Performance Shipping has won a lucrative term charter for its new LR2 tanker two months before the ship has even been delivered.
The Nasdaq-listed, Athens-based owner said Swiss trader Trafigura is paying $45,000 per day for the 105,300-dwt Alpine Amalia (built 2010) for between seven and 10 months.
The ship, to be renamed P Aliki, was bought from Glencore in August and will be handed over in November.
The rate is below what the vessel could make in the spot market, with voyages from the Middle East to Asia paying $60,000 per day, according to UK shipbroker Howe Robinson Partners.
But the deal locks in at least $9.5m of revenue, up to a maximum of $13.7m.
Cash flow after debt servicing will be between $5.7m and $8.2m, the shipowner said.
Performance chief executive Andreas Michalopoulos added: “In addition to maintaining the company’s ability to capture market upturns in strong freight environments, particularly during periods of exceptionally positive industry fundamentals, we seek to secure a certain level of fixed revenue for our fleet.”
He added that charter rates have been at multi-year highs in recent weeks.
The shipowner wants to establish solid partnerships with first-class charterers, so decided to charter out the ship at a “very lucrative level” almost two months before taking delivery.
Pool operations
One of the owner’s six aframaxes is fixed out to Teekay Tankers, with the others operating in the Signal Maritime and Penfield pools.
On 19 September, Performance said it had fixed an $18.25m loan for the Alpine Amalia, its first product tanker acquisition.
The cash is coming from Greece’s Alpha Bank over five years and is half the $36.5m purchase price.
The company said at that time that the timely addition of the ballast water treatment system and scrubber-fitted LR2 gave it a strong position to capitalise on a market in which spot and time charter rates were averaging in excess of $40,000 per day.
