Performance Shipping Inc. Signs Shipbuilding Contract for the Purchase of a Newbuild LNG Ready Tier III LR2 Product/Crude Oil Tanker with Scrubber

ATHENS, Greece, March 8, 2023 -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced today that it has signed, through a separate wholly-owned subsidiary, a shipbuilding contract with China Shipbuilding Trading Company Limited and Shanghai Waigaoqiao Shipbuilding Company Limited for the construction of a 114,000 DWT LNG ready LR2 Aframax product/crude oil tanker for a contract price of US$62.6 million, net of commission to third party. 15% of the purchase price is payable upon receipt of a refund guarantee, expected to occur within 30 days; 10% of the purchase price is payable at each of the milestones of steel cutting, keel laying and launching of the vessel, and the remaining 55% of the purchase price is payable upon the vessel’s delivery.  The Company expects to take delivery of the vessel during the fourth quarter of 2025.

The vessel will be equipped with an electronic Main Engine with High-Pressure Selective Catalytic Reactor (HPSCR) for Tier III (NOx Emissions) compliance, Exhaust Gas Cleaning System (EGCS) for Tier II (NOx Emissions) compliance, and Ballast Water Treatment System (BWTS).

Commenting on this contract Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“We are pleased to have secured one of the remaining delivery slots for LR2/Aframax tankers with a 2025 delivery date. Construction of this LNG ready product/crude oil tanker, featuring the latest high specification engine and emission requirements, and fitted with a scrubber and a water ballast treatment system, will take place at the largest and most reputable state-owned shipyard in China. This contract is consistent with our view that historically low tanker fleet growth in the next few years and an aging fleet during a high seaborne trade demand period will result in sustainably strong fundamentals and higher asset values.”