Greek tanker owner Performance Shipping has signed a Memorandum of Agreement to sell one of its tankers to an unaffiliated third party.
The Nasdaq-listed firm said it sold the 2007-built, 115,915-dwt aframax tanker
P. Kikuma for a gross sale price of $39.3m. Delivery to the undisclosed buyer is scheduled for December 2023. Following the sale, the company will own and operate seven aframax tankers.
The company expects to record a gain on the sale of the vessel of approximately $17.3m during the fourth quarter of 2023, excluding any commissions and transaction-related costs. The sold vessel is the oldest aframax tanker in the company’s fleet.
“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 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,” Performance Shipping CEO Andreas Michalopoulos said.
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According to Performance Shipping, net cash proceeds from the sale will assist with the partial financing of remaining capital expenditures related to the shipbuilding deal for a newbuild LNG ready, scrubber-fitted LR2 aframax tanker which is expected to be delivered in the second half of 2025.