Performance Shipping Inc. Reports Financial Results for the Third Quarter and Nine-Months Ended September 30, 2024
Performance Shipping Inc. (NASDAQ: PSHG) reported Q3 2024 financial results with net income of $12.4 million and revenue of $22.9 million. The company's earnings per share were $0.96 basic and $0.32 diluted. Fleet average TCE rate increased to $34,307 from $31,787 in Q3 2023. Operating cash flow was $16.1 million, down from $17.9 million in Q3 2023. The company currently operates 7 Aframax tankers and has 4 newbuilding vessels under construction. Revenue decrease was primarily due to reduced ownership days following the sale of P. Kikuma vessel in December 2023.
Performance Shipping Inc. (NASDAQ: PSHG) ha riportato i risultati finanziari del Q3 2024 con un reddito netto di 12,4 milioni di dollari e ricavi di 22,9 milioni di dollari. L'utile per azione della società è stato di 0,96 dollari base e 0,32 dollari diluito. Il tasso medio TCE della flotta è aumentato a 34.307 dollari da 31.787 dollari nel Q3 2023. Il flusso di cassa operativo è stato di 16,1 milioni di dollari, in calo rispetto ai 17,9 milioni di dollari del Q3 2023. Attualmente, l'azienda opera 7 petroliers Aframax e ha 4 nuove costruzioni in fase di realizzazione. La diminuzione dei ricavi è stata principalmente dovuta alla riduzione dei giorni di possesso a seguito della vendita della nave P. Kikuma avvenuta a dicembre 2023.
Performance Shipping Inc. (NASDAQ: PSHG) reportó los resultados financieros del Q3 2024, con un ingreso neto de 12,4 millones de dólares y unos ingresos de 22,9 millones de dólares. Las ganancias por acción de la empresa fueron de 0,96 dólares básicos y 0,32 dólares diluidos. La tarifa media TCE de la flota aumentó a 34,307 dólares desde 31,787 dólares en el Q3 2023. El flujo de caja operativo fue de 16,1 millones de dólares, en comparación con los 17,9 millones de dólares del Q3 2023. Actualmente, la empresa opera 7 petroleros Aframax y tiene 4 nuevas embarcaciones en construcción. La disminución de los ingresos se debió principalmente a una reducción en los días de propiedad tras la venta del buque P. Kikuma en diciembre de 2023.
Performance Shipping Inc. (NASDAQ: PSHG)는 2024년 3분기 재무 결과를 보고했으며, 순이익은 1,240만 달러, 매출은 2,290만 달러였습니다. 회사의 주당순이익은 기본 0.96 달러, 희석 0.32 달러였습니다. 함대 평균 TCE 요율은 31,787 달러에서 34,307 달러로 증가했습니다(2023년 3분기 기준). 운영 현금 흐름은 1,610만 달러로, 2023년 3분기의 1,790만 달러에서 감소했습니다. 현재 이 회사는 7척의 Aframax 유조선을 운영하고 있으며 4척의 신규 건조 선박이 건설 중입니다. 매출 감소는 2023년 12월 P. Kikuma 선박 판매에 따른 소유 기간 감소에 주로 기인했습니다.
Performance Shipping Inc. (NASDAQ: PSHG) a publié les résultats financiers du T3 2024 avec un revenu net de 12,4 millions de dollars et un chiffre d'affaires de 22,9 millions de dollars. Le bénéfice par action de l'entreprise était de 0,96 dollar de base et de 0,32 dollar dilué. Le taux moyen TCE de la flotte a augmenté pour atteindre 34 307 dollars, contre 31 787 dollars au T3 2023. Le flux de trésorerie d'exploitation s'élevait à 16,1 millions de dollars, en baisse par rapport à 17,9 millions de dollars au T3 2023. L'entreprise exploite actuellement 7 pétroliers Aframax et a 4 nouveaux navires en construction. La baisse des revenus était principalement due à la réduction des jours de propriété suite à la vente du navire P. Kikuma en décembre 2023.
