Performance Shipping Inc. Secures Time Charter Contract for M/T P. Aliki at US$30,000 Per Day

Rhea-AI Summary

Performance Shipping (NASDAQ:PSHG) has secured a new 12-month time charter contract with Pakistan National Shipping Corporation for its vessel M/T P. Aliki. The 105,304 DWT LR2 Aframax tanker will be chartered at a daily rate of $30,000, expected to commence in mid-September 2025 after completing its third special survey and drydock.

The contract will increase the company's secured revenue backlog by approximately $10.5 million, bringing the total fleetwide backlog to $250.5 million. The vessel previously completed a six-month charter with Seariver Maritime LLC, a subsidiary of ExxonMobil Corporation.

Positive

• Secured daily charter rate of $30,000, generating earnings above vessel's breakeven level
• Added $10.5 million to revenue backlog from minimum charter duration
• Total fleetwide secured revenue backlog of $250.5 million
• Diversification of charter relationships with new client PNSC

Negative

• Vessel temporarily out of service for third special survey and drydock

Insights

Maritime Industry Analyst

Performance Shipping secures profitable 12-month charter at $30,000/day, enhancing revenue stability with $10.5M backlog addition.

Performance Shipping has secured a strategic 12-month time charter for its LR2 Aframax tanker M/T P. Aliki at a daily rate of $30,000 with Pakistan National Shipping Corporation. This arrangement follows the vessel's previous six-month charter with ExxonMobil's subsidiary and will commence after completing its third special survey and drydock in mid-September 2025.

The contract adds approximately $10.5 million to Performance Shipping's secured revenue backlog, bringing the total to about $250.5 million. This represents a significant portion of guaranteed income that provides enhanced financial stability and predictability for the company's operations.

From an operational perspective, this charter rate indicates continued strength in the Aframax tanker market. Management's statement that the rate will generate earnings "significantly above the vessel's free cash flow breakeven level" suggests healthy profit margins on this contract. For context, Aframax vessels typically have operating expenses between $7,000 and $9,000 per day, implying this charter could generate substantial positive cash flow.

The diversification of charterers is also noteworthy, as Performance Shipping expands from working with major oil companies like ExxonMobil to national shipping corporations like PNSC. This broader customer base reduces counterparty risk and demonstrates the global marketability of their fleet.

For Performance Shipping's overall business strategy, this charter aligns with their stated approach of securing medium-term employment to balance stable cash flows with the ability to capitalize on rate fluctuations. With the tanker market experiencing volatility, locking in rates above breakeven levels provides a financial buffer while maintaining the potential to secure new favorable contracts as other vessels complete their current charters.

ATHENS, Greece, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that it has entered into a time charter contract with Pakistan National Shipping Corporation (“PNSC” or the “Charterer”) for its M/T P. Aliki, a 105,304 DWT LR2 Aframax tanker, built in 2010.

Under the agreement, the vessel will be chartered for a period of 12 months, plus or minus 15 days at the Charterer’s option, at a daily gross charter rate of US$30,000. The P. Aliki completed a six-month charter with Seariver Maritime LLC, a subsidiary of ExxonMobil Corporation, and is currently undergoing its third special survey and drydock. She will be delivered to the Charterer upon completion of the drydock, expected to be around mid-September 2025.

This charter increases the Company’s fleetwide secured revenue backlog by approximately US$10.5 million for the minimum duration of the charter, bringing the total to about US$250.5 million, based on the minimum duration of each charter and as of the end of the last financial reporting period.

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

“We are pleased to commence this new collaboration with Pakistan National Shipping Corporation, which highlights the diversity and global reach of our chartering relationships. The Company expects this time charter to generate earnings significantly above the vessel’s free cash flow breakeven level and contribute meaningfully to our earnings over the contracted period. This aligns with our strategy of securing attractive employment for our vessels in a dynamic market environment to maintain revenue visibility. We look forward to building on this relationship while continuing to deliver value to our shareholders.”

About the Company

Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet 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. 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 vessels we agree 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 COVID-19, and their impact on the demand for seaborne transportation of petroleum and other types of products, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine and the war between Israel and Hamas, 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 US Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com

Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: +1-203-972-8350
Email: enebb@optonline.net

FAQ

What is the daily charter rate for PSHG's M/T P. Aliki vessel?

The M/T P. Aliki has been chartered at a daily gross charter rate of $30,000 for a 12-month period.

When will PSHG's new charter contract with Pakistan National Shipping Corporation begin?

The charter is expected to commence in mid-September 2025 after the vessel completes its third special survey and drydock.

How much revenue backlog will PSHG generate from the new charter contract?

The charter will add approximately $10.5 million to PSHG's revenue backlog for the minimum duration of the charter.

What is Performance Shipping's total fleet revenue backlog as of the last reporting period?

Performance Shipping's total fleetwide secured revenue backlog stands at $250.5 million, based on the minimum duration of each charter.

Who was the previous charterer of M/T P. Aliki before PNSC?

The vessel previously completed a six-month charter with Seariver Maritime LLC, a subsidiary of ExxonMobil Corporation.