Core Viewpoint - Performance Shipping Inc. has successfully named and delivered its first LR2 Aframax newbuilding, M/T P. Massport, marking the beginning of a series of new tanker deliveries as part of its fleet expansion strategy [1][3]. Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels, employing its fleet on spot voyages, pool arrangements, and time charters [4]. Vessel Details - The M/T P. Massport is a 114,000 DWT LNG-ready Tier III product/crude oil tanker, the first of three LNG-ready, scrubber-fitted LR2 Aframax tankers ordered by the company, with deliveries scheduled between Q3 2025 and early 2026 [2]. - The vessel has commenced operations under a five-year time charter contract with Clearlake Shipping Pte Ltd at a gross rate of US$31,000 per day, with options for a sixth and seventh year at a base rate plus profit-sharing [3]. Future Plans - The company plans to add two further sister LR2 Aframax vessels by early 2026 and an LR1 tanker in early 2027, which will form a core part of its strategic fleet expansion and renewal plan [3].

Core Insights - Performance Shipping Inc. reported a net income of $9.1 million for Q2 2025, a decrease from $10.2 million in Q2 2024, with earnings per share of $0.69 and $0.23 for basic and diluted shares respectively [1][14] - Revenue for Q2 2025 was $18.1 million, down from $20.5 million in Q2 2024, primarily due to reduced ownership days following the sale of a vessel [2][12] - The average time-charter equivalent (TCE) rate increased to $32,295 per day in Q2 2025 from $30,970 in Q2 2024, despite operating a smaller fleet [2][5] Financial Performance - For the six months ended June 30, 2025, net income was $38.5 million, compared to $21.6 million for the same period in 2024, with earnings per share of $3.02 and $1.00 for basic and diluted shares respectively [3][14] - Net cash provided by operating activities was $11.3 million in Q2 2025, down from $14.4 million in Q2 2024 [2][28] - The company had a cash position of approximately $192 million at the end of the quarter, bolstered by a $100 million bond offering [7] Market Conditions - The tanker market remained firm in Q2 2025, supported by steady ton-mile demand and increased volatility due to geopolitical tensions [4] - The average Aframax tanker charter rate was $42,765 per day in Q2 2025, reflecting a 16% year-over-year decline from $51,140 in Q2 2024 [5][10] - Global oil consumption rose to 103.2 million barrels per day, up 1.0% from the previous quarter, while global oil production decreased to 104.5 million barrels per day, down 1.1% from the previous quarter [13] Fleet and Operational Strategy - The company is focused on fleet renewal and expansion, aiming to acquire a younger and more environmentally sustainable fleet through newbuilding and selective acquisitions [6] - As of July 29, 2025, the company had 12,432,158 common shares outstanding, along with various warrants for common shares [8][9] - The fleet utilization rate was reported at 100% for Q2 2025, indicating efficient deployment of available vessels [14]

Core Viewpoint - Performance Shipping Inc. has successfully signed an agreement for refinancing its existing loan facility with Alpha Bank S.A., which involves a total outstanding loan balance of US$29,750,000 secured by two tanker vessels [1][2]. Group 1: Loan Refinancing Details - The refinancing facility will bear interest at the rate of SOFR plus 1.90% per annum [2]. - The repayment structure consists of twenty consecutive quarterly installments of US$1,050,000 each, culminating in a balloon payment of US$8,750,000 due in mid-2030 [2]. Group 2: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, primarily through the ownership of tanker vessels [3]. - The company utilizes its fleet for spot voyages, pool arrangements, and time charters [3].

Core Viewpoint - Performance Shipping Inc. has successfully placed USD 100 million of bonds in the Nordic bond market, with plans for listing on the Oslo Stock Exchange, maturing in July 2029, and a fixed coupon of 9.875% per annum [1] Group 1: Bond Offering Details - The bonds are priced at 97% of par and will pay interest semi-annually in arrears [1] - The bonds are secured by first priority mortgages over the Company's two oldest tanker vessels, which are currently unencumbered [1] - The offering is expected to close on July 17, 2025, subject to customary closing conditions [1] Group 2: Use of Proceeds - The net proceeds from the bond issue will be utilized for tanker acquisitions or bond repurchases [2] Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels, employing its fleet on spot voyages, pool arrangements, and time charters [4]

Core Viewpoint - Performance Shipping Inc. has announced a refinancing agreement for an existing loan of US$29,750,000 with Alpha Bank A.E., which will improve the company's financial position and reduce financing costs [1][2]. Group 1: Refinancing Details - The refinancing will be executed through two wholly-owned subsidiaries of the company and is subject to customary closing conditions [1]. - Proceeds from the refinancing will fully cover the existing debt with Alpha Bank, secured by the vessels M/T P. Long Beach and M/T P. Aliki [1]. - The new facility will have an interest rate of SOFR plus 1.90% per annum [1]. Group 2: Repayment Structure - The facility will be repaid in twenty quarterly installments of