- 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.
“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