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Post c*vid, post Chinese New Year = BDI +21%!
Honestly, what is this stock doing below $60-$90/share?
Totally insane undervaluation right now! $PSHG
Without the profit that went to the preferred shares the P/E was 0.15
$36.3M NET PROFITS 2022 & MC @11M ONLY >>> INSANE!!
$40M CASH!!! $PSHG $$$$$$$
$PSHG >>> P/E ratio below 0.4!
I have a dividend etf. BOAT. May be the best dividend etf in the market.
They would really like to have 10 ships to optimize operations. It might be a better use of cash to get their 2 ships. But at the same time asset prices may be going up .....
In accordance with our dividend policy, and taking into account the above-listed factors, we expect to pay dividends only if during the preceding quarter Quarterly Cash Flow is positive and Quarter-End Excess Cash is also positive. As a general guideline, the amount of any such dividends is expected to be based on a pay-out ratio of the lower of i) Quarterly Cash Flow; and ii) Quarter-End Excess Cash. So long as our end of quarter outstanding debt exceeds our equity market capitalization our pay-out ratio is expected to be 50%. We will consider increasing the pay-out ratio gradually up to a maximum level of 90% that we may achieve when our end of quarter outstanding debt is less than 10% of our equity market capitalization. Quarter-End Excess Cash is defined as actual end of quarter Cash and Cash Equivalents over our Minimum Cash Threshold. Minimum Cash Threshold is defined as the sum of minimum liquidity pursuant to our loan agreements and $1.5 million per vessel. Our bank facilities currently require us to maintain minimum liquidity of $5.0 million.
The dividends are on the way
I WANT DIVIDEND !
Btw the BDI (drybulk index) is up over 13% today. Maybe China reopening.
Excellent report! Still way undervalued
$PSHG #s WOWZA!!! $$$$$$$$
https://finance.yahoo.com/news/performance-shipping-inc-reports-record-141500732.html
Thanks so much! Very nice.
Check out Gibson Shipbrokers under 'Markets, Tankers'
https://www.gibsons.co.uk/market-reports
* This Tanker PDF gives a good projection for 2023.
https://www.gibsons.co.uk/files/1414.pdf
I follow the BDI. That is for drybulk shipping i.e SBLK. PSHG are oil tankers. For good info on oil tankers I look at the FRO investor presentations.
BDI:The best economic indicator you've never heard of.
http://www.slate.com/id/2090303/
Chart ~~~ BDI
https://stockcharts.com/c-sc/sc?s=$BDI&p=D&yr=1&mn=3&dy=0&i=p04068199646&a=548294540&r=153710821
Chart ~~~ Breakwave Dry Bulk Shipping ETF
https://stockcharts.com/c-sc/sc?s=BDRY&p=D&yr=1&mn=3&dy=0&i=p04068199646&a=548294540&r=153710821
Chart /tools~~~ BDI & freight rates
https://investmenttools.com/futures/bdi_baltic_dry_index.htm
20yr chart
2yr chart
Articles on BDI & shipping
https://slate.com/search?q=baltic+dry+index#gsc.tab=0&gsc.q=baltic%20dry%20index&gsc.page=1
Most Recent Shipping News
https://www.hellenicshippingnews.com/?option=com_content&task=view&id=70441&Itemid=31
Yes. It's like buying a used car valued at $10,000 for $1,000. With the earnings power of Lyft or Uber.
It's funny how 90% of the population understands the value of cars and homes and only 10% understands the value of stocks. Not that I'm complaining though.
Hope it works out !
I bought more, there has never been such an attractive P/E neither in PSHG nor in any stock on the stock exchange, and that's the difference!
So you can buy more !! They always say the same going years back.This might run ... but it will be way lower by the summer again
If they don't care about the S/P why they said
"Despite our efforts to increase the Company's earnings potential, and what we believe to be sustainably strong fundamental conditions in the charter market, the market valuation of our common shares remains extremely low. Specifically, we reported net income attributable to common stockholders of US$10.4 million during the third quarter alone, which, if annualized and compared to our current equity market capitalization, would represent a price-to-earnings ratio of approximately 0.35x. In addition, the free cash balance at the end of the third quarter was approximately US$26 million representing approximately 1.78x our current market capitalization, which is only about 10% of our current estimated net asset value.”
Performance Shipping Inc. Announces Delivery of the LR2 Aframax Tanker, M/T P. Long Beach
December 15 2022 - 09:29AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced that, through a separate wholly-owned subsidiary, it has taken delivery of the M/T P. Long Beach (formerly “Fos Hamilton”), a 2013-built LR2 Aframax oil product tanker vessel of 105,408 dwt that the Company entered into an agreement to purchase in November 2022.
