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Performance Shipping Inc. Announces Full Prepayment of Piraeus Bank S.A. Loans and Significant Reduction of Finance Costs
December 18 2023 - 09:27AM
Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announces the voluntary prepayment in full of its existing loans with Piraeus Bank S.A., (the “Piraeus Loans”). The voluntary prepayment amounts to approximately US$44.8 million. The Piraeus loans were secured by the M/T P. Monterey, M/T P. Yanbu and M/T P. Sophia. Following the full prepayment of the Piraeus Loans, the Company’s total outstanding debt will be approximately US$55.2 million, and three out of the seven vessels comprising the Company’s current fleet will be completely unencumbered.
Commenting on this prepayment, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Following the recent strategic sale of the M/T P. Kikuma, we deployed our excess liquidity to prepay the Piraeus Loan, decreasing the Company's indebtedness by approximately 44%, significantly reducing future interest rate costs, and enhancing our financial performance. Indicatively, the prepayment will result in negative net leverage of approximately -3% of our estimated fleet market value, savings of US$5.3 million per annum in principal loan repayments, and a reduction of our expected 2024 finance costs by approximately US$3.7 million or approximately 50%. We expect to continue generating significant free cashflow with the crude oil and refined petroleum product tanker markets remaining strong, further strengthening our balance sheet and, with three unencumbered vessels in our fleet, enhancing our ability to pursue growth opportunities. We believe that the efficient use of our excess cash towards the deleveraging of our Company, as well as the continuation of our preapproved US$2 million share buyback program, enhances shareholder value.”
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.
More of the same with the offer to purchase. I put it on ignore.
Important Corporate Action Communication
PERFORMANCE SHIPPING INC
A SUPPLEMENT TO THE OFFER TO PURCHASE
This e-mail contains information specific to your holding(s) in the securities identified below. If you have any comments or questions, please contact your Financial Institution.
Please refer to the material for information about this corporate action event.
Received notice of a filing. Could not get it to open. Anyone see it?
I'm sure you'll get a reply and explanation. Lol
Timber 170s
Wow. $39 million for a 16 year-old Aframax. Very nice!
Performance Shipping Inc. Announces Completion of Sale and Delivery of 2007 Built M/T P. Kikuma to New Owners
December 13 2023 - 09:2
Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that, through a separate wholly-owned subsidiary, it has completed the previously announced sale of the 2007-built Aframax tanker vessel M/T P. Kikuma for US$39.3 million, with delivery of the vessel to her new owners.
Following the sale of the P. Kikuma, the Company’s fleet currently consists of seven (7) Aframax tankers, and one (1) LNG-ready LR2 Aframax tanker expected to be delivered during the fourth quarter of 2025.
Commenting on the delivery, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“As previously announced, the completion of the sale of our oldest Aframax tanker results in an even more attractive fleet profile consisting of younger vessels. This strategic shift positions our Company favorably to capitalize on the positive momentum of the tanker charter rate environment. The gross sale price of US$39.3 million not only yields a gain of approximately US$17.3 million on the vessel sale during the fourth quarter of 2023, but also facilitates a prepayment of US$13.9 million towards our outstanding indebtedness with Piraeus Bank S.A., secured by the vessels M/T P. Kikuma and M/T P. Monterey. With a strong balance sheet, the Company is well-positioned to pursue its fleet renewal and expansion objectives.”
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.
+Bought some shares today.$2.02 avg. Probably be buying more tomorrow.
we r soooooooooooooooo undervalued!!!!!!!!! $10 cash share 88 cents earnings, $3.50 year. just sent them email
just sent pshg another email asking with aframax rates over 65k day why did co only bill 38k? why is the spot price of 27k so low?? also asked them about a counter offer of $15 since we have over $10 share cash and we made 88 cents last qrtr or $3.50 year in earnings???
Waiting for my next buy signal. Still see "very" strong support at $1.60. Anything in the $1.90-$2.00 would be decent buy territory. Markets are due for a correction over the next few weeks. This could drop pps down to support area. TWT.
Would be nice to hear more from the company on this. I've been adding shares at prices below $2.00.
If only the company and people controlling the share price cared and could hear you. The SP will and always be manipulated and held down . Face it . People been yelling the same thing for 6 plus ERs here.
