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Performance Shipping Inc. Announces a US$45,000 Per Day Time Charter Contract for 7-10 Months
September 22 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 Trafigura Maritime Logistics Pte Ltd (the “Charterer”) for the LR2 Aframax oil product tanker the M/T Alpine Amalia, to be renamed P. Aliki, the acquisition of which was previously announced. The gross charter rate will be US$45,000 per day for a period of minimum seven (7) months to a maximum of ten (10) months at the option of the Charterer and will commence following the vessel's delivery to the Company expected in November. This charter is expected to generate approximately a minimum of US$9.5 million to a maximum of US$13.7 million in gross revenue (a minimum of US$5.7 million to a maximum of US$8.2 million in cashflow after debt service, respectively), depending on the duration of the charter.
Commenting on the charter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“In addition to maintaining the Company’s ability to capture market upturns in strong freight environments, particularly during periods of exceptionally positive industry fundamentals, we seek to secure a certain level of fixed revenue for our fleet. As a result, considering recent market developments with charter rates at multiyear highs, the recent expansion of our fleet, and our desire to establish solid partnerships with first-class charterers, we decided to time charter the M/T P. Aliki at this very lucrative level almost two months prior to actually taking delivery of the vessel.”
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.
This will be a winner
According to the DD I made , PSHG with S/H equity of $2 per share and the expected Q3 profit will be higher than Q2 thanks to the increase in oil transportation prices and the purchase of the sixth tanker. In the fourth quarter, the seventh tanker will be put into operation, so further revenue growth is expected. The company has amazing data that will be revealed after Q3 is released.
TOPS also seems interesting for the same reasons.
Performance Shipping Inc. Announces Agreement to Acquire Seventh Vessel; Its First LR2 Aframax Oil Product Tanker
August 24 2022 - 09:06AM
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 a 105,304 dwt LR2 Aframax oil product tanker, the M/T Alpine Amalia, to be renamed M/T P. Aliki, built in 2010 by Hyundai Heavy Industries Co., Ltd. - Ulsan, South Korea, from an unaffiliated third party for a gross purchase price of US$36.5 million. The vessel, which is expected to be delivered to the Company in November 2022, is fitted with a ballast water treatment system (BWTS) and Exhaust Gas Cleaning System (EGCS), and its next scheduled special survey and drydock is not due until 2025.
The Company expects to finance the acquisition with cash-on-hand raised from its recent equity offerings 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 seventh vessel, a long-range Aframax oil product tanker referred to as an LR2, marks yet another significant milestone for our Company. It marks our entry into the refined petroleum product tanker sector, which we believe enjoys strong fundamentals and prospects. Spot charter rates for LR2 tankers are currently averaging in excess of US$40,000.00 per day and we expect to trade the vessel, following its delivery to us, in the spot market. The vessel is fitted with a BWTS and EGCS (scrubber), which we anticipate will enable it to achieve premium charter rates and high utilization. We look forward to participating in a strong tanker market with our expanded fleet of 7 Aframax tankers and low maintenance capital expenditures going forward.”
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.
It's cool to be a shipowner!
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Performance Shipping Inc. Announces Termination of ATM Offering
August 22 2022 - 09:05AM
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, effective August 23, 2022, it has terminated the At The Market Offering Agreement with H.C. Wainwright & Co., LLC, dated March 5, 2021 (the “ATM Agreement”). Prior to termination, the Company issued and sold 526,916 shares of its common stock under the ATM Agreement, raising net proceeds, after deducting commissions and other expenses, of approximately $1.3 million. The Company is terminating the ATM Agreement because it does not intend to raise additional capital or sell additional shares under the ATM Agreement.
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of Aframax tankers. The Company’s current fleet is employed on spot voyages, through pool arrangements and on time charters.
Did load more yesterday
Absorption? Looks like low volume to me. Idk weird. ???????
Speculation. Market makers building inventory???
This company looks good to me.
I’ve been holding shares of another transport company, and believe the current conditions for these fleets will cause it to rain gold and green.
Maybe one of you can help me out with something. I can’t reconcile the $PSHG share price drop surrounding that offering in May. I see its capital structure. The debt, yes. And I do have some concerns about the accounting, but I can’t justify that nosedive for that size of an offering.
I understand humans often don’t function and compute in manners consistent with our owners manual. That can’t be 100 percent cause for the drop.
I feel like Im missing some context here, and so I’m hoping one of you can fill in the blanks for me. TIA
Maybe
This is ridiculous. imo
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Lol not your money don’t worry about it
INSTITUTIONAL BUYER BUYS 33MIL SHARES AT 45 CENTS. WE PAY 34CENTS
money being used to buy more tankers which means more profit. earnings up every qrtr. baby monster here. we make around 35cents now selling for 1x earnings
up up and away. see u guys at $2
Definitely do not hold, especially when you hold over one night and make $10,000. A very nervous night with 100,000 shares. Sell and get out.
Someone with $$$ wants to be a shipowner. imo
*You'll never see this kind of action with a large shipowner. Enjoy the show!
