Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”),
a global shipping company specializing in the ownership of tanker
vessels, today announced that it has signed, through a separate
wholly-owned subsidiary, a Memorandum of Agreement to purchase the
M/T Phoenix Beacon, a 105,525 dwt Aframax tanker vessel built in
2011 by Hyundai Heavy Industries Co., Ltd. - Ulsan, South Korea,
from an unaffiliated third party for a gross purchase price of
US$35 million. The M/T Phoenix Beacon is fitted with a ballast
water treatment system (BWTS), and its next scheduled special
survey is not due until 2026. The vessel is expected to be
delivered to the Company by early December 2022 and will be renamed
M/T P. Monterey.
The Company expects to finance the
aforementioned acquisition with cash on hand and the incurrence of
debt through a new senior secured facility that it anticipates it
will enter into prior to the delivery of the vessel.
Commenting on the agreement, Andreas
Michalopoulos, the Company’s Chief Executive Officer, stated:
“The acquisition of our latest Aframax tanker,
M/T P. Monterey, marks yet another important milestone for our
Company, as we have managed to grow our fleet from five to eight
vessels in a short span of six months. We intend to fund this
acquisition with bank debt of approximately US$30 million and the
rest from available cash, still maintaining a modest overall level
of financial leverage fleetwide. With the delivery of the two newly
acquired Aframax tankers during the fourth quarter of 2022, our
fleet will be well positioned to potentially generate significant
cashflow moving forward. Given this, we believe our common shares
are significantly undervalued, as our current market capitalization
represents about 10% of our estimated net asset value.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of tanker
vessels. The Company’s current fleet is employed 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,
including with respect to the delivery of the vessels we have
agreed to acquire.
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
the vessels we have agreed 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, potential liability from pending
or future litigation, 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 U.S. 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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