Greek tanker owner Performance Shipping, a company listed on Nasdaq, with Andreas Michalopoulos as its managing director and Aliki Paliou as chairman of the board of director’s, has announced a US$2.0 million share buyback plan, after the rising interest rates, the global economic uncertainty and the recent banking crisis that have impacted capital markets and near-term sentiment.

The shipping company specializing in the ownership of tanker vessels intends to invest “opportunistically” and repurchase up to US$2.0 million of its outstanding common shares, representing approximately 21% of the market capitalization of its outstanding common shares, as of the close of trading on April 3, 2023.

Andreas Michalopoulos, the company’s Chief Executive Officer, stated: “Rising interest rates, global economic uncertainty and the recent banking crisis have impacted capital markets and near-term sentiment. Following the recent share price development, we find it in our shareholders’ interest that the company has the flexibility to repurchase our common stock as part of its capital allocation strategy. Given the strength of our balance sheet and our constructive long-term tanker market outlook, we will continue to invest opportunistically, including through share buybacks under appropriate conditions.”

The share buyback plan may be suspended, terminated, or modified depending on the market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, the liquidity, or any other factors, which may affect the timing and amount of share repurchases. Any repurchases will be made at management’s discretion at prices considered to be attractive, and in the best interests of both the company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, applicable securities laws and the company’s financial performance, as Performance Shipping writes in its press release.

“The Plan does not obligate the Company to purchase any of its shares under the Plan. The Board of Directors’ authorization of the Plan is effective immediately and expires on March 31, 2024,” the company says furthermore in its announcement.

Performance Shipping employs its fleet on spot voyages, through pool arrangements, and on time charters.

As of March 8, 2023 the company owns and operates eight Aframax tankers, as well as one newbuild tanker vessel which the company expects to take delivery of in the fourth quarter of 2025.