Performance Shipping Inc. Announces Acquisition Agreement
ATHENS, Greece, Aug. 24, 2022 (GLOBE NEWSWIRE) — Performance Shipping Inc. (NASDAQ:PSHG), (“we” or the “Company”), a global shipping company specializing in tanker ownership, announced today he signed, through a separate wholly owned subsidiary, a Memorandum of Understanding for the purchase of an Aframax LR2 105,304 dwt tanker, the M/T Alpine Amalia, which will be renamed M/T P. Aliki, built in 2010 by Hyundai Heavy Industries Co., Ltd. – Ulsan, South Korea, from an unaffiliated third party for a gross purchase price of US$36.5 million. The vessel, which is expected to be delivered to the Company in November 2022, is fitted with a ballast water treatment system (BWTS) and an exhaust gas cleaning system (EGCS), and her next visit special stage and its planned drydock are not expected before 2025.
The company plans to fund the acquisition with cash from its recent equity offerings and leverage through a new senior secured facility it expects to enter into prior to delivery of the vessel.
Commenting on the deal, Andreas Michalopoulos, Managing Director of the company, said:
“The acquisition of our seventh vessel, an Aframax long-range product tanker called LR2, marks another important milestone for our company. It marks our entry into the refined petroleum products tanker industry, which we believe has strong fundamentals and prospects. Spot charter rates for LR2 tankers currently average over US$40,000.00 per day and we plan to trade the vessel, after delivery, in the spot market. The vessel is fitted with a BWTS and EGCS (scrubber) which we believe will enable her to achieve premium charter rates and high utilization. We look forward to participating in a strong tanker market with our expanded fleet of 7 Aframax tankers and low maintenance capital expenditure in the future.
About the company
Performance Shipping Inc. is a global provider of shipping services through its ownership of tankers. The company’s current fleet is employed for one-off trips, through pooling arrangements and time charters.
Caution Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements to encourage companies to provide forward-looking information about their businesses. Forward-looking statements include, but are not limited to, statements regarding plans, objectives, goals, strategies, future events or performance, as well as underlying assumptions and other statements, which are other than statements of historical facts, including with regard to the delivery of the vessel which we have agreed to acquire.
The words “believe”, “anticipate”, “intend”, “estimate”, “anticipate”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “targets”, “probable”, “would”, “could”, “seek”, “continue”, “possible”, “could”, “pending” and expressions, terms or expressions similar may identify forward-looking statements.
The forward-looking statements contained in this press release are based on various assumptions, many of which are based, in turn, on other assumptions, including, without limitation, our management’s review of operating trends history, data contained in our files and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to important uncertainties and contingencies which are difficult or impossible to predict and which are beyond our control, we cannot assure you that we will achieve or realize those expectations, beliefs, or projections.
In addition to these important factors, other important factors that we believe could cause actual results to differ materially from those referred to in the forward-looking statements include, but are not limited to: the strength of world economies, currency and interest rate fluctuations, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry , changes in ship supply, changes in worldwide oil production, consumption and storage, changes in our operating expenses, including bunkering prices, crew costs, drydocking and insurance, our future operating or financial results, the availability of financing and refinancing, including with respect to the vessel we have agreed to acquire , changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability for pending or future litigation, general national and international political conditions, duration and severity of epidemics and pandemics, including the ongoing outbreak of the novel coronavirus (COVID-19) and its impact on demand for shipping oil and other types of products, changes in government rules and regulations or actions taken by regulatory authorities, potential liability arising pending or future litigation, general national and international political conditions or events, including “trade wars”, armed conflicts, including the war in Ukraine, the imposition of new international sanctions, acts of terrorism or acts of piracy on ocean-going vessels, the potential disruption of routes shipping due to accidents, labor disputes or political events, vessel breakdowns and non-lease cases and other significant factors. Please see our filings with the United States Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.