Performance Shipping Inc. Enters Into Potential Forward Sale Agreement for the 2009-Built Aframax Tanker, M/T P. Sophia

Core Viewpoint - Performance Shipping Inc. has entered into a forward sale and exclusivity agreement for the conversion of its Aframax tanker, M/T P. Sophia, into a Floating Production Storage and Offloading (FPSO) vessel, contingent on the success of the Buyer in an upcoming auction [1][2][3]. Group 1: Agreement Details - The agreement grants the Buyer exclusive rights to bid for the conversion of M/T P. Sophia, with a gross sale price of US$36,050,000 if awarded by April 5, 2026 [2]. - If the vessel is delivered on or before September 30, 2025, the sale price will increase by US$1,000,000 [2]. - During the exclusivity period, the Company can operate the vessel but cannot sell it to other parties until the auction concludes [2]. Group 2: Company Strategy - The decision to enter into this forward sale is based on the vessel's specifications and suitability for conversion, allowing the Company to generate cash flow while securing a firm sale price [3]. - The Offshore Project is independent of current tanker charter rates and vessel values, indicating a strategic move to leverage specific asset capabilities [3]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in tanker vessel ownership and employing its fleet on spot voyages, pool arrangements, and time charters [4].