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New share offering inbound to replace that ship
monster huge buys coming in 13000 and 9000 share buys $$$$$$$$$$. record earnings any day now plus update on buyout. ill vote for $15
Performance Shipping Inc. Announces the Sale of 2007 Built M/T P. Kikuma for US$39.3 Million
November 14 2023 - 09:28AM
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 signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell the 2007-built Aframax tanker vessel M/T P. Kikuma to an unaffiliated third party, for a gross sale price of US$39.3 million. Delivery to the buyer is scheduled for December 2023. The Company expects to record a gain on the sale of the M/T P. Kikuma of approximately US$17.3 million during the fourth quarter of 2023, excluding any commissions and transaction-related costs.
Commenting on the sale, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“During this year Aframax tanker values appreciated significantly, driven by firm freight rates that provide lucrative charter contracts in the spot market. Although prospects for the Aframax tanker sector continue to remain solid, we believe that the sale of our oldest Aframax tanker, the M/T P. Kikuma, for a gross sale price of US$39.3 million, is financially and operationally beneficial to our Company. This transaction strengthens our fleet profile by reducing our tankers’ average age to 12.5 years and results in an attractive fleet structure consisting of younger vessels with higher technical specifications. We expect that the net cash proceeds from this sale will substantially enhance our ability to partially finance our remaining capital expenditures related to our shipbuilding contract for the construction of our newbuilt LNG ready, scrubber fitted LR2 Aframax tanker, with expected delivery in the second half of 2025. Additionally, it will support the successful pursuit of our fleet renewal strategy, focusing on timely and selective acquisitions.”
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.
PSHG, you make my heart sing....you're my everything...wild thing....
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Record volume coming in buy buy buy
we got record earnings next week. plus buyout lets see counter offer as no way sells for $3 thats selling and should be arrested if we sell for 3
. i want to see $15 counter
It's perfectly all right to buy PSHG....
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9000 shares bid 300 shares ask $$$$$$$$$$$$$$ bring on record earnings and $15 share
We need a NEUTRAL button along with Bullish and Bearish buttons IMO #GLTA
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Hocus pocus wishful thinking. Nithing happening on monday and not even a 6 counter offer coming.
Hold your breath. Poofff
co in quiet period till monday $$$$$$$$$$$$$
record earnings on monday. better buy em up today for fun ride up nxt week. lets see counter offer of $15
do solid hand carved horse 5 foot high
i do solid hand carved horse 5 foot high. y r u stressing?. u had to buy more at 65 or 45 forgot cents like me. wish bought more as i knew soooooooooo undervalued
I guess I post these youtubes to help with my emotions. Trading is all about controlling emotions. And PSHG has certainly given me my money's worth. LOL
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Ok, that was a little bit funny. lol
Happens every year....like clockwork...
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This is more like Donkey status.. Can't even break 2. Lol
Shareholders going to get fckd here. Just watch. They always managed to do it !!
Giddy up
Only 7 weeks to year-end. We can do this!
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Anybody got a horse?
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Need a catalyst? Performance Shipping...
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$10,000 SHARE BUY $$$$$$$$$$$$$ MUST KNOW SOMETHING GREAT YA CO SOOOOOOOO UNDERVALUED $$$$$$$$$$$$$$$
Zzzzzzzzzzzzzz
sent note to ir saying $3 is a joke should be over $15 and where is the counter offer?? company is in the quiet period. record earnings in week $$$$$$$$$$$$$$$$$$
bought more record earnings i8n week plu7s buyout offer thats not happening at only $3. give us 15 maybe sell
record earnings soon $$$$$$$$$$$$$$ and sale update. lets see counter offer. no way sells for 3
great stuff. keep it coming
where is counter offer of $15? we got $6 in cash and over $6 in net earnings and in a fantastic industry. 15 is a steal
At least they gave us fair warning....
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Lol. Ok go vote see what you get... not going to end well for shareholders here.