Performance Shipping Inc. (NASDAQ: PSHG) berichtete über die finanziellen Ergebnisse des Q3 2024 mit einem Nettogewinn von 12,4 Millionen Dollar und einem Umsatz von 22,9 Millionen Dollar. Das Unternehmen erzielte einen Gewinn pro Aktie von 0,96 Dollar grundlegend und 0,32 Dollar verwässert. Der durchschnittliche TCE-Satz der Flotte stieg von 31.787 Dollar auf 34.307 Dollar im Q3 2023. Der operative Cashflow betrug 16,1 Millionen Dollar, im Vergleich zu 17,9 Millionen Dollar im Q3 2023. Das Unternehmen betreibt derzeit 7 Aframax-Tanker und hat 4 Neubauten im Bau. Der Rückgang des Umsatzes war hauptsächlich auf die reduzierte Eigentumsdauer nach dem Verkauf des Schiffes P. Kikuma im Dezember 2023 zurückzuführen.
- Net income increased to $12.4 million in Q3 2024 from $10.4 million in Q3 2023
- TCE rates improved to $34,307 from $31,787 year-over-year
- Strong fleet utilization at 100% in Q3 2024
- Secured five-year time charter contracts for three newbuilding vessels
- Revenue decreased to $22.9 million from $24.1 million year-over-year
- Operating cash flow declined to $16.1 million from $17.9 million year-over-year
- Fleet size reduced to 7 vessels from 8 vessels following vessel sale
- Nine-month net income decreased to $34.0 million from $44.5 million year-over-year
Insights
Performance Shipping delivered solid Q3 2024 results with
Key positives include strategic fleet deployment through a mix of pool and time-charter arrangements, providing stable cash flows while maintaining upside exposure. The newbuilding program with secured 5-year charters adds visibility to future earnings. However, investors should note the
The tanker market outlook appears favorable with expected
The company's strategic positioning in the tanker market looks compelling given current market dynamics. Extended trade routes due to Red Sea disruptions and growing Atlantic-Asia trade flows are driving stronger tonne-mile demand. The orderbook-to-fleet ratio of
The asset values remain robust with 10-year-old Aframax tankers valued at
ATHENS, Greece, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today reported net income of
Revenue was
Net income for the nine months ended September 30, 2024, amounted to
Commenting on the results of the third quarter of 2024, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“We are pleased with our solid third-quarter 2024 performance, which reflected an increase in revenue, net income, and basic and diluted EPS compared to the prior quarter. During this quarter, tanker charter rates maintained their average year-to-date levels, supported by constrained supply growth and increased tonne-mile demand resulting from longer haul tanker voyages due to Red Sea disruptions and the Atlantic–Asia trade growth. Going forward, we believe that our balanced fleet deployment strategy, combined with our exposure to the spot market through pool arrangements, will provide steady cash flows and opportunities to capitalize on the solid market fundamentals of our sector.
“Given our pipeline, we anticipate that we will be able to redeploy our vessels at attractive charter rates during the seasonally strong fall and winter period. At the same time, we remain focused on employing our opening vessels and continuing to secure delivery financing for our newbuilding vessels.
“Looking ahead, our newbuild program is supported by a strategic partnership with a top-tier charterer and we maintain close relationships with international shipping leaders. At the same time, our existing fleet continues to generate strong cash flows. We are executing a clear strategy and believe we have a strong foundation for continued growth and shareholder value creation.”
Corporate Developments
Update on Outstanding Shares and Warrants
As of November 6, 2024, the Company had outstanding 12,432,158 common shares. In addition, the following common share purchase warrants were outstanding as of such date:
- Class A Warrants to purchase up to 567,366 common shares at an exercise price of
$15.75 per common share; - Warrants issued July 19, 2022, to purchase up to 1,033,333 common shares at an exercise price of
$1.65 per common share; - Warrants issued August 16, 2022, to purchase up to 2,122,222 common shares at an exercise price of
$1.65 per common share; - Series A Warrants issued March 3, 2023, which are exchangeable for up to 14,300 common shares; and
- Series B Warrants issued March 3, 2023, to purchase up to 4,097,000 common shares at an exercise price of
$2.25 per common share.
Finally, the Company had 50,726 shares of its Series B Convertible Cumulative Perpetual Preferred Stock and 1,423,912 shares of its Series C Convertible Cumulative Redeemable Perpetual Preferred Stock outstanding.
