On April 16, Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, announced that it has entered into time charter agreements with Repsol Trading S.A. (“Repsol”) for its two previously announced 158,000 dwt Suezmax tanker newbuilding vessels (the “Vessels”) under construction in China, by China Shipbuilding Trading Co. Ltd. and Shanghai Waigaoqiao Shipbuilding Co. Ltd.
Under the agreements, the first vessel has been chartered for a period of seven (7) years (±30 days) at a daily hire rate of US$35,000, while the second vessel has been chartered for a period of five (5) years (±30 days) at a daily hire rate of US$36,850, payable monthly in advance. The Vessels are expected to be delivered from the shipyard to the Company in October 2028 and May 2029 and will commence their respective charters with Repsol upon their delivery.
Commenting on the agreements, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Following the entry into our Suezmax tanker newbuilding contracts in early March, we are pleased to announce that we have now secured long-term employment for both vessels well in advance of their delivery. These agreements mark a further expansion of our relationship with Repsol Trading S.A., a major global energy company. The modern, fuel-efficient, and environmentally friendly specifications of these scrubber-fitted vessels contributed to securing long-term employment on attractive terms, reflecting both the positive fundamentals of the Suezmax market and confidence in our operational capabilities.
“Revenues secured from these charters will cover the majority of the vessels’ acquisition cost and add significant earnings visibility, increasing the Company’s total fleetwide contracted revenue to approximately US$471 million from US$317 million, based on the minimum duration of each charter and as of the beginning of April 2026. Our average contract duration is now 2.8 years and our contracted days are 89.5%, 76.9%, 68.6%, 56.4% and 46.8% for 2026, 2027, 2028, 2029 and 2030, respectively, thereby reducing the charter rate required to breakeven on our open days. Effectively all our modern vessels are now operating under long-term fixed charter rate contracts. This is coupled with our remaining vessels operating under shorter-term charters, two of which are scheduled for renewal this year in an extremely tight market for prompt tanker vessel capacity.”
It is reported that each of the two new vessels has a construction cost of $81.5 million, with the total order valued at approximately $163 million. These Suezmax tankers are equipped with desulfurization systems, comply with the International Maritime Organization (IMO) Tier III emissions standards, and meet the latest fuel efficiency and environmental regulations, which will significantly enhance the shipowner’s commercial competitiveness and long-term profitability.
According to its official website, Performance Shipping is a global shipping company focused on the tanker sector, currently operating its fleet through spot sailings, joint ventures, and time charters.
As of January 13, 2026, Performance owned 12 tankers, including 9 Aframax tankers and 2 Suezmax tankers, all currently in operation; one new LR1 product tanker, built by Yangzijiang Shipbuilding, is expected to be delivered in early 2027.