Performance Shipping Inc. Provides Update on Potential Forward Sale Agreement for M/T P. Sophia
Rhea-AI Summary
Performance Shipping Inc. (NASDAQ: PSHG) announced that a previously disclosed potential forward sale of the 2009-built Aframax tanker M/T P. Sophia will not materialize.
As of Dec. 5, 2025, the buyer that held an exclusivity right to bid on converting the vessel into an FPSO informed the company the vessel was not selected for the proposed offshore project, causing the forward sale and exclusivity agreement to automatically lapse. The company stated no sale will be completed under those terms and that the M/T P. Sophia will continue to operate in the company fleet.
Positive
- M/T P. Sophia will remain in fleet and continue operating
- Exclusivity agreement automatically lapsed, freeing the vessel for commercial deployment
Negative
- Potential forward sale of M/T P. Sophia did not materialize
- Buyer did not select the vessel for the proposed FPSO offshore project
News Market Reaction
On the day this news was published, PSHG declined 7.10%, reflecting a notable negative market reaction. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $29M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer moves are mixed: GLBS up 9.82%, EDRY up 1.72%, while CTRM, USEA and HTCO are down between -1.45% and -3.34%, suggesting today’s stock setup is more company-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 25 | Q3 2025 earnings | Positive | -10.8% | Mixed earnings with lower YoY profit but strong cash, backlog and new deals. |
| Nov 06 | Charter contracts | Positive | +1.4% | Three-year Repsol charters for two Suezmax tankers at $36,500 per day. |
| Nov 05 | AGM announcement | Neutral | +2.5% | Scheduling of 2025 AGM and setting October 27, 2025 record date. |
| Nov 04 | Time charter deal | Positive | -4.3% | Two-year M/T P. Long Beach charter at $30,500/day, boosting revenue backlog. |
| Oct 09 | Fleet expansion | Positive | +0.5% | Acquisition of two modern Suezmax tankers with prior bond financing support. |
Recent positive operational and chartering news has sometimes been met with negative or muted price reactions, indicating occasional divergence between fundamentals and short-term trading.
Over the past few months, the company reported Q3 2025 results with net income of $3.9M and revenue of $18.5M, alongside major fleet and chartering activity, including two Suezmax acquisitions at $75.4M each and multi‑year charters at up to $36,500/day. Additional time charters, such as the M/T P. Long Beach at $30,500/day, lifted secured revenue backlog and coverage for 2026–2027. Against this backdrop of fleet growth and contracted revenue, today’s news simply keeps the 2009-built M/T P. Sophia in the trading fleet after a potential FPSO sale fell through.
Market Pulse Summary
The stock moved -7.1% in the session following this news. A negative reaction despite this operational update would fit a pattern where past positive fleet and charter news sometimes met selling pressure. The company entered this announcement trading above its 200-day MA and close to its 52-week high, a zone where profit-taking has previously appeared. Since the M/T P. Sophia simply continues in the fleet after the forward sale lapsed, any sharp decline would have reflected positioning and expectations rather than a fundamental loss of vessel capacity.
Key Terms
aframax tanker technical
floating production storage and offloading (fpso) technical
AI-generated analysis. Not financial advice.
ATHENS, Greece, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that the previously disclosed potential forward sale of the 2009-built Aframax tanker, M/T P. Sophia, will not materialize.
As announced on April 7, 2025, the Company had entered into a forward sale and exclusivity agreement with an unaffiliated third party (the “Buyer”), granting the Buyer the exclusive right to submit a bid for the conversion of the M/T P. Sophia into a Floating Production Storage and Offloading (FPSO) unit for a proposed offshore project (the “Offshore Project”). The Buyer has informed the Company that the M/T P. Sophia was not selected for the Offshore Project. As a result, the potential forward sale and exclusivity agreement has automatically lapsed, no sale will be completed under its terms, and the vessel will continue to operate in the Company’s fleet.
About the Company
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.
Cautionary Statement Regarding Forward-Looking Statements
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 charter employment and our revenue backlog. 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.
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.
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 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 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.
Corporate Contact: Andreas Michalopoulos Chief Executive Officer, Director and Secretary Telephone: +30-216-600-2400 Email:amichalopoulos@pshipping.com Website:www.pshipping.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email:enebb@optonline.net
FAQ
What did Performance Shipping (PSHG) announce about the sale of M/T P. Sophia on Dec. 5, 2025?
Why did the forward sale of PSHG's M/T P. Sophia fail on Dec. 5, 2025?
Will Performance Shipping (PSHG) still operate M/T P. Sophia after Dec. 5, 2025?
Did the exclusivity agreement for M/T P. Sophia remain in force after Dec. 5, 2025?
Does Performance Shipping (PSHG) expect a sale of M/T P. Sophia under the lapsed agreement?