As previously announced, the M/T P. Long Beach was acquired for a total purchase price of US$43.75 million and partially financed through the recently announced term loan facility with Alpha Bank S.A.
The M/T P. Long Beach is equipped with an eco-electronic engine and fitted with a ballast water treatment system (BWTS). The vessel is the fourth vessel delivered to the Company during the course of this year, bringing the Company’s current fleet to a total of eight (8) Aframax tanker vessels.
Commenting on this delivery, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“The delivery of our second LR2 Aframax tanker, the M/T P. Long Beach, marks the completion of our previously announced vessel acquisitions and demonstrates the latest step towards our fleet expansion goal. In a short span of six months, our fleet has nearly doubled in size and now consists of eight modern, high specification Aframax tankers. With our two newly acquired LR2 Aframax tankers, we have established a solid position in the refined petroleum product sector, which we believe currently enjoys strong fundamentals and prospects. In addition to our secured revenues of approximately US$85 million, we intend to enhance the earnings of our expanded and renewed fleet in the spot market, mainly through pool agreements, allowing us to further supplement our cash flow going forward.”
“Despite our efforts to increase the Company's earnings potential, and what we believe to be sustainably strong fundamental conditions in the charter market, the market valuation of our common shares remains extremely low. Specifically, we reported net income attributable to common stockholders of US$10.4 million during the third quarter alone, which, if annualized and compared to our current equity market capitalization, would represent a price-to-earnings ratio of approximately 0.35x. In addition, the free cash balance at the end of the third quarter was approximately US$26 million representing approximately 1.78x our current market capitalization, which is only about 10% of our current estimated net asset 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.
Global Shipping In 10 Charts. Nicely done.
" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=
Fnk crooked Greeks. They make their money either way.. dont care about SP.
Look at the history.. rs after rs.
Catch this under a dollar in the summer for a bounce with 14 mill float
Indeed this price is incredible low
How can it be that the stock is at 3 instead of 30? What is the reason?
Performance Shipping Inc. Announces New Loan Facility With Alpha Bank S.A. to Partially Finance the Acquisition of M/T P. Long Beach
December 08 2022 - 09:15AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced it has entered into an agreement for a secured term loan facility of up to approximately US$22,000,000.00 with Alpha Bank S.A. (the “Facility”) through a separate wholly-owned subsidiary of the Company. Proceeds from this Facility will be used to finance up to about 50% of the purchase price of the previously announced 2013 built LR2 tanker vessel the Company has agreed to acquire, the M/T Fos Hamilton, to be renamed P. Long Beach.
The Facility will carry an interest rate of SOFR plus 2.35% per annum and will be repayable in twenty (20) consecutive quarterly installments of US$550,000.00 each, and a balloon installment of US$11,000,000.00 payable concurrent with the twentieth quarterly installment. The Facility is secured by, among other things, a guarantee of the Company and a first priority mortgage over the M/T P. Long Beach.
Commenting on this Facility, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our entry into this agreement follows our announced acceptance of the commitment letter from Alpha Bank on November 29, 2022 and is indicative of the continued confidence in our Company demonstrated by our new lender with the use of another collateral vessel to secure a new loan facility maturing in late 2027 and offered at competitive terms. As previously announced, we expect to drawdown this Facility upon delivery of our eighth vessel, the M/T P. Long Beach, expected to take place by mid-December.”
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.
What a atupid action to do a rs.
Another 8-10 million dollars addition to the annual profit.
Performance Shipping Inc. Announces Delivery of the Aframax Tanker, M/T P. Monterey
December 05 2022 - 09:15AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced that, through a separate wholly-owned subsidiary, it has taken delivery of the M/T P. Monterey (formerly “Phoenix Beacon”), a 2011-built Aframax tanker vessel of 105,525 dwt that the Company entered into an agreement to purchase in September 2022.
As previously announced, the M/T P. Monterey was acquired for a total purchase price of US$35 million and partially financed through the recently announced term loan facility with Piraeus Bank S.A. Following the delivery, as previously disclosed, the vessel will commence a time charter contract with ST Shipping & Transport Pte Ltd., a wholly-owned subsidiary of Glencore, at a daily rate of US$32,000 per day for a period of twenty-four (24) months +/- 45 days at the option of the charterer.
The M/T P. Monterey is equipped with a ballast water treatment system (BWTS), and its next scheduled special survey is not due until 2026. The vessel is the third vessel delivered to the Company during the course of this year.
