Core Viewpoint - Performance Shipping Inc. has entered into a long-term time charter contract with Mercuria Energy Trading S.A. for a new LR1 tanker, enhancing revenue visibility and stability for the company [1][2][3]. Group 1: Charter Agreement Details - The vessel will be chartered for a firm period of four years at a daily gross charter rate of US$23,750, with options for three additional one-year extensions [2]. - The daily rate will increase by US$850 for the first two optional years and by US$1,200 for the third optional year, contingent on mutual agreement for the third year [2]. Group 2: Financial Implications - The long-term charter is expected to generate stable earnings above the vessel's free cash flow breakeven level, increasing revenue visibility into 2027 and beyond [3]. - The secured revenue backlog for the company increases by approximately US$35 million, totaling about US$255 million based on the minimum duration of each charter [3]. - The contract enhances fixed charter coverage, reducing the cash flow breakeven rate required on open days, thereby strengthening the company's financial stability in a volatile market [3]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of tanker vessels and employing its fleet on spot voyages, pool arrangements, and time charters [4].