ATHENS, GREECE,– Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that, through a separate wholly-owned subsidiary, it has entered into a long-term time charter contract with Mercuria Energy Trading S.A. (“Mercuria” or the “Charterer”), for its fourth newbuilding, the previously announced LR1 tanker scheduled for delivery in early 2027.
The vessel will be chartered to Mercuria for a firm period of four years, through early 2031, at a daily gross charter rate of US$23,750. The agreement provides Mercuria with options to extend the charter for up to three additional one-year periods. The daily rate will increase by US$850 for each of the first and second optional years and by US$1,200 for the third optional year, while the exercise of the third optional year will require mutual agreement between the parties. Employment is expected to commence immediately upon delivery of the vessel to the Company.
The Company expects this long-term time charter to generate stable and predictable earnings above the vessel’s free cash flow breakeven level, increasing forward revenue visibility in 2027 and beyond.
Commenting on this charter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“We are extremely pleased to initiate a new collaboration with Mercuria, a world leading independent energy and commodity group, which further underscores the continued confidence that charterers place in us and our commitment to building lasting relationships. With this charter, our fleetwide secured revenue backlog increases by approximately US$35 million, bringing the total to about US$255 million, based on the minimum duration of each charter and as of the end of the last financial reporting period. By entering into this contract, we further increase our fixed charter coverage, thereby reducing the cash flow breakeven rate required on our open days. This strengthens our ability to safely navigate through the challenges of a volatile market while reinforcing our commitment to long-term value creation.”
