Dated: March 8, 2021
|
By:
|
/s/ Andreas Michalopoulos
|
Andreas Michalopoulos
|
||
Chief Executive Officer
|
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
|
• |
Appointment of Andreas Michalopoulos as Chief Executive Officer and Anthony Argyropoulos as Chief Financial Officer in October 2020;
|
• |
Initiation of new variable quarterly dividend policy and declaration of $0.01 dividend per share (or $0.1 per share, as adjusted after the one-for-ten reverse stock split) to all shareholders
in October 2020;
|
• |
Introduction of new business strategy and posting of the relevant presentation on the Company’s website in October 2020;
|
• |
Effectiveness of a one-for-ten reverse stock split to comply with NASDAQ’s minimum share price rule in November 2020;
|
• |
Acquisition of 2011-built Aframax tanker vessel “P. Yanbu” for $22.0 million in November 2020;
|
• |
The signing of a loan agreement with Piraeus Bank S.A. for up to $31.5 million in December 2020, for the partial refinancing of the existing Nordea loan and additional financing for the “P.
Yanbu”;
|
• |
Signing of a supplemental loan agreement with Nordea for repayment schedule re-structuring in December 2020;
|
• |
Delivery of the Aframax tanker vessel “P. Yanbu” in December 2020;
|
• |
Entry into an At-The-Market Offering Agreement with H.C. Wainwright Co., LLC, pursuant to which the Company may, at its discretion, sell its common shares at market prices.
|
• |
Fleet supply was 641.0 million dwt, up 0.3% from 638.9 million dwt from the previous quarter, and up 3.0% from Q4 2019 levels of 622.3 million dwt.
|
• |
Demand is estimated to have increased by 2.0% from the previous quarter and 12.5% from Q4 2019 levels.
|
• |
Crude tanker fleet utilization was estimated at 79.6%, down from 84.5% from the previous quarter and down from Q4 2019 levels of 89.3%.
|
• |
Newbuilding contracting at 9.3 million dwt resulted in a further reduction of the orderbook to 7.7% of the fleet, the lowest level since 1996.
|
• |
Daily spot charter rates for Aframax tankers averaged $5,713, down 34.3% from the previous quarter average of $8,698 and down 89.0% from Q4 2019 average of $52,853.
|
• |
The value of a 10-year-old Aframax tanker ended the quarter at $20.5 million, down 10.9% from the previous quarter assessed value of $23 million, and down 31.7% from Q4 2019 assessed value of
$30 million.
|
• |
Tankers used for floating storage (excluding dedicated storage) was 232 (38.3 million dwt), down 29.9% from 331 (47.6 million dwt) from the previous quarter and up 231.4% from Q4 2019 levels
of 70 (16.5 million dwt).
|
• |
Global oil consumption was 95.5 million bpd, up 2.3% from the previous quarter level of 93.4 million bpd, and down 6.1% from Q4 2019 levels of 101.7 million bpd.
|
• |
Global oil production was 92.3 million bpd, up 1.2% from the previous quarter level of 91.2 million bpd and down 9.1% from Q4 2019 levels of 101.6 million bpd.
|
• |
OECD commercial inventories were 3,045.2 million barrels, down 3.9% from the previous quarter level of 3,168.9 million barrels, and up 5.8% from Q4 2019 levels of 2,878.8 million barrels.
