Performance Shipping Expands Fleet with New Eco-Friendly Tankers
Performance Shipping's Strategic Fleet Expansion
Performance Shipping Inc. continues to enhance its footprint in the global shipping industry with exciting updates to its fleet. Renowned for specializing in tanker vessels, the company recently took steps to modernize its fleet. By entering agreements through its wholly-owned subsidiaries, Performance Shipping has acquired two state-of-the-art Suezmax tankers, the M/T Eco Bel Air and the M/T Eco Beverly Hills. These vessels, both impressive in size at 157,286 deadweight tons, were constructed in 2019 by Hyundai Samho Heavy Industries.
Innovative Features of the New Tankers
The latest additions to Performance Shipping's fleet are equipped with cutting-edge technologies aimed at enhancing fuel efficiency and minimizing environmental impact. They are fitted with advanced wake optimization features such as rudder bulbs and pre-swirl ducts, promoting better energy management. Furthermore, the eco-friendly design includes electronic engines that consume less fuel, further aligning with global efforts toward sustainable shipping practices. Delivery of these vessels is anticipated by the end of the year and the beginning of the next, marking a significant moment for the company.
Financial Insights and Future Directions
The acquisition of these two Suezmax tankers comes with a purchase price of USD 75,438,000 each, excluding broker commissions. Andreas Michalopoulos, CEO of Performance Shipping, commented on the strategic alignment of this acquisition with the company’s modernization policy. After successfully raising USD 100 million through a bond issue in the Nordic high yield market, the company is in a stable financial position. While they plan to utilize existing cash reserves for the tanker acquisitions, Michalopoulos mentioned the possibility of incorporating moderate debt to facilitate further investments. This approach not only boosts the fleet's ability to operate more efficiently but positions the company to pursue future growth opportunities effectively.
Understanding Performance Shipping Inc.
Performance Shipping Inc. is recognized as a key player in the shipping transportation sector, predominantly through its ownership of tanker vessels. The company successfully manages its fleet through diverse approaches, including spot voyages, pool arrangements, and time charters, adapting to the fluid dynamics of the shipping market. This flexibility allows Performance Shipping to swiftly adapt to market demands while maximizing the profitability of its vessels.
Frequently Asked Questions
What are the names of the new tankers acquired by Performance Shipping?
The two new tankers are named M/T Eco Bel Air and M/T Eco Beverly Hills, which will be renamed M/T P. Bel Air and M/T P. Beverly Hills upon delivery.
When were the tankers built?
Both tankers were constructed in 2019 by Hyundai Samho Heavy Industries in South Korea.
How much did Performance Shipping pay for each tanker?
The purchase price for each tanker is USD 75,438,000, net of brokerage commissions.
What technologies are integrated into the new tankers?
The tankers feature advanced wake optimization devices for energy efficiency, along with eco-design elements and scrubber systems.
How does this acquisition support Performance Shipping's growth strategy?
This acquisition aligns with Performance Shipping’s commitment to fleet modernization and expansion, strengthening its operational profile in the mid-size tanker segment.
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