Performance Shipping Inc. Signs Shipbuilding Contracts for the Construction of Two Newbuilding Suezmax Tankers
Rhea-AI Summary
Performance Shipping (NASDAQ: PSHG) signed two shipbuilding contracts for 158,000 DWT Suezmax tankers at $81.5 million per vessel, with deliveries expected in October 2028 and May 2029. Payment milestones include a 15% refund-guarantee deposit, three 10% milestone payments, and 55% at delivery.
The vessels will be Tier III, scrubber-fitted, fuel-efficient and intended to expand the company’s Suezmax exposure and long-term commercial competitiveness.
Positive
- Two Suezmax vessels contracted at $81.5M each
- Deliveries scheduled for October 2028 and May 2029
- Vessels Tier III, scrubber-fitted and fuel-efficiency compliant
- Doubles company exposure to the Suezmax segment
Negative
- Total committed capex of $163.0M for the two vessels
- Long lead time until delivery (Oct 2028 and May 2029) exposes timing risk
- Payment structure requires 55% of price payable on delivery
News Market Reaction – PSHG
On the day this news was published, PSHG gained 0.42%, reflecting a mild positive market reaction. Argus tracked a peak move of +13.6% during that session. Argus tracked a trough of -5.5% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $126K to the company's valuation, bringing the market cap to $30M at that time. Trading volume was elevated at 2.1x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PSHG gained 7.94%, while shipping peers were mixed: GLBS rose 1.9%, CTRM fell 2.24%, USEA declined 1.89%, and EDRY was roughly flat at -0.05%. Momentum data show CISS and ICON down and CTRM up, suggesting broader but uneven sector dynamics.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Vessel sale | Positive | +2.4% | Sale of 2009-built Aframax M/T P. Sophia at US$35.65M implying gain. |
| Jan 20 | Charter contract | Positive | +0.0% | Three-year US$31,000/day charter for M/T P. Monterey, ~US$33M revenue. |
| Jan 14 | Newbuild delivery | Positive | +1.9% | Delivery of M/T P. Marseille, third LR2 newbuild under five-year charter. |
| Jan 13 | Bond tap issue | Positive | +5.0% | USD 50M tap of senior secured bond due July 2029 at 9.875% coupon. |
| Dec 22 | Suezmax delivery | Positive | +2.7% | Delivery of 2019-built Suezmax M/T P. Beverly Hills, lifting fleet to 12 tankers. |
Recent positive operational and financing updates have been followed by flat-to-modestly positive moves, with reported 24h reactions of
Over the last few months, PSHG has focused on fleet renewal and long-term employment. It sold its oldest Aframax M/T P. Sophia for US$35.65 million with a charter at US$43,000/day, secured a three-year charter for M/T P. Monterey at US$31,000/day supporting about US$33 million of revenue, and completed a USD 50 million tap of its bond due July 17, 2029. Delivery of modern Suezmax and LR2 vessels has expanded the fleet, and today’s Suezmax newbuilding contracts extend that growth trajectory.
Market Pulse Summary
This announcement details PSHG’s decision to contract two 158,000 DWT Suezmax newbuildings at US$81.5 million per vessel, with deliveries expected in October 2028 and May 2029. The staged payment structure (15%, several 10% milestones, 55% on delivery) adds long-term capital commitments while deepening exposure to the Suezmax segment. In the context of recent vessel deliveries, charter wins, and bond financing, investors may focus on execution, funding mix, and future charter coverage for these ships.
Key Terms
suezmax technical
tier iii regulatory
scrubber-fitted technical
AI-generated analysis. Not financial advice.
ATHENS, Greece, March 02, 2026 (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, through two separate wholly-owned subsidiaries, it has signed two shipbuilding contracts with China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. (“SWS”) for the construction of two 158,000 DWT newbuilding Suezmax tanker vessels.
The vessels are expected to be delivered in October 2028 and May 2029, respectively, at a contract price of US
Commenting on the contracts, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“The signing of these two Suezmax newbuilding contracts expands our presence in a segment with constructive medium- and long-term market fundamentals. Our fleet is primarily comprised of Aframax/LR2 vessels, and with two Suezmax tankers currently on the water, this transaction is poised to double our exposure to the segment, reflecting our disciplined capital allocation approach and confidence in the Suezmax market.
“Upon delivery in October 2028 and May 2029, approximately
“We are pleased to further strengthen our partnership with SWS, a reputable shipyard with a strong track record of delivering technologically advanced vessels. Of the four newbuilding tankers we have previously contracted, three have already been constructed and delivered by this yard. This underscores our confidence in their high quality of construction and timely delivery schedules.
“The vessels have been secured at competitive prices and will be Tier III, scrubber-fitted and compliant with the latest fuel-efficiency and environmental standards, enhancing their commercial competitiveness and long-term earnings capacity.”
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 employment of our fleet and vessel deliveries. 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 on March 2, 2026 about new Suezmax orders?
How much will Performance Shipping (PSHG) pay in total for the two new Suezmax vessels?
When will the PSHG Suezmax newbuildings be delivered and what are the key milestones?
What environmental and efficiency features will the new PSHG Suezmax tankers have?
How will the new Suezmax contracts affect Performance Shipping's fleet mix and exposure?
Who are the shipyards building PSHG's new Suezmax vessels and what is their track record?
