Performance Shipping, a company listed on Nasdaq, with Andreas Michalopoulos as its managing director and Aliki Paliou as chairman of the board of director’s, strikes a shipbuilding deal for the purchase of a newbuild LNG ready LR2 Aframax product/crude oil tanker with scrubber for a contract price of US$62.6 million.

The company specializing in the ownership of tanker vessels has signed the deal with China Shipbuilding Trading Company, and Shanghai Waigaoqiao Shipbuilding Company for the construction of a 114,000 deadweight vessel for US$62.6 million, net of commission to third party.

Greece´s Performance Shipping reveals today that 15% of the purchase price is payable upon receipt of a refund guarantee, expected to occur within 30 days, 10% of the purchase price is payable at each of the milestones of steel cutting, keel laying and launching of the vessel, and the remaining 55% of the purchase price is payable upon the vessel’s delivery. 

The vessel is expected for delivery during the fourth quarter of 2025.

The vessel will be fitted with an electronic main engine with high-pressure selective catalytic reactor for Tier III (NOx emissions) compliance, exhaust gas cleaning system for Tier II (NOx emissions) compliance, and ballast water treatment system.

Andreas Michalopoulos, the company’s Chief Executive Officer, commenting on this contract said: “We are pleased to have secured one of the remaining delivery slots for LR2/Aframax tankers with a 2025 delivery date. Construction of this LNG ready product/crude oil tanker, featuring the latest high specification engine and emission requirements, and fitted with a scrubber and a water ballast treatment system, will take place at the largest and most reputable state-owned shipyard in China. This contract is consistent with our view that historically low tanker fleet growth in the next few years and an aging fleet during a high seaborne trade demand period will result in sustainably strong fundamentals and higher asset values.”