Greece’s Performance Shipping has entered into a forward sale and exclusivity agreement with an unaffiliated third party for an aframax tanker.
Under the agreement, the buyer ensured exclusive rights to submit a bid for the conversion of the P. Sophia tanker in an auction for the provision of an FPSO vessel for charter to a national oil company.
If the conversion project is awarded by the expiration of the auction on April 5, 2026, the buyer will purchase the company’s oldest vessel, built in 2009, for delivery within a maximum of 120 days for a gross sale price of $36m.
Additionally, if the vessel is delivered to the buyer on or before September 30, 2025, the gross sale price will be increased by $1m.
During the exclusivity period, the company may freely operate the vessel but is restricted from selling it to any other party until the conclusion of the offshore project auction in April 2026.
“The decision to enter into this potential forward sale was based on the vessel’s particular specifications and suitability for the conversion. This agreement enables the company to generate cash flow from operations for the foreseeable future while securing an eventual sale at a very firm price, solely contingent on the buyer’s success at the auction and not comparable vessel values at the time,” said Andreas Michalopoulos, Performance Shipping CEO.
