Performance Shipping Inc. (NASDAQ: PSHG) completed the delivery of the M/T P. Bel Air, a 2019‑built Suezmax tanker with a 157,286‑dwt capacity, on December 15, 2025. The vessel immediately entered a three‑year time charter with Repsol Trading S.A. at a daily rate of US$36,500, providing a predictable revenue stream and reinforcing the company’s long‑term charter portfolio.
The new tanker brings PSHG’s fleet to twelve vessels, including two newbuilds under construction and nine currently operating. The acquisition is part of a broader fleet‑renewal program that aims to reduce the average age of the fleet from 14 to 10 years by early 2026. By adding a modern, eco‑design Suezmax, PSHG strengthens its position in the midsize tanker segment and diversifies its charter mix beyond the Aframax‑heavy composition that has historically dominated the company’s operations.
While the delivery itself is a positive development, PSHG’s most recent quarterly earnings report showed a miss: net income fell to $3.9 million in Q3 2025 from $12.4 million in Q3 2024, and EPS of $0.10 fell short of the $0.24 consensus. The earnings shortfall was driven by lower time‑charter equivalent rates and reduced available days due to vessel dry‑docking. The new charter with Repsol is expected to offset some of these headwinds by adding a stable, high‑rate income stream that aligns with the company’s strategy of securing long‑term contracts with reputable clients.
The tanker market remains firm, supported by geopolitical disruptions and rising global demand for crude transport. PSHG’s move to acquire a modern Suezmax and lock in a three‑year charter is a strategic response to this environment, positioning the company to capture higher rates while maintaining operational flexibility. The charter agreement also signals confidence from a major industry player, potentially enhancing PSHG’s reputation and opening doors for future long‑term contracts.
CEO Andreas Michalopoulos said the delivery “reflects a significant step in our expansion strategy and demonstrates our ability to secure high‑quality charters with reputable partners.” He added that the new vessel will help the company achieve its goal of a 70% charter coverage for 2026 and 57% for 2027, supporting a trajectory of revenue growth and margin improvement.
Overall, the delivery of the M/T P. Bel Air represents a key milestone in PSHG’s fleet‑modernization plan and provides a tangible boost to its charter income, helping to counterbalance recent earnings challenges and positioning the company for stronger performance in the coming years.
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