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I participated in the initial tender offer in November 2023. Because the tender offer is extended every time, I asked my broker in Europe, Saxo, to release my shares because I no longer want to participate in the tender offer. Unfortunately, my broker does not want to cooperate with this and refuses to release the name of the custodian. The reason I am told is that I am obliged to participate in the extensions. What are your experiences/opinions?
I haven't checked if PSHG has a poison pill to stop a takeover.
I wonder if it's a setup for a merger or reverse takeover. Makes no sense to me at this point. I am with you on pps offer. Way too low. HAWK
No news from Mgmt. And no idea of the buyers game plan.
Surf, any speculation on what their game plan is for this take over? They can keep extending the offer continually. Any news from PSHG mgmt.? I cannot find anything. As always, thanks for your input. HAWK
“On September 17, 2024, the Offeror announced that it has extended the Expiration Date and Time to 11:59 p.m., New York City time, on February 18, 2025. The Offer was previously scheduled to expire at 11:59 p.m., New York City time, on September 17, 2024. The Tender Offer Agent has advised the Offeror that as of 5:00 p.m., New York City time, on September 16, 2024, the last full trading day prior to the announcement of the extension of the Offer, 1,719,753 Shares had been validly tendered into the Offer and not validly withdrawn. The press release announcing the extension of the Offer is attached hereto as Exhibit (a)(1)(S) and is incorporated herein by reference.”
No news. Current price 1.85 Book Value 20.43 - MAJOR DISCREPANCY.
I'm not selling. No way. That offer was made for traders not investors. imo
Offer expires today. Any news? IMO the offer is way too low. Any thoughts appreciated. TIA. HAWK
I see company still trading for bubble gum money. Volume is a joke.
Buying comes in at the low $1.90s. Bought some today. HAWK
Agreed. Way too low.
The offer has been on the table for at least 6 months now so they will need to raise the price, $3 is not high enough for a buyout.
I believe Sept. is end of $3.00 tender offer. Not sure what date.
Run up in PPS coming. Target is $2.50. Buying the dips and selling the rips. Profits have me UP nicely. Any good news PR and the PPS will be a 3xer from today's pps. TWT. HAWK
Turbulence 1.70s inbound
Company getting worse
Don't fall for the trap... back to low 2s
At least one person likes this stock!
I think the MMs are playing with PSHG. I keep missing my bids by a penny. Just a FYI, and IMHO. HAWK
I thought this would happen. I am still holding. Company needs to make a statement. Need to see a PR. HAWK
Extended tender offer as requested. lol
I'll have to check this out later. I had a hunch this would happen
We are past the buyout tender offer date. Maybe they will extend again. Company needs to say something. HAWK
No new info. Just waiting
Have some at $2.02. Will really load up if it drops below $2.00. TIA for any info you can get on the buyout. HAWK
Under $2 don't turn down any gifts!
Under a $2.00 and I will be loading up again. Made a little bit trading the pops. Looks like we will head MUCH HIGHER than $3.00, imho. HAWK
When you tender shares you are stuck. Payout may not come for months. Offer has already been extended and could be extended again. I'm with surf. Just hold your shares and add on the pullbacks.
Great question, one that crossed my mind. I'm fully loaded so I didn't bother checking it out.
Just curious. Could I buy PSHG now and flip it for $3.00 per share, or is there a date required for prior ownership?
Agree with that.
$3 is not enough - they are trying to steal the company - MAKE THEM PAY $4-$8 would be a proper range IMO
I'll check out the terms later. I have some errands to run. If I remember correctly it was for $3.00/shr (which I didn't accept, way to low)
Anyone have an update on the offering? Having trouble getting into Schwab to get info. TIA for any responses. HAWK
I believe $2.20 is more than $1.60. LOLOLOLOL
Lol. Ain't no one getting out at that price. Unless you have 500 shares. Or GE selling on the way up.
Insides and PSHG swaping shares back and forth from theirs desks selling to suckers all day
Garbage back to 2.20s
PSHG hit $2.58 yesterday. I know that is much higher than $1.60 predicted on this board.
Lol I see this is still stuck like chuck.
The dumping never ends
Going much higher IMHO. HAWK
AmericanBulls has PSHG as a BUY. Just a FYI.
I agree. It cannot be held down forever. I keep adding on the pullbacks. HAWK
It is way undervalued. I meant how it's trading. Like it's capped.