The Company’s fleet currently consists of seven (7) Aframax tanker vessels and one (1) Aframax tanker vessel expected to be delivered within December.
Commenting on this delivery, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“The acquisition of the M/T P. Monterey marks another important milestone for our Company. In the short span of six months and following the delivery of our most recent acquisition later this month, the M/T P. Long Beach, our initial five-vessel fleet will have nearly doubled in size and will consist of eight modern, high specification Aframax tankers. As previously announced, the employment of the M/T P. Monterey will generate approximately US$22 million of gross revenue for the minimum duration of the charter, thereby contributing to our fleet-wide base of secured revenues of approximately US$85 million. We expect to further supplement this steady cashflow through the operation of our remaining tankers in the spot market, which we believe demonstrates sustainably strong fundamental conditions, as voyage charter rates for Aframax tankers are currently at historically high levels.”
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.
Performance Shipping Inc. Announces Completion of Sale and Delivery of Vessel to New Owners
November 30 2022 - 09:25AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, 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. Fos, with the delivery of the vessel to her new owners.
Following the sale of the P. Fos, the Company’s fleet currently consists of six (6) Aframax tankers, with two (2) more Aframax tankers expected to be delivered within December 2022.
Commenting on the delivery, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“As already stated, this sale has not only enabled our Company to capture value from the recent Aframax tanker price appreciation, but has also enhanced our balance sheet liquidity. In addition, this sale represents a further step towards establishing an expanded and renewed fleet consisting of younger vessels with higher technical specifications. As a result, and when combined with the deliveries of our newly acquired Aframax tankers expected to take place within December, we believe that our Company will be well positioned to take advantage of the promising charter rate environment and further support the lucrative level of our secured revenues.”
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.
Performance Shipping Inc. Announces Commitment Letter From Alpha Bank A.E.
November 29 2022 - 09:15AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that it has accepted a commitment letter whereby it intends to enter into an agreement for a new term loan facility of up to US$22,000,000.00 with Alpha Bank A.E. (the “Facility”) through a separate wholly-owned subsidiary of the Company. This Facility is subject to the completion of customary closing conditions and the execution of a final loan agreement by the Company and its lenders. Proceeds from this Facility will be used to finance up to about 50% of the purchase price of the previously announced 2013 built LR2 tanker vessel the Company has agreed to acquire, the M/T Fos Hamilton, to be renamed P. Long Beach. This Facility shall bear interest at the rate of SOFR plus 2.35% per annum.
The Facility will be repayable in twenty (20) consecutive quarterly installments of US$550,000.00 each, and concurrent with the twentieth quarterly installment, the Company will owe a balloon payment of US$11,000,000.00.
Commenting on this commitment letter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“We are pleased to announce that we are expanding our relationship with Alpha Bank, established with the first loan facility of US$18.25 million secured by the M/T P. Aliki. This commitment letter is indicative of the continued confidence in our Company demonstrated by our new lender with another long-term loan facility at attractive terms. We expect to drawdown this Facility upon delivery of our eighth vessel, the LR2 Aframax tanker, M/T P. Long Beach in December 2022. With a recently expanded and renewed fleet, we look forward to further enhancing our fixed revenues of approximately US$85 million with lucrative spot charter rates secured mainly through our pool agreements thereby capturing the strong prevailing market conditions and generating significant cash flow.”
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company’s current fleet is employed on spot voyages, through pool arrangements and on time charters.
Performance Shipping Inc. Announces New Loan Facility With Piraeus Bank S.A. to Partially Finance the Acquisition of M/T P. Monterey
November 28 2022 - 09:15AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that it has entered into an agreement for a secured term loan facility of up to US$37.4 million with Piraeus Bank S.A. (the “Facility”) through two separate wholly-owned subsidiaries of the Company. Proceeds from the Facility will be used to refinance a portion of an existing term loan facility for the M/T P. Kikuma through a first advance of up to about US$7.8 million and to partially finance the M/T P. Monterey, through a second advance of up to about US$29.6 million.
This Facility will carry an interest rate of SOFR plus 2.45% per annum and will be repayable in twenty (20) consecutive quarterly installments. The first four (4) installments will be equal to US$1.5 million each, the remaining sixteen (16) installments will be equal to US$1 million each, and a balloon installment of US$15.4 million will be payable concurrent with the twentieth quarterly installment, within five years from the drawdown date. The Facility is secured by, among other things, a guarantee of the Company and first priority mortgages over the M/T P. Kikuma and M/T P. Monterey.
