ATHENS, Greece, March  17, 2026  (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ:PSHG) (&#34;we&#34; or the &#34;Company&#34;), a global shipping company specializing in the ownership of tanker vessels, today announced that,

PSHG

Performance Shipping Inc. Secures Sale and Leaseback Agreement for Newbuilding LR1 Tanker

Performance Shipping Secures Bareboat Financing for New Tanker Vessel

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>ATHENS, Greece, March  17, 2026  (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ:PSHG) (&amp;#34;we&amp;#34; or the &amp;#34;Company&amp;#34;), a global shipping company specializing in the ownership of tanker vessels, today announced that,</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Performance Shipping has finalized a $37.8 million sale and leaseback agreement for its new LR1 tanker, scheduled for delivery in early 2027. This transaction not only provides immediate financing for vessel construction but also ensures cashflow stability with a charter rate above breakeven levels, potentially strengthening PSHG&#039;s financial position.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Performance Shipping enters a sale and leaseback deal for a tanker.</li><li>The deal involves $37.8 million in bareboat financing.</li><li>Vessel delivery is scheduled for early 2027.</li><li>Charter rate exceeds breakeven, securing cashflow stability.</li><li>Company plans fleet renewal and balanced management strategies.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Mercuria Energy Trading S.A. (N/A)</strong>: Chartered the vessel for a 4-year period, securing cashflow.</li><li><strong>Jiangsu New Yangzi Shipbuilding Co., Ltd. (N/A)</strong>: Building the tanker for anticipated delivery by 2027.</li></ul>
  </section>

  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>This update falls under Corporate Developments as it reflects significant strategic financing. The sale and leaseback strategy is aimed at optimizing financial management while supporting fleet expansion and renewal.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>The bareboat financing secures 70% of the vessel&#039;s contract price.</li><li>Charter rate of $23,750 per day exceeds operational breakeven.</li><li>Potential repurchase options may provide future financial flexibility.</li><li>Delivery in early 2027 aligns with scaling fleet capacity.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Sale and leaseback agreement totals $37.8 million.</li><li>Charter includes 120 monthly installments at $5,451 per day.</li><li>Balloon payment of approximately $18.1 million due at the end.</li><li>Vessel to be delivered from Jiangsu New Yangzi Shipbuilding in early 2027.</li><li>Charter secured with Mercuria for four years with extensions possible.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Expect modest upward movement in PSHG&#039;s stock due to financing stability over the next year.</p>
  </section>
</section>


<link type="text/css" rel="stylesheet" href="https://www.globenewswire.com/styles/gnw_nitf.css"></link><p align="justify">ATHENS, Greece, March  17, 2026  (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/PSHG">PSHG</a>) ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, today 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 (the "Vessel"), currently under construction at Jiangsu New Yangzi Shipbuilding Co., Ltd. and scheduled for delivery in early 2027.</p>  <p align="justify">The bareboat financing amount totals US$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 US$5,451 per day, with an implied interest rate of Term SOFR plus 2.00% per annum. Additionally, a balloon payment of approximately US$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.</p>  <p align="justify">Andreas Michalopoulos, the Company's Chief Executive Officer, stated:</p>  <p align="justify">"We are pleased to announce the new financing arrangement for our LR1 newbuilding, secured almost one year ahead of the vessel's expected delivery date. The financing represents 70% of the vessel's contract price and an even lower leverage level when considering current market values for modern LR1 newbuilding tankers, while maintaining a conservative cashflow breakeven level of US$22,200 per day.</p>  <p align="justify">"As previously announced, the vessel has been chartered to Mercuria Energy Trading S.A. for a firm period of four years upon delivery, at a daily gross charter rate of US$23,750, providing coverage above the vessel's daily cashflow breakeven, with options to extend the charter for up to three additional one-year periods. This financing is consistent with our strategy of fleet renewal, fleet deployment and balanced financial management."</p>  <p align="justify"><strong>About the Company </strong></p>  <p align="justify">Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements, and on time charters.</p>  <p align="justify"><strong>Cautionary Statement Regarding Forward-Looking Statements</strong></p>  <p align="justify">Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts including with respect to employment of our fleet and vessel deliveries. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "targets," "likely," "would," "could," "seeks," "continue," "possible," "might," "pending" and similar expressions, terms or phrases may identify forward-looking statements.</p>  <p align="justify">The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.</p>  <p align="justify">In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to vessels we agree to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including COVID-19, and their impact on the demand for seaborne transportation of petroleum and other types of products, general domestic and international political conditions or events, including "trade wars", armed conflicts including the war between Israel and the U.S. and Iran and the consequent disruption of shipping routes, war in Ukraine and the war between Israel and Hamas, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to armed conflict, accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the US Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.</p> <img alt="" class="__GNW8366DE3E__IMG" src="https://www.globenewswire.com/newsroom/ti?nf=OTY3MzQ2NSM3NDg5MzExIzIwMjA2MzU="></img> <br></br><img alt="" src="https://ml.globenewswire.com/media/MjQ5NTgxMmUtZGI1YS00Yzg4LTgxYjgtNjJmYWY1NWI4NTZlLTEwMzI1MjYtMjAyNi0wMy0xNy1lbg==/tiny/Performance-Shipping-Inc-.png" referrerpolicy="no-referrer-when-downgrade"></img><pre>Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: <a href="mailto:amichalopoulos@pshipping.com">amichalopoulos@pshipping.com</a>
Website: <a href="http://www.pshipping.com" title="www.pshipping.com">www.pshipping.com</a>

Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net</pre>

Performance Shipping has finalized a $37.8 million sale and leaseback agreement for its new LR1 tanker, scheduled for delivery in early 2027. This transaction not only provides immediate financing for vessel construction but also ensures cashflow stability with a charter rate above breakeven levels, potentially strengthening PSHG's financial position.

Performance Shipping Inc. Secures Sale and Leaseback Agreement for Newbuilding LR1 Tanker

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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