Performance Shipping Inc. announced on December 5, 2025 that the forward‑sale agreement it entered into on April 7, 2025 for the 2009‑built Aframax tanker M/T P. Sophia will not be completed, as the buyer has decided not to pursue the vessel’s conversion into a floating production storage and offloading (FPSO) unit for an offshore project. The agreement, which granted the buyer exclusive rights to submit a bid for the FPSO conversion, automatically lapsed when the buyer informed the company that the vessel was not selected for the project. Consequently, M/T P. Sophia will remain in Performance Shipping’s fleet and continue to operate under its existing charter arrangements.
The cancellation of the forward sale means the company retains a 2009‑built Aframax tanker that was delivered to Performance Shipping in July 2022. While the vessel is older than the company’s newer acquisitions, it still contributes to the company’s charter revenue and provides flexibility in a market where charter rates have been volatile. The buyer’s decision was driven by the vessel’s specifications, which did not align with the requirements of the FPSO conversion project, rather than any operational or financial weakness on the part of Performance Shipping.
In Q3 2025, Performance Shipping reported a net income of $3.9 million, down from $12.4 million in Q3 2024, and revenue of $18.5 million, compared with $22.9 million in the prior year. The decline was largely attributable to lower time‑charter equivalent (TCE) rates and reduced available days due to dry‑docking. Despite the contraction, the company’s charter portfolio remains robust, with new long‑term agreements in place that offset the temporary dip in revenue. The retention of M/T P. Sophia therefore preserves a steady revenue stream that would have been lost had the sale proceeded.
Performance Shipping has been actively expanding its fleet and securing new charters. The company recently acquired two modern Suezmax tankers, M/T Eco Bel Air and M/T Eco Beverly Hills, for $150.9 million, and secured three‑year time‑charter contracts with Repsol Trading S.A. at $36,500 per day each. In addition, a 24‑month charter agreement with SeaRiver Maritime for the LR2 Aframax tanker M/T P. Long Beach at $30,500 per day is expected to generate $21.35 million in revenue. A $100 million Nordic bond issuance has bolstered the company’s balance sheet, providing liquidity for these strategic investments and maintaining a strong cash position of $212 million as of November 24, 2025.
Market reaction to the cancellation has been muted, reflecting the company’s overall positive trajectory. Analysts have continued to view Performance Shipping favorably, citing its strong valuation metrics, low price‑to‑book ratio, and high free‑cash‑flow yield. The company’s recent charter wins and fleet modernization efforts have reinforced investor confidence, while the neutral outcome of the M/T P. Sophia sale has not materially altered the company’s outlook.
The forward‑sale cancellation is a neutral event that keeps an older vessel in the fleet, preserving its operational contribution without affecting the company’s broader growth strategy. Performance Shipping remains focused on expanding its charter portfolio, modernizing its fleet, and leveraging its strong balance sheet to support future opportunities.
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