Performance Shipping Secures $37,700/Day Charter Extension with Aramco for Aframax Tanker
Event summary
- Performance Shipping extended the time charter for M/T Briolette with Aramco at $37,700/day for 35 months starting July 2, 2026.
- The deal is expected to generate ~$39M in gross revenue for the minimum duration.
- Contracted revenue backlog exceeds $500M as of mid-2026 with average charter duration at 3.2 years.
- Charter coverage now exceeds 80% through end of 2028 and ~60% in 2029.
The big picture
This extension solidifies Performance Shipping's long-term relationship with Aramco, one of the world's largest energy companies. The deal underscores the strategic value of secured charter contracts in a volatile shipping market, providing earnings visibility amid fluctuating spot rates. With over $500M in contracted revenue backlog, the company demonstrates strong commercial strategy execution in securing stable cash flows.
What we're watching
- Revenue Stability
- How the $37,700/day rate compares to current market benchmarks and whether it sustains profitability through 2028.
- Charter Coverage
- The pace at which Performance Shipping can maintain high charter coverage rates beyond 2029.
- Operational Flexibility
- Whether the reduced average daily rate requirement of ~$10,000 in 2029 provides sufficient financial buffer for unexpected costs.