Performance Shipping Takes Delivery of Secondhand Tanker

Greek shipowner Performance Shipping announced on Thursday that it has taken delivery of a 2013-built LR2 Aframax oil product tanker that it agreed to purchase in November 2022.

The 105,408 dwt P. Long Beach (formerly Fos Hamilton) was acquired for $43.75 million, partially financed through a term loan facility with Alpha Bank S.A.

Long Beach is equipped with an eco-electronic engine and fitted with a ballast water treatment system (BWTS).

The vessel is the fourth vessel delivered to the company during the course of this year, bringing the Performance Shipping’s current fleet to a total of eight Aframax tankers.

Andreas Michalopoulos, the Company’s Chief Executive Officer, said, “The delivery of our second LR2 Aframax tanker, the M/T P. Long Beach, marks the completion of our previously announced vessel acquisitions and demonstrates the latest step towards our fleet expansion goal. In a short span of six months, our fleet has nearly doubled in size and now consists of eight modern, high specification Aframax tankers. With our two newly acquired LR2 Aframax tankers, we have established a solid position in the refined petroleum product sector, which we believe currently enjoys strong fundamentals and prospects. In addition to our secured revenues of approximately US$85 million, we intend to enhance the earnings of our expanded and renewed fleet in the spot market, mainly through pool agreements, allowing us to further supplement our cash flow going forward.”

“Despite our efforts to increase the company's earnings potential, and what we believe to be sustainably strong fundamental conditions in the charter market, the market valuation of our common shares remains extremely low. Specifically, we reported net income attributable to common stockholders of US$10.4 million during the third quarter alone, which, if annualized and compared to our current equity market capitalization, would represent a price-to-earnings ratio of approximately 0.35x. In addition, the free cash balance at the end of the third quarter was approximately US$26 million representing approximately 1.78x our current market capitalization, which is only about 10% of our current estimated net asset value.”