Maybe, but the recent numbers and news tell me the stock is way undervalued. TWT if I right on this or not. HAWK
That offer may have screwed things up a bit
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Revenue was $31.5 million ($30.5 million net of voyage expenses) for the second quarter of 2023, compared to $16.7 million ($11.3 million net of voyage expenses) for the same period in 2022. This increase was attributable to the increased time-charter equivalent rates (TCE rates) achieved during the quarter. Fleetwide, the average time charter equivalent (a non-GAAP financial measure) rate for the second quarter of 2023 was $41,868, compared with an average rate of $24,921 for the same period in 2022. During the second quarter of 2023, net cash provided by operating activities was $22.1 million, compared with net cash provided by operating activities of $2.3 million for the second quarter of 2022.
Net income for the six months ended June 30, 2023, amounted to $34.1 million, compared to a net income of $1.8 million for the six months ended June 30, 2022. Net income attributable to common stockholders for the six months ended June 30, 2023, amounted to $22.5 million, and resulted in earnings per share, basic and diluted, of $2.43 and $1.00, respectively. Net loss attributable to common stockholders for the six months ended June 30, 2022, amounted to $7.8 million, and resulted in a loss per common share, basic and diluted, of $27.29. Net income attributable to common stockholders for the six-month periods ended June 30, 2023 and 2022, has been adjusted by aggregate non-cash items of $10.6 million and $9.3 million respectively, as per US GAAP accounting standards, which do not affect the Company's operating cash flows, EBITDA or performance overall.
Commenting on the results of the second quarter of 2023, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“During the second quarter of 2023, tanker market fundamentals remained firm and our Company achieved a fleetwide average time charter equivalent rate of $41,868 per day. As a result, we generated record revenues of $31.5 million and record net income of $18.4 million during the quarter, representing increases of 88% and 375%, respectively, from the equivalent quarter in 2022. Our cash balance at the end of the quarter was approximately $70.7 million, corresponding to a 78% increase from the 2022 year-end cash balance and representing a multiple of 7.4x our current market capitalization. Our basic earnings per share for the quarter and the first six months ended June 30, 2023 were $1.53 and $2.43, respectively, compared to our closing share price on July 26, 2023 of $0.84.
“We believe that the solid tanker market environment will be sustainable through 2023 and beyond. Our fleet deployment during the previous fiscal year has well positioned our Company to capitalize on the firm freight rate environment through the operation of our renewed and expanded fleet, currently consisting of eight younger and high specification Aframax tankers. Specifically, five of our tankers currently operate under time charter contracts with first-class charterers, earning gross charter rates ranging from $23,000 to $45,000 per day and resulting in aggregate fixed revenues of approximately $52.3 million for the remainder of their charter periods. Our remaining vessels operate under pool arrangements with reputable counterparties. This strategy supplements our already secured revenue backlog and enhances our current profitability by capitalizing on the robust Aframax spot rates. To further solidify our market position, in the first quarter of 2023, we entered into a contract for the purchase of a newbuild LNG-ready LR2 Aframax tanker with a 2025 delivery date. This decision reflects the Company’s confidence in sustainable market fundamentals and higher asset values going forward.
“Despite what we consider to be strong market conditions in the sector, we believe that the value of our common shares remains extremely low when compared with our earnings and cash on hand. As previously announced, in response to our recent share price development, we have put in place a $2.0 million share buyback program, pursuant to which we have already repurchased 1,806,916 shares of common stock to date at an average price of $0.83 per share, of which approximately 1.7 million shares were repurchased during the second quarter. As we strongly believe that the program is in the best interests of both our Company and our shareholders, we will continue to take advantage of our strong balance sheet to invest opportunistically in our common stock through share buybacks under appropriate market conditions.”
Commenting on the charter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Following the recent announcement of our record financial results and net income of $15.7 million during the 2023 first quarter, we are pleased to announce the new time charter contract for our LR2 Aframax tanker, M/T P. Aliki. This contract commenced immediately after the expiration of the previous charter agreement with Trafigura Maritime Logistics Pte Ltd at a gross daily charter rate of $45,000.
