Performance Shipping Inc. Announces Agreement to Acquire Seventh Vessel; Its First LR2 Aframax Oil Product Tanker

Athens, Greece - August 24, 2022

Performance Shipping Inc. (NASDAQ: PSHG), ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, today announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to purchase a 105,304 dwt LR2 Aframax oil product tanker, the M/T Alpine Amalia, to be renamed M/T P. Aliki, built in 2010 by Hyundai Heavy Industries Co., Ltd. - Ulsan, South Korea, from an unaffiliated third party for a gross purchase price of US$36.5 million.

The vessel, which is expected to be delivered to the Company in November 2022, is fitted with a ballast water treatment system (BWTS) and Exhaust Gas Cleaning System (EGCS), and its next scheduled special survey and drydock is not due until 2025.

The Company expects to finance the acquisition with cash-on-hand raised from its recent equity offerings and the incurrence of debt through a new senior secured facility that it anticipates it will enter into prior to the delivery of the vessel.

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

"The acquisition of our seventh vessel, a long-range Aframax oil product tanker referred to as an LR2, marks yet another significant milestone for our Company. It marks our entry into the refined petroleum product tanker sector, which we believe enjoys strong fundamentals and prospects. Spot charter rates for LR2 tankers are currently averaging in excess of US$40,000.00 per day and we expect to trade the vessel, following its delivery to us, in the spot market. The vessel is fitted with a BWTS and EGCS (scrubber), which we anticipate will enable it to achieve premium charter rates and high utilization. We look forward to participating in a strong tanker market with our expanded fleet of 7 Aframax tankers and low maintenance capital expenditures going forward."

Performance Shipping Inc. press release