Performance Shipping Inc. announced on March 24, 2025, the sale of its 2011-built, 105,400 dwt Aframax tanker vessel, M/T P. Yanbu, to an unaffiliated third party for a gross sale price of US$39 million. The vessel was delivered to its new owner on the same day and was debt-free at the time of sale.
The company had acquired the M/T P. Yanbu in the fourth quarter of 2020 for US$22 million. This sale is expected to generate a gain of approximately US$21.5 million in the first quarter of 2025, excluding any commissions and transaction-related costs.
The cash proceeds from this transaction are expected to increase the company's cash balance to in excess of US$105 million, which represents more than twice its year-end debt balance of US$47.7 million. This significant cash infusion enhances the company's financial flexibility.
This sale is a key component of Performance Shipping's fleet renewal strategy, which focuses on modernizing its fleet through newbuild programs and selective second-hand vessel acquisitions. Following this sale and the delivery of its three newbuild LR2 Aframax tankers, the fleetwide average age is projected to decrease from 14 to 10 years by January 2026.
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