Performance Shipping Inc. Announces Delivery of its Fifth Aframax Tanker, M/T P. Yanbu
ATHENS, GREECE, December 15, 2020 – Performance Shipping Inc. (NASDAQ: PSHG), (the “Company”), a global shipping company specializing in the ownership of tankers, today announced that in Manila, Philippines, it has taken delivery of the M/T P. Yanbu (formerly “Kalamas”), a 2011-built 105,400 dwt Aframax tanker that the Company entered into an agreement to purchase in November 2020, through a separate wholly-owned subsidiary. The vessel has been retrofitted with a ballast water treatment system (BWTS), has completed its dry dock survey in July 2020, and its special survey in October 2020, and will be employed in the spot market.
As previously announced, the M/T P. Yanbu was acquired for a total purchase price of US$22.0 million and financed with US$13.2 million cash on hand and US$8.8 million from the term loan facility with Piraeus Bank S.A. In keeping with the Company’s stated low net financial leverage policy, pro-forma net debt upon acquisition was estimated at 35% of the value of its fleet.
Including the newly delivered M/T P. Yanbu, the Company’s fleet currently consists of five (5) Aframax tankers.
Commenting on the delivery, Mr. Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our fifth Aframax tanker is the third vessel delivered to the Company during the course of this year and marks the completion of our internally financed growth stage. Following the partial refinancing of the Nordea facility and the closing of our term loan facility with Piraeus Bank S.A., our quarterly principal installments starting in 2021 will be approximately US$1.97 million. This will reduce our indicative estimated daily cashflow breakeven rate to about US$15,500 per vessel per day. This is an important watermark as we expect, pursuant and subject to our variable dividend policy, to declare and pay dividends to our shareholders following quarters when our fleet average daily time charter equivalent (TCE) rate is above that level.”