Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services specializing in the ownership of tanker vessels [2] - The company employs its fleet on spot voyages, through pool arrangements, and on time charters [2] Financial Reporting - The company has filed its 2024 Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - The Annual Report includes the company's audited consolidated financial statements and is accessible through the SEC's website and the company's website [1]

Core Viewpoint - Performance Shipping Inc. has successfully sold the M/T P. Yanbu for a gross sale price of US$39 million, marking a significant step in its fleet renewal strategy and expected to generate a gain of approximately US$21.5 million in Q1 2025 [1][2]. Group 1: Transaction Details - The M/T P. Yanbu was acquired in Q4 2020 for US$22 million and was debt-free at the time of sale [2]. - The sale proceeds will increase the company's cash balance to over US$105 million, more than double its year-end debt balance of US$47.7 million [2]. Group 2: Strategic Implications - The sale is part of the company's strategy to modernize its fleet through newbuild programs and selective second-hand vessel acquisitions [2]. - Following this sale and the delivery of three newbuild LR2 Aframax tankers, the fleet's average age will decrease from 14 years to 10 years by January 2026 [2]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of tanker vessels, and employs its fleet on spot voyages, pool arrangements, and time charters [3].

Core Viewpoint - Performance Shipping Inc. has successfully secured financing for three newbuild LR2 Aframax tankers through a sale and leaseback agreement, which is expected to enhance the company's operational capacity and financial stability [1][2][3]. Financing Details - The total bareboat financing amount is US$45 million, with the vessel being sold and chartered back for an eight-year period at a fixed daily rate of US$6,850 plus a variable rate based on SOFR plus 2.05% per annum [2]. - A balloon payment of approximately US$25 million is due with the last installment, and the company has options to repurchase the vessel at predetermined rates after the second anniversary of the charter [2]. Newbuilding Vessels - The three newbuilding LR2 Aframax tankers, each with a deadweight tonnage of approximately 114,000 dwt, are expected to be delivered between August 2025 and January 2026 [1]. - The aggregate bareboat financing of US$134.6 million covers about 70% of the total shipbuilding contract cost of US$192.9 million, addressing nearly all remaining installments due to the shipyard [3]. Charter Agreements - The newbuild tankers have been chartered to Clearlake Shipping Pte Ltd. for five years at a rate of US$31,000 per day, with options for extension and profit sharing [3]. - The estimated daily cash flow breakeven rate, including lease payments, is about US$25,000 per tanker, which is significantly lower than the secured charter rate [3]. Fleet Renewal Strategy - The company aims to gradually renew its fleet, reducing the average age from 14 years to 10 years upon the delivery of the newbuild tankers [3].