Performance Shipping Inc., a global shipping company specializing in tanker ship ownership, today announced that it has entered into time charter agreements with Repsol Trading SA (“Repsol”) for two previously announced new 158,000-ton Suezmax tanker ships (“Ships”) under construction in China, by China Ship Building Trading Co. Ltd. Shanghai Waigaoqiao Shipbuilding Co., Ltd.
Under the agreements, the first vessel was chartered for a period of seven (7) years (± 30 days) at a daily charter rate of US$35,000, while the second vessel was chartered for a period of five (5) years (± 30 days) at a daily charter rate of US$36,850, payable monthly in advance. The vessels are expected to be delivered from the shipyard to the company in October 2028 and May 2029 and will commence chartering with Repsol upon delivery.
Commenting on the agreements, Andreas Michalopoulos, CEO of the company, said:
“Having entered into newbuild contracts for the Suezmax tankers in early March, we are pleased to announce that we have now secured long-term employment for both vessels well in advance of their delivery. These agreements represent a further expansion of our relationship with Repsol Trading SA, a major global energy company. The modern, fuel-efficient and environmentally friendly specifications of these scrubber-equipped vessels have secured long-term employment on attractive terms, reflecting the positive fundamentals of the Suezmax market and confidence in our operations.” Capabilities.
“Guaranteed revenue from these charters will cover the majority of vessel acquisition costs and add significant earnings visibility, increasing the company’s total fleet-wide contracted revenue to approximately $471 million from $317 million, based on the minimum term of each charter as of the beginning of April 2026. Our average contract term is now 2.8 years and contracted days are 89.5%, 76.9%, 68.6%, 56.4% and 46.8% for 2026, 2027, 2028, 2029 and 2030, respectively, effectively reducing the charter rate required to break even on our open days. All of our modern vessels are now operating under long-term fixed charters along with our remaining vessels operating under short-term charters, two of which are scheduled for renewal this year in a very tight market for tanker vessel capacity.
Source: Performance Shipping Company