See ya at 180s
lets go pshg make a $15 counter offer and get the ball rolling . we have $10 cash plus we have 2 pe
$10 SHARE CASH $$$$$$$$$$$$$$$$$ LESS THAN 2 PE
Wow $85million! "Our cash balance at the end of the third quarter was approximately $85.4 million, corresponding to a 115% increase from the 2022 year-end cash balance".
As of November 24, 2023, the Company had outstanding 12,152,559 common shares. Pretty low O/S.
$2million share buyback in the works again following the $2mill they did in April !!!
Reflecting our confidence in the strength of our business as well as in our ability to generate significant cash flow by operating our expanded fleet in the prevailing profitable charter rate environment, following the completion of an initial $2 million share repurchase program commenced in April of this year, in August the Company’s board of directors approved a second $2 million share repurchase program, which we intend to deploy opportunistically in a manner that enhances shareholder value.
No deal in the works... other than new offerings foe new ships. Dilution inbound. Ge will snag this up in court next summer.
Big slaps! I think a deal getting close.
closed at high of day $$$$$$$$$$$$$
2.5/1 buy vs sell. lets go pshg open your mouth about counter offer and lets get ball rolling
quiet period over. now time for management to make counter offer to get ball rolling. buyer extended time so now time for pshg to make counter offer
This is going into hibernation mode until February.
Sell while you can
PSHG, good news but little movement. Weak hands will want to sell tomorrow, maybe? Buy on the pullback. Higher pps in the future.
88 cents eps plus $7 CASH PER SHARE PLUS $3 MORE WHEN SHIP SELL CLOSES IN DEC. $$$$$$$$$
now that quiet period over sure we will hear more about the $3 buyout and probably counter offer. think they charged way too low on their services.
Did I read the release correctly? Net income up 350%?
My Thanksgiving stuffing was more exciting than this ER.
Dump back to 180s
Garbage... zzz
Stuck like chuck.
Performance Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2023
November 27 2023 - 09:28AM
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today reported net income of $10.4 million and net income attributable to common stockholders of $9.9 million for the third quarter of 2023. The 2023 third quarter results compared to a net income of $10.7 million and net income attributable to common stockholders of $10.4 million for the same period in 2022. Earnings per share, basic and diluted, for the third quarter of 2023 were $0.88 and $0.27, respectively.
Revenue was $24.1 million ($23.4 million net of voyage expenses) for the third quarter of 2023, compared to $22.1 million ($18.8 million net of voyage expenses) for the same period in 2022. This increase was attributable to the increase in ownership days, which more than offset the slight decrease in time-charter equivalent rates (“TCE rates”) achieved during the quarter. Fleetwide, the average TCE rate for the third quarter of 2023 was $31,787, compared with an average rate of $34,411 for the same period in 2022. During the third quarter of 2023, net cash provided by operating activities was $17.9 million, compared with net cash provided by operating activities of $11.8 million for the third quarter of 2022.
Net income for the nine months ended September 30, 2023, amounted to $44.5 million, compared to a net income of $12.5 million for the nine months ended September 30, 2022. Net income attributable to common stockholders for the nine months ended September 30, 2023, amounted to $32.4 million, and resulted in earnings per share, basic and diluted, of $3.26 and $1.25, respectively. Net income attributable to common stockholders for the nine months ended September 30, 2022, amounted to $2.6 million, and resulted in earnings per common share, basic and diluted, of $2.35 and $0.60, respectively. Net income for the nine-month periods ended September 30, 2023 and 2022, has been adjusted to arrive at net income attributable to common stockholders mainly 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.
Commenting on the results of the third quarter of 2023, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“During the third quarter of 2023, our Company maintained its remarkable profitability and strengthened its financial position by capitalizing on the solid tanker market fundamentals. We achieved a fleetwide average time charter equivalent rate of $31,787 per day and $38,183 per day during the three and nine-month periods ended September 30, 2023, respectively. As a result, we generated revenues of $85.1 million and net income of $44.5 million during the nine months ended September 30, 2023, representing increases of 80% and 257%, respectively, from the equivalent period of 2022. Our cash balance at the end of the third quarter was approximately $85.4 million, corresponding to a 115% increase from the 2022 year-end cash balance.
