond the basic charter parameters.
In other recent news, Performance Shipping Inc. announced significant developments that are likely to impact its operations. The company has entered into agreements to acquire two Suezmax tankers for a total of $150.9 million. These vessels, M/T Eco Bel Air and M/T Eco Beverly Hills, each cost $75.44 million and were built in 2019 by Hyundai Samho Heavy Industries. This acquisition expands Performance Shipping's fleet in the midsize tanker segment. Additionally, Performance Shipping has secured a 12-month charter contract for its M/T P. Aliki tanker with Pakistan National Shipping Corporation. The charter is set at a daily gross rate of $30,000 and is expected to commence around mid-September 2025. The M/T P. Aliki recently concluded a six-month charter with Seariver Maritime LLC. These recent developments highlight Performance Shipping's strategic moves to enhance its fleet and secure stable revenue streams.
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