The Greek-based and NASDAQ-listed tanker owner Performance Shipping, with Andreas Michalopoulos as its CEO and Aliki Paliou as chairman of the board of director’s, has signed a Memorandum of Agreement to sell the 2007-built Aframax tanker vessel “P. Kikuma” for a gross sale price of $39.3 million.
The owner mentions that the delivery to the buyer of the Aframax tanker is scheduled for December 2023, and it expects a profit on the sale of the “P. Kikuma” of about $17.3 million during the fourth quarter of 2023, excluding any commissions and transaction-related costs.
Andreas Michalopoulos, chief executive of Performance Shipping, states that “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.”
