Performance Shipping has nabbed its eighth ship, securing a discounted deal from compatriot Phoenix Energy Navigation.
The New York-listed, Athens-based shipowner said on Friday that it bought the 105,525-dwt Phoenix Beacon (built 2011) for $35m for delivery in December.
The tanker will be renamed the P Montgomery.
“With the delivery of the two newly acquired Aframax tankers during the fourth quarter of 2022, our fleet will be well positioned to potentially generate significant cashflow moving forward,” said chief executive Andreas Michalopoulos.
“Given this, we believe our common shares are significantly undervalued, as our current market capitalization represents about 10% of our estimated net asset value.”
In July, the company announced the acquisition of the 105,300-dwt LR2 product tanker Alpine Amalia (built 2010) for $36.5m.
That ship will be delivered in November.
According to VesselsValue, the Phoenix Beacon — which is managed by Astron Ship Management, an outfit listed as a subsidiary of Phoenix Energy Navigation by IHS Markit — is worth $39.4m.
The ship is outfitted with a ballast water treatment system and its next scheduled special survey is set for 2026.
Performance Shipping said the deal would be paid for using cash on hand, plus a new, yet-to-be-secured senior debt facility.
The company’s shares are currently trading at $0.26, up $0.02 in early trading on Friday. Its shares cratered from a year-to-date high of $4.33 in early March after a series of controversial equity raises the company used to purchase ships — a strategy it now seems to have abandoned.
The sale also represents Phoenix Energy Navigation's apparent exit from the tanker segment.
The Phoenix Beacon was the last tanker left in its fleet following the sale of the 105,900-dwt LR2 Phoenix Hope (built 2008) to Greece’s Chemnav for a reported $18.3m. It has since been renamed Keros Voyager.
The sale was made earlier in the year prior to Russia's invasion of Ukraine and the subsequent rise in tanker asset values.
