Performance Shipping locks away aframax on two-year charter

Nasdaq-listed Greek tanker owner Performance Shipping has fixed its 2013-built aframax P. Long Beach to Marathon Maritime Company, a subsidiary of Marathon Petroleum.

The deal will see the 105,408 dwt ship earn $37,200 per day for about two years with the charter starting at the end of December.

Marathon has options for plus or minus 40 days under the deal, for which Performance expects to generate approximately $25.7m for the minimum duration of the charter.

Andreas Michalopoulos chief executive of Performace Shipping said that with this charter, over half of the company’s current fleet will be under time charter contracts, earning $23,000 to $37,200 per day, with a secured revenue backlog of about $54m, based on the minimum duration of each charter.

Performance owns and operates seven aframax tankers, with three newbuilds set to enter service in the coming years.

“We expect to further enhance our current profitability by capitalising 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,” added Michalopoulos.

Yangzijiang Shipbuilding

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