Actually shippers are experts at financial engineering, trading, and capital allocation. If someone wants to improve their tactical and strategy skills go with a shipper. And one really learns about the global economy investing in the sector
It’s a shipper, that’s why! Notorious for offerings and reverse splits, rinse and repeat! Never hold a shipper overnight, learned that loooong ago
The goal is to get 10 Aframaxes to lower operating expenses. Without overpaying for ships.
The market overshoots much of the time. If possible take advantage
Why tf is PSHG dumping on this news? I would understand a small pullback but to drop to $.31 on news of a $.45/share offering seems like major overkill.
$PSHG
Going to buy another Aframax? Need more liquidity (shares) for trading?
Performance Shipping Inc. Announces Pricing of $15 Million Registered Direct Offering
August 12 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 today that it has entered into a securities purchase agreement (the “Agreement”) with several institutional investors to purchase approximately 33,333,333 of its common shares and warrants to purchase 33,333,333 common shares at a purchase price of $0.45 per common share and accompanying warrant in a registered direct offering (the “Offering”). The warrants will be immediately exercisable, will expire five years from the date of issuance, and will have an initial exercise price of $0.45 per common share. The gross proceeds to the Company from the Offering are estimated to be approximately $15.0 million before deducting the placement agent’s fees and other Offering expenses.
Maxim Group LLC is acting as the sole placement agent in connection with the Offering. The Offering is expected to close on or about August 16, 2022, subject to the satisfaction of customary closing conditions.
The securities described above are being offered pursuant to the Company’s shelf registration statement on Form F-3 (File No. 333-237637), which was declared effective by the U.S. Securities and Exchange Commission (the "SEC") on April 23, 2020. The Offering will be made only by means of a prospectus supplement that forms a part of such registration statement. A prospectus supplement relating to the securities will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the Offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3745.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of Aframax tankers. The Company’s current fleet is employed on spot voyages, through pool arrangements and on time charters.
And now for a music break...getting ready for tomorrow
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Really informative video. One of the topics is "The stongest tanker market in 25 years".
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This one is doing alright. Sing it Stevie!
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I thought stocks never went UP?
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PSHG..................................https://stockcharts.com/h-sc/ui?s=PSHG&p=W&b=5&g=0&id=p86431144783
Performance Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2022
August 04 2022 - 09:16AM
GlobeNewswire Inc.
Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today reported net income from continuing and discontinued operations of $3.9 million and net income from continuing and discontinued operations attributable to common stockholders of $3.7 million for the second quarter of 2022, compared to a net loss from continuing and discontinued operations and a net loss from continuing and discontinued operations attributable to common stockholders of $2.6 million for the same period in 2021.
Revenue from continuing and discontinued operations was $16.7 million ($11.3 million net of voyage expenses) for the second quarter of 2022, compared to $9.1 million ($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 second quarter of 2022 was $24,921, compared with an average rate of $9,728 for the same period in 2021.
Net income from continuing and discontinued operations for the six-month period ended June 30, 2022, amounted to $1.8 million, compared to a net loss from continuing and discontinued operations of $5.5 million for the six-month period ended June 30, 2021. Revenue from continuing and discontinued operations was $25.3 million ($16.5 million net of voyage expenses) for the six-month period ended June 30, 2022, compared to $17.5 million ($7.5 million net of voyage expenses) for the six-month period ended June 30, 2021.
As of August 4, 2022, the Company’s number of common shares issued and outstanding was 27,395,030.
On June 21, 2022, the Company announced its agreement to acquire its sixth Aframax tanker, which was delivered on July 5, 2022. The acquisition cost of approximately $27.6 million was financed with cash on hand and the incurrence of debt through a new senior secured facility that the Company entered into prior to delivery of the vessel.
On July 27, 2022, the Company commenced a time charter contract with Teekay Chartering Limited for one of its Aframax tanker vessels, M/T Blue Moon. The gross charter rate is $23,000 per day for a period of 24 months +/-30 days at the option of the Charterer. The new charter is expected to generate approximately US$16.8 million in gross revenue.
Commenting on the results of the second quarter of 2022 and subsequent developments, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“During the second quarter of 2022, we saw a continuation in the tanker market recovery, supported by strong demand for crude oil and significant changes in trading patterns as a result of sanctions on Russian crude oil exports leading to longer-haul tanker voyages. We took advantage of the improved tanker charter rate environment, resulting in fleetwide average time charter equivalent rates of $24,921 per day during the second quarter of 2022, revenues of $16.7 million, and net income of $3.9 million from our fleet operations.
“We believe that the encouraging freight rate developments since early March 2022 indicate a promising trend towards a sustainable charter rate recovery. Having taken delivery of our sixth Aframax tanker on July 5th, we are now well positioned to take advantage of the firming charter rate environment with our expanded fleet operations. We did so by entering into a two-year contract for the M/T Blue Moon with Teekay Chartering Limited at $23,000 per day. We expect to operate our remaining vessels in the spot market for the foreseeable future, where voyage charter rates for Aframax tankers are currently quoted in excess of $35,000 per day.
