PERFORMANCE SHIPPING INC.
(Registrant)
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Dated: February 27, 2023
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/s/ Andreas Michalopoulos
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By: Andreas Michalopoulos
Chief Executive Officer
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Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com
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Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: + 30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com
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Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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• |
Tanker fleet supply was 675.3 million dwt, up 0.7% from 670.8 million dwt from the previous quarter and up 3.5% from Q4 2021 levels of 652.6 million dwt.
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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.
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Tanker fleet supply in deadweight terms is estimated to grow by a moderate 1.4% in 2023.
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Crude oil tanker fleet utilization was estimated at 80.0%, up from 79.5% in the previous quarter and up from 79.0% in Q4 2021.
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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.
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Daily spot charter rates for Aframax tankers averaged $90,991, up 73.0% from the previous quarter average of $52,610 and up 720.3% from the Q4 2021 average of $11,093.
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The value of a 10-year-old Aframax tanker at the end of the fourth quarter was $45.0 million, up 7.1% from $42.0 million in the previous quarter, and up 66.7% from $27.0 million in Q4 2021.
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The number of tankers used for floating storage (excluding dedicated storage) was 148 (23.6 million dwt), down 17.8% from 180 (26.1 million dwt) in the previous quarter and down 15.4% from Q4 2021 levels of 175 (27.4 million
dwt).
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Global oil consumption was 99.7 million bpd, down 0.7% from the previous quarter level of 100.4 million bpd, and up 0.4% from Q4 2021 levels of 99.3 million bpd.
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Global oil production was 101.4 million bpd, up 0.6% from the previous quarter level of 100.8 million bpd and up 3.1% from Q4 2021 levels of 98.3 million bpd.
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OECD commercial inventories were 2,782.7 million barrels, up 1.7% from the previous quarter level of 2,735.2 million barrels, and up 5.4% from Q4 2021 levels of 2,640.2 million barrels.
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Summary of Selected Financial & Other Data (Continuing and Discontinued Operations1 )
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For the three months ended December 31,
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For the years ended December 31,
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2022
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2021
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2022
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2021
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(unaudited)
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(unaudited)
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(unaudited)
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STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
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Revenue
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$
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27,767
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$
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9,647
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$
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75,173
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$
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36,491
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Voyage expenses
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2,838
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4,152
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14,861
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19,205
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Vessel operating expenses
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4,241
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3,738
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13,828
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12,301
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Net income / (loss)
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23,837
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(2,050)
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36,300
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(9,706)
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Net income / (loss) attributable to common stockholders
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9,412
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(2,050)
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12,003
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(9,706)
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Earnings / (Loss) per common share, basic
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2.31
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(6.11)
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6.49
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(28.97)
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Earnings / (Loss) per common share, diluted
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1.18
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(6.11)
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3.02
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(28.97)
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FLEET DATA
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Average number of vessels
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6.7
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5.0
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5.7
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5.0
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Number of vessels
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8.0
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5.0
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8.0
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5.0
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Ownership days
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616
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460
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2,069
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1,825
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Available days
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616
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411
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2,039
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1,735
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Operating days (2)
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590
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363
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1,974
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1,484
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Fleet utilization
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95.8%
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88.3%
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96.8%
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85.5%
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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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40,469
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$
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13,370
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$
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29,579
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$
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9,963
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Daily vessel operating expenses (4)
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$
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6,885
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$
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8,126
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$
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6,683
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$
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6,740
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(1) |
Discontinued Operations refer to our container vessels segment that we disposed of in 2020.
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(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.
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(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).
