Performance Shipping Enters $37.8 Million Sale and Leaseback Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy PSHG?
Performance Shipping announced that, through a separate wholly-owned subsidiary, it has entered into a sale and leaseback agreement with an unaffiliated third party for its previously announced LR1 tanker newbuilding vessel, to be named M/T P. San Francisco, currently under construction at Jiangsu New Yangzi Shipbuilding Co., Ltd. and scheduled for delivery in early 2027. The bareboat financing amount totals $37.8 million. As part of this agreement, the Vessel will be sold and then chartered back to the Company on a bareboat basis for a ten-year period starting from delivery from the shipyard. The bareboat charter includes 120 monthly installments equivalent to $5,451 per day, with an implied interest rate of Term SOFR plus 2.00% per annum. Additionally, a balloon payment of approximately $18.1 million will be due together with the last installment. The Company has continuous options to repurchase the Vessel at predetermined rates following the second anniversary of the bareboat charter.
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Analyst Views on PSHG
Wall Street analysts forecast PSHG stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.810
Low
4.00
Averages
5.25
High
6.50
Current: 1.810
Low
4.00
Averages
5.25
High
6.50
About PSHG
Performance Shipping Inc is a Greece-based global provider of shipping transportation services. It owns containerships and focuses on providing sourcing opportunities for vessel purchases and sales, newbuilding acquisitions, chartering and financing arrangements. The Company’s vessels are employed primarily on charters with liner companies carrying containerized cargo along worldwide shipping routes. The Company owns and operates vessels such as Panamax container vessel and Aframax tanker vessel. The Company’s fleet is managed by Unitized Ocean Transport Limited, a wholly owned subsidiary. The Company's customers include national, regional and international companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Performance Shipping Q4 Earnings Analysis
- Earnings Report: Performance Shipping reported a Q4 GAAP EPS of $0.19, missing expectations by $0.08, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved revenue of $26.2 million, a 20.7% year-over-year increase, beating market expectations by $3.64 million, demonstrating strong business momentum that enhances market competitiveness.
- New Ship Contracts: Performance Shipping signed contracts for the construction of two new Suezmax tankers, reflecting a proactive strategy in fleet expansion aimed at meeting future market demands.
- Financing Plan: The company announced a $50 million tap issue to support future expansion and operations, which may impact shareholder equity dilution.
See More
Performance Shipping Reports Strong 2025 Financial Results
- Net Income Growth: Performance Shipping reported a net income of $7.6 million for Q4 2025, down from $9.7 million in Q4 2024, yet the total net income for 2025 reached $50 million, a 14.3% increase from $43.7 million in 2024, indicating sustained profitability.
- Revenue and TCE Rate: The company generated $26.2 million in revenue for Q4 2025, a 20.5% increase from $21.7 million in Q4 2024, while the average TCE rate was $32,221, slightly below the $32,652 recorded in 2024, reflecting increased market competition.
- Strong Cash Flow: Net cash provided by operating activities was $9.7 million in Q4 2025, down from $12.1 million in Q4 2024, but the company anticipates a robust revenue backlog of approximately $350 million for 2026, ensuring significant cash flow visibility.
- Fleet Expansion Strategy: The company completed the acquisition of two modern Suezmax tankers in 2025 and signed contracts for two newbuilding Suezmax vessels, expected to enhance fleet competitiveness and operational efficiency, supporting long-term growth.
See More
Performance Shipping Sells Oldest Aframax Tanker for $35.65 Million
- Asset Sale: Performance Shipping has signed a Memorandum of Agreement to sell its oldest vessel, the 2009-built M/T P. Sophia, for $35.65 million, with delivery expected in mid-2026, thereby enhancing the company's liquidity position.
- Profit Growth: This transaction is expected to generate an approximate gain of $8 million compared to the acquisition price of $27.58 million in 2022, reflecting the company's ability to capitalize on rising Aframax tanker values and improve profitability.
- Fleet Renewal: The divestment of M/T P. Sophia is part of the company's fleet renewal strategy, which not only reduces the average age of the fleet but also enhances operational efficiency and commercial competitiveness, aligning with long-term growth objectives.
