ATHENS - Performance Shipping Inc. (NASDAQ: PSHG), a global shipping company specializing in tanker vessels with a market capitalization of $23.12 million and impressive gross profit margins of 73%, has announced a new time charter contract with American Eagle (NYSE:AEO) Tankers (AET), part of MISC Group, for its Aframax tanker vessel, the M/T Blue Moon. The contract, set at a daily rate of $28,000, will span twenty-one months with an option to extend by 15 days at the charterer's discretion, starting from early January.
This agreement is expected to generate approximately $17.4 million in gross revenue for the minimum charter period. Andreas Michalopoulos, CEO of Performance Shipping, expressed satisfaction with the new collaboration, highlighting it as a testament to the trust charterers have in the company. According to InvestingPro data, the company maintains strong financial health with a 14.24% return on assets and holds more cash than debt on its balance sheet.
The charter boosts Performance Shipping's secured revenue backlog to about $59.4 million for its operating vessels and $169.8 million when including three new buildings. Michalopoulos emphasized the charter's role in enhancing the company's capacity to manage market volatility and its focus on long-term value creation.
Performance Shipping operates its fleet across various market segments, including spot voyages, pool arrangements, and time charters. The announcement indicates the company's proactive approach to securing profitable engagements amidst a dynamic market landscape.
The company has cautioned that certain statements in the press release may be forward-looking and subject to various assumptions and uncertainties. These include, but are not limited to, market conditions, financing, vessel employment, and broader economic factors.
This news is based on a press release statement and reflects the latest strategic move by Performance Shipping as it navigates the complexities of the global shipping industry.
In other recent news, Performance Shipping Inc. has announced a series of significant developments. The company has initiated the distribution of proxy materials for its upcoming 2024 Annual General Meeting, urging shareholders to vote for its board nominee and against proposals from competitor George Economou. The company's growth strategy, highlighted by fleet expansion, increasing sustainability efforts, and a strong financial position, has led to increased revenues and profitability.
Performance Shipping Inc. has also secured a sale and leaseback deal for a newbuild LR2 Aframax tanker. The agreement, with an undisclosed third party, involves a ten-year bareboat charter post-delivery, with a financing amount of approximately $45.39 million. The company has arranged a five-year charter for the vessel with Clearlake Shipping Pte Ltd., reflecting their ability to secure attractive funding.
These are recent developments in Performance Shipping's business strategy, which is centered on relationships with international lenders and strategic partnerships with charterers. However, the company's forward-looking statements are subject to significant uncertainties and contingencies beyond their control. The company continues to defend its valuation and governance structure against takeover attempts by competitor George Economou.
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