Performance Shipping Inc. (PSHG) announced that it has secured two long‑term time‑charter agreements with Repsol Trading S.A. for its two 158,000‑dwt Suezmax newbuilds currently under construction in China. The first vessel will be chartered for a seven‑year term at a daily hire rate of US$35,000, while the second will be chartered for five years at US$36,850 per day, payable monthly in advance. The charters will commence upon delivery of the vessels in October 2028 and May 2029, respectively.
The agreements add approximately US$471 million to PSHG’s contracted revenue base, raising its total backlog from US$317 million to US$788 million. This jump in backlog provides the company with a multi‑year revenue stream that is largely insulated from spot‑market volatility, giving management greater visibility into future earnings and cash flow. The daily hire rates represent premium terms that reflect the market’s demand for modern, eco‑compliant Suezmax tankers.
The charters are a key component of PSHG’s fleet‑modernization strategy. By locking in long‑term employment for vessels that will cost roughly US$81.5 million each, the company ensures that charter revenues will cover the majority of the acquisition costs. The newbuilds’ advanced design and fuel‑efficiency features also position PSHG to benefit from tightening environmental regulations and rising fuel prices, potentially reducing operating costs over the life of the contracts.
CEO Andreas Michalopoulos highlighted the significance of the deals, noting that the agreements “mark a further expansion of our relationship with Repsol Trading S.A., a major global energy company.” He added that the charters “will cover the majority of the vessels' acquisition costs,” underscoring the financial upside and the strategic partnership with a reputable counterparty.
Overall, the long‑term charters strengthen PSHG’s revenue pipeline, support its modernization agenda, and reduce exposure to short‑term market swings. The agreements also reinforce the company’s position as a preferred partner for major energy firms, potentially opening doors for future contracts and reinforcing investor confidence in its growth strategy.
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