Commenting on the Facility, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our entry into this agreement with Piraeus Bank follows our announced acceptance of the offer letter from Piraeus Bank on November 9, 2022 and demonstrates the depth of our long term relationships with our lenders and the use of other collateral vessels to secure new loan facilities with long dated maturities and competitive terms. We expect to drawdown this facility upon delivery of the M/T P. Monterey.”
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.
Is this the cheapest tanker stock you see?
These companies have never had an earnings multiple of 0.3
This company has never had a strong cash flow that increases book value quickly.
You have to get used to it, it's not what it used to be. I see a price of at least $15.
Let's see how low they will take this this round..
I e followed these companies for a long time and they never traded book value.
Could see a run to 6s 6s though
With 10 tankers and at the current transportation price, they will reach a profit of 70-80 million dollars. Think what dividends will be distributed on the basis of 50 percent of the profit for a company with a market value of only 14 million. ! You should buy and never sell with the conditions remaining as they are.
Performance Shipping Inc. interview with Carolin Roth CNBC International
" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=
I think their ultimate goal is to reach 10 ships to lower cash break-even. That was from their presentations.
http://www.pshipping.com/sites/default/files/2022-03/PSHG%20Presentation%20March.pdf
The Company expects to finance the aforementioned acquisition with cash proceeds from the previously announced sale of the Company’s oldest vessel, M/T P. Fos, and the incurrence of debt through a new senior secured facility that it anticipates it will enter into prior to the delivery of the vessel.
Performance Shipping Inc. Announces Agreement to Acquire a LR2 Aframax Oil Product Tanker
November 17 2022 - 09:25AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG), (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to purchase the M/T Fos Hamilton, a 105,408 dwt LR2 Aframax oil product tanker vessel built in 2013 by Hyundai Heavy Industries Co., Ltd. - Ulsan, South Korea, from an unaffiliated third party for a gross purchase price of US$43.75 million. The M/T Fos Hamilton is equipped with an eco-electronic engine, achieving higher energy efficiency and improved emissions by reducing fuel consumption. The vessel also complies with the Ballast Water Management (BWM) Convention protecting marine ecosystems from species transfer. The vessel is expected to be delivered to the Company in mid-December 2022 and will be renamed M/T P. Long Beach.
The Company expects to finance the aforementioned acquisition with cash proceeds from the previously announced sale of the Company’s oldest vessel, M/T P. Fos, and the incurrence of debt through a new senior secured facility that it anticipates it will enter into prior to the delivery of the vessel.
Commenting on the agreement, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“The acquisition of our second LR2 Aframax tanker, which has a green engine and is also BWTS fitted, marks our Company’s further step towards establishing a solid position in the refined petroleum product tanker sector, which we believe has strong, sustainable fundamentals and prospects. Upon delivery of the two recently acquired tankers, anticipated to take place in December, and the concurrent sale of the oldest vessel in our fleet, our fleet has now nearly doubled in size and will consist of eight modern, high specification Aframax tankers with an average age of 11.6 years. With a solid base of lucrative secured revenues of approximately US$85 million, we intend to enhance the earnings of our expanded and renewed fleet with spot charters mainly through pool agreements thereby enabling us to capture the strong prevailing market conditions and generate significant cash flow moving forward.”
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.
Performance Shipping Inc. Announces a US$32,500 Per Day Time Charter Contract for About 18 Months
November 16 2022 - 09:15AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Aramco Trading Fujairah FZE (the “Charterer), for the M/T Briolette. The gross charter rate will be US$32,500 per day for a period of eighteen (18) months +/- 30 days at the option of the Charterer and will commence in November. This charter is expected to generate approximately US$16.8 million of gross revenue for the minimum duration of the charter.
The M/T Briolette is a 104,588 dwt Aframax tanker vessel built in 2011 by Sumitomo Heavy Industries Marine & Engineering Co. Ltd.
Commenting on this charter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“This contract showcases not only our Company’s repeat business with reputable and creditworthy counterparties, but also our ability to secure a lucrative level of charter rates taking advantage of the firm charter rate environment. Together with this charter, five of our tankers are fixed on time charter arrangements, with gross charter rates ranging from US$23,000 to US$45,000 per day, which corresponds to fixed revenues of approximately US$85 million, based on the minimum duration of each charter. We expect to further supplement this steady cashflow through the operation of our remaining tankers in the spot market, which we believe demonstrates sustainably strong fundamental conditions, resulting in historically high levels of voyage charter rates for Aframax tankers, currently in excess of US$40,000 per day.”
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.
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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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