Performance Shipping Inc. Reports Record Fourth Quarter and Full Year 2022 Net Income of $23.8 Million and $36.3 Million, Respectively
Performance Shipping reported a record quarterly net income of $23.8 million for Q4 2022, up from a net loss of $2.1 million in Q4 2021. Revenue soared to $27.8 million, driven by higher time-charter equivalent (TCE) rates of $40,469 per day, compared to $13,370 a year prior. For the full year 2022, net income reached $36.3 million, a significant rebound from a $9.7 million loss in 2021. The company’s cash balance stood at approximately $40 million, and it secured a revenue backlog of $85 million. Market conditions are expected to remain favorable, with tanker demand projected to increase by 7.6% in 2023.
- Record net income of $23.8 million for Q4 2022.
- Revenue increased to $27.8 million in Q4 2022 from $9.6 million in Q4 2021.
- Average time-charter equivalent rates reached $40,469, up from $13,370.
- Net income for the year reached $36.3 million, significantly higher than the previous year's loss.
- Cash balance of approximately $40 million providing strong liquidity.
- Secured revenue backlog of $85 million indicating future revenue stability.
- Positive tanker market demand projected to increase by 7.6% in 2023.
- None.
ATHENS, Greece, Feb. 23, 2023 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today reported a record quarterly net income from continuing and discontinued operations of
Revenue from continuing and discontinued operations was
Net income from continuing and discontinued operations for the year ended December 31, 2022 amounted to
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
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
“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
Tanker Market Update for the fourth quarter of 2022:
- Tanker fleet supply was 675.3 million dwt, up
0.7% from 670.8 million dwt from the previous quarter and up3.5% from Q4 2021 levels of 652.6 million dwt. - Tanker demand in billion tonne-miles is projected to increase by a firm
7.6% in 2023, supported by new trade patterns established as a result of European sanctions on Russian crude oil. As Europe uses alternative sources of crude oil and Russia sells to alternative buyers, longer-haul trade routes are emerging, boosting tonne-mile demand. - Tanker fleet supply in deadweight terms is estimated to grow by a moderate
1.4% in 2023. - Crude oil tanker fleet utilization was estimated at
80.0% , up from79.5% in the previous quarter and up from79.0% in Q4 2021. - Newbuilding tanker contracting was just 3.0 million dwt in the fourth quarter, resulting in a tanker orderbook-to-fleet ratio of
4.3% , the lowest level of the past 27 years. - Daily spot charter rates for Aframax tankers averaged
$90,991 , up73.0% from the previous quarter average of$52,610 and up720.3% from the Q4 2021 average of$11,093. - The value of a 10-year-old Aframax tanker at the end of the fourth quarter was
$45.0 million , up7.1% from$42.0 million in the previous quarter, and up66.7% from$27.0 million in Q4 2021. - The number of tankers used for floating storage (excluding dedicated storage) was 148 (23.6 million dwt), down
17.8% from 180 (26.1 million dwt) in the previous quarter and down15.4% from Q4 2021 levels of 175 (27.4 million dwt). - Global oil consumption was 99.7 million bpd, down
0.7% from the previous quarter level of 100.4 million bpd, and up0.4% from Q4 2021 levels of 99.3 million bpd. - Global oil production was 101.4 million bpd, up
0.6% from the previous quarter level of 100.8 million bpd and up3.1% from Q4 2021 levels of 98.3 million bpd. - OECD commercial inventories were 2,782.7 million barrels, up
1.7% from the previous quarter level of 2,735.2 million barrels, and up5.4% from Q4 2021 levels of 2,640.2 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 (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 | |||||
______________
(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 | |
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.
