Performance Shipping expands its fleet with eco-friendly Aframax tanker

Greek shipowner Performance Shipping has signed a Memorandum of Understanding (MoU) to purchase an LR2 Aframax oil product tanker vessel built by South Korean shipbuilder Hyundai Heavy Industries (HHI) in 2013.

Illustration; Photo by: Performance Shipping

As informed, the company signed the MoU through its separate wholly-owned subsidiary. The price tag for the 105,408 DWT tanker is $43.75 million.

The ship M/T Fos Hamilton is equipped with an eco-electronic engine, achieving higher energy efficiency and improved emissions by reducing fuel consumption. The vessel also complies with the Ballast Water Management (BWM) Convention protecting marine ecosystems from species transfer.

The vessel is expected to be delivered to the Company in mid-December 2022 and will be renamed M/T P. Long Beach.

Performance Shipping expects to finance the aforementioned acquisition with cash proceeds from the previously announced sale of the oldest vessel, M/T P. Fos, and the incurrence of debt through a new senior secured facility.

“The acquisition of our second LR2 Aframax tanker, which has a green engine and is also BWTS fitted, marks our Company’s further step towards establishing a solid position in the refined petroleum product tanker sector, which we believe has strong, sustainable fundamentals and prospects,” Andreas Michalopoulos, company’s chief executive officer commented.

“Upon delivery of the two recently acquired tankers, anticipated to take place in December, and the concurrent sale of the oldest vessel in our fleet, our fleet has now nearly doubled in size and will consist of eight modern, high specification Aframax tankers with an average age of 11.6 years.”