ER most likely won't spark anything for sp and fizzle back down as usual
PsHG will never reach book value.
Stamp that
no way they sell for $3 with $6 in cash and $6 in net earnings or more. worth $25. ill vote for $25 not $3
2024 ANNUAL MEETING OF SHAREHOLDERS
OF
PERFORMANCE SHIPPING INC.
PROXY STATEMENT
OF
SPHINX INVESTMENT CORP.
MARYPORT NAVIGATION CORP.
GEORGE ECONOMOU
IOANNIS (JOHN) LIVERIS
This proxy statement and accompanying WHITE proxy card are being furnished to shareholders of Performance Shipping Inc., a Marshall Islands corporation (“PSI” or the “Company”), by the Sphinx Parties (as defined below) in connection with the 2024 annual meeting of shareholders of the Company (including any and all adjournments, postponements, continuations or reschedulings thereof, or any other meetings of shareholders of the Company held in lieu thereof, the “2024 Annual Meeting”). The Company has not yet announced a date, time or location for the 2024 Annual Meeting. The Company has not yet set a record date for determining shareholders entitled to notice of and to vote at the 2024 Annual Meeting (the “Record Date”). The participants in this solicitation (the “Participants”) are Sphinx Investment Corp., a Marshall Islands corporation (“Sphinx”), Maryport Navigation Inc, a Liberian corporation (“Maryport”), George Economou, a citizen of Greece (collectively, the “Sphinx Parties”, “we”, “us” or “our”), and Ioannis (John) Liveris, a citizen of Greece.
Each of Sphinx and Maryport is directly or indirectly 100% owned and controlled by investor and business executive George Economou. The sole director and executive officer of each of Sphinx and Maryport is Levante Services Limited of Liberia (“Levante”). The sole director and executive officer of Levante is Kleanthis Costa Spathias, whose principal occupation is the provision of director and secretarial services. John Liveris is our nominee to serve on the PSI board of directors (the “Board”).
On September 15, 2023, Sphinx submitted to the Company formal notice of its decision to (i) nominate John Liveris (the “Nominee”) to the Board at the 2024 Annual Meeting, (ii) introduce at the 2024 Annual Meeting an advisory, non-binding resolution that the Board be declassified in advance of the 2025 annual meeting of shareholders (the “2025 Annual Meeting”) so that all directors are subject to a shareholder vote on an annual basis and (iii) introduce at the 2024 Annual Meeting, as four separate advisory, non-binding resolutions that the common shareholders of the Company request the resignation, respectively, of each of Andreas Michalopoulos, Loïsa Ranunkel, Alex Papageorgiou and Mihalis Boutaris from the Board. On September 25, 2023, Sphinx delivered a supplemental notice of nomination and shareholder proposals to the Company, which was substantially the same in content as the notice delivered by the Company on September 15, 2023.
As of the date of this proxy statement, the Sphinx Parties collectively beneficially owned 1,033,859 of the Company’s common shares, par value $0.01 per share (the “Common Shares”), constituting approximately 8.8 % of the 11,734,683 Common Shares stated by the Company as being outstanding as of September 29, 2023 in its Report on Form 6-K filed with the United States Securities and Exchange Commission September 29, 2023 (the “September 29 Form 6-K”).
THIS SOLICITATION IS BEING MADE BY THE PARTICIPANTS AND NOT ON BEHALF OF THE PSI BOARD OF DIRECTORS.
This proxy statement and the accompanying WHITE proxy card are first being sent, given or made available to PSI shareholders on or about October 11, 2023.