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, 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 the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand for our vessels, 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, dry-docking and insurance costs, our future operating or financial results, availability of financing and refinancing, including with respect to the vessels we have agreed 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 the ongoing outbreak of the novel coronavirus (COVID-19) and its 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, potential liability from pending or future litigation, general domestic and international political conditions or events, including the impact of conflict in Ukraine, the imposition of new international sanctions, “trade wars”, 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 U.S. 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 | |||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUING AND DISCONTINUED OPERATIONS) | |||||||||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| REVENUE: | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Revenue | $ | 27,767 | $ | 9,647 | $ | 75,173 | $ | 36,491 | |||||
| EXPENSES: | |||||||||||||
| Voyage expenses | 2,838 | 4,152 | 14,861 | 19,205 | |||||||||
| Vessel operating expenses | 4,241 | 3,738 | 13,828 | 12,301 | |||||||||
| Depreciation and amortization of deferred charges | 2,715 | 1,912 | 9,281 | 7,472 | |||||||||
| General and administrative expenses | 2,046 | 1,468 | 6,751 | 5,782 | |||||||||
| Gain on vessels' sale | (9,543 | ) | - | (9,543 | ) | - | |||||||
| Provision for credit losses and write offs | 15 | 175 | 33 | 160 | |||||||||
| Foreign currency losses / (gains) | 31 | (48 | ) | (20 | ) | 31 | |||||||
| Operating income / (loss) | $ | 25,424 | $ | (1,750 | ) | $ | 39,982 | $ | (8,460 | ) | |||
| OTHER INCOME / (EXPENSES): | |||||||||||||
| Interest and finance costs | (1,758 | ) | (439 | ) | (3,966 | ) | (1,801 | ) | |||||
| Interest income | 171 | 2 | 284 | 18 | |||||||||
| Gain from property sale | - | 137 | - | 137 | |||||||||
| Other income | - | - | - | 400 | |||||||||
| Total other expenses, net | $ | (1,587 | ) | $ | (300 | ) | $ | (3,682 | ) | $ | (1,246 | ) | |
| Net income / (loss) | $ | 23,837 | $ | (2,050 | ) | $ | 36,300 | $ | (9,706 | ) | |||
| Income allocated to participating securities | (2 | ) | - | (6 | ) | - | |||||||
| Deemed dividends | (13,968 | ) | - | (23,261 | ) | - | |||||||
| Dividends on preferred stock | (455 | ) | - | (1,030 | ) | - | |||||||
| 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 | ) | |||
| Weighted average number of common shares, basic | 4,065,977 | 335,513 | 1,850,072 | 335,086 | |||||||||
| Weighted average number of common shares, diluted | 13,385,425 | 335,513 | 6,447,710 | 335,086 | |||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (CONTINUING AND DISCONTINUED OPERATIONS) | |||||||||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Net income / (loss) | $ | 23,837 | $ | (2,050 | ) | $ | 36,300 | $ | (9,706 | ) | |||
| Other comprehensive income/ (loss) (Actuarial gain/ (loss)) | 68 | (10 | ) | 68 | (10 | ) | |||||||
| Comprehensive income / (loss) | $ | 23,905 | $ | (2,060 | ) | $ | 36,368 | $ | (9,716 | ) | |||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||
| (Expressed in thousands of US Dollars) | |||||
| December 31, 2022 | December 31, 2021* | ||||
| ASSETS | (unaudited) | ||||
| Cash, cash equivalents and restricted cash | $ | 39,726 | $ | 9,574 | |
| Vessels, net | 236,607 | 123,036 | |||
| Other fixed assets, net | 72 | 151 | |||
| Other assets | 16,574 | 12,163 | |||
| Total assets | $ | 292,979 | $ | 144,924 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Long-term bank debt, net of unamortized deferred financing costs | $ | 127,675 | $ | 49,898 | |
| Other liabilities | 9,599 | 7,677 | |||
| Total stockholders' equity | 155,705 | 87,349 | |||
| Total liabilities and stockholders' equity | $ | 292,979 | $ | 144,924 | |
| * The balance sheet data as of December 31, 2021 has been derived from the audited consolidated financial statements at that date. | |||||
| OTHER FINANCIAL DATA (CONTINUING AND DISCONTINUED OPERATIONS) | ||||||||||||
| For the three months ended December 31, | For the years ended December 31, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Net Cash provided by / (used in) Operating Activities | $ | 23,680 | $ | (1,790 | ) | $ | 33,847 | $ | (3,123 | ) | ||
| Net Cash provided by / (used in) Investing Activities | $ | (78,121 | ) | $ | 1,070 | $ | (112,950 | ) | $ | (770 | ) | |
| Net Cash provided by / (used in) Financing Activities | $ | 58,705 | $ | (1,978 | ) | $ | 109,255 | $ | (7,911 | ) | ||
FAQ
What were Performance Shipping's financial results for Q4 2022?
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