“We intend to complete the special survey and the installation of the ballast water treatment system (BWTS) on the M/T P. Kikuma during the fourth quarter of this year, and we expect full utilization of our expanded and 100% BWTS-fitted tanker fleet going forward, with no scheduled special surveys for 2023.
“As a result of our financial results, and in accordance with our dividend policy, we will not declare a dividend for our Q2 2022 results from operations.”
Tanker Market Update for the Second Quarter of 2022:
Tanker fleet supply was 663.0 million dwt, up 0.7% from 658.2 million dwt from the previous quarter and up 1.7% from Q2 2021 levels of 651.7 million dwt.
Tanker demand in billion tonne-miles is projected to increase by a firm 6.7% in 2022, supported by the ongoing recovery of global oil demand along with a shift in trading patterns to longer-haul routes emerging due to the Russia-Ukraine war.
Tanker fleet supply in deadweight terms is estimated to grow by a moderate 2.6% in 2022.
Crude oil tanker fleet utilization was estimated at 80.0%, up from 78.0% in the previous quarter and up from 77.4% in Q2 2021.
Newbuilding tanker contracting was just 1.4 million dwt in the second quarter, resulting in a tanker orderbook to fleet ratio of 5.2%, the lowest level seen in the past 26 years.
Daily spot charter rates for Aframax tankers averaged $46,438, up 43.9% from the previous quarter average of $32,266 and up 507.1% from the Q2 2021 average of $7,648.
The value of a 10-year-old Aframax tanker at the end of the second quarter was $35.0 million, up 27.3% from $27.5 million in the previous quarter, and up 34.6% from $26.0 million in Q2 2021.
The number of tankers used for floating storage (excluding dedicated storage) was 165 (23.3 million dwt), up 13.8% from 145 (21.2 million dwt) from the previous quarter and up 9.3% from Q2 2021 levels of 151 (22.8 million dwt).
Global oil consumption was 98.7 million bpd, down 0.3% from the previous quarter level of 98.9 million bpd, and up 2.5% from Q2 2021 levels of 96.3 million bpd.
Global oil production was 99.3 million bpd, up 0.4% from the previous quarter level of 98.8 million bpd and up 4.8% from Q2 2021 levels of 94.7 million bpd.
OECD commercial inventories were 2,677.6 million barrels, up 2.3% from the previous quarter level of 2,616.3 million barrels, and down 6.5% from Q2 2021 levels of 2,864.4 million barrels.
During the global gradual recovery from COVID-19, we continue to take proactive measures to ensure the health and wellness of our crew and onshore employees while endeavoring to maintain effective business continuity and uninterrupted service to our customers. While the situation is improving, we continue to incur increased costs as a result of the restrictions imposed in various jurisdictions creating delays and additional complexities with respect to port calls and crew rotations.
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 June 30, For the six months
ended June 30,
2022 2021 2022 2021
(unaudited) (unaudited) (unaudited) (unaudited)
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
Revenue $ 16,707 $ 9,116 $ 25,275 $ 17,513
Voyage expenses 5,368 5,079 8,748 10,016
Vessel operating expenses 2,950 2,901 6,277 5,779
Net income/ (loss) from continuing and discontinued operations 3,870 (2,646 ) 1,790 (5,500 )
Net income / (loss) attributable to common stockholders 3,662 (2,646 ) (7,809 ) (5,500 )
Earnings/(loss) per common share, basic 0.70 (0.53 ) (1.82 ) (1.10 )
Earnings/(loss) per common share, diluted 0.10 (0.53 ) (1.82 ) (1.10 )
FLEET DATA
Average number of vessels 5 5 5 5
Number of vessels 5 5 5 5
Ownership days 455 455 905 905
Available days 455 415 875 865
Operating days (2) 455 332 855 705
Fleet utilization 100 % 80 % 98 % 82 %
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (3) $ 24,921 $ 9,728 $ 18,888 $ 8,667
Daily vessel operating expenses (4) $ 6,484 $ 6,376 $ 6,936 $ 6,386
(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 ofAugust 4, 2022)
Performance Shipping Inc.’s fleet is employed as follows:
Vessel Year of
Build Capacity Builder Charter
Type
Aframax Tanker Vessels
1 BLUE MOON 2011 104,623 DWT Sumitomo Heavy Industries Marine & Engineering Co., LTD. Time charter
2 BRIOLETTE 2011 104,588 DWT Sumitomo Heavy Industries Marine & Engineering Co., LTD. Pool
3 P. FOS 2007 115,577 DWT Sasebo Heavy Industries Co. Ltd Pool
4 P. KIKUMA 2007 115,915 DWT Samsung Heavy Industries Co Ltd. Spot
5 P. YANBU 2011 105,391 DWT Sumitomo Heavy Industries Marine & Engineering Co., LTD. Pool
6 P. SOPHIA 2009 105,071 DWT Hyundai Heavy Industries Co., LTD. Spot
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of Aframax tankers. The Company's current fleet is employed on spot voyages, through pool arrangements and on time charters.
Out here in the fields
I fight for my meals....
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Yup. I think I'll upgrade the stock from buy to strong buy
Nice start to the week
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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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