© Reuters.
ATHENS – Performance Shipping Inc. (NASDAQ: PSHG), a global shipping company specializing in tanker vessels, has announced entering into time charter contracts for three newbuilding LR2 Aframax tanker vessels with Clearlake Shipping Pte Ltd, a subsidiary of Gunvor Group. Each contract spans a firm period of five years with options to extend for an additional two years, subject to a 12-month advance declaration from the Charterer.
The vessels, which are LNG-ready and equipped with scrubbers, are expected to generate a gross charter rate of $31,000 per day per vessel during the initial five-year period. If the optional periods are exercised, the rate will be a base plus profit share. The anticipated commencement of employment is slated for the delivery of the vessels, which is scheduled for the fourth quarter of 2025, the first quarter of 2026, and the second quarter of 2026.
Andreas Michalopoulos, CEO of Performance Shipping, expressed enthusiasm for the strategic relationship with Clearlake Shipping and the long-term fixed revenue these contracts are set to secure.
The firm-period contracts are projected to yield gross revenue of approximately $169.8 million, which represents about 88% of the combined construction costs of the vessels. This deal is expected to increase the company’s fixed revenue backlog to roughly $211.4 million, based on the minimum charter period.
Performance Shipping Inc. operates its fleet across various markets, including spot voyages, pool arrangements, and time charters. The announcement of these contracts highlights the company’s approach to securing profitable charter rates and enhancing cash flow visibility for the initial operating years of the new vessels.
The information disclosed is based on a press release statement from Performance Shipping Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.