- Performance Shipping Inc. (NASDAQ: PSHG) has signed two shipbuilding contracts through its wholly-owned subsidiaries.
- The contracts are for the construction of two 114,000 DWT LNG-ready LR2 Aframax product/crude oil tanker vessels.
- Expected delivery dates are January and April of 2026.
- Purchase price: US$64,845,000 per vessel, net of third-party commission.
- The strategy involves selling older vessels and acquiring modern ones, aligning with the core fleet expansion and renewal strategy.
Performance Shipping Inc. Secures Cutting-Edge Tanker Vessels
Today, Performance Shipping Inc. (NASDAQ: PSHG), a leading global shipping company specializing in tanker vessel ownership, announced the signing of two shipbuilding contracts through its wholly-owned subsidiaries. These agreements entered with China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. (“SWS”), involve the construction of two state-of-the-art 114,000 DWT LNG-ready LR2 Aframax product/crude oil tanker vessels. Anticipated for delivery in January and April of 2026, each vessel comes with a purchase price of US$64,845,000, net of third-party commission. The payment structure entails 15% upon receipt of a refund guarantee, 10% at key milestones including steel cutting, keel laying, and vessel launching, with the remaining 55% payable upon vessel delivery.
The vessels will be equipped with electronic main engines with high-pressure selective catalytic reactors (HPSCR) for Tier III (NOx Emissions) compliance, exhaust gas cleaning systems (EGCS – commonly referred to as scrubbers) for Tier II (NOx Emissions) compliance, and ballast water treatment systems (BWTS).
Historic Lows in Tanker Fleet Growth
Commenting on the contracts, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“These shipbuilding contracts supplement the previous contract we entered into with SWS in March 2023 for a Tier III product/crude oil carrier scheduled for delivery around October 2025. The construction of these LNG-ready LR2 oil tankers, equipped with the latest high-specification engines and meeting stringent emission requirements, along with scrubbers and water ballast treatment systems, will take place at the largest and most reputable state-owned shipyard in China. Following the sale of our oldest, 2007 built, Aframax tankers, M/T P. Fos in October 2022 and M/T P. Kikuma in November 2023, the Company is now poised to take delivery of three identical “sister” vessels in late 2025 through early 2026. These sales and acquisitions constitute our core fleet expansion and renewal strategy. We believe that tanker fleet growth will reach historical lows in the coming years and maintaining a modern fleet among an aging global fleet during periods of high seaborne trade demand will result in sustainably strong fundamentals and higher asset values.”
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Source: GlobeNewswire