|
Summary of Selected Financial & Other Data
|
||||||||||||||||
For the three months ended December 31,
|
For the years ended December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
|
||||||||||||||||
CONTINUING AND DISCONTINUED OPERATIONS
|
||||||||||||||||
Voyage and time charter revenues
|
$
|
7,205
|
$
|
10,580
|
$
|
46,283
|
$
|
26,846
|
||||||||
Voyage expenses
|
3,311
|
2,083
|
14,622
|
3,447
|
||||||||||||
Vessel operating expenses
|
2,412
|
2,605
|
11,544
|
11,321
|
||||||||||||
Net income / (loss)
|
(2,548
|
)
|
(12,228
|
)
|
3,777
|
(32,057
|
)
|
|||||||||
Net income / (loss) attributable to common stockholders
|
(2,548
|
)
|
(12,228
|
)
|
5,190
|
(32,057
|
)
|
|||||||||
Earnings / (Loss) per common share, basic
|
(0.51
|
)
|
(3.17
|
)
|
1.06
|
(11.19
|
)
|
|||||||||
Earnings / (Loss) per common share, diluted
|
(0.51
|
)
|
(3.17
|
)
|
1.05
|
(11.19
|
)
|
|||||||||
FLEET DATA
|
||||||||||||||||
Average number of vessels
|
4.2
|
4.0
|
4.6
|
4.2
|
||||||||||||
Number of vessels
|
5.0
|
4.0
|
5.0
|
4.0
|
||||||||||||
Ownership days
|
385
|
367
|
1,689
|
1,516
|
||||||||||||
Available days
|
385
|
367
|
1,689
|
1,516
|
||||||||||||
Operating days, excluding ballast leg (1)
|
254
|
330
|
1,258
|
1,401
|
||||||||||||
Operating days, including ballast leg (2)
|
321
|
351
|
1,515
|
1,422
|
||||||||||||
Fleet utilization, excluding ballast leg
|
66.0
|
%
|
89.9
|
%
|
74.5
|
%
|
92.4
|
%
|
||||||||
Fleet utilization, including ballast leg
|
83.4
|
%
|
95.6
|
%
|
89.7
|
%
|
93.8
|
%
|
||||||||
AVERAGE DAILY RESULTS
|
||||||||||||||||
Time charter equivalent (TCE) rate (3)
|
$
|
10,114
|
$
|
23,153
|
$
|
18,745
|
$
|
15,435
|
||||||||
Daily vessel operating expenses (4)
|
$
|
6,265
|
$
|
7,098
|
$
|
6,835
|
$
|
7,468
|
||||||||
For the three months ended December 31,
|
For the years ended December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
|
||||||||||||||||
CONTINUING OPERATIONS
|
||||||||||||||||
Voyage and time charter revenues
|
$
|
7,205
|
$
|
5,050
|
$
|
42,045
|
$
|
6,301
|
||||||||
Voyage expenses
|
3,311
|
1,928
|
14,434
|
2,460
|
||||||||||||
Vessel operating expenses
|
2,412
|
800
|
9,208
|
1,122
|
||||||||||||
Net income / (loss)
|
(2,548
|
)
|
(1,371
|
)
|
2,295
|
(6,743
|
)
|
|||||||||
Net income / (loss) attributable to common stockholders
|
(2,548
|
)
|
(1,371
|
)
|
3,708
|
(6,743
|
)
|
|||||||||
Earnings / (Loss) per common share, basic
|
(0.51
|
)
|
(0.35
|
)
|
0.76
|
(2.35
|
)
|
|||||||||
Earnings / (Loss) per common share, diluted
|
(0.51
|
)
|
(0.35
|
)
|
0.75
|
(2.35
|
)
|
|||||||||
FLEET DATA
|
||||||||||||||||
Average number of vessels
|
4.2
|
1.4
|
3.7
|
0.5
|
||||||||||||
Number of vessels
|
5.0
|
2.0
|
5.0
|
2.0
|
||||||||||||
Ownership days
|
385
|
132
|
1,365
|
188
|
||||||||||||
Available days
|
385
|
132
|
1,365
|
188
|
||||||||||||
Operating days, excluding ballast leg (1)
|
254
|
102
|
945
|
138
|
||||||||||||
Operating days, including ballast leg (2)
|
321
|
123
|
1,202
|
159
|
||||||||||||
Fleet utilization, excluding ballast leg
|
66.0
|
%
|
77.3
|
%
|
69.2
|
%
|
73.4
|
%
|
||||||||
Fleet utilization, including ballast leg
|
83.4
|
%
|
93.2
|
%
|
88.1
|
