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Performance Shipping Inc. Secures Three-Year Time Charter Contract for M/T P. Monterey at USD31,000 per Day

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ATHENS, Greece, Jan. 20, 2026 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or ...

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AI Summary

PBF Energy secured a three-year charter for the M/T P. Monterey at $31,000 per day, anticipated to start in mid-February 2026. This agreement will enhance PBF's cash flow and demonstrates its commitment to strategic, long-term contracts, potentially leading to continued revenue growth and stability in operations.

Sentiment Rationale

Long-term contracts typically stabilize revenues and can enhance share value, akin to prior performance during similar market conditions.

Trading Thesis

Consider buying PBF on improved revenue visibility and cash flow stability from new charter.

Market-Moving

  • The charter will add $33 million to PBF's revenue base.
  • Increased cash flow positivity enhances PBF's valuation outlook.
  • Potential for more charters could drive future stock appreciation.

Key Facts

  • PBF entered a 3-year charter for M/T P. Monterey.
  • The charter generates $31,000/day, totaling $33 million.
  • Commencement expected mid-February 2026, enhancing cash flow.
  • Performance Shipping cites strong revenue visibility and backlog growth.
  • The deal underpins PBF's commitment to long-term stable charters.

Companies Mentioned

  • Performance Shipping Inc. (PSHG): Performance Shipping's charter signifies a strong relationship with energy companies, reflecting market demand.

Corporate Developments

This announcement falls under 'Corporate Developments' as it signals a strategic move by PBF Energy to secure long-term revenue through shipping contracts, which is critical for stability and growth in their operations.

Performance Shipping Inc. Enters Time Charter Contract for M/T P. Monterey with PBF Energy

Performance Shipping Inc. (NASDAQ: PSHG), a prominent name in the global shipping industry, has announced a significant milestone. The company has secured a three-year time charter contract for its Aframax tanker, M/T P. Monterey, with PBF Holding Company LLC, a subsidiary of PBF Energy Inc. (NYSE: PBF). This contract is expected to generate approximately USD 33 million in gross revenue and is slated to commence in mid-February 2026.

Details of the Charter Contract

The time charter agreement specifies a gross charter rate of USD 31,000 per day for the M/T P. Monterey, which has a deadweight tonnage of 105,525 and was built in 2011. The contract duration is for three years, with an option for the Charterer to extend the period by +/- 30 days. This arrangement is pivotal as it enhances Performance Shipping's cash flow visibility and increases its fleetwide aggregate backlog to a record level of approximately USD 349 million as of January 1, 2026.

Statements from Leadership

Andreas Michalopoulos, CEO of Performance Shipping Inc., commented on the significance of this new contract. He stated, “We are pleased to announce this new time charter arrangement, which further strengthens cash flow visibility and underscores the reliability of our services. Securing three-year employment at a lucrative charter rate with a solid counterparty emphasizes our ability to build new relationships within the energy sector.”

He further elaborated on the company's strategic approach, emphasizing its commitment to a disciplined employment strategy focused on medium- to long-term time charter contracts that offer consistent revenue streams.

Implications for Performance Shipping Inc. (PSHG)

This charter agreement not only reinforces Performance Shipping’s revenue stability but also aligns with its strategic goals for sustained growth. The decision to focus on long-term contracts is expected to enhance the company's financial robustness, making it well-positioned to seize future growth opportunities.

With a fleet that is actively engaged in time charters and spot voyages, Performance Shipping remains committed to operational excellence and maintaining profitable partnerships in the shipping sector.

About Performance Shipping Inc.

Performance Shipping Inc. is a globally recognized provider of shipping transportation services. The company specializes in the ownership and operation of tanker vessels, leveraging its expertise to offer time charters and engage in spot voyages through pool arrangements.

Cautionary Statements about Forward-Looking Information

Matters discussed in this release may contain forward-looking statements that reflect projections and expectations about the company's future performance. These statements, while based on current assumptions, can be influenced by numerous variables including global economic conditions, fluctuations in charter rates, and operational costs. Investors should consider these factors and refer to filings with the U.S. Securities and Exchange Commission for a comprehensive discussion of potential risks and uncertainties.

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