Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, announced that, through two separate wholly-owned subsidiaries, it has signed two shipbuilding contracts with China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. (“SWS”) for the construction of two 158,000 DWT newbuilding Suezmax tanker vessels.
The vessels are expected to be delivered in October 2028 and May 2029, respectively, at a contract price of US$81.5 million per vessel. 15% of the purchase price is payable upon receipt of a refund guarantee; 10% of the purchase price is payable at each of the milestones of steel cutting, keel laying, and launching of the vessels; and the remaining 55% of the purchase price is payable upon the delivery of the vessels.
Commenting on the contracts, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“The signing of these two Suezmax newbuilding contracts expands our presence in a segment with constructive medium- and long-term market fundamentals. Our fleet is primarily comprised of Aframax/LR2 vessels, and with two Suezmax tankers currently on the water, this transaction is poised to double our exposure to the segment, reflecting our disciplined capital allocation approach and confidence in the Suezmax market.
“Upon delivery in October 2028 and May 2029, approximately 25% of the global Suezmax fleet is expected to be over 20 years of age, while nearly half of the fleet will consist of non-eco vessels, supporting a favorable long-term supply outlook. Coupled with consistent growth in global demand for energy, geopolitical developments reshaping trade flows, and increasing ton-mile demand, we believe this environment will allow us to secure attractive employment for these vessels well ahead of their respective deliveries.
“We are pleased to further strengthen our partnership with SWS, a reputable shipyard with a strong track record of delivering technologically advanced vessels. Of the four newbuilding tankers we have previously contracted, three have already been constructed and delivered by this yard. This underscores our confidence in their high quality of construction and timely delivery schedules.
“The vessels have been secured at competitive prices and will be Tier III, scrubber-fitted and compliant with the latest fuel-efficiency and environmental standards, enhancing their commercial competitiveness and long-term earnings capacity.”
Source: Performance Shipping