%
|
84.6
|
%
|
||||||||
AVERAGE DAILY RESULTS
|
||||||||||||||||
Time charter equivalent (TCE) rate (3)
|
$
|
10,114
|
$
|
23,652
|
$
|
20,228
|
$
|
20,431
|
||||||||
Daily vessel operating expenses (4)
|
$
|
6,265
|
$
|
6,061
|
$
|
6,746
|
$
|
5,968
|
||||||||
DISCONTINUED OPERATIONS (5)
|
||||||||||||||||
Time charter revenues
|
$
|
-
|
$
|
5,530
|
$
|
4,238
|
$
|
20,545
|
||||||||
Voyage expenses
|
-
|
155
|
188
|
987
|
||||||||||||
Vessel operating expenses
|
-
|
1,805
|
2,336
|
10,199
|
||||||||||||
Net income / (loss)
|
-
|
(10,857
|
)
|
1,482
|
(25,314
|
)
|
||||||||||
Net income / (loss) attributable to common stockholders
|
-
|
(10,857
|
)
|
1,482
|
(25,314
|
)
|
||||||||||
Earnings / (Loss) per common share, basic
|
-
|
(2.82
|
)
|
0.30
|
(8.84
|
)
|
||||||||||
Earnings / (Loss) per common share, diluted
|
-
|
(2.82
|
)
|
0.30
|
(8.84
|
)
|
||||||||||
FLEET DATA
|
||||||||||||||||
Average number of vessels
|
-
|
2.6
|
0.9
|
3.6
|
||||||||||||
Number of vessels
|
-
|
2.0
|
-
|
2.0
|
||||||||||||
Ownership days
|
-
|
235
|
324
|
1,328
|
||||||||||||
Available days
|
-
|
235
|
324
|
1,328
|
||||||||||||
Operating days
|
-
|
228
|
313
|
1,263
|
||||||||||||
Fleet utilization
|
-
|
97.0
|
%
|
96.6
|
%
|
95.1
|
%
|
|||||||||
AVERAGE DAILY RESULTS
|
||||||||||||||||
Time charter equivalent (TCE) rate (3)
|
$
|
-
|
$
|
22,872
|
$
|
12,500
|
$
|
14,727
|
||||||||
Daily vessel operating expenses (4)
|
$
|
-
|
$
|
7,681
|
$
|
7,210
|
$
|
7,680
|
(1) |
Operating days, excluding ballast leg, 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 the
ballast leg of spot voyages as off-hire days, even if a charter party exists, so as to be in line with the accounting guidelines of ASC 606 for the revenue recognition (“loading” to “discharging” accounting). The shipping industry uses
operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
|
(2) |
Operating days, including ballast leg, are the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation does not count as
off-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 our voyage and time charter revenues, 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.
|
(5) |
Discontinued Operations refer to our container vessels segment.
|
Fleet Employment Profile (As of March 5, 2021)
|
|||||||||
Performance Shipping Inc.’s fleet is employed as follows:
|
|||||||||
Vessel
|
Year of
Built
|
Capacity
|
Builder
|
Gross Rate
(USD Per Day)
|
Com*
|
Charterers
|
Delivery Date to
Charterers
|
Redelivery Date to
Owners**
|
|
4 Aframax Tanker Vessels
|
|||||||||
1
|
BLUE MOON
|
2011
|
104,623 DWT
|
Sumitomo Heavy Industries Marine & Engineering Co., LTD.
|
$28,000
|
5.00%
|
Aramco Trading Company, Saudi Arabia
|
19-Jun-20
|
19-Nov-21 - 18-Jan-22
|
2
|
BRIOLETTE
|
2011
|
104,588 DWT
|
Sumitomo Heavy Industries Marine & Engineering Co., LTD.
|
Spot
|
-
|
-
|
-
|
- - -
|
3
|
P. FOS
|
2007
|
115,577 DWT
|
Sasebo Heavy Industries Co. Ltd
|
Spot
|
-
|
-
|
-
|
- - -
|
4
|
P. KIKUMA
|
2007
|
115,915 DWT
|
Samsung Heavy Industries Co Ltd., Geoje, South Korea
|
Spot
|
-
|
-
|
-
|
- - -
|
5
|
P. YANBU
|
2011
|
105,391 DWT
|
Sumitomo Heavy Industries Marine & Engineering Co., LTD.
