Performance Shipping Inc., owned by Alice Palios, has secured a sale and leaseback deal for a newly constructed LR1 tanker, significantly boosting its financial flexibility. The vessel, to be named M/T P. San Francisco, is currently being built at Jiangsu New Yangzi Shipbuilding and is expected to be delivered in early 2027. This strategic move is aimed at optimizing the company's balance sheet and cash flow management.

The financial terms of the agreement amount to $37.8 million, which includes a ten-year bareboat charter at a daily rate of $5,451 and a final payment of approximately $18.1 million. Importantly, the company retains an option to repurchase the tanker after two years, providing it with further control over its fleet assets. This arrangement underscores a strategic approach to fleet financing that seeks to reduce financial strain while ensuring operational liquidity.

CEO Andreas Michalopoulos emphasized that this financing covers 70% of the ship's value, thereby ensuring balanced cash flows for the company. The pre-arranged charter agreement with Mercuria adds a layer of revenue visibility, which is vital for planning and sustaining operational capacities in the maritime shipping industry. Performance Shipping’s move reflects broader trends in the shipping sector where companies seek innovative financing solutions as the industry evolves.