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: 1.650
Low
4.00
Averages
5.25
High
6.50
Current: 1.650
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 Enters Loan Amendment with Nordea Bank
- Loan Maturity Extension: Performance Shipping has entered a supplemental agreement with Nordea Bank, extending the maturity of its existing loan facility to four years, which significantly enhances the company's financial flexibility and ensures no bank debt maturities prior to mid-2030, thereby reinforcing its balance sheet.
- Interest Rate Reduction: The amendment reduces the applicable margin from 2.50% to 1.60% per annum, which not only lowers the company's cost of capital but also reflects Nordea's continued confidence and support for Performance Shipping, enhancing its financing capabilities.
- Improved Financial Position: The revised loan agreement substantially improves Performance Shipping's financial position, with CEO Andreas Michalopoulos stating that this change will provide greater operational flexibility and support future business growth.
- Enhanced Long-term Liquidity: The implementation of this agreement allows the company to better manage cash flow over the coming years, improving its long-term liquidity and ensuring competitiveness in an uncertain market environment.
See More
Performance Shipping Amends Loan Facility with Nordea Bank
- Loan Term Extension: Performance Shipping's amended loan facility with Nordea Bank extends the maturity by four years and reduces the interest margin from 2.50% to 1.60%, significantly lowering financial costs and improving cash flow.
- Liquidity Enhancement: The revised loan terms eliminate any bank debt maturities before mid-2030, enhancing the company's liquidity profile and providing greater flexibility for future investments and operations.
- Financial Performance: Performance Shipping reported a GAAP EPS of $0.26 and revenue of $33.77 million, indicating stable performance in the current market environment, which boosts investor confidence.
- Asset Sale Plan: The company plans to sell its Aframax vessel M/T P. Aliki for $42.6 million, a move that not only helps optimize the balance sheet but may also provide funding for future expansions.
See More
Performance Shipping Extends Charter Agreement with Aramco
- Charter Extension: Performance Shipping has extended its charter with Aramco for 35 months at a gross rate of $37,700 per day, expected to generate approximately $39 million in gross revenue during the minimum charter period, further solidifying its relationship with one of the world's largest energy companies.
- Revenue Backlog: The new charter agreement has pushed the company's contracted revenue backlog to over $500 million, indicating strong revenue visibility for the coming years, with charter coverage exceeding 80% through the end of 2028.
- Financial Flexibility: The implementation of this charter reduces the average daily charter rate required from remaining open days to nearly zero, increasing to only about $10,000 per day in 2029, enhancing the company's financial flexibility to meet future cash obligations.
- Strategic Confidence: CEO Andreas Michalopoulos stated that this renewal marks a further strengthening of the long-standing partnership with Aramco, reflecting the company's capability and confidence in delivering safe and reliable seaborne transportation services.
See More
Performance Shipping Amends Bond Terms to Unsecured Status
- Bond Term Amendments: Performance Shipping has received approval to amend its 9.875% senior secured bond terms, releasing the ship mortgages on P. Monterey and P. Sophia, thus converting the bonds into unsecured obligations, which reflects a significant improvement in the company's credit quality.
- Increased Liquidity Requirement: The revised terms raise the minimum liquidity covenant from $20 million to $30 million, aimed at enhancing the company's financial stability and ensuring stronger funding security for future operations.
- Fleet Expansion and Contract Growth: Over the past 12 months, the company has added four vessels and secured 3 to 7-year charters, increasing its fleet size to six vessels and doubling its contract backlog to nearly $500 million, indicating enhanced competitiveness in the market.
- Future Cash Flow Outlook: Over the remaining three-year term of the bonds, the average daily charter rates required to meet cash obligations range from zero in 2027 to $11,600 in 2029, with a robust cash balance and unencumbered vessels providing a solid foundation for refinancing efforts.
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 Enters Loan Amendment with Nordea Bank
- Loan Maturity Extension: Performance Shipping has entered a supplemental agreement with Nordea Bank, extending the maturity of its existing loan facility to four years, which significantly enhances the company's financial flexibility and ensures no bank debt maturities prior to mid-2030, thereby reinforcing its balance sheet.
- Interest Rate Reduction: The amendment reduces the applicable margin from 2.50% to 1.60% per annum, which not only lowers the company's cost of capital but also reflects Nordea's continued confidence and support for Performance Shipping, enhancing its financing capabilities.
- Improved Financial Position: The revised loan agreement substantially improves Performance Shipping's financial position, with CEO Andreas Michalopoulos stating that this change will provide greater operational flexibility and support future business growth.
- Enhanced Long-term Liquidity: The implementation of this agreement allows the company to better manage cash flow over the coming years, improving its long-term liquidity and ensuring competitiveness in an uncertain market environment.
See More
Performance Shipping Amends Loan Facility with Nordea Bank
- Loan Term Extension: Performance Shipping's amended loan facility with Nordea Bank extends the maturity by four years and reduces the interest margin from 2.50% to 1.60%, significantly lowering financial costs and improving cash flow.
- Liquidity Enhancement: The revised loan terms eliminate any bank debt maturities before mid-2030, enhancing the company's liquidity profile and providing greater flexibility for future investments and operations.
- Financial Performance: Performance Shipping reported a GAAP EPS of $0.26 and revenue of $33.77 million, indicating stable performance in the current market environment, which boosts investor confidence.
- Asset Sale Plan: The company plans to sell its Aframax vessel M/T P. Aliki for $42.6 million, a move that not only helps optimize the balance sheet but may also provide funding for future expansions.
See More
Performance Shipping Extends Charter Agreement with Aramco
- Charter Extension: Performance Shipping has extended its charter with Aramco for 35 months at a gross rate of $37,700 per day, expected to generate approximately $39 million in gross revenue during the minimum charter period, further solidifying its relationship with one of the world's largest energy companies.
- Revenue Backlog: The new charter agreement has pushed the company's contracted revenue backlog to over $500 million, indicating strong revenue visibility for the coming years, with charter coverage exceeding 80% through the end of 2028.
- Financial Flexibility: The implementation of this charter reduces the average daily charter rate required from remaining open days to nearly zero, increasing to only about $10,000 per day in 2029, enhancing the company's financial flexibility to meet future cash obligations.
- Strategic Confidence: CEO Andreas Michalopoulos stated that this renewal marks a further strengthening of the long-standing partnership with Aramco, reflecting the company's capability and confidence in delivering safe and reliable seaborne transportation services.
See More
Performance Shipping Amends Bond Terms to Unsecured Status
- Bond Term Amendments: Performance Shipping has received approval to amend its 9.875% senior secured bond terms, releasing the ship mortgages on P. Monterey and P. Sophia, thus converting the bonds into unsecured obligations, which reflects a significant improvement in the company's credit quality.
- Increased Liquidity Requirement: The revised terms raise the minimum liquidity covenant from $20 million to $30 million, aimed at enhancing the company's financial stability and ensuring stronger funding security for future operations.
- Fleet Expansion and Contract Growth: Over the past 12 months, the company has added four vessels and secured 3 to 7-year charters, increasing its fleet size to six vessels and doubling its contract backlog to nearly $500 million, indicating enhanced competitiveness in the market.
- Future Cash Flow Outlook: Over the remaining three-year term of the bonds, the average daily charter rates required to meet cash obligations range from zero in 2027 to $11,600 in 2029, with a robust cash balance and unencumbered vessels providing a solid foundation for refinancing efforts.
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
