PSHG · Performance Shipping Inc.

Performance Shipping Inc. has entered into a Memorandum of Agreement to divest its oldest vessel, the 2010-built M/T P. Aliki, for a gross price of US$42.65 million to Trafigura Maritime Logistics Pte. Ltd., representing a gain over its Q4 2022 acquisition cost of US$36.5 million. This transaction aligns with the company's fleet renewal strategy, which emphasizes selling older assets while pursuing modern acquisitions and newbuildings. CEO Andreas Michalopoulos highlighted that the divestiture, combined with the pre-announced sale of M/T P. Sophia, reduces the pro forma average fleet age from 14 years to 8 years, enhancing energy efficiency and specifications. The vessel, currently under a US$30,000 daily time charter with Pakistan National Shipping Corporation, serves as collateral for an Alpha Bank S.A. credit facility; approximately US$12.8 million of net proceeds will repay this debt per loan terms. Delivery is slated for late Q3 2026 post-charter expiration and customary conditions. Pro forma cash reserves are projected to surge to US$175 million from US$50 million at 2025 year-end, factoring in a bond tap, M/T P. Marseille delivery, and both sales' net proceeds. This liquidity bolsters funding for two Suezmax newbuildings due in 2028-2029 from CSTC and SWS, supporting long-term operational modernization without disclosed financing strain.