Performance Shipping Enters $37.8 Million Sale and Leaseback Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
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: 1.640
Low
4.00
Averages
5.25
High
6.50
Current: 1.640
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 Reports Strong Q1 Earnings with 58.3% Revenue Growth
- Significant Earnings Growth: Performance Shipping reported a GAAP EPS of $0.26 for Q1, with revenue reaching $33.77 million, reflecting a robust 58.3% year-over-year increase that underscores the company's strong market performance and enhanced profitability.
- Diverse Revenue Sources: The revenue for Q1 2026 was $33.8 million (net of voyage expenses $31.8 million), compared to $21.3 million ($19.2 million net of voyage expenses) in Q1 2025, primarily driven by increased ownership days following the delivery of newbuilding vessels.
- Fleet Operational Efficiency: The average TCE rate for Q1 was $32,520, up from $30,843 in the same period of 2025, indicating the company's success in enhancing fleet operational efficiency and market pricing power.
- Strategic Expansion Plans: Performance Shipping is selling the Aframax vessel M/T P. Aliki for $42.6 million while signing contracts for the construction of two new Suezmax tankers, further strengthening its competitive position and business footprint.
See More
Performance Shipping Reports Q1 Net Income Decline Amid Revenue Growth
- Significant Revenue Growth: In Q1 2026, Performance Shipping reported revenues of $33.8 million, a 59% increase from $21.3 million in Q1 2025, primarily driven by increased ownership days following the delivery of new vessels, although net income fell from $29.4 million to $10.2 million, indicating pressure on profitability.
- Earnings Per Share Decline: The basic and diluted earnings per share for Q1 2026 were $0.79 and $0.26, respectively, down from $2.33 and $0.76 in the same period of 2025, highlighting challenges in profitability, particularly in the absence of one-time gains.
- Strong Cash Flow Position: The net cash provided by operating activities in Q1 was $23.0 million, up 48% from $15.5 million in Q1 2025, indicating an improvement in operational cash flow despite the decline in overall profitability.
- Optimistic Future Outlook: The company expects to maintain profitability for the remainder of 2026, supported by elevated charter rates and trade flow inefficiencies driven by geopolitical factors, having secured a revenue backlog of nearly half a billion dollars, which provides strong cash flow visibility.
See More
Performance Shipping Files 2025 Annual Report with SEC
- Annual Report Submission: Performance Shipping Inc. filed its 2025 Annual Report with the SEC on April 27, 2026, which includes audited consolidated financial statements for the fiscal year ending December 31, 2025, ensuring compliance and enhancing transparency.
- Report Access: Investors can access the Annual Report via the SEC's website and the company's website, and the company commits to providing hard copies free of charge upon request, thereby strengthening communication and trust with shareholders.
- Company Overview: Performance Shipping Inc. specializes in the ownership of tanker vessels, operating as a global transportation service provider through spot voyages, pool arrangements, and time charters, ensuring flexibility to meet market demands.
- Management Contact Information: CEO Andreas Michalopoulos and Investor Relations contact Edward Nebb provided direct contact details for investors to obtain more information, reflecting the company's commitment to investor relations.
See More
Performance Shipping Secures Long-Term Charters with Repsol
- Long-Term Charter Agreements: Performance Shipping has entered into time charter agreements with Repsol for two 158,000 dwt Suezmax tankers, with the first vessel chartered for seven years at $35,000 per day and the second for five years at $36,850 per day, securing long-term revenue ahead of delivery.
- Increased Revenue Visibility: These charters boost the company's total contracted revenue from $317 million to approximately $471 million, significantly enhancing future earnings visibility and reflecting positive fundamentals in the Suezmax market.
- Operational Efficiency: The modern, environmentally friendly specifications of the vessels enabled the company to secure long-term charters on attractive terms, further strengthening its relationship with Repsol and enhancing market competitiveness.
- Market Adaptability: With nearly all modern vessels now under long-term fixed charter contracts, the company has reduced the breakeven charter rate required for open days, demonstrating its ability to adapt flexibly to market changes.