“With a fixed floor daily rate of $45,000, this new contract boosts our fleet-wide revenue backlog to approximately $54 million, based on the minimum duration of each charter. In addition, it provides the opportunity to further enhance our current profitability by capitalizing on the robust Aframax spot charter rates, thanks to our partnership with the Charterer and the 50% share of the vessel’s earnings above the floor. With a term of 4 to 5.5 months, the M/T P. Aliki will be strategically positioned for new employment during the seasonally strong fall period. This contract reflects our solid relationships with reputable and creditworthy counterparties, such as ST Shipping & Transport Pte Ltd., which currently employs three of our tankers.”
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements and on time charters.
Corporate Contact: Andreas Michalopoulos Chief Executive Officer, Director and Secretary Telephone: +30-216-600-2400 Email: amichalopoulos@pshipping.com Website: www.pshipping.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email: enebb@optonline.net
Under the Plan, the Company may repurchase up to US$2.0 million of its outstanding common shares, representing approximately 21% of the market capitalization of its outstanding common shares as of the close of trading on April 3, 2023.
Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Rising interest rates, global economic uncertainty and the recent banking crisis have impacted capital markets and near-term sentiment. Following the recent share price development, we find it in our shareholders’ interest that the Company has the flexibility to repurchase our common stock as part of its capital allocation strategy. Given the strength of our balance sheet and our constructive long-term tanker market outlook, we will continue to invest opportunistically, including through share buybacks under appropriate conditions.”
The Company may repurchase common shares pursuant to Rule 10b-18 of the Securities Exchange Act of 1934, as amended, or pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
Any repurchases pursuant to the Plan will be made at management’s discretion at prices considered to be attractive and in the best interests of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, applicable securities laws and the Company’s financial performance. The Plan may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Plan does not obligate the Company to purchase any of its shares under the Plan. The Board of Directors’ authorization of the Plan is effective immediately and expires on March 31, 2024.
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements and on time charters.
Revenue from continuing and discontinued operations was $27.8 million ($25.0 million net of voyage expenses) for the fourth quarter of 2022, compared to $9.6 million ($5.4 million net of voyage expenses) for the same period in 2021. This increase was attributable to the increased time-charter equivalent rates (TCE rates) achieved during the quarter. Fleetwide, the average time charter equivalent rate for the fourth quarter of 2022 was $40,469, compared with an average rate of $13,370 for the same period in 2021. During the fourth quarter of 2022, net cash provided by operating activities of continuing and discontinued operations was $23.7 million, compared with net cash used in operating activities of $1.8 million for the fourth quarter of 2021.
Net income from continuing and discontinued operations for the year ended December 31, 2022 amounted to $36.3 million, compared to a net loss from continuing and discontinued operations of $9.7 million for the year ended December 31, 2021. Net income from continuing and discontinued operations attributable to common stockholders for the year ended December 31, 2022 amounted to $12.0 million, and resulted in earnings per share, basic and diluted, of $6.49 and $3.02, respectively. Net loss from continuing and discontinued operations attributable to common stockholders for the year ended December 31, 2021 amounted to $9.7 million and resulted in a loss per common share of $28.97.
During the fourth quarter of 2022, the Company issued and sold 140,379 shares of its common stock under its ATM Agreement with Virtu Americas LLC, with an average price per share of $3.59, raising gross proceeds of approximately $0.5 million. As of December 31, 2022, the Company had 4,187,588 common shares issued and outstanding.
Commenting on the results of the fourth quarter of 2022, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“During the fourth quarter of 2022, tanker market fundamentals continued to improve, supported by new trade patterns emerging in response to continuing sanctions on Russian crude oil exports and shifts in the location of new refinery capacity leading to longer haul tanker voyages. We took advantage of the firm tanker charter rate environment, resulting in fleetwide average time charter equivalent rates of $40,469 and $29,579 per day during the fourth quarter and twelve months of 2022, respectively. As a result, we generated annual revenues of $75.2 million and annual net income from continuing operations of $36.3 million, a 106% and a 474% increase from the previous fiscal year, respectively. Our net income from continuing operations during the fourth quarter alone was $23.8 million, indicating the tightening tanker market conditions during the fourth quarter. Our cash balance at the end of the year was approximately $40 million representing 3.2x our current market capitalization. Our basic earnings per share for the last fiscal year compared to our current share price represent a price-to-earnings ratio of approximately 0.4x.