We are soliciting your vote because:
· Election of Mr. Liveris: We believe that Mr. Liveris would be a valuable addition to the Board and that he will bring an experienced voice, fresh thinking, and a greater appreciation of both the duty of the Board to act in the best interests of the holders of the Common Shares as a whole, and of the importance of pushing forward reforms to the Company’s corporate governance framework that are necessary to unlock the Common Share value that has been trapped by the Company’s dual-class capital structure and what we perceive to be an undue focus by the current Board on the interests of Company insiders, including the interests of the controlling shareholder of the Company Mango Shipping Corp. (“Mango”), Aliki Paliou (the sole shareholder of Mango and Chairperson of the Board), Andreas Michalopoulos (member of the Board, Chief Executive Officer of the Company and husband of Ms. Paliou) and Mitzela Corp. (a wholly-owned affiliate of Mr. Michalopoulos) (“Mitzela”);
· Declassification Proposal:We believe that the classification of the Board is not in the best interests of the Company and its common shareholders and is contrary to principles of good corporate governance, and that passage of the declassification proposal would bring greater accountability to the Board, better align the Board with the interests of shareholders and help signal to the Board that its shareholders are supportive of a more shareholder-centric corporate governance framework; and
· Vote of No-Confidence Proposals: We believe that the continued service of incumbent directors Andreas Michalopoulos, Loïsa Ranunkel, Alex Papageorgiou and Mihalis Boutaris is incompatible with the implementation of the governance and other changes that are needed for the Company to prosper, and is not in the best interests of shareholders.
We ask for your support at the upcoming 2024 Annual Meeting.
THE NOMINEE IS COMMITTED TO ACTING IN THE BEST INTERESTS OF PSI’S SHAREHOLDERS, TAKEN AS A WHOLE. WE BELIEVE THAT YOUR VOICE IN THE FUTURE OF PSI CAN BEST BE EXPRESSED THROUGH THE ELECTION OF OUR NOMINEE. ACCORDINGLY, WE URGE YOU TO VOTE YOUR WHITE PROXY CARD “FOR” IOANNIS (JOHN) LIVERIS TO BE ELECTED TO SERVE AS A CLASS II MEMBER OF THE BOARD. WE ALSO URGE YOU TO VOTE YOUR WHITE PROXY CARD “FOR” THE DECLASSIFICATION PROPOSAL, AND “FOR ALL” OF THE VOTE OF NO-CONFIDENCE PROPOSALS.
Except as set forth in this proxy statement, we do not know of any other matters to be presented for approval by the shareholders at the 2024 Annual Meeting. If, however, we learn of any other proposals made at a reasonable time before the 2024 Annual Meeting, we will either supplement, amend or amend and restate this proxy statement and provide shareholders with an opportunity to vote by proxy directly on such matters, or will not exercise discretionary authority with respect thereto. If other matters are properly presented thereafter, the persons named as proxies in the enclosed WHITE proxy card will vote the Common Shares represented thereby in accordance with their discretion pursuant to the authority granted in the proxy.
We believe that substantial change is necessary for the Company to achieve its full potential and that this change must begin at the Board level. To that end, we have in Mr. Liveris nominated a highly qualified nominee for election to the Board. We believe the Nominee will be an experienced voice on the Board that is able to provide fresh thinking and a greater appreciation of both the duty of the Board to act in the best interests of the holders of the Common Shares as a whole, and of the importance of pushing forward reforms to the Company’s corporate governance framework that are necessary to unlock the Common Share value that has been trapped by the Company’s dual class capital structure and what we perceive to be undue focus by the current Board on the interests of Company insiders.
In addition, we are asking shareholders to approve an advisory, non-binding resolution requesting that the Board be declassified, so that all directors are subject to a shareholder vote on an annual basis, in place of the current structure in which directors serve three-year terms, with only approximately one-third of the directors being subject to election each year. We believe that a declassified Board would bring greater accountability to the Board and better align the Board with the interests of shareholders. In addition, even though this declassification proposal is non-binding and, if approved and acted upon by the Company and further approved by a vote of the requisite shareholders, would not take immediate effect, we believe it will send a strong signal to the Board that shareholders are supportive of a more shareholder centric corporate governance framework.
