Performance Shipping Sells M/T P. Sophia for $35.65M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy PSHG?
Performance Shipping announced that, through a separate wholly-owned subsidiary, it has signed a Memorandum of Agreement to sell its oldest vessel, the 2009-built, 105,071 dwt Aframax tanker vessel, M/T P. Sophia, to an unaffiliated third party for a gross sale price of $35.65M. The vessel is expected to be delivered to her new owners in mid-2026, subject to customary closing conditions. The M/T P. Sophia currently serves as part of the collateral for the Company's outstanding Nordic bond. The net proceeds from the sale will be applied in accordance with the terms of the bond agreement. The Company acquired the M/T P. Sophia in the third quarter of 2022 for a gross purchase price of $27,577,320.
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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: 2.130
Low
4.00
Averages
5.25
High
6.50
Current: 2.130
Low
4.00
Averages
5.25
High
6.50
No data
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 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 Delivers First Suezmax Tanker, Secures $36,500 Daily Charter Rate
- Delivery Progress: Performance Shipping has taken early delivery of the M/T P. Bel Air, a 157,286 dwt Suezmax tanker built in 2019, marking a significant step in the company's expansion strategy.
- Charter Achievement: The vessel will immediately commence a three-year time charter with Repsol Trading S.A. at a rate of $36,500 per day, showcasing the company's competitiveness in the reputable charter market.
- Fleet Expansion: With this delivery, the company's fleet now consists of 12 vessels, including two newbuild tankers under construction, further enhancing operational capabilities and market positioning.
- Future Outlook: The second Suezmax tanker is expected to be delivered by year-end, completing the integration of a modern eco-design fleet and improving long-term earnings visibility.
See More
Performance Shipping Cancels Forward Sale of M/T P. Sophia Tanker
- Sale Agreement Termination: Performance Shipping announced that the forward sale agreement for the M/T P. Sophia with an unaffiliated buyer will not materialize, resulting in the vessel remaining in the company's fleet, which impacts asset liquidity and future revenue potential.
- Project Not Selected: The buyer has informed the company that the M/T P. Sophia was not selected for the proposed offshore project, indicating uncertainty in market demand that could pose challenges for the company's future business development.
- Agreement Lapses: As the sale agreement was not completed, it has automatically lapsed, meaning the company cannot realize cash flow from this asset in the short term, potentially affecting its financial flexibility.
- Market Environment Challenges: This incident reflects the volatility in the global shipping market, particularly in the tanker shipping sector, which may lead to increased operational risks and financial pressures for the company moving forward.
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 Delivers First Suezmax Tanker, Secures $36,500 Daily Charter Rate
- Delivery Progress: Performance Shipping has taken early delivery of the M/T P. Bel Air, a 157,286 dwt Suezmax tanker built in 2019, marking a significant step in the company's expansion strategy.
- Charter Achievement: The vessel will immediately commence a three-year time charter with Repsol Trading S.A. at a rate of $36,500 per day, showcasing the company's competitiveness in the reputable charter market.
- Fleet Expansion: With this delivery, the company's fleet now consists of 12 vessels, including two newbuild tankers under construction, further enhancing operational capabilities and market positioning.
- Future Outlook: The second Suezmax tanker is expected to be delivered by year-end, completing the integration of a modern eco-design fleet and improving long-term earnings visibility.
See More
Performance Shipping Cancels Forward Sale of M/T P. Sophia Tanker
- Sale Agreement Termination: Performance Shipping announced that the forward sale agreement for the M/T P. Sophia with an unaffiliated buyer will not materialize, resulting in the vessel remaining in the company's fleet, which impacts asset liquidity and future revenue potential.
- Project Not Selected: The buyer has informed the company that the M/T P. Sophia was not selected for the proposed offshore project, indicating uncertainty in market demand that could pose challenges for the company's future business development.
- Agreement Lapses: As the sale agreement was not completed, it has automatically lapsed, meaning the company cannot realize cash flow from this asset in the short term, potentially affecting its financial flexibility.
- Market Environment Challenges: This incident reflects the volatility in the global shipping market, particularly in the tanker shipping sector, which may lead to increased operational risks and financial pressures for the company moving forward.
See More