See More
Performance Shipping Sells Oldest Tanker for $42.65M
- Vessel Sale Agreement: Performance Shipping has signed a memorandum of agreement to sell its oldest vessel, the 2010-built Aframax tanker M/T P. Aliki, to Trafigura Maritime Logistics for $42.65 million, indicating proactive asset management by the company.
- Purchase Cost Comparison: The company acquired M/T P. Aliki in Q4 2022 for $36.5 million, and the sale price reflects a $6.15 million increase, showcasing a recovery in demand for this type of tanker in the market.
- Debt Repayment Plan: Part of the proceeds from the sale will be used to repay approximately $12.8 million in accordance with the loan agreement with Alpha Bank S.A., which will help improve the company's financial position.
- Delivery Timeline: The vessel is expected to be delivered to the new owners around the end of Q3 2026, subject to customary closing conditions and upon expiration of its current time charter at $30,000 per day, ensuring a smooth transaction process.
See More
Performance Shipping Sells Aging Tanker Vessel
- Asset Sale Agreement: Performance Shipping has signed a Memorandum of Agreement to sell its oldest tanker, the 2010-built M/T P. Aliki, to Trafigura Maritime Logistics for $42.65 million, with delivery expected in Q3 2026, which will help optimize the company's asset structure.
- Debt Repayment Plan: The transaction is expected to generate approximately $12.8 million in net proceeds, which will be used to repay debts under the credit facility with Alpha Bank, thereby improving the company's financial condition and reducing financial risk.
- Fleet Renewal Strategy: CEO Andreas Michalopoulos stated that this sale is a key part of the company's fleet renewal strategy, with the average age of the fleet declining from 14 years to 8 years over the past year, enhancing overall operational efficiency and market competitiveness.
- Cash Reserves Increase: The company's cash reserves are projected to rise from $50 million at the end of 2025 to approximately $175 million, which will support funding for the construction of two Suezmax tankers at China Shipbuilding Trading Co. and Shanghai Waigaoqiao Shipbuilding, further driving business expansion.
See More
Performance Shipping Reports Strong Q1 Earnings with 58.3% Revenue Growth
- Significant Earnings Growth: Performance Shipping reported a GAAP EPS of $0.26 for Q1, with revenue reaching $33.77 million, reflecting a robust 58.3% year-over-year increase that underscores the company's strong market performance and enhanced profitability.
- Diverse Revenue Sources: The revenue for Q1 2026 was $33.8 million (net of voyage expenses $31.8 million), compared to $21.3 million ($19.2 million net of voyage expenses) in Q1 2025, primarily driven by increased ownership days following the delivery of newbuilding vessels.
- Fleet Operational Efficiency: The average TCE rate for Q1 was $32,520, up from $30,843 in the same period of 2025, indicating the company's success in enhancing fleet operational efficiency and market pricing power.
- Strategic Expansion Plans: Performance Shipping is selling the Aframax vessel M/T P. Aliki for $42.6 million while signing contracts for the construction of two new Suezmax tankers, further strengthening its competitive position and business footprint.
See More
Performance Shipping Reports Q1 Net Income Decline Amid Revenue Growth
- Significant Revenue Growth: In Q1 2026, Performance Shipping reported revenues of $33.8 million, a 59% increase from $21.3 million in Q1 2025, primarily driven by increased ownership days following the delivery of new vessels, although net income fell from $29.4 million to $10.2 million, indicating pressure on profitability.
- Earnings Per Share Decline: The basic and diluted earnings per share for Q1 2026 were $0.79 and $0.26, respectively, down from $2.33 and $0.76 in the same period of 2025, highlighting challenges in profitability, particularly in the absence of one-time gains.
- Strong Cash Flow Position: The net cash provided by operating activities in Q1 was $23.0 million, up 48% from $15.5 million in Q1 2025, indicating an improvement in operational cash flow despite the decline in overall profitability.