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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 February 23, 2023)
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Performance Shipping Inc.’s fleet is employed as follows:
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Vessel
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Year of Build
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Capacity
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Builder
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Vessel Type
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Charter Type
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Notes
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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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Crude
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Time-Charter
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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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Crude
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Time-Charter
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3
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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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Crude
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Pool
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4
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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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Crude
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Time-Charter
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5
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P. SOPHIA
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2009
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105,071 DWT
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Hyundai Heavy Industries Co., LTD
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Crude
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Pool
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6
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P. ALIKI
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2010
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105,304 DWT
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Hyundai Heavy Industries Co., LTD
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Product
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Time-Charter
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7
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P. MONTEREY
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2011
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105,525 DWT
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Hyundai Heavy Industries Co., LTD
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Crude
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Time-Charter
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8
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P. LONG BEACH
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2013
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105,408 DWT
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Hyundai Heavy Industries Co., LTD
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Product
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Pool
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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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CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUING AND DISCONTINUED OPERATIONS)
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For the three months ended December 31,
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For the years ended December 31,
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2022
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2021
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2022
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2021
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REVENUE:
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(unaudited)
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(unaudited)
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(unaudited)
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Revenue
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$
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27,767
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$
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9,647
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$
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75,173
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$
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36,491
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EXPENSES:
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Voyage expenses
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2,838
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4,152
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14,861
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19,205
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Vessel operating expenses
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4,241
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3,738
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13,828
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12,301
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Depreciation and amortization of deferred charges
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2,715
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1,912
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9,281
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7,472
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General and administrative expenses
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2,046
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1,468
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6,751
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5,782
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Gain on vessels' sale
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(9,543)
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-
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(9,543)
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-
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Provision for credit losses and write offs
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15
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175
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33
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160
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Foreign currency losses / (gains)
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31
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(48)
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(20)
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31
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Operating income / (loss)
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$
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25,424
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$
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(1,750)
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$
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39,982
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$
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(8,460)
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OTHER INCOME / (EXPENSES):
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Interest and finance costs
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(1,758)
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(439)
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(3,966)
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(1,801)
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Interest income
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171
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2
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284
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18
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Gain from property sale
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-
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137
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-
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137
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Other income
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-
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-
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-
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400
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Total other expenses, net
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$
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(1,587)
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$
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(300)
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$
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(3,682)
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$
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(1,246)
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Net income / (loss)
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$
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23,837
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$
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(2,050)
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$
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36,300
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$
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(9,706)
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Income allocated to participating securities
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(2)
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-
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(6)
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-
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Deemed dividends
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(13,968)
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-
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(23,261)
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-
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Dividends on preferred stock
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(455)
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-
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(1,030)
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-
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Net income / (loss) attributable to common stockholders
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$
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9,412
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$
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(2,050)
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12,003
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(9,706)
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Earnings/ (Loss) per common share, basic
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$
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2.31
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$
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(6.11)
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$
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6.49
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$
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(28.97)
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Earnings / (Loss) per common share, diluted
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$
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1.18
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$
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(6.11)
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$
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3.02
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$
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(28.97)
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Weighted average number of common shares, basic
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4,065,977
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335,513
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1,850,072
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335,086
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Weighted average number of common shares, diluted
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13,385,425
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335,513
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6,447,710
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335,086
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (CONTINUING AND DISCONTINUED OPERATIONS)
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For the three months ended December 31,
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For the years ended December 31,
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||||||||
2022
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2021
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2022
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2021
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||||||
(unaudited)
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(unaudited)
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(unaudited)
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|||||||
Net income / (loss)
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$
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23,837
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$
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(2,050)
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$
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36,300
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$
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(9,706)
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Other comprehensive income/ (loss) (Actuarial gain/ (loss))
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68
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(10)
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68
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(10)
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Comprehensive income / (loss)
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$
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23,905
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$
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(2,060)
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$
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36,368
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$
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(9,716)
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CONDENSED CONSOLIDATED BALANCE SHEET DATA
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(Expressed in thousands of US Dollars)
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December 31, 2022
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December 31, 2021*
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ASSETS
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(unaudited)
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Cash, cash equivalents and restricted cash
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$
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39,726
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$
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9,574
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Vessels, net
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236,607
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123,036
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Other fixed assets, net
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72
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151
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Other assets
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16,574
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12,163
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Total assets
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$
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292,979
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$
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144,924
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Long-term bank debt, net of unamortized deferred financing costs
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$
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127,675
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$
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49,898
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Other liabilities
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9,599
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7,677
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Total stockholders' equity
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155,705
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87,349
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Total liabilities and stockholders' equity
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$
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292,979
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$
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144,924
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* The balance sheet data as of December 31, 2021 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 December 31,
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For the years ended December 31,
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||||||||
2022
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2021
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2022
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2021
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||||||
(unaudited)
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(unaudited)
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(unaudited)
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|||||||
Net Cash provided by / (used in) Operating Activities
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$
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23,680
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$
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(1,790)
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$
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33,847
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$
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(3,123)
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Net Cash provided by / (used in) Investing Activities
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$
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(78,121)
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$
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1,070
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$
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(112,950)
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$
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(770)
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Net Cash provided by / (used in) Financing Activities
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$
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58,705
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$
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(1,978)
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$
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109,255
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$
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(7,911)
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