Performance Shipping secures three-year charters for two Suezmax tankers

ATHENS - Performance Shipping Inc. (NASDAQ:PSHG) has entered into three-year time charter contracts with Repsol Trading S.A. for two recently acquired Suezmax tankers, the company announced Thursday. The tanker specialist, currently trading at a P/E ratio of just 1.33 and considered undervalued according to InvestingPro Fair Value estimates, continues to strengthen its revenue stream with strategic contracts.

The vessels, M/T P. Bel Air and M/T P. Beverly Hills, are 157,000 DWT tankers built in 2019 by Hyundai Samho Heavy Industries in South Korea. Both ships are scheduled for delivery to Performance Shipping by early 2026.

The charter agreement sets a gross rate of $36,500 per day per vessel, with the contracts expected to generate approximately $78 million in gross revenue over the minimum three-year period. The charters include an option for the charterer to extend or shorten the period by 30 days.

These 2019-built tankers are described as eco-design and scrubber-fitted vessels. According to the company, the charters will increase Performance Shipping's total fleetwide contracted revenue to approximately $335 million and provide charter coverage of 70% for 2026 and 57% for 2027.

"This agreement marks our first business engagement with Repsol Trading S.A, a major energy company, further expanding our network of highly reputable charterers," said Andreas Michalopoulos, Chief Executive Officer of Performance Shipping, in the press release statement.

Performance Shipping specializes in the ownership of tanker vessels, deploying its fleet on spot voyages, through pool arrangements, and on time charters.

The information in this article is based on a company press release.

In other recent news, Performance Shipping Inc. has secured a 24-month charter contract with SeaRiver Maritime, a subsidiary of ExxonMobil, for its LR2 Aframax tanker, M/T P. Long Beach. This agreement is set to generate approximately $21.35 million in revenue over the contract's minimum duration. Additionally, Performance Shipping announced the acquisition of two Suezmax tankers for a total of $150.9 million. These vessels, M/T Eco Bel Air and M/T Eco Beverly Hills, were built in 2019 by Hyundai Samho Heavy Industries and will expand the company's fleet in the midsize tanker segment. Furthermore, the company has secured a 12-month charter for its M/T P. Aliki with Pakistan National Shipping Corporation. This contract will see the vessel chartered at a daily gross rate of $30,000. These developments highlight Performance Shipping's strategic moves to enhance its operational capacity and revenue streams.

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