“We believe that the tanker market developments since the beginning of 2022 are sustainable through 2023 and beyond. During 2022 we expanded and renewed our fleet with timely acquisitions at values significantly below current levels and now own eight younger high-specification Aframax tankers with an average age of 12.1 years. Five of our tankers currently operate under time charter contracts with first-class charterers, earning gross charter rates ranging from $23,000 to $45,000 per day. Our secured revenue backlog of approximately $85 million is supplemented by the operation of our remaining vessels under pool arrangements with reputable counterparties earning healthy voyage charter rates, indicative of the solid freight rate environment.”
Tanker Market Update for the fourth quarter of 2022:
The above market outlook update is based on information, data, and estimates derived from industry sources. There can be no assurances that such trends will continue or that anticipated developments in tanker demand, fleet supply or other market indicators will materialize. While we believe the market and industry information included in this release to be generally reliable, we have not independently verified any third-party information or verified that more recent information is not available.
Summary of Selected Financial & Other Data (Continuing and Discontinued Operations1 ) | |||||||||||||
For the three months ended December 31, | For the years ended December 31, | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars): | |||||||||||||
Revenue | $ | 27,767 | $ | 9,647 | $ | 75,173 | $ | 36,491 | |||||
Voyage expenses | 2,838 | 4,152 | 14,861 | 19,205 | |||||||||
Vessel operating expenses | 4,241 | 3,738 | 13,828 | 12,301 | |||||||||
Net income / (loss) | 23,837 | (2,050 | ) | 36,300 | (9,706 | ) | |||||||
Net income / (loss) attributable to common stockholders | 9,412 | (2,050 | ) | 12,003 | (9,706 | ) | |||||||
Earnings / (Loss) per common share, basic | 2.31 | (6.11 | ) | 6.49 | (28.97 | ) | |||||||
Earnings / (Loss) per common share, diluted | 1.18 | (6.11 | ) | 3.02 | (28.97 | ) | |||||||
FLEET DATA | |||||||||||||
Average number of vessels | 6.7 | 5.0 | 5.7 | 5.0 | |||||||||
Number of vessels | 8.0 | 5.0 | 8.0 | 5.0 | |||||||||
Ownership days | 616 | 460 | 2,069 | 1,825 | |||||||||
Available days | 616 | 411 | 2,039 | 1,735 | |||||||||
Operating days (2) | 590 | 363 | 1,974 | 1,484 | |||||||||
Fleet utilization | 95.8 | % | 88.3 | % | 96.8 | % | 85.5 | % | |||||
AVERAGE DAILY RESULTS | |||||||||||||
Time charter equivalent (TCE) rate (3) | $ | 40,469 | $ | 13,370 | $ | 29,579 | $ | 9,963 | |||||
Daily vessel operating expenses (4) | $ | 6,885 | $ | 8,126 | $ | 6,683 | $ | 6,740 |
______________
(1) Discontinued Operations refer to our container vessels segment that we disposed of in 2020.
(2) Operating days are the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation counts as on-hire the days of the ballast leg of the spot voyages, as long as a charter party is in place. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
(3) Time charter equivalent rates, or TCE rates, are defined as revenue (voyage, time charter and pool revenue), less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels despite changes in the mix of charter types (i.e., voyage (spot) charters, time charters and bareboat charters).
(4) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.
Fleet Employment Profile (As of February 23, 2023) | |||||||
Performance Shipping Inc.’s fleet is employed as follows: | |||||||
Vessel | Year of Build | Capacity | Builder | Vessel Type | Charter Type | Notes | |
Aframax Tanker Vessels | |||||||
1 | BLUE MOON | 2011 | 104,623 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
2 | BRIOLETTE | 2011 | 104,588 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
3 | P. KIKUMA | 2007 | 115,915 DWT | Samsung Heavy Industries Co Ltd. | Crude | Pool | |
4 | P. YANBU | 2011 | 105,391 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
5 | P. SOPHIA | 2009 | 105,071 DWT | Hyundai Heavy Industries Co., LTD | Crude | Pool | |
6 | P. ALIKI | 2010 | 105,304 DWT | Hyundai Heavy Industries Co., LTD | Product | Time-Charter | |
7 | P. MONTEREY | 2011 | 105,525 DWT | Hyundai Heavy Industries Co., LTD | Crude | Time-Charter | |
8 | P. LONG BEACH | 2013 | 105,408 DWT | Hyundai Heavy Industries Co., LTD | Product | Pool | |
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