Performance Shipping (PSHG) Stock: Why It Increased 3.53%

By Amit Chowdhry ● Sep 23, 2022
  • The stock price of Performance Shipping (PSHG) increased by 3.53% in the most recent trading session. This is why.

The stock price of Performance Shipping (PSHG) increased by 3.53% in the most recent trading session. 

Why: Performance Shipping announced that through a separate wholly-owned subsidiary, it has entered into a time charter contract with Trafigura Maritime Logistics Pte Ltd for the LR2 Aframax oil product tanker the M/T Alpine Amalia, to be renamed P. Aliki, the acquisition of which was previously announced. And the gross charter rate will be US$45,000 per day for a period of minimum of 7 months to a maximum of 10 months at the option of the charterer and will commence following the vessel’s delivery to the company expected in November. This charter is expected to generate about a minimum of US$9.5 million to a maximum of US$13.7 million in gross revenue (a minimum of US$5.7 million to a maximum of US$8.2 million in cash flow after debt service, respectively), depending on the duration of the charter.

KEY QUOTE:

“In addition to maintaining the Company’s ability to capture market upturns in strong freight environments, particularly during periods of exceptionally positive industry fundamentals, we seek to secure a certain level of fixed revenue for our fleet. As a result, considering recent market developments with charter rates at multiyear highs, the recent expansion of our fleet, and our desire to establish solid partnerships with first-class charterers, we decided to time charter the M/T P. Aliki at this very lucrative level almost two months prior to actually taking delivery of the vessel.”

— Andreas Michalopoulos, Chief Executive Officer