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Performance Shipping Inc. Announces the Initiation of a Variable Quarterly Dividend Policy and Declaration of Quarterly Dividend

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Performance Shipping (NASDAQ: PSHG) announced a new dividend policy, declaring a quarterly cash dividend of $0.01 per share, payable on November 9, 2020. The dividend will be distributed to shareholders of record on October 30, 2020. The amount of future dividends will depend on cash from operations after accounting for debt repayment and vessel maintenance reserves. CEO Andreas Michalopoulos emphasized the company's strong cash position of approximately $0.74 per share and its commitment to delivering shareholder value, supported by a fleet of four modern Aframax tankers.

Positive
  • First dividend declared at $0.01 per share, signaling return of cash to shareholders.
  • Strong cash position of approximately $0.74 per share as of September 30, 2020.
  • Commitment to a variable dividend policy aligns with long-term growth strategy.
Negative
  • None.

ATHENS, Greece, Oct. 20, 2020 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG), (the “Company”), a global shipping company specializing in the ownership of tankers, today announced that its Board of Directors has approved a new dividend policy pursuant to which the Company may declare and pay a variable quarterly cash dividend. If declared, the quarterly dividend is expected to be paid each February, May, August and November.

The Company’s Board of Directors has declared its first such dividend on its common stock of $0.01 per share, in accordance with the newly approved policy. The cash dividend will be payable on or around November 9, 2020 to the shareholders of record at the close of business on October 30, 2020.

The amount of the Company’s quarterly dividend for each quarter, if any, will be determined based on available cash from operations during the previous quarter after cash payments for debt repayment and interest expense and reserves for the replacement of vessels, reserves for the statutory maintenance capital expenditures of vessels and other purposes as the Board of Directors may from time to time determine are required, after taking into account contingent liabilities, the terms of any credit facility, the Company’s growth strategy and other cash needs as well as the requirements of Marshall Islands law.

Commenting on the dividend payment, Mr. Andreas Michalopoulos, the Company’s Chief Executive Officer stated:

“We are pleased to commence the process of returning cash to our shareholders. The Company has a strong cash position, which as of September 30, 2020, was equivalent to approximately $0.74 per share in cash and cash equivalents. The initiation of a variable common stock dividend reflects our commitment to delivering shareholder value and emphasizes our confidence that a variable dividend policy will provide the groundwork for our long-term growth and value-creation. Today’s important development follows the completion of our transition, which started in June 2019, to a pure tanker owning company with a fleet of four (4) modern Aframax tankers. Moving forward, we believe we have the resources to grow our fleet further and maintain our low net financial leverage to our goal of less than 35% of the value of our vessels, which will complement our variable dividend policy”.

About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of four Aframax tankers. The Company’s current fleet of tanker vessels is employed primarily on short to medium term charters with leading energy companies and traders.

Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for our vessels, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of the novel coronavirus (COVID-19) pandemic and its impact on the demand for seaborne transportation of petroleum and other types of products, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

FAQ

What is the dividend amount declared by Performance Shipping (PSHG)?

Performance Shipping (PSHG) declared a quarterly cash dividend of $0.01 per share.

When is the dividend payment date for PSHG?

The dividend is payable on or around November 9, 2020.

Who is eligible for the dividend from Performance Shipping?

Shareholders of record at the close of business on October 30, 2020, are eligible for the dividend.

How often will Performance Shipping pay dividends?

Performance Shipping plans to pay variable quarterly cash dividends in February, May, August, and November.

What factors will determine the amount of future dividends for PSHG?

Future dividends will depend on available cash from operations after debt repayment and maintenance reserves.

Performance Shipping Inc. Common Shares

NASDAQ:PSHG

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Marine Shipping
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United States of America
Athens