Dated: May 20, 2021
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By:
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/s/ Andreas Michalopoulos
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Andreas Michalopoulos
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Chief Executive Officer
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Corporate Contact:
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Andreas Michalopoulos
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Chief Executive Officer, Director and Secretary
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Telephone: + 30-216-600-2400
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Email: amichalopoulos@pshipping.com
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Website: www.pshipping.com
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Investor and Media Relations:
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Edward Nebb
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Comm-Counsellors, LLC
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Telephone: + 1-203-972-8350
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Email: enebb@optonline.net
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• |
Fleet supply was 647.6 million dwt, up 0.9% from 641.7 million dwt from the previous quarter, and up 2.9% from Q1 2020 levels of 629.2 million dwt.
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• |
Tanker demand in billion tonne-miles is projected to increase by 4.1% in 2021, recovering from the lows experienced in 2020.
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Tanker fleet supply in deadweight terms is estimated to grow by a moderate 3.0% in 2021.
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Crude tanker fleet utilization was estimated at 82.0%, up from 79.6% from the previous quarter and down from Q1 2020 levels of 89.0%.
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Newbuilding contracting at 9.7 million dwt resulted in the tanker orderbook remaining close to record low levels and representing 8.1% of the tanker fleet.
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Daily spot charter rates for Aframax tankers averaged $10,527, up 84.3% from the previous quarter average of $5,713 and down 75.0% from Q1 2020 average of $41,610.
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The value of a 10-year-old Aframax tanker ended the quarter at $23.5 million, up 14.6% from the previous quarter assessed value of $20.5 million, and down 24.2% from Q1 2020 assessed value
of $31.0 million.
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Tankers used for floating storage (excluding dedicated storage) was 180 (28.7 million dwt), down 21.4% from 229 (37.8 million dwt) from the previous quarter and up 176.9% from Q1 2020 levels
of 65 (15.9 million dwt).
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Global oil consumption was 94.8 million bpd, down 0.7% from the previous quarter level of 95.4 million bpd, and down 0.7% from Q1 2020 levels of 95.4 million bpd.
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Global oil production was 92.5 million bpd, up 0.2% from the previous quarter level of 92.4 million bpd and down 7.8% from Q1 2020 levels of 100.3 million bpd.
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OECD commercial inventories were 2,922.7 million barrels, down 3.4% from the previous quarter level of 3,025.8 million barrels, and down 1.4% from Q1 2020 levels of 2,962.8 million barrels.
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Summary of Selected Financial & Other Data
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||||||||
For the three months ended March 31,
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||||||||
2021
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2020
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|||||||
(unaudited)
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(unaudited)
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|||||||
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
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||||||||
Voyage and time charter revenues
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$
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8,397
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$
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13,504
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||||
Voyage expenses
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4,936
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4,308
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||||||
Vessel operating expenses
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2,878
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3,096
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Net income / (loss)
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(2,853
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)
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1,295
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|||||
Net income / (loss) attributable to common stockholders
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(2,853
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)
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2,795
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|||||
Earnings / (Loss) per common share, basic
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(0.57
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)
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0.60
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|||||
Earnings / (Loss) per common share, diluted
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(0.57
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)
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0.58
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FLEET DATA
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||||||||
Average number of vessels
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5.0
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4.7
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||||||
Number of vessels
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5.0
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6.0
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||||||
Ownership days
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450
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430
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||||||
Available days
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450
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430
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||||||
Operating days, including ballast leg (2)
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373
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373
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||||||
Fleet utilization, including ballast leg
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82.9
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%
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86.7
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%
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AVERAGE DAILY RESULTS
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||||||||
Time charter equivalent (TCE) rate (3)
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$
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7,691
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$
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21,386
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Daily vessel operating expenses (4)
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$
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6,396
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$
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7,200
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(1) |
The table above includes data both from our Continuing and Discontinued Operations. Discontinued Operations refer to our container vessels segment that we disposed of in 2020.
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(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.
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(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).
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(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.
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Fleet Employment Profile (As of May 20, 2021)
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Performance Shipping Inc.’s fleet is employed as follows:
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Vessel
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Year of
Built
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Capacity
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Builder
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Gross Rate
(USD Per Day)
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Com 1
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Charterers
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Delivery Date to Charterers
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Redelivery Date to Owners 2
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Aframax Tanker Vessels
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|||||||||
1
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BLUE MOON
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2011
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104,623 DWT
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Sumitomo Heavy Industries Marine &
Engineering Co., LTD.
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$28,000
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5.00%
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Aramco Trading Company,
Saudi Arabia
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19-Jun-20
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19-Nov-21 - 18-Jan-22
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2
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BRIOLETTE
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2011
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104,588 DWT
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Sumitomo Heavy Industries Marine &
Engineering Co., LTD.
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Spot
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-
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-
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-
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- - -
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3
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P. FOS
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2007
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115,577 DWT
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Sasebo Heavy Industries Co. Ltd
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Spot
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-
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-
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-
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- - -
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4
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P. KIKUMA
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2007
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115,915 DWT
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Samsung Heavy Industries Co Ltd.