We are also asking shareholders to approve advisory, non-binding resolutions requesting the resignation of Company directors Andreas Michalopoulos, Loïsa Ranunkel, Alex Papageorgiou and Mihalis Boutaris. The Company has an urgent need for new oversight and leadership. As a result of the poor leadership of the current members of the Board and their willingness in the Sphinx Parties’ view to violate their fiduciary duties to pursue the interests of Company insiders, the Common Shares regularly trade at a mere fraction of shareholder’s equity and have further been economically subordinated to the cumulative dividends of the preferred shares held by Mango and other insiders. We have already proposed the election of the Nominee as a first step; however, as a result of the Company’s classified board structure, the full leadership change urgently needed by the Company cannot be effected as expeditiously as is required through the annual director election process alone. The adoption of these resolutions would provide an opportunity for shareholders to publicly register their loss of confidence in these directors’ oversight and leadership capabilities, and send an urgent signal to these directors and to the Board as a whole regarding the need for immediate change.
While no assurances can be given that the election of the Nominee to the Board will enhance value, particularly in light of his minority representation on the Board and the Company’s current capital structure, we believe that the election of our Nominee will add a strong, qualified, and necessary voice to the Board and send a strong message that shareholders are supportive of transformative change at PSI. We therefore urge you to support us in this effort by voting “FOR” the Nominee, “FOR” the proposal to declassify the Board, and “FOR ALL” of the vote of no-confidence proposals.
2
We recommend that you vote your shares on the WHITE proxy card as follows:
1. “FOR” Ioannis (John) Liveris to be elected to serve as a Class II member of the Board until the Company’s 2025 Annual Meeting or until his successor is duly elected and qualified (the “Nomination Proposal”);
2. “FOR” the adoption of a non-binding, advisory resolution requesting that the Board take all necessary steps to eliminate the classification of the Board in advance of the 2025 Annual Meeting, and thereby require that all directors be elected on an annual basis at and following the 2025 Annual Meeting (the “Declassification Proposal”);
3. “FOR” the adoption of each of the following non-binding advisory proposals (each, a “Vote of No-Confidence Proposal” and together, the “Vote of No-Confidence Proposals”);
3A: a non-binding, advisory resolution requesting the resignation of Company director Andreas Michalopoulos from the Board;
3B: a non-binding, advisory resolution requesting the resignation of Company director Loïsa Ranunkel from the Board;
3C: a non-binding, advisory resolution requesting the resignation of Company director Alex Papageorgiou from the Board; and
3D: a non-binding, advisory requesting the resignation of Company director Mihalis Boutaris from the Board.
The Company has a classified Board, which is currently divided into three classes, with two directors serving in each of Class I and Class III, and one director serving in Class II. The term of a Class II director expires at the 2024 Annual Meeting. We are soliciting proxies to elect our Nominee to serve as a Class II director, to approve the Declassification Proposal and to approve each of the Vote of No-Confidence Proposals. The attached WHITE proxy card does not confer voting power with respect to the Company’s director nominee(s), and you will not be able to vote for a slate that includes both our Nominee and the Company’s nominee(s) by use of a proxy card (ours or a proxy card provided by the Company). Nor will you be able to vote for both the Company’s nominee(s) and for the Declassification Proposal and the Vote of No-Confidence Proposals. You can only vote for the Company’s director nominee(s) by signing and returning a proxy card provided by the Company, or by voting live at the 2024 Annual Meeting. Please note that, if you submit more than one proxy card, only the later-dated proxy card will be counted.
The principal executive offices of the Company are located at 373 Syngrou Avenue, 175 64 Palaio Faliro, Athens, Greece.