- Ongoing Charter: The company will continue to operate the vessel under a charter at $43,000 per day until the lease concludes around late May 2026, ensuring stable revenue generation prior to the sale.
See More
Performance Shipping Inc. Secures $31,000/Day Charter with PBF Holding for Three Years
- Charter Agreement: Performance Shipping has entered into a three-year charter agreement with PBF Holding through a wholly-owned subsidiary, at a rate of $31,000 per day, expected to commence in mid-February, generating approximately $33 million in revenue, significantly enhancing the company's cash flow visibility.
- Revenue Growth: This charter will increase the company's fleetwide backlog to a record level of approximately $349 million, indicating success in stabilizing revenue and executing long-term strategies.
- Strategic Partnership: The collaboration with PBF Holding not only secures three years of stable income but also demonstrates the company's ability to forge new relationships with energy firms, further solidifying its market position.
- Future Outlook: The CEO emphasized a continued focus on medium to long-term charter strategies, highlighting the importance of staggered contract maturities to achieve steady revenues and renewal opportunities, which is expected to support future growth prospects.
See More
Performance Shipping Inc. Successfully Places $50 Million Bond Tap Issue at 9.875% Interest Rate
- Successful Bond Issue: Performance Shipping Inc. successfully placed a $50 million tap issue of bonds with a fixed annual interest rate of 9.875%, expected to close on January 26, 2026, enhancing the company's financing capacity for future growth.
- Increased Total Debt: Following this tap issue, the total outstanding amount of the bonds rises to $150 million, indicating the company's active engagement in capital markets and confidence in future business expansion.
- Market Pricing Advantage: The tap issue was priced at 103.00% of par value, reflecting market recognition of the company's creditworthiness while providing a relatively low-cost financing avenue to meet operational needs.
- Compliance and Restrictions: The bonds are offered only to qualified institutional buyers under Rule 144A of the U.S. Securities Act, ensuring compliance and mitigating potential legal risks.
See More
Performance Shipping Inc. Successfully Places $50 Million Bond Tap Issue at 9.875% Interest Rate
- Successful Bond Issue: Performance Shipping Inc. has successfully placed a $50 million tap issue of bonds with a 9.875% interest rate, expected to close on January 26, 2026, enhancing the company's financing capabilities and providing support for future growth.
- Increased Total Debt: Following this tap issue, the total outstanding amount of the bonds rises to $150 million, reflecting market confidence in the company's debt instruments and helping to bolster its competitiveness in the shipping industry.
- Attractive Fixed Income: Priced at 103% of par value, the bonds have garnered investor interest, indicating that the company maintains attractive financing conditions in the current economic environment, further solidifying its market position.
- Compliance and Market Strategy: The bond issuance adheres to Rule 144A of the U.S. Securities Act, ensuring compliance while paving the way for the company's financing activities in international markets, thereby enhancing its global business expansion capabilities.
See More
Performance Shipping Q4 Earnings Analysis
- Earnings Report: Performance Shipping reported a Q4 GAAP EPS of $0.19, missing expectations by $0.08, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved revenue of $26.2 million, a 20.7% year-over-year increase, beating market expectations by $3.64 million, demonstrating strong business momentum that enhances market competitiveness.
- New Ship Contracts: Performance Shipping signed contracts for the construction of two new Suezmax tankers, reflecting a proactive strategy in fleet expansion aimed at meeting future market demands.
- Financing Plan: The company announced a $50 million tap issue to support future expansion and operations, which may impact shareholder equity dilution.
See More
Performance Shipping Reports Strong 2025 Financial Results
- Net Income Growth: Performance Shipping reported a net income of $7.6 million for Q4 2025, down from $9.7 million in Q4 2024, yet the total net income for 2025 reached $50 million, a 14.3% increase from $43.7 million in 2024, indicating sustained profitability.
- Revenue and TCE Rate: The company generated $26.2 million in revenue for Q4 2025, a 20.5% increase from $21.7 million in Q4 2024, while the average TCE rate was $32,221, slightly below the $32,652 recorded in 2024, reflecting increased market competition.
