Performance Shipping announces a US$45,000 per day time charter contract for 7-10 months

September 23 2022 Print This Article

Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Trafigura Maritime Logistics Pte Ltd  for the LR2 Aframax oil product tanker the M/T Alpine Amalia, to be renamed P. Aliki, the acquisition of which was previously announced. The gross charter rate will be US$45,000 per day for a period of minimum seven months to a maximum of ten  months at the option of the Charterer and will commence following the vessel's delivery to the Company expected in November. This charter is expected to generate approximately a minimum of US$9.5 million to a maximum of US$13.7 million in gross revenue (a minimum of US$5.7 million to a maximum of US$8.2 million in cashflow after debt service, respectively), depending on the duration of the charter.

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

“In addition to maintaining the Company’s ability to capture market upturns in strong freight environments, particularly during periods of exceptionally positive industry fundamentals, we seek to secure a certain level of fixed revenue for our fleet. As a result, considering recent market developments with charter rates at multiyear highs, the recent expansion of our fleet, and our desire to establish solid partnerships with first-class charterers, we decided to time charter the M/T P. Aliki at this very lucrative level almost two months prior to actually taking delivery of the vessel.”