Performance Shipping Secures Sale and Leaseback for Newbuild Tanker
- Performance Shipping Inc. has secured a sale and leaseback agreement for a newbuild LR2 Aframax tanker, expected for delivery in 2026.
- The financial details indicate a bareboat financing amount of approximately $45.39 million, supporting the company's conservative financial strategy.
- The company has locked in a five-year charter for the tanker at $31,000 per day, exceeding its operational breakeven cash flow requirements.
On October 24, 2024, Performance Shipping Inc., a global shipping firm from Greece, revealed that it has arranged a sale and leaseback agreement for one of its newbuild LR2 Aframax tanker vessels. This agreement involves selling the vessel to an unaffiliated third party and subsequently chartering it back on a bareboat basis for ten years. The financial arrangement indicates a bareboat financing amount of approximately $45.39 million, which represents a conservative financing strategy relative to the project costs. The tanker vessel, expected for delivery in early 2026, is part of a dual order of LNG-ready vessels, enhancing the company's fleet capabilities. Furthermore, this tanker has already secured a five-year charter with Clearlake Shipping, demonstrating Performance Shipping's proactive approach in ensuring stable cash flow. The competitive charter rate of $31,000 per day effectively surpasses the breakeven cash flow of approximately $24,390 per day required for operating the vessel.