Performance Shipping Inc. (NASDAQ: PSHG), ("we" or the "Company"),
a global shipping company specializing in the ownership of tanker
vessels, today announced that, through a separate wholly-owned
subsidiary, it has signed a shipbuilding contract with Jiangsu
Yangzijiang Shipbuilding Group Co., Ltd., Jiangsu New Yangzi
Shipbuilding Co., Ltd., and Jiangsu Yangzi Xinfu Shipbuilding Co.,
Ltd., (collectively the "Seller") for the construction of a
scrubber fitted 75,000 DWT LR1 chemical/product oil tanker for a
contract price of US$54.1 million excluding extras and net of
commission to third parties. 15% of the purchase price is payable
upon receipt of a refund guarantee, expected to occur within 30
days; 10% of the purchase price is payable at each of the
milestones of steel cutting, keel laying and launching of the
vessel, and the remaining 55% of the purchase price is payable upon
the vessel’s delivery. The Company expects to take delivery of the
vessel by January 2027.
The vessel 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).
Andreas Michalopoulos, the Company's Chief
Executive Officer, stated:
“We are pleased to announce our shipbuilding
contract to construct one modern eco-design LR1 tanker. This vessel
will feature the latest high specification engine and emission
requirements, along with a scrubber and water ballast treatment
system. The construction of the vessel is undertaken by one of the
most reputable and highly specialized shipyards in the world. This
contract marks our fourth shipbuilding contract, including three
LNG-ready LR2 oil tankers and one LR1 chemical/product oil tanker
with scheduled deliveries ranging from October 2025 to January
2027.
“Our newbuilding commitments are supported by
the three recently announced time charter employment contracts for
our three newbuilding LR2 tankers, securing a firm period of five
years, generating gross revenues of US$169.8 million and
supplementing our existing revenue backlog of US$34.1 million. With
our aggregate revenue backlog of US$203.9 million, representing 93%
of all our remaining newbuilding capital expenditures, we are well
positioned for growth.
“Our fleet expansion and renewal strategy
prioritizes fuel efficiency and low emissions, reflecting our
commitment to participating in the energy transition. By taking
constructive steps towards lower carbon emissions, we aim to
provide our customers with environmentally sustainable operations.
We believe that our investment strategy aligns with our view of
continuing favorable market fundamentals, supported by an aging
fleet and a healthy orderbook, which currently stands at 9%.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of tanker
vessels. The Company employs its fleet on spot voyages, through
pool arrangements and on time charters.
Cautionary Statement Regarding
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include, but are not limited to,
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts,
including with respect to the delivery of the vessels we have
agreed to acquire. The words "believe," "anticipate," "intends,"
"estimate," "forecast," "project," "plan," "potential," "will,"
"may," "should," "expect," "targets," "likely," "would," "could,"
"seeks," "continue," "possible," "might," "pending" and similar
expressions, terms or phrases may identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including, without
limitation, our management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs, or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include, but are not limited to: the strength of world
economies, fluctuations in currencies and interest rates, general
market conditions, including fluctuations in charter rates and
vessel values, changes in demand in the tanker shipping industry,
changes in the supply of vessels, changes in worldwide oil
production and consumption and storage, changes in our operating
expenses, including bunker prices, crew costs, drydocking and
insurance costs, our future operating or financial results,
availability of financing and refinancing including with respect to
vessels we agree to acquire, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, the length and severity of
epidemics and pandemics, including COVID-19, and their impact on
the demand for seaborne transportation of petroleum and other types
of products, changes in governmental rules and regulations or
actions taken by regulatory authorities, general domestic and
international political conditions or events, including "trade
wars", armed conflicts including the war in Ukraine and the war
between Israel and Hamas, the imposition of new international
sanctions, acts by terrorists or acts of piracy on ocean-going
vessels, potential disruption of shipping routes due to accidents,
labor disputes or political events, vessel breakdowns and instances
of off-hires and other important factors. Please see our filings
with the US Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties.
Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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