|
Spot
|
-
|
-
|
-
|
- - -
|
* Total commission paid to third parties.
|
** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular
charterparty.
|
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,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
REVENUES:
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Voyage and time charter revenues
|
$
|
7,205
|
$
|
10,580
|
$
|
46,283
|
$
|
26,846
|
||||||||
EXPENSES:
|
||||||||||||||||
Voyage expenses
|
3,311
|
2,083
|
14,622
|
3,447
|
||||||||||||
Vessel operating expenses
|
2,412
|
2,605
|
11,544
|
11,321
|
||||||||||||
Depreciation and amortization of deferred charges
|
1,631
|
891
|
5,898
|
3,684
|
||||||||||||
Management fees
|
-
|
100
|
347
|
147
|
||||||||||||
General and administrative expenses
|
1,858
|
2,733
|
7,985
|
8,162
|
||||||||||||
Impairment losses
|
-
|
13,934
|
339
|
31,629
|
||||||||||||
(Gain) / loss on vessels' sale
|
-
|
127
|
(319
|
)
|
127
|
|||||||||||
Provision for doubtful receivables
|
(73
|
)
|
-
|
79
|
-
|
|||||||||||
Foreign currency (gains) / losses
|
7
|
10
|
32
|
(7
|
)
|
|||||||||||
Operating income / (loss)
|
$
|
(1,941
|
)
|
$
|
(11,903
|
)
|
$
|
5,756
|
$
|
(31,664
|
)
|
|||||
OTHER INCOME / (EXPENSES):
|
||||||||||||||||
Interest and finance costs
|
(619
|
)
|
(398
|
)
|
(2,089
|
)
|
(651
|
)
|
||||||||
Interest income
|
12
|
73
|
110
|
258
|
||||||||||||
Total other expenses, net
|
$
|
(607
|
)
|
$
|
(325
|
)
|
$
|
(1,979
|
)
|
$
|
(393
|
)
|
||||
Net income / (loss)
|
$
|
(2,548
|
)
|
$
|
(12,228
|
)
|
$
|
3,777
|
$
|
(32,057
|
)
|
|||||
Gain from repurchase of preferred shares
|
-
|
-
|
1,500
|
-
|
||||||||||||
Income allocated to participating securities
|
-
|
-
|
(87
|
)
|
-
|
|||||||||||
Net income / (loss) attributable to common stockholders
|
$
|
(2,548
|
)
|
$
|
(12,228
|
)
|
5,190
|
(32,057
|
)
|
|||||||
Earnings / (Loss) per common share, basic *
|
$
|
(0.51
|
)
|
$
|
(3.17
|
)
|
$
|
1.06
|
$
|
(11.19
|
)
|
|||||
Earnings / (Loss) per common share, diluted *
|
$
|
(0.51
|
)
|
$
|
(3.17
|
)
|
$
|
1.05
|
$
|
(11.19
|
)
|
|||||
Weighted average number of common shares, *
|
4,966,210
|
3,854,802
|
4,875,475
|
2,864,676
|
||||||||||||
Weighted average number of common shares, *
|
4,966,210
|
3,854,802
|
4,945,562
|
2,864,676
|
||||||||||||
* Comparative figures were adjusted to give effect to the reverse stock split that became effective on November 2, 2020.
