Performance Shipping Secures Long-Term Charters for Suezmax Tankers Delivering 2028-2029
Event summary
- Performance Shipping has secured 7-year and 5-year time charters with Repsol for two Suezmax tankers delivering in 2028 and 2029.
- Daily hire rates are $35,000 and $36,850 respectively, payable monthly in advance.
- Total contracted revenue increases from $317M to $471M, with average contract duration now 2.8 years.
- All modern vessels now operate under long-term fixed charter rate contracts.
The big picture
This deal reflects strong fundamentals in the Suezmax market and Performance Shipping's ability to secure long-term employment for its modern, fuel-efficient vessels. The agreements with Repsol, a major global energy company, demonstrate confidence in both the company's operational capabilities and the positive outlook for tanker shipping. The secured revenues will significantly boost the company's earnings visibility and reduce its breakeven requirements.
What we're watching
- Revenue Stability
- How the secured charters will affect Performance Shipping's earnings visibility and breakeven requirements.
- Market Tightness
- Whether the extremely tight market for prompt tanker vessel capacity will sustain high charter rates.
- Operational Execution
- The pace at which Performance Shipping can renew shorter-term charters in the current market environment.