Performance Shipping Acquires Secondhand Aframax Tanker

Tanker owner Performance Shipping announced on Friday that it has signed a deal to acquire a 105,525 dwt secondhand Aframax tanker from an undisclosed seller for $35 million.

The vessel is the Phoenix Beacon, built in 2011 by Hyundai Heavy Industries in South Korea. The ship is fitted with a ballast water treatment system (BWTS), and its next scheduled special survey is in 2026.

Performance Shipping said it expects to take delivery of the vessel by early December 2022. It will be renamed P. Monterey.

Andreas Michalopoulos, Performance Shipping CEO, said, “The acquisition of our latest Aframax tanker, M/T P. Monterey, marks yet another important milestone for our company, as we have managed to grow our fleet from five to eight vessels in a short span of six months. We intend to fund this acquisition with bank debt of approximately US$30 million and the rest from available cash, still maintaining a modest overall level of financial leverage fleetwide.

“With the delivery of the two newly acquired Aframax tankers during the fourth quarter of 2022, our fleet will be well positioned to potentially generate significant cashflow moving forward. Given this, we believe our common shares are significantly undervalued, as our current market capitalization represents about 10% of our estimated net asset value.”