Performance Shipping Buys Secondhand Aframax Tanker

Greek tanker owner Performance Shipping on Wednesday announced it has reached a deal to acquire a secondhand Aframax tanker for $36.5 million.

The vessel, a 105,304 dwt LR2 Aframax oil product tanker built by South Korea's Hyundai Heavy Industries in 2010, will be renamed P. Alik from Alpine Amalia. The ship is fitted with a ballast water treatment system (BWTS) and exhaust gas cleaning system (EGCS), and its next scheduled special survey and drydock is in 2025.

Performance Shipping said it expects to take delivery if the vessel in November 2022. The tanker will be the seventh in the company’s fleet.

The company said it intends to finance the acquisition with cash-on-hand raised from its recent equity offerings 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.

Andreas Michalopoulos, Performance Shipping’s CEO, said, “[The acquisition] marks our entry into the refined petroleum product tanker sector, which we believe enjoys strong fundamentals and prospects. Spot charter rates for LR2 tankers are currently averaging in excess of $40,000 per day, and we expect to trade the vessel, following its delivery to us, in the spot market.”

Michalopoulos added that he expects the tanker’s BWTS and scrubber will “enable it to achieve premium charter rates and high utilization”.