Nasdaq-listed Greek tanker owner and operator Performance Shipping has entered into a long-term time charter contract with Mercuria Energy Trading for a newbuilding LR1 tanker.
Mercuria chartered the tanker for a firm period of four years, through early 2031, at a daily gross charter rate of $23,750. The vessel is the fourth tanker newbuild to be chartered out and is set for delivery in early 2027. It will begin work immediately upon delivery.
The agreement provides Mercuria with options to extend the charter for up to three additional one-year periods. The daily rate will increase by $850 for each of the first and second optional years and by $1,200 for the third optional year, while the exercise of the third optional year will require mutual agreement between the parties.
The company expects this long-term time charter to generate stable and predictable earnings above the vessel’s free cash flow breakeven level, increasing forward revenue visibility in 2027 and beyond.
“With this charter, our fleetwide secured revenue backlog increases by approximately $35m, bringing the total to about $255m, based on the minimum duration of each charter and as of the end of the last financial reporting period,” said Andreas Michalopoulos, CEO of Performance Shipping.
