Performance Shipping Inc. Announces Delivery of Its Fifth Aframax Tanker, M/T P. Yanbu
December 15 2020 - 7:59AM
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.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
Aframax tankers. The Company's current fleet is employed primarily
on short to medium term charters with leading energy companies and
traders.
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 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 Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "may," "should," "expect," "pending" and similar
expressions 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 the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for our vessels, changes in
our operating expenses, including bunker prices, dry-docking and
insurance costs, the market for our vessels, availability of
financing and refinancing, 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 the
novel coronavirus (COVID-19) pandemic and its impact on the demand
for seaborne transportation of petroleum and other types of
products, potential disruption of shipping routes due to accidents
or political events, vessel breakdowns and instances of off-hires
and other 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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