- Strong Cash Flow: Net cash provided by operating activities was $9.7 million in Q4 2025, down from $12.1 million in Q4 2024, but the company anticipates a robust revenue backlog of approximately $350 million for 2026, ensuring significant cash flow visibility.
- Fleet Expansion Strategy: The company completed the acquisition of two modern Suezmax tankers in 2025 and signed contracts for two newbuilding Suezmax vessels, expected to enhance fleet competitiveness and operational efficiency, supporting long-term growth.
See More
Performance Shipping Sells Oldest Aframax Tanker for $35.65 Million
- Asset Sale: Performance Shipping has signed a Memorandum of Agreement to sell its oldest vessel, the 2009-built M/T P. Sophia, for $35.65 million, with delivery expected in mid-2026, thereby enhancing the company's liquidity position.
- Profit Growth: This transaction is expected to generate an approximate gain of $8 million compared to the acquisition price of $27.58 million in 2022, reflecting the company's ability to capitalize on rising Aframax tanker values and improve profitability.
- Fleet Renewal: The divestment of M/T P. Sophia is part of the company's fleet renewal strategy, which not only reduces the average age of the fleet but also enhances operational efficiency and commercial competitiveness, aligning with long-term growth objectives.
- Ongoing Charter: The company will continue to operate the vessel under a charter at $43,000 per day until the lease concludes around late May 2026, ensuring stable revenue generation prior to the sale.
See More
Performance Shipping Inc. Secures $31,000/Day Charter with PBF Holding for Three Years
- Charter Agreement: Performance Shipping has entered into a three-year charter agreement with PBF Holding through a wholly-owned subsidiary, at a rate of $31,000 per day, expected to commence in mid-February, generating approximately $33 million in revenue, significantly enhancing the company's cash flow visibility.
- Revenue Growth: This charter will increase the company's fleetwide backlog to a record level of approximately $349 million, indicating success in stabilizing revenue and executing long-term strategies.
- Strategic Partnership: The collaboration with PBF Holding not only secures three years of stable income but also demonstrates the company's ability to forge new relationships with energy firms, further solidifying its market position.
- Future Outlook: The CEO emphasized a continued focus on medium to long-term charter strategies, highlighting the importance of staggered contract maturities to achieve steady revenues and renewal opportunities, which is expected to support future growth prospects.
See More
Performance Shipping Inc. Successfully Places $50 Million Bond Tap Issue at 9.875% Interest Rate
- Successful Bond Issue: Performance Shipping Inc. successfully placed a $50 million tap issue of bonds with a fixed annual interest rate of 9.875%, expected to close on January 26, 2026, enhancing the company's financing capacity for future growth.
- Increased Total Debt: Following this tap issue, the total outstanding amount of the bonds rises to $150 million, indicating the company's active engagement in capital markets and confidence in future business expansion.
- Market Pricing Advantage: The tap issue was priced at 103.00% of par value, reflecting market recognition of the company's creditworthiness while providing a relatively low-cost financing avenue to meet operational needs.
- Compliance and Restrictions: The bonds are offered only to qualified institutional buyers under Rule 144A of the U.S. Securities Act, ensuring compliance and mitigating potential legal risks.
See More
Performance Shipping Inc. Successfully Places $50 Million Bond Tap Issue at 9.875% Interest Rate
- Successful Bond Issue: Performance Shipping Inc. has successfully placed a $50 million tap issue of bonds with a 9.875% interest rate, expected to close on January 26, 2026, enhancing the company's financing capabilities and providing support for future growth.
- Increased Total Debt: Following this tap issue, the total outstanding amount of the bonds rises to $150 million, reflecting market confidence in the company's debt instruments and helping to bolster its competitiveness in the shipping industry.
- Attractive Fixed Income: Priced at 103% of par value, the bonds have garnered investor interest, indicating that the company maintains attractive financing conditions in the current economic environment, further solidifying its market position.
- Compliance and Market Strategy: The bond issuance adheres to Rule 144A of the U.S. Securities Act, ensuring compliance while paving the way for the company's financing activities in international markets, thereby enhancing its global business expansion capabilities.
See More