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Spot
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-
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-
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-
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- - -
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5
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P. YANBU
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2011
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105,391 DWT
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Sumitomo Heavy Industries Marine &
Engineering Co., LTD.
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Spot
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-
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-
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-
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- - -
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(1) Total commission paid to third parties.
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(2) 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.
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PERFORMANCE SHIPPING INC.
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FINANCIAL TABLES
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Expressed in thousands of U.S. Dollars, except for share and per share data
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UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUING AND DISCONTINUED OPERATIONS)
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For the three months ended March 31,
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||||||||
2021
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2020
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|||||||
REVENUES:
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||||||||
Voyage and time charter revenues
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$
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8,397
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$
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13,504
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||||
EXPENSES:
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||||||||
Voyage expenses
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4,936
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4,308
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||||||
Vessel operating expenses
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2,878
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3,096
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||||||
Depreciation and amortization of deferred charges
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1,816
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1,101
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Management fees
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-
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192
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||||||
General and administrative expenses
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1,503
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2,612
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Impairment losses
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-
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339
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||||||
Provision for doubtful receivables
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7
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86
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||||||
Foreign currency losses
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51
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21
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Operating income / (loss)
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$
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(2,794
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)
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$
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1,749
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OTHER INCOME / (EXPENSES):
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||||||||
Interest and finance costs
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(467
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)
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(527
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)
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Interest income
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8
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73
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||||||
Other revenues
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400
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-
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||||||
Total other expenses, net
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$
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(59
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)
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$
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(454
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)
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Net income / (loss)
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$
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(2,853
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)
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$
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1,295
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|||
Gain from repurchase of preferred shares
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-
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1,500
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||||||
Net income / (loss) attributable to common stockholders
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$
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(2,853
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)
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$
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2,795
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|||
Earnings / (Loss) per common share, basic *
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$
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(0.57
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)
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$
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0.60
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|||
Earnings / (Loss) per common share, diluted *
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$
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(0.57
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)
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$
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0.58
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|||
Weighted average number of common shares, *
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5,007,493
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4,696,773
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||||||
Weighted average number of common shares, *
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5,007,493
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4,788,339
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* Comparative figures were adjusted to give effect to the reverse stock split that became effective on November 2, 2020.
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UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)
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||||||||
For the three months ended March 31,
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||||||||
2021
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2020
|
|||||||
Net income / (loss)
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$
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(2,853
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)
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$
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1,295
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|||
Comprehensive income/ (loss)
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$
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(2,853
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)
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$
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1,295
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CONDENSED CONSOLIDATED BALANCE SHEET DATA
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||||||||
(Expressed in thousands of US Dollars)
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||||||||
March 31, 2021
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December 31, 2020**
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|||||||
ASSETS
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(unaudited)
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|||||||
Cash and cash equivalents
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$
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17,764
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$
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21,378
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||||
Vessels, net
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126,320
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128,108
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||||||
Other fixed assets, net
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1,110
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1,135
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||||||
Other assets
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10,800
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7,233
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||||||
Total assets
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$
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155,994
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$
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157,854
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||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Long-term debt, net of unamortized deferred financing costs
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$
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55,725
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$
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57,666
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||||
Other liabilities
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6,245
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3,391
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||||||
Total stockholders' equity
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94,024
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96,797
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||||||
Total liabilities and stockholders' equity
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$
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155,994
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$
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157,854
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* *The balance sheet data as of December 31, 2020 has been derived from the audited consolidated financial statements at that date.
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OTHER FINANCIAL DATA (CONTINUING AND DISCONTINUED OPERATIONS)
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||||||||
For the three months ended March 31,
|
||||||||
2021
|
2020
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Net Cash provided by / (used in) Operating Activities
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$
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(1,383
|
)
|
$
|
7,094
|
|||
Net Cash used in Investing Activities
|
$
|
(253
|
)
|
$
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(41,272
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)
|
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Net Cash provided by / (used in) Financing Activities
|
$
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(1,978
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)
|
$
|
22,007
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DIVIDEND CALCULATIONS
|
||||
(Expressed in thousands of U.S. Dollars)
|
||||
For the three months ended March 31, 2021
|
||||
Voyage and time charter revenues
|
$
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8,397
|
||
Less, Voyage expenses
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$
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(4,936
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)
|
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Less, Vessel operating expenses
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$
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(2,878
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)
|
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Less, General and administrative expenses
|
$
|
(1,423
|
)
|
|
Less, Greater of (I) or (II):
|
||||
Interest and finance costs
|
$
|
(467
|
)
|
|
Plus, Repayment of long-term bank debt
|
$
|
(1,978
|
)
|
|
Total (I)
|
$
|
(2,445
|
)
|
|
Or
|
||||
Replacement reserve (II)
|
$
|
(1,714
|
)
|
|
Less, Maintenance reserve
|
(438
|
)
|
||
Quarterly Cash Flow (A)
|
$
|
(3,723
|
)
|
|
Cash and cash equivalents
|
$
|
17,764
|
||
Less, Minimum Cash Threshold
|
$
|
16,500
|
||
Quarter-End Excess Cash (B)
|
$
|
1,264
|
||
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.
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(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.
|