Performance Shipping Inc. Announces The Sale Of 2007 Built M/T P. Kikuma For $39.3M

Author: Benzinga Newsdesk | November 14, 2023 10:30am

Performance Shipping Inc. (NASDAQ:PSHG), ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, announced today that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell the 2007-built Aframax tanker vessel M/T P. Kikuma to an unaffiliated third party, for a gross sale price of US$39.3 million. Delivery to the buyer is scheduled for December 2023. The Company expects to record a gain on the sale of the M/T P. Kikuma of approximately US$17.3 million during the fourth quarter of 2023, excluding any commissions and transaction-related costs.

Commenting on the sale, Andreas Michalopoulos, the Company's Chief Executive Officer, stated:

"During this year Aframax tanker values appreciated significantly, driven by firm freight rates that provide lucrative charter contracts in the spot market. Although prospects for the Aframax tanker sector continue to remain solid, we believe that the sale of our oldest Aframax tanker, the M/T P. Kikuma, for a gross sale price of US$39.3 million, is financially and operationally beneficial to our Company. This transaction strengthens our fleet profile by reducing our tankers' average age to 12.5 years and results in an attractive fleet structure consisting of younger vessels with higher technical specifications. We expect that the net cash proceeds from this sale will substantially enhance our ability to partially finance our remaining capital expenditures related to our shipbuilding contract for the construction of our newbuilt LNG ready, scrubber fitted LR2 Aframax tanker, with expected delivery in the second half of 2025. Additionally, it will support the successful pursuit of our fleet renewal strategy, focusing on timely and selective acquisitions."

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