The Company has disclosed in the September 29 Form 6-K that as of September 29, 2023, there were 11,734,683 Common Shares outstanding, 1,473,638 shares of Series C Convertible Cumulative Redeemable Perpetual Preferred Shares (“Series C Preferred Shares”) issued and outstanding, and 50,726 shares of Series B Convertible Cumulative Perpetual Preferred Shares (“Series B Preferred Shares”) issued and outstanding. The Company’s proxy statement for the 2024 Annual Meeting is expected to provide an updated number of Common Shares outstanding and entitled to vote at the 2024 Annual Meeting, as well as an updated number of Series C Preferred Shares and Series B Preferred Shares outstanding at the 2024 Annual Meeting.
As of the date of this proxy statement, the Sphinx Parties collectively beneficially owned 1,033,859 Common Shares, constituting approximately 8.8% of the Common Shares stated by the Company as being outstanding on September 29, 2023 in the September 29 Form 6-K.
We plan to vote all of the Common Shares that we hold as of the Record Date “FOR” Ioannis (John) Liveris to be elected to serve as a Class II members of the Board, “FOR” the Declassification Proposal, and “FOR ALL” of the Vote of No-Confidence Proposals.
This proxy solicitation is being made by the Participants, and not on behalf of the Board or the Company’s management.
Important Notice Regarding the Availability of Proxy Materials for the 2024 Annual Meeting:
The proxy materials are available at no charge on the SEC’s website, which is www.sec.gov.
REGARDLESS OF WHETHER YOU INTEND TO ATTEND THE 2024 ANNUAL MEETING, YOUR PROMPT ACTION IS IMPORTANT. MAKE YOUR VIEWS CLEAR TO THE COMPANY BY AUTHORIZING A PROXY TO VOTE “FOR” IOANNIS (JOHN) LIVERIS TO BE ELECTED TO SERVE AS A CLASS II MEMBER OF THE BOARD, “FOR” THE DECLASSIFICATION PROPOSAL, AND “FOR ALL” OF THE VOTE OF NO-CONFIDENCE PROPOSALS BY FOLLOWING THE INSTRUCTIONS ON THE ENCLOSED WHITE PROXY CARD TODAY.
YOUR VOTE IS IMPORTANT, NO MATTER HOW MANY OR HOW FEW VOTING SHARES YOU OWN.
Better hope and pray they take the 3 dollars.
Was it from some entity called Sphinx? Trying to challenge the board.
Timely youtube post (about a different stock)
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I received the voting form this morning.
PERFORMANCE SHIPPING INC
2024 Contested Annual Meeting
To be held Thursday, February 22, 2024
Meeting Agenda
Voted
Vote by February 21, 2024 11:59 p.m. ET
Message(s):
Thank you for submitting your vote. A confirmation status is not yet available. Vote instructions take up to 24 hours to process, after which a confirmation status would be available once your vote submission has been reconciled and validated.
Documents to Review Before You Vote:
Proxy Materials Proxy Materials(htm)
WHITE
This Solicitation is Contested.
This request for voting instructions is solicited by a group or individual other than the Board of Directors and represents the agenda on the White card.
Proposal(s)
For holders as of Friday, October 13, 2023. Votes can be changed until the voting deadline.
Make your selections below, using the options on the right side of the page.
Shares available:
####
PROPOSAL TO ELECT A CLASS II DIRECTOR TO THE PERFORMANCE SHIPPING BOARD: IOANNIS (JOHN) LIVERIS
Non-Management Recommendation:For
1.
PROPOSAL TO ELECT A CLASS II DIRECTOR TO THE PERFORMANCE SHIPPING BOARD: IOANNIS (JOHN) LIVERIS
Non-Management Recommendation:
For
For
Withhold
THE ADOPTION OF A NON-BINDING, ADVISORY RESOLUTION REQUESTING THAT THE BOARD BE DECLASSIFIED IN ADVANCE OF THE 2025 ANNUAL MEETING OF SHAREHOLDERS OF PERFORMANCE SO THAT ALL DIRECTORS ARE SUBJECT TO A SHAREHOLDER VOTE ON AN ANNUAL BASIS.
Non-Management Recommendation:For
2.
