Performance Shipping Buys an Aframax Tanker

Greek Tanker owner Performance Shipping Inc. on Tuesday announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to purchase a 105,071 dwt Aframax tanker from an unaffiliated third party for a gross purchase price of $27,577,320.

The vessel, which is expected to be delivered to the company on or about July 5, 2022, will be renamed P. Sophia from Maran Sagitta.

It was built in 2009 by Hyundai Heavy Industries Co., Ltd. in Ulsan, South Korea and is fitted with a ballast water treatment system (BWTS). Its next scheduled special survey and drydock is not due until 2024.

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

Andreas Michalopoulos, the Performance Shipping’s CEO, said, “We are pleased to announce the acquisition of our sixth Aframax tanker. The addition of the M/T P. Sophia, a vessel with high specifications and in very good condition, will further enhance our operating leverage as a pure tanker company. The prompt delivery of the vessel into a strong tanker charter market will immediately contribute positively to our cashflow from operations. We believe that the fundamentals of our sector are the strongest they have been in a very long time, which bodes well for continuing high charter rates in the foreseeable future.”