Performance Shipping Orders Two 158,000 DWT Suezmax Tankers at $81.5M Each
Performance Shipping Inc. has signed shipbuilding contracts for two 158,000 DWT Suezmax tankers at US$81.5 million each, with deliveries scheduled in October 2028 and May 2029. The vessels, to be Tier III, scrubber-fitted and eco-compliant, will double the company’s Suezmax exposure and align with favorable long-term supply fundamentals.
1. Shipbuilding Contracts Signed
Performance Shipping Inc. has signed two shipbuilding contracts with China Shipbuilding Trading Co. Ltd. and Shanghai Waigaoqiao Shipbuilding Co. Ltd. for the construction of 158,000 DWT Suezmax tankers through its wholly-owned subsidiaries.
2. Delivery Schedule and Payment Terms
The vessels are slated for delivery in October 2028 and May 2029 at a contract price of US$81.5 million each. The payment structure calls for 15% upon refund guarantee, 10% at steel cutting, keel laying and launching milestones, and the remaining 55% on delivery.
3. Strategic Rationale and Market Fundamentals
These orders will double the company’s Suezmax exposure, targeting a segment where 25% of the global Suezmax fleet will be over 20 years old by delivery dates and nearly half will be non-eco compliant. Management highlights growing global energy demand, geopolitical trade shifts and rising ton-mile requirements as supportive long-term drivers.
4. Vessel Specifications and Environmental Compliance
Both vessels will be Tier III compliant, equipped with scrubbers and built to the latest fuel-efficiency and environmental standards, enhancing commercial competitiveness and long-term earnings capacity.