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Investing.com -- Performance Shipping Inc. (NASDAQ:PSHG) stock gained 3.5% Thursday after the tanker vessel company announced it has secured three-year time charter contracts with Repsol Trading S.A for two recently acquired Suezmax tankers.
The vessels, M/T P. Bel Air and M/T P. Beverly Hills, will be chartered at a rate of $36,500 per day per vessel upon their delivery to the company, which is expected by early 2026. Each tanker has a capacity of 157,000 DWT and was built in 2019 by Hyundai Samho Heavy Industries in South Korea.
The company expects these charters to generate approximately $78 million in gross revenue over the minimum three-year period, enhancing Performance Shipping’s contracted revenue backlog.
"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, CEO of Performance Shipping. "The modern, fuel-efficient, and environmentally friendly characteristics of these scrubber-fitted vessels contributed to securing long-term employment at attractive terms."
The revenue from these charters will cover more than half of the vessels’ acquisition cost, according to the company. Performance Shipping noted that the deals increase its total fleetwide revenue to approximately $335 million and boost charter coverage to 70% for 2026 and 57% for 2027.
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