Performance Shipping Secures Two Year Time Charter Contract With Oil Major

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Performance Shipping announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Marathon Maritime Company, a wholly-owned subsidiary of Marathon Petroleum Corporation, for the M/T P. Long Beach.

The gross charter rate will be US$37,200 per day for a period of twenty-four (24) months +/- 40 days at the option of the Charterer and is expected to commence at the end of December. This charter will generate approximately US$25.7 million of gross revenue for the minimum duration of the charter.

The M/T P. Long Beach is a 105,408 dwt Aframax tanker vessel built in 2013 by Hyundai Heavy Industries Co., Ltd.

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

“We are very pleased to announce this new time charter contract for our Aframax tanker, M/T P. Long Beach. This charter not only showcases our ability to secure highly lucrative charters but also reflects our solid business reputation through our newly established relationships with top-tier and creditworthy counterparties, such as Marathon Petroleum.

“Together with this charter, over half of our current fleet will be under time charter contracts, earning gross charter rates ranging from US$23,000 to US$37,200 per day. This brings our secured revenue backlog to approximately US$54 million, based on the minimum duration of each charter. We expect to further enhance our current profitability by capitalizing on the firm freight rate environment through the operation of our remaining tankers under pool arrangements. This significant steady cashflow will further reinforce our market position and support our fleet expansion and renewal strategy, while providing partial funding of our capital expenditures related to our shipbuilding contracts for the purchase of three newbuild LNG-ready LR2 Aframax tankers, expected to be delivered in 2025 and 2026.”