Tanker Market Update for the Third Quarter of 2024:
- Tanker fleet supply was 693.6 million dwt, up
0.2% from 692.2 million dwt from the previous quarter and up0.8% from Q3 2023 levels of 688.1 million dwt. - The tanker sector is heading towards 2025 on a positive note, with tonne-mile demand expected to grow by
4.1% in 2024. Firm volume growth observed in shipments from the Americas towards Asia, coupled with continuous support arising from Red Sea-related trade flow shifts, further support tonne-mile demand. - Tanker fleet supply in deadweight terms is estimated to grow by just
0.8% in 2024 and by a moderate2.4% in 2025. - Tanker fleet utilization is expected to average
85.8% in 2024, as compared to an average of85.2% in 2023. Analysts expect that tanker fleet utilization will remain near86.0% in 2025. - Newbuilding tanker contracting was 4.8 million dwt in the third quarter, resulting in a tanker orderbook-to-fleet ratio of
12.9% . - Daily spot charter rates for Aframax tankers averaged
$31,724 down38.0% from the previous quarter average of$51,140 and up15.7% from the Q3 2023 average of$27,409. - The value of a 10-year-old Aframax tanker at the end of the third quarter was
$59.0 million , down1.7% from$60.0 million in the previous quarter, and up15.7% from$51.0 million in Q3 2023. - The number of tankers used for floating storage (excluding dedicated storage) stood at 114 (13.3 million dwt) in the third quarter, unchanged from 114 (14.2 million dwt) at the end of the previous quarter and down
10.9% from 128 (17.0 million dwt) in Q3 2023. - Global oil consumption was 103.3 million bpd, up
0.1% from the previous quarter level of 103.1 million bpd, and up0.7% from Q3 2023 levels of 102.6 million bpd. - Global oil production was 103.3 million bpd, up
0.4% from the previous quarter level of 102.8 million bpd and up1.4% from Q3 2023 levels of 101.8 million bpd. - OECD commercial inventories were 2,811 million barrels, down
0.9% from the previous quarter level of 2,836 million barrels, and down0.2% from Q3 2023 levels of 2,816 million barrels.
The above market outlook update is based on information, data, and estimates derived from industry sources. There can be no assurances that such trends will continue or that anticipated developments in tanker demand, fleet supply or other market indicators will materialize. While we believe the market and industry information included in this release to be generally reliable, we have not independently verified any third-party information or verified that more recent information is not available.
| Summary of Selected Financial & Other Data | |||||||||||||
| (in thousands of US Dollars, except per share data, fleet data and average daily results) | For the three months ended September 30, | For the nine months ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| STATEMENT OF OPERATIONS DATA: | |||||||||||||
| Revenue | $ | 22,889 | $ | 24,114 | $ | 65,768 | $ | 85,098 | |||||
| Voyage expenses | 795 | 719 | 2,378 | 3,234 | |||||||||
| Vessel operating expenses | 4,777 | 5,524 | 14,700 | 15,855 | |||||||||
| Net income | 12,411 | 10,369 | 34,027 | 44,452 | |||||||||
| Net income attributable to common stockholders | 11,953 | 9,891 | 32,652 | 32,425 | |||||||||
| Earnings per common share, basic | 0.96 | 0.88 | 2.65 | 3.26 | |||||||||
| Earnings per common share, diluted | 0.32 | 0.27 | 0.87 | 1.25 | |||||||||
| FLEET DATA | |||||||||||||
| Average number of vessels | 7.0 | 8.0 | 7.0 | 8.0 | |||||||||
| Number of vessels | 7.0 | 8.0 | 7.0 | 8.0 | |||||||||
| Ownership days | 644 | 736 | 1,918 | 2,184 | |||||||||
| Available days | 644 | 736 | 1,918 | 2,144 | |||||||||
| Operating days (1) | 644 | 730 | 1,902 | 2,120 | |||||||||
| Fleet utilization | 100.0 | % | 99.2 | % | 99.2 | % | 98.9 | % | |||||
| AVERAGE DAILY RESULTS | |||||||||||||
| Time charter equivalent (TCE) rate (2) | $ | 34,307 | $ | 31,787 | $ | 33,050 | $ | 38,183 | |||||