THE ADOPTION OF A NON-BINDING, ADVISORY RESOLUTION REQUESTING THAT THE BOARD BE DECLASSIFIED IN ADVANCE OF THE 2025 ANNUAL MEETING OF SHAREHOLDERS OF PERFORMANCE SO THAT ALL DIRECTORS ARE SUBJECT TO A SHAREHOLDER VOTE ON AN ANNUAL BASIS.
Non-Management Recommendation:
For
For
Against
Abstain
The adoption of a non-binding, advisory resolution requesting the resignation of Andreas Michalopoulos.
Non-Management Recommendation:For
3A.
The adoption of a non-binding, advisory resolution requesting the resignation of Andreas Michalopoulos.
Non-Management Recommendation:
For
For
Withhold
The adoption of a non-binding, advisory resolution requesting the resignation of Loïsa Ranunkel.
Non-Management Recommendation:For
3B.
The adoption of a non-binding, advisory resolution requesting the resignation of Loïsa Ranunkel.
Non-Management Recommendation:
For
For
Withhold
The adoption of a non-binding, advisory resolution requesting the resignation of Alex Papageorgiou.
Non-Management Recommendation:For
3C.
The adoption of a non-binding, advisory resolution requesting the resignation of Alex Papageorgiou.
Non-Management Recommendation:
For
For
Withhold
The adoption of a non-binding, advisory resolution requesting the resignation of Mihalis Boutaris.
Non-Management Recommendation:For
3D.
The adoption of a non-binding, advisory resolution requesting the resignation of Mihalis Boutaris.
Non-Management Recommendation:
For
For
Withhold
Anyone get a notice, not from the company, about a vote?? Please post any info.
Anyone get a notice, not from the company, about a vote?? Please post any info.
It's like fishing. Where there are big ones there are small ones.
And what does this article have to do with pshg.
Stayed Awake All Night....PSHG
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A Record Number of Supertankers Is Headed to Collect US Oil
Bill Lehane
Mon, November 6, 2023 at 9:20 AM PST
(Bloomberg) -- A record number of supertankers is steaming toward the US to load oil as shipowners look to capitalize on an increase in the nation’s crude exports.
Forty-eight vessels are bound for the country in the coming three months, according to data gathered Friday by Bloomberg. That’s the most in at least six years.
The flow of vessels illustrates the changing energy landscape as the US pumps more crude than ever before and the Organization of Petroleum Exporting Countries and its allies seek to prop up the market with supply curbs. US crude exports have surged this year, government data show.
US producers are increasingly sending low-sulfur “light-sweet” oil overseas, while many domestic refiners prefer to fill their slates with heavier grades that yield more diesel-type fuels. The nation lifted its decades-old restrictions on crude exports in 2015.
“US slate-optimization is forcing further volumes of US light sweets to the waterborne market,” said Richard Price, an oil markets analyst at Energy Aspects Ltd.
Shipments from the US Gulf Coast — the main exporting region — are expected to rise by 100,000 barrels a day year-on-year next month to 4.1 million barrels a day, according to the researcher. Meanwhile, the OPEC+ curbs are prompting tankers to leave the Middle East in search of better prospects in the Atlantic for the winter season, he added.
The glut of vessels racing to the US Gulf even includes ships heading to the region on a speculative basis without any cargo booking, an industry practice known as ballasting, according to EA Gibson, a London-based shipbroker.
Stronger demand for winter could mean higher earnings for those tankers when they reach the US, according to Svetlana Lobaciova, a principal analyst at the firm.
Lol this pos still under 2. Dint believe the hype
7000 share buy . our cash is $6 with $6 in earnings . co worth way over $25
"IF" $1.60 support is broken next is $1.40 area. So much negativity in the markets we could see some panic selling. Just a FYI.
i agree. lets see counter offer of $15. still think worth way more. how much is a stock that makes 1.50 qrtr, $6 share net and has $6 in cash worth???
Ridin' the Storm Out .....PSHG
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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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