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)
|
||||||||||||||||
For the three months ended December 31,
|
For the years ended December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||||||
Net income / (loss)
|
$
|
(2,548
|
)
|
$
|
(12,228
|
)
|
$
|
3,777
|
$
|
(32,057
|
)
|
|||||
Other comprehensive income / (loss) (Actuarial gain/ (loss))
|
(61
|
)
|
12
|
(61
|
)
|
12
|
||||||||||
Comprehensive income/ (loss)
|
$
|
(2,609
|
)
|
$
|
(12,216
|
)
|
$
|
3,716
|
$
|
(32,045
|
)
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA
|
||||||||
(Expressed in thousands of US Dollars)
|
||||||||
December 31, 2020
|
December 31, 2019**
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
Cash and cash equivalents
|
$
|
21,378
|
$
|
26,363
|
||||
Advances for vessel acquisitions and other vessels' costs
|
-
|
11,017
|
||||||
Vessels, net
|
128,108
|
82,871
|
||||||
Other fixed assets, net
|
1,135
|
993
|
||||||
Other assets
|
7,233
|
9,325
|
||||||
Total assets
|
$
|
157,854
|
$
|
130,569
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Long-term debt, net of unamortized deferred financing costs
|
$
|
57,666
|
$
|
32,283
|
||||
Other liabilities
|
3,391
|
4,048
|
||||||
Total stockholders' equity
|
96,797
|
94,238
|
||||||
Total liabilities and stockholders' equity
|
$
|
157,854
|
$
|
130,569
|
||||
* *The balance sheet data as of December 31, 2019 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,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||||||
Net Cash provided by / (used in) Operating Activities
|
$
|
881
|
$
|
(305
|
)
|
$
|
13,176
|
$
|
(4,194
|
)
|
||||||
Net Cash provided by / (used in) Investing Activities
|
$
|
(22,235
|
)
|
$
|
3,188
|
$
|
(40,146
|
)
|
$
|
(18,517
|
)
|
|||||
Net Cash provided by Financing Activities
|
$
|
5,544
|
$
|
15,981
|
$
|
21,985
|
$
|
38,581
|
DIVIDEND CALCULATIONS
|
||||
(Expressed in thousands of U.S. Dollars)
|
||||
For the three months ended December 31, 2020
|
||||
Voyage and time charter revenues
|
$
|
7,205
|
||
Less, Voyage expenses
|
$
|
(3,311
|
)
|
|
Less, Vessel operating expenses
|
$
|
(2,412
|
)
|
|
Less, General and administrative expenses
|
$
|
(1,668
|
)
|
|
Less, Greater of (I) or (II):
|
||||
Interest and finance costs
|
$
|
(619
|
)
|
|
Plus, Repayment of long-term bank debt
|
$
|
(2,453
|
)
|
|
Total (I)
|
$
|
(3,072
|
)
|
|
Or
|
||||
Replacement reserve (II)
|
$
|
(1,714
|
)
|
|
Less, Maintenance reserve
|
(438
|
)
|
||
Quarterly Cash Flow (A)
|
$
|
(3,696
|
)
|
|
Cash and cash equivalents
|
$
|
21,378
|
||
Less, Minimum Cash Threshold
|
$
|
16,500
|
||
Quarter-End Excess Cash (B)
|
$
|
4,878
|
||
Quarterly Cash Flow Test (A) >0, AND
|
Not eligible for dividend
|
|||
Quarter-End Excess Cash Test (B) >0
|
Eligible for dividend
|
|||
Cash Available for Dividend, lower (A) or (B)
|
$
|
-
|
||
Payout ratio
|
50
|
%
|
||
Quarterly Dividend
|
$
|
-
|
(1) |
General and administrative expenses, for the purpose of calculating dividends, exclude non-cash items.
|
(2) |
Replacement reserves reflect the aggregate annual amount of cash that the Company retains to fund the replacement of each of its vessels. In addition to the replacement reserve retained and
reinvested at a certain annual rate or equivalent debt repayment, the Company estimates at the specific expected replacement date to utilize funds from the proceeds of the scrap value of the vessels and the assumption of a modest level of
debt to purchase the replacement vessel assuming such replacement is for a ten-year-old vessel at the ten-year historical mid-cycle value.
|
(3) |
Maintenance reserves are based on an estimated cost for the drydock, intermediate and special surveys of the vessels in our fleet over the recurring statutory five-year survey period. They
are used, instead of actual maintenance costs when incurred, for purposes of calculating the quarterly dividend to remove the additional cash flow variability during quarters that drydocks occur.
|
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
|