“Reflecting our confidence in the strength of our business as well as in our ability to generate significant cash flow by operating our expanded fleet in the prevailing profitable charter rate environment, following the completion of an initial $2 million share repurchase program commenced in April of this year, in August the Company’s board of directors approved a second $2 million share repurchase program, which we intend to deploy opportunistically in a manner that enhances shareholder value.
“We believe that the overall positive developments in the tanker sector and the firm freight rate environment will be sustainable in the foreseeable future. Our fleet employment strategy focused on a balanced exposure to short to medium term time charter contracts as well as the spot tanker market, has well positioned our Company to secure, beginning the fourth quarter of 2023, a fixed revenue backlog of approximately $39 million, as five of our Aframax tankers are currently operating under time charter contract arrangements with reputable counterparties, while in parallel we are able to capture the upside potential of the Aframax spot tanker market, through the operation of our remaining vessels under pool arrangements.
“Going forward, we expect to further solidify our market position through the renewal of our fleet and the acquisition of younger and more technologically advanced vessels. As previously announced, we have entered into a contract for the purchase of a newbuild LNG-ready LR2 Aframax tanker with a 2025 delivery date and we have agreed to sell our oldest Aframax tanker, the M/T P. Kikuma, for a gross sale price of $39.3 million and expected delivery to the seller during December 2023. We believe that our impressive financial performance, our current cash balance representing 1.6x of the remaining capital expenditures related to our newbuilding Aframax tanker, our conservative net leverage which currently corresponds to a mere 10% of our estimated fleet market value, as well as the proceeds from the sale of our oldest Aframax tanker, result in a strong balance sheet and enhance our ability to pursue selective and timely asset acquisitions.”
Corporate Developments
Share Repurchase Plan
Under the share repurchase plan announced in April 2023 (the “April Plan”), the Company repurchased during the third quarter of 2023 a total of 528,953 common shares for a total amount of approximately $0.6 million, and consequently, the April Plan was successfully completed.
Additionally, as previously announced on August 21, 2023, the Company’s board of directors approved a share repurchase plan (the “August Plan”) pursuant to which the Company may repurchase up to $2 million of its outstanding common shares. As of the date hereof, 33,333 common shares have been repurchased for a total amount of approximately $50,000 under the August Plan.
Update on Outstanding Shares and Warrants
As of November 24, 2023, the Company had outstanding 12,152,559 common shares. In addition, the following common share purchase warrants were outstanding as of such date:
Class A Warrants to purchase up to 567,366 common shares at an exercise price of $15.75 per common share;
Warrants issued July 19, 2022, to purchase up to 1,033,333 common shares at an exercise price of $1.65 per common share;
Warrants issued August 16, 2022, to purchase up to 2,122,222 common shares at an exercise price of $1.65 per common share;
Series A Warrants issued March 3, 2023, which are exchangeable for up to 14,300 common shares; and
Series B Warrants issued March 3, 2023, to purchase up to 4,167,000 common shares at an exercise price of $2.25 per common share.
Finally, the Company had 50,726 shares of its Series B Convertible Cumulative Perpetual Preferred Stock and 1,451,044 shares of its Series C Convertible Cumulative Redeemable Perpetual Preferred Stock outstanding.
Tanker Market Update for the Third Quarter of 2023:
• Tanker fleet supply was 688.3 million dwt, up 0.4% from 685.6 million dwt from the previous quarter and up 2.5% from Q3 2022 levels of 671.7 million dwt.
• Tanker demand in billion tonne-miles is projected to increase by a firm 7.5% in 2023, supported by solid Chinese demand for crude oil, ongoing trade pattern shifts towards longer haul distances due to sanctions imposed on Russian exports and returning crude oil volumes to the market from Venezuela, after its partial oil sanctions lift announced in October.
• Tanker fleet supply in deadweight terms is estimated to grow by a moderate 2.0% in 2023 and just 0.6% in 2024.
• Crude oil tanker fleet utilization was estimated at 84.4%, down from 85.0% in the previous quarter and up from 79.5% in Q3 2022.