| Daily vessel operating expenses (3) | $ | 7,418 | $ | 7,505 | $ | 7,664 | $ | 7,260 | |||||
_________
| (1) | Operating days are the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation counts as on-hire the days of the ballast leg of the spot voyages, as long as a charter party is in place. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. | |
| (2) | Time charter equivalent rates, or TCE rates, are defined as revenue (voyage, time charter and pool revenue), less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels despite changes in the mix of charter types (i.e., voyage (spot) charters, time charters and bareboat charters). | |
| (3) | Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period. | |
| Fleet Employment Profile (As of November 6, 2024) | |||||||
| Performance Shipping Inc.’s fleet is employed as follows: | |||||||
| Vessel | Year of Build | Capacity | Builder | Vessel Type | Charter Type | Notes | |
| Operating Aframax Tanker Vessels | |||||||
| 1 | BLUE MOON | 2011 | 104,623 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Pool | |
| 2 | BRIOLETTE | 2011 | 104,588 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
| 3 | P. YANBU | 2011 | 105,391 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
| 4 | P. SOPHIA | 2009 | 105,071 DWT | Hyundai Heavy Industries Co., LTD | Crude | Pool | |
| 5 | P. ALIKI | 2010 | 105,304 DWT | Hyundai Heavy Industries Co., LTD | Product | Time-Charter | |
| 6 | P. MONTEREY | 2011 | 105,525 DWT | Hyundai Heavy Industries Co., LTD | Crude | Time-Charter | |
| 7 | P. LONG BEACH | 2013 | 105,408 DWT | Hyundai Heavy Industries Co., LTD | Product | Time-Charter | |
| Newbuilding LR1 and LR2 Tanker Vessels | |||||||
| 8 | HULL 1515 | - | 114,000 DWT | China Shipbuilding Trading Company Limited and Shanghai Waigaoqiao Shipbuilding Company Limited | Product | Time-Charter | 1 |
| 9 | HULL 1596 | - | 114,000 DWT | China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. | Product | Time-Charter | 1 |
| 10 | HULL 1597 | - | 114,000 DWT | China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. | Product | Time-Charter | 1 |
| 11 | HULL 1624 | - | 75,000 DWT | Jiangsu Yangzijiang Shipbuilding Group Co., Ltd. | Chemical/ Product | - | |
| 1 | As previously announced, the Company has secured five-year time charter contracts for three of its newbuilding vessels, with employment to commence upon delivery of the vessels in the fourth quarter of 2025, and first and second quarter of 2026. | ||||||
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.
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, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts, including with respect to the delivery of the vessels we have agreed to acquire, future market conditions and the prospective financing and employment of our vessels. The words “believe," “anticipate," “intends," “estimate," “forecast," “project," “plan," “potential," “will," “may," “should," “expect," “targets," “likely," “would," “could," “seeks," “continue," “possible," “might," “pending” and similar expressions, terms or phrases may 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, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to vessels we agree to acquire, 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 epidemics and pandemics, including COVID-19, and their impact on the demand for seaborne transportation of petroleum and other types of products, changes in governmental rules and regulations or actions taken by regulatory authorities, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine and the war between Israel and Hamas or Iran, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the US Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
(See financial tables attached)
| PERFORMANCE SHIPPING INC. | |||||||||||||
| FINANCIAL TABLES | |||||||||||||
| Expressed in thousands of U.S. Dollars, except for share and per share data | |||||||||||||
| UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| REVENUE: | |||||||||||||
| Revenue | $ | 22,889 | $ | 24,114 | $ | 65,768 | $ | 85,098 | |||||
| EXPENSES: | |||||||||||||
| Voyage expenses | 795 | 719 | 2,378 | 3,234 | |||||||||
| Vessel operating expenses | 4,777 | 5,524 | 14,700 | 15,855 | |||||||||
| Depreciation and amortization of deferred charges | 3,336 | 3,811 | 9,936 | 11,276 | |||||||||
| General and administrative expenses | 2,119 | 1,981 | 5,823 | 5,396 | |||||||||
| (Reversal) / Provision for credit losses | - | 34 | (7 | ) | (21 | ) | |||||||
| Foreign currency losses / (gains) | 70 | (5 | ) | 81 | 33 | ||||||||
| Operating income | $ | 11,792 | $ | 12,050 | $ | 32,857 | $ | 49,325 | |||||
| OTHER INCOME / (EXPENSES): | |||||||||||||
| Interest and finance costs | (218 | ) | (2,278 | ) | (1,326 | ) | (7,642 | ) | |||||
| Interest income | 841 | 999 | 2,490 | 2,204 | |||||||||
| Changes in fair value of warrants' liability | (4 | ) | (402 | ) | 6 | 565 | |||||||
| Total other income / (expenses), net | $ | 619 | $ | (1,681 | ) | $ | 1,170 | $ | (4,873 | ) | |||
| Net income | $ | 12,411 | $ | 10,369 | $ | 34,027 | $ | 44,452 | |||||
| Income allocated to participating securities | - | - | - | (1 | ) | ||||||||
| Deemed dividend to the Series C preferred stockholders due to triggering of a down-round feature | - | - | - | (9,809 | ) | ||||||||
| Deemed dividend to the July 2022 and August 2022 warrants holders due to triggering of a down-round feature | - | - | - | (789 | ) | ||||||||
| Dividends on preferred stock | (458 | ) | (478 | ) | (1,375 | ) | (1,428 | ) | |||||
| Net income attributable to common stockholders | $ | 11,953 | $ | 9,891 | $ | 32,652 | $ | 32,425 | |||||
| Earnings per common share, basic | $ | 0.96 | $ | 0.88 | $ | 2.65 | $ | 3.26 | |||||
| Earnings per common share, diluted | $ | 0.32 | $ | 0.27 | $ | 0.87 | $ | 1.25 | |||||
| Weighted average number of common shares, basic | 12,432,158 | 11,261,597 | 12,343,009 | 9,950,612 | |||||||||
| Weighted average number of common shares, diluted | 39,218,178 | 38,618,629 | 39,211,738 | 34,486,994 | |||||||||
| UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income | $ | 12,411 | $ | 10,369 | $ | 34,027 | $ | 44,452 | |||||
| Comprehensive income | $ | 12,411 | $ | 10,369 | $ | 34,027 | $ | 44,452 | |||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||||
| (Expressed in thousands of US Dollars) | ||||||
| September 30, 2024 | December 31, 2023* | |||||
| ASSETS | (unaudited) | |||||
| Cash, cash equivalents and restricted cash | $ | 69,523 | $ | 68,267 | ||
| Advances for vessels under construction and other vessels' costs | 51,006 | 11,303 | ||||
| Vessels, net | 192,557 | 202,108 | ||||
| Other fixed assets, net | 38 | 44 | ||||
| Other assets | 7,705 | 14,544 | ||||
| Total assets | $ | 320,829 | $ | 296,266 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Long-term bank debt, net of unamortized deferred financing costs | $ | 49,317 | $ | 54,886 | ||
| Other liabilities | 5,519 | 8,196 | ||||
| Total stockholders' equity | 265,993 | 233,184 | ||||
| Total liabilities and stockholders' equity | $ | 320,829 | $ | 296,266 | ||
| * The balance sheet data as of December 31, 2023 has been derived from the audited consolidated financial statements at that date. | ||||||
| OTHER FINANCIAL DATA | ||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Net Cash provided by Operating Activities | $ | 16,148 | $ | 17,883 | $ | 47,841 | $ | 58,692 | ||||
| Net Cash used in Investing Activities | $ | (7,028 | ) | $ | (197 | ) | $ | (39,718 | ) | $ | (11,708 | ) |
| Net Cash used in Financing Activities | $ | (2,341 | ) | $ | (3,025 | ) | $ | (6,867 | ) | $ | (1,314 | ) |
FAQ
What was Performance Shipping (PSHG) revenue in Q3 2024?
What was PSHG's net income for Q3 2024?
What was Performance Shipping's TCE rate in Q3 2024?
How many vessels does PSHG currently operate?