- Optimistic Future Outlook: The company expects to maintain profitability for the remainder of 2026, supported by elevated charter rates and trade flow inefficiencies driven by geopolitical factors, having secured a revenue backlog of nearly half a billion dollars, which provides strong cash flow visibility.
See More
Performance Shipping Files 2025 Annual Report with SEC
- Annual Report Submission: Performance Shipping Inc. filed its 2025 Annual Report with the SEC on April 27, 2026, which includes audited consolidated financial statements for the fiscal year ending December 31, 2025, ensuring compliance and enhancing transparency.
- Report Access: Investors can access the Annual Report via the SEC's website and the company's website, and the company commits to providing hard copies free of charge upon request, thereby strengthening communication and trust with shareholders.
- Company Overview: Performance Shipping Inc. specializes in the ownership of tanker vessels, operating as a global transportation service provider through spot voyages, pool arrangements, and time charters, ensuring flexibility to meet market demands.
- Management Contact Information: CEO Andreas Michalopoulos and Investor Relations contact Edward Nebb provided direct contact details for investors to obtain more information, reflecting the company's commitment to investor relations.
See More
Performance Shipping Secures Long-Term Charters with Repsol
- Long-Term Charter Agreements: Performance Shipping has entered into time charter agreements with Repsol for two 158,000 dwt Suezmax tankers, with the first vessel chartered for seven years at $35,000 per day and the second for five years at $36,850 per day, securing long-term revenue ahead of delivery.
- Increased Revenue Visibility: These charters boost the company's total contracted revenue from $317 million to approximately $471 million, significantly enhancing future earnings visibility and reflecting positive fundamentals in the Suezmax market.
- Operational Efficiency: The modern, environmentally friendly specifications of the vessels enabled the company to secure long-term charters on attractive terms, further strengthening its relationship with Repsol and enhancing market competitiveness.
- Market Adaptability: With nearly all modern vessels now under long-term fixed charter contracts, the company has reduced the breakeven charter rate required for open days, demonstrating its ability to adapt flexibly to market changes.
See More
Performance Shipping Sells Oldest Tanker for $42.65M
- Vessel Sale Agreement: Performance Shipping has signed a memorandum of agreement to sell its oldest vessel, the 2010-built Aframax tanker M/T P. Aliki, to Trafigura Maritime Logistics for $42.65 million, indicating proactive asset management by the company.
- Purchase Cost Comparison: The company acquired M/T P. Aliki in Q4 2022 for $36.5 million, and the sale price reflects a $6.15 million increase, showcasing a recovery in demand for this type of tanker in the market.
- Debt Repayment Plan: Part of the proceeds from the sale will be used to repay approximately $12.8 million in accordance with the loan agreement with Alpha Bank S.A., which will help improve the company's financial position.
- Delivery Timeline: The vessel is expected to be delivered to the new owners around the end of Q3 2026, subject to customary closing conditions and upon expiration of its current time charter at $30,000 per day, ensuring a smooth transaction process.
See More
Performance Shipping Sells Aging Tanker Vessel
- Asset Sale Agreement: Performance Shipping has signed a Memorandum of Agreement to sell its oldest tanker, the 2010-built M/T P. Aliki, to Trafigura Maritime Logistics for $42.65 million, with delivery expected in Q3 2026, which will help optimize the company's asset structure.
- Debt Repayment Plan: The transaction is expected to generate approximately $12.8 million in net proceeds, which will be used to repay debts under the credit facility with Alpha Bank, thereby improving the company's financial condition and reducing financial risk.
- Fleet Renewal Strategy: CEO Andreas Michalopoulos stated that this sale is a key part of the company's fleet renewal strategy, with the average age of the fleet declining from 14 years to 8 years over the past year, enhancing overall operational efficiency and market competitiveness.
- Cash Reserves Increase: The company's cash reserves are projected to rise from $50 million at the end of 2025 to approximately $175 million, which will support funding for the construction of two Suezmax tankers at China Shipbuilding Trading Co. and Shanghai Waigaoqiao Shipbuilding, further driving business expansion.
See More
