Performance Shipping Inc. Announces the Sale of 2007 Built M/T P. Kikuma for US$39.3 Million
November 14 2023 - 9:28AM
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.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of tanker
vessels. The Company employs its fleet on spot voyages, through
pool arrangements and on time charters.
Cautionary Statement 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 in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include, but are not limited to,
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The words “believe,” “anticipate,” “intends,” “estimate,”
“forecast,” “project,” “plan,” “potential,” “will,” “may,”
“should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,”
“continue,” “possible,” “might,” “pending” and similar expressions,
terms or phrases may identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including, without
limitation, our management’s examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs, or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include, but are not limited to: the strength of world
economies, fluctuations in currencies and interest rates, general
market conditions, including fluctuations in charter rates and
vessel values, changes in demand in the tanker shipping industry,
changes in the supply of vessels, changes in worldwide oil
production and consumption and storage, changes in our operating
expenses, including bunker prices, crew costs, drydocking and
insurance costs, our future operating or financial results,
availability of financing and refinancing including with respect to
vessels we agree to acquire, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, the length and severity of
epidemics and pandemics, including the ongoing outbreak of the
novel coronavirus (COVID-19) and its impact on the demand for
seaborne transportation of petroleum and other types of products,
changes in governmental rules and regulations or actions taken by
regulatory authorities, general domestic and international
political conditions or events, including “trade wars”, armed
conflicts including the war in Ukraine, the imposition of new
international sanctions, acts by terrorists or acts of piracy on
ocean-going vessels, potential disruption of shipping routes due to
accidents, labor disputes or political events, vessel breakdowns
and instances of off-hires and other important factors. Please see
our filings with the US Securities and Exchange Commission for a
more complete discussion of these and other risks and
uncertainties.
Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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