Performance Shipping Inc. announces agreement to acquire fifth Aframax tanker

Nov 12 2020


Performance Shipping Inc., (the “Company”), a global shipping company specializing in the ownership of tankers, announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to purchase the M/T Kalamas, a 105,400 dwt Aframax tanker vessel built in 2011 by Sumitomo Heavy Industries Marine & Engineering Co. Ltd, Japan, from an unaffiliated third party seller for a total purchase price of US$22.0 million.

The vessel, the Company’s fifth Aframax tanker, is expected to be delivered between November 15 and December 22, 2020, and will be renamed M/T P. Yanbu.

 

Upon delivery of the M/T Kalamas, the cargo-carrying capacity of the Company’s fleet will have increased by 23.9% to approximately 546,094 deadweight tons (dwt). The M/T Kalamas was built to high specification and has been retrofitted with a ballast water treatment system (BWTS), in compliance with the Ballast Water Management (BWM) Convention. The vessel completed its docking survey in July 2020 and its special survey in October 2020. As a result, the Company does not expect to incur any capital expenditures on the vessel until January 2026.

 

The aforementioned acquisition will be financed with US$13.2 million cash on hand and US$8.8 million from the recently announced term loan facility with Piraeus Bank S.A.

 

Following the incurrence of the US$8.8 million loan in connection with this acquisition and the partial refinancing of the Nordea facility, total debt at year end 2020 will be US$58.1 million. Quarterly principal installments for total debt starting in 2021 will be approximately US$2.1 million.

 

Commenting on the agreement, Mr. Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“The acquisition of our fifth Aframax tanker is an important milestone for our Company; it marks the completion of the first internally financed growth phase, consistent with our corporate strategy and policies announced a mere three weeks ago. The acquisition will, among other things, reduce our indicative estimated daily cashflow breakeven rate by about US$3,000 to about US$16,000 per vessel per day, thereby meaningfully enhancing our ability to pay dividends to our shareholders pursuant to our variable dividend policy. It also marks our commitment to become a premier tanker vessel owning company. Following the delivery of the vessel and starting in 2021, we look forward to patiently and consistently executing our commercial and financial strategy for the benefit of our shareholders.”

 



Previous: Maximise your online presence and boost your career prospects

Next: Ecochlor - deadline for comment for US discharge rules Nov 25


Related News

Thun’s bunker tanker which sits on the seabed

(Feb 04 2021)

Thun Tankers has launched its first “NaabsaMAX” bunker tanker which can sit on the seabed, to be used in ports where the water runs out of the harbour basin at low tide.



ICS launches new Flag State Table

(Jan 28 2021)

The International Chamber of Shipping (ICS) has published the latest Flag State Performance Table (2020/2021) which finds that many of the largest flag states – including the Marshall Islands, Hong Kong (China), Singapore as well as the Bahamas and C...



Bunker tanker at centre of new Singapore cluster quarantined

(Jan 07 2021)

NewOcean 6, a bunker tanker at the centre of Singapore's latest Covid-19 cluster, has been quarantined and will cease all operations until further notice.



Oil tanker stormed by SBS was denied port access by France and Spain

(Nov 05 2020)

An oil tanker that was stormed by special forces off the Isle of Wight after a suspected hijack attempt had been denied port access by France and Spain to disembark seven stowaways in the days leading up to the incident.



Sandy Hook pilot dies after fall while boarding oil tanker

(Oct 08 2020)

Sandy Hook pilot fell while boarding Eagle Turin at the entrance to New York Harbor.



March 2021

Financing decarbonisation, seafarer happiness survey, seafarers and COVID 19, scrubber washwater, ship to ship transfer, fuel cells