Performance Shipping Inc. Signs Shipbuilding Contract for the Construction of a Newbuilding LR1 Tanker Vessel

Athens, Greece - May 7, 2024

Performance Shipping Inc. (NASDAQ: PSHG), ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, today announced that, through a separate wholly-owned subsidiary, it has signed a shipbuilding contract with Jiangsu Yangzijiang Shipbuilding Group Co., Ltd., Jiangsu New Yangzi Shipbuilding Co., Ltd., and Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd., (collectively the "Seller") for the construction of a scrubber fitted 75,000 DWT LR1 chemical/product oil tanker for a contract price of US$54.1 million excluding extras and net of commission to third parties.

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 by January 2027.

The vessel will be equipped with electronic main engines with high-pressure selective catalytic reactors (HPSCR) for Tier III (NOx Emissions) compliance, exhaust gas cleaning systems (EGCS - commonly referred to as scrubbers) for Tier II (NOx Emissions) compliance, and ballast water treatment systems (BWTS).

Andreas Michalopoulos, the Company's Chief Executive Officer, stated:

"We are pleased to announce our shipbuilding contract to construct one modern eco-design LR1 tanker. This vessel will feature the latest high specification engine and emission requirements, along with a scrubber and water ballast treatment system. The construction of the vessel is undertaken by one of the most reputable and highly specialized shipyards in the world. This contract marks our fourth shipbuilding contract, including three LNG-ready LR2 oil tankers and one LR1 chemical/product oil tanker with scheduled deliveries ranging from October 2025 to January 2027.

Our newbuilding commitments are supported by the three recently announced time charter employment contracts for our three newbuilding LR2 tankers, securing a firm period of five years, generating gross revenues of US$169.8 million and supplementing our existing revenue backlog of US$34.1 million. With our aggregate revenue backlog of US$203.9 million, representing 93% of all our remaining newbuilding capital expenditures, we are well positioned for growth.

Our fleet expansion and renewal strategy prioritizes fuel efficiency and low emissions, reflecting our commitment to participating in the energy transition. By taking constructive steps towards lower carbon emissions, we aim to provide our customers with environmentally sustainable operations. We believe that our investment strategy aligns with our view of continuing favorable market fundamentals, supported by an aging fleet and a healthy orderbook, which currently stands at 9%."

Performance Shipping Inc. press release