Performance Shipping Inc. Announces a US$30,000 Per Day Time Charter Contract for About 24 Months

Rhea-AI Summary

Performance Shipping Inc. (NASDAQ: PSHG) has secured a time charter contract with ST Shipping & Transport Pte Ltd for its vessel M/T P. Yanbu. The charter rate is set at US$30,000 per day for 24 months, with expected gross revenue of US$20.6 million during the minimum duration. Currently, the company has three Aframax tankers under contract at attractive rates, ensuring steady cash flow. The M/T P. Yanbu is a 105,391 dwt tanker, enhancing the company's operational capacity in the tanker shipping industry.

Positive

• Secured a charter contract generating approximately US$20.6 million in gross revenue.
• Current contract rates for Aframax tankers range from US$23,000 to US$45,000 per day.
• Possesses a diversified fleet with additional tankers operating in the spot market earning over US$40,000 per day.

Negative

• None.

ATHENS, Greece, Oct. 27, 2022 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with ST Shipping & Transport Pte Ltd. (the “Charterer”), a wholly-owned subsidiary of Glencore, for its vessel M/T P. Yanbu. The gross charter rate will be US$30,000 per day for a period of twenty-four (24) months +/- 45 days at the option of the Charterer and is expected to commence in December 2022. This charter will generate approximately US$20.6 million of gross revenue for the minimum duration of the charter.

The M/T P. Yanbu is a 105,391 dwt Aframax tanker vessel built in 2011 by Sumitomo Heavy Industries Marine & Engineering Co. Ltd.

Commenting on this charter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“With the P. Yanbu charter we now have three of our Aframax tankers under contract at very attractive charter rates ranging from $23,000 to $45,000 per day and with very reputable, credit-worthy counterparties. The terms of our three charters are also staggered with maturities commencing mid-2023, mid- and late 2024, providing strong cashflow over and above our daily cash breakeven rates. This steady and predictable revenue is further supplemented by the remaining four Aframax tankers in our fleet, which are operating in the spot market through their participation in pools and currently earning in excess of $40,000 per vessel per day.”

About the Company

Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company’s current fleet is employed on spot voyages, through pool arrangements and on time charters.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts, including with respect to the delivery of the vessels we have agreed to acquire.

The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,” “continue,” “possible,” “might,” “pending” and similar expressions, terms or phrases may identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to the vessels we have agreed to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including the ongoing outbreak of the novel coronavirus (COVID-19) and its impact on the demand for seaborne transportation of petroleum and other types of products, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

FAQ

What is the gross revenue expected from the new charter for PSHG?

The new charter for PSHG is expected to generate approximately US$20.6 million in gross revenue.

What is the duration of the charter contract signed by Performance Shipping Inc.?

The charter contract signed by Performance Shipping Inc. is for a duration of 24 months, with an option of +/- 45 days.

What is the charter rate for the M/T P. Yanbu vessel under the new contract?

The charter rate for the M/T P. Yanbu vessel is set at US$30,000 per day.

How many Aframax tankers does PSHG currently have under contract?

Performance Shipping Inc. currently has three Aframax tankers under contract.

When is the charter for the M/T P. Yanbu expected to commence?

The charter for the M/T P. Yanbu is expected to commence in December 2022.