Summary of Selected Financial & Other Data
(in thousands of US Dollars, except fleet data and average daily results) For the three months ended
September 30, For the nine months ended
September 30,
2023 2022 2023 2022
(unaudited) (unaudited) (unaudited) (unaudited)
STATEMENT OF OPERATIONS DATA:
Revenue $ 24,114 $ 22,131 $ 85,098 $ 47,406
Voyage expenses 719 3,274 3,234 12,022
Vessel operating e
• Newbuilding tanker contracting was just 9.2 million dwt in the third quarter, resulting in a tanker orderbook-to-fleet ratio of 6.1%, close to the lowest level observed during the past 28 years.
• Daily spot charter rates for Aframax tankers averaged $27,409, down 54.2% from the previous quarter average of $59,855 and down 47.9% from the Q3 2022 average of $52,610.
• The value of a 10-year-old Aframax tanker at the end of the third quarter was $51.0 million, down 1.9% from 52.0 million in the previous quarter, and up 21.4% from $42.0 million in Q3 2022.
• The number of tankers used for floating storage (excluding dedicated storage) was 123 (17.5 million dwt), down 17.5% from 149 (21.5 million dwt) in the previous quarter and down 30.5% from Q3 2022 levels of 177 (26.0 million dwt).
• Global oil consumption was 101.4 million bpd, up 0.7% from the previous quarter level of 100.8 million bpd, and up 1.4% from Q3 2022 levels of 100.0 million bpd.
• Global oil production was 101.4 million bpd, down 0.3% from the previous quarter level of 101.7 million bpd and up 0.4% from Q3 2022 levels of 101.0 million bpd.
• OECD commercial inventories were 2,830 million barrels, up 0.1% from the previous quarter level of 2,828 million barrels, and up 3.4% from Q3 2022 levels of 2,736 million barrels.
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.
xpenses 5,524 3,309 15,855 9,586
Net income 10,369 10,676 44,452 12,465
Net income attributable to common stockholders 9,891 10,404 32,425 2,595
Earnings per common share, basic 0.88 3.83 3.26 2.35
Earnings per common share, diluted 0.27 1.50 1.25 0.60
FLEET DATA
Average number of vessels 8.0 6.0 8.0 5.3
Number of vessels 8.0 6.0 8.0 6.0
Ownership days 736 548 2,184 1,453
Available days 736 548 2,144 1,423
Operating days (1) 730 529 2,120 1,384
Fleet utilization 99.2 % 96.5 % 98.9 % 97.3 %
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (2) $ 31,787 $ 34,411 $ 38,183 $ 24,866
Daily vessel operating expenses (3) $ 7,505 $ 6,038 $ 7,260 $ 6,597
_________________
(1) 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.
(2) 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).
(3) 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 November 27, 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 1
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
1 Vessel P. Kikuma has been sold and is expected to be delivered to its new owners in December 2023.
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.
record earnings this wk. Probably Monday $$$$
Bet the don't report tomorrow... extended once again.. what are they hiding.?.?.?
whats the news??? waiting on record earnings $$$$$$
$15 would be mighty nice 😀
6/1 buy vs sells. plus best to come. RECORD EARNINGS AND BUYOUT OFFER. ILL ONLY SELL AT $15
Buy ratio pretty high here. $3 coming next week
i guaranteed we would be up today. yaaaaaaa we up big $$$$$$. best is yet to come when record earnings come out $$$$$$$
m2ore big buys. 8k,9k shares. almost all buys. who wants to sell when record earnings coming out we made 1.57 last qrtr
Omg is this gapping up to 6 .. I can't believe my eyes
bunch of big buys last 3 minutes. setting up for killer friday $$$$$$$$$$$$$$$$
Certainly undervalued...
i guarantee we will be smiling on friday as record earnings come out and how it shows how undervalued we r and co comments on low buy out offer.
Bet you the dummies will post at close so they can kill any momo pop this could get. Yes we care about the investors... how deep you want it
Zzzz all statements are mambo jumbo.. this will never hit anything close to book value.. sp will stay under 3 until GE gets what he wants. Bet he shorting it
Back to the dollar menu Thotty
No steak party.
yahoo finance says RECORD EARNINGS ON THANKSGIVING $$$$$$$ hope it comes out tomorrow at 9 am est
little monster here $$$$$$$$
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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 |
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(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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