Performance Shipping Inc. (NASDAQ: PSHG) shares surged 48.46% during the trading session on Wednesday. The strong performance of the company has highlighted the positive sentiments by investors after the company has disclosed the news that it has bought an Aframax tanker vessel which was established by Sumitomo Heavy Industries Marine & Engineering Co. Ltd in 2011.

The company has signed a memorandum of agreement to acquire the M/T Kalamas. Performance Shipping has bought the Aframax tanker from a separate third-party seller at a purchase price of US$22.0 million. This is the fifth Aframax tanker of the company and it is projected that the order will be delivered between November 15 and December 22, 20290.

Performance Shipping Inc. (NASDAQ: PSGH) shares soared 48.46% at $6.77 at the time of writing on Wednesday. Performance Shipping Inc. share price went from a low point around $3.65 to briefly over $9.40 in the past 52 weeks. It has traded up 85.48% from its 52-weeks low and traded down -27.98%.

PSGH market cap has remained high, hitting $22.89 million at the time of writing. Looking at its profitability, it has return on assets, returns on equity, and investment of -16.50%, -23.90%, and -25.00%, respectively.

The company has revealed that after receiving the order of M/T Kalamas its fleet capacity will rise by 23.9% to approximately 546,094 deadweight tons (dwt). The M/T Kalamas has been established by considering all the requirements of the Ballast Water Management (BWM) Convention. These Aframax Truck has been retrofitted with Ballast Water Treatment System (BWTS).

The company will purchase the M/T Kalamas by using US$13.2 million on cash and for the remaining US$8.8 million, it has turned towards Piraeus Bank S.A. for a loan. Performance Shipping has disclosed that the total debt at year-end 2020 will be US$58.1 million as it has acquired a US$8.8 million loans for the above-mentioned acquisition and the partial refinancing of the Nordea facility.