Performance Shipping

Performance Shipping completed the sale of the 2009-built Aframax tanker M/T P. Sophia (deadweight 105,071 tonnes) for a gross sale price of $35.65 million; the vessel was delivered free of debt. The ship had been acquired in Q3 2022 for roughly $27.6 million, so the sale price is about 30% higher. The deal is part of the fleet renewal strategy, reduces the pro-forma average fleet age to around six years and strengthens the company’s liquidity position; the company reported a net debt-to-equity ratio of 0.94. The transaction was announced at a time when PSHG stock was trading near its 52-week low and appears undervalued according to InvestingPro. » More on de.investing.com

Performance Shipping has extended the time charter for the Aframax tanker M/T Blue Moon by 24 months with American Eagle Tankers (MISC group). Gross rates are $43,000/day in the first year and $38,000/day in the second year (average $40,500/day), versus the prior rate of $28,000/day. The extension is expected to commence by the end of 2026, will deliver roughly $29 million in gross revenues over the minimum period and raises the contractually secured backlog to over $530 million by mid-2026. Charter coverage thus increases to almost 90% through the end of 2028 and is around 60% for 2029. » More on de.investing.com

Performance Shipping has extended the term of its secured loan facility with Nordea to four years and reduced the interest margin from 2.50% to 1.60% p.a. The outstanding principal amount remains unchanged; the facility remains secured and guaranteed. The changes eliminate bank debt maturities until at least mid-2030, increasing financial flexibility. The company has a market capitalization of $20.51 million and total debt of $313.93 million; the stock is trading near its 52-week low. » More on de.investing.com