Performance Shipping Inc. announced on June 17, 2025, that it has entered into a long-term time charter contract with Mercuria Energy Trading S.A. for its fourth newbuilding, an LR1 tanker scheduled for delivery in early 2027.
The vessel will be chartered to Mercuria for a firm period of four years, extending through early 2031, at a daily gross charter rate of US$23,750. The agreement also provides Mercuria with options to extend the charter for up to three additional one-year periods, with increasing daily rates for each optional year.
This long-term time charter is expected to generate stable and predictable earnings above the vessel’s free cash flow breakeven level, significantly increasing forward revenue visibility in 2027 and beyond. The employment is expected to commence immediately upon delivery of the vessel to the company.
With this charter, the company's fleetwide secured revenue backlog increases by approximately US$35 million, bringing the total to about US$255 million, based on the minimum duration of each charter. This contract further increases the company's fixed charter coverage, reducing the cash flow breakeven rate required on its open days.
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