Street Calls of the Week
ATHENS - Performance Shipping Inc. (NASDAQ:PSHG) announced Thursday it has entered into agreements to purchase two Suezmax tankers for a combined $150.9 million, expanding its fleet in the midsize tanker segment. The company, which maintains impressive gross profit margins of 71% and holds more cash than debt, appears undervalued according to InvestingPro analysis.
The company, through separate wholly-owned subsidiaries, will acquire the M/T Eco Bel Air and M/T Eco Beverly Hills, both 157,286 deadweight tonnage vessels built in 2019 by Hyundai Samho Heavy Industries in South Korea. Each vessel costs $75.44 million, net of brokerage commissions.
The tankers feature energy efficiency enhancements including wake optimization devices, eco-design electronic engines, and are equipped with scrubbers. Upon delivery, expected between December 2025 and January 2026, the vessels will be renamed M/T P. Bel Air and M/T P. Beverly Hills.
Andreas Michalopoulos, Performance Shipping’s Chief Executive Officer, stated the acquisition follows the company’s $100 million bond issue in July and aligns with its fleet modernization strategy. The company indicated it has sufficient cash for the purchases but may add "a moderate amount of debt" to maintain flexibility for future acquisitions.
Performance Shipping specializes in tanker vessel ownership and employs its fleet on spot voyages, through pool arrangements, and on time charters.
The information is based on a company press release statement.
In other recent news, Performance Shipping Inc. has secured a 12-month charter contract for its M/T P. Aliki tanker with the Pakistan National Shipping Corporation. The contract stipulates a daily gross rate of $30,000, with delivery expected around mid-September 2025. This development follows the vessel’s recent completion of a six-month charter with Seariver Maritime LLC, a subsidiary of ExxonMobil Corporation. Additionally, Performance Shipping has finalized a refinancing agreement with Alpha Bank S.A. for $29.75 million. This refinancing covers the outstanding loan balance previously secured by the vessels M/T P. Long Beach and M/T P. Aliki. The agreement was executed through two wholly-owned subsidiaries and follows the company’s acceptance of a commitment letter from Alpha Bank earlier this year. These recent developments highlight Performance Shipping’s ongoing efforts to strengthen its financial position and secure long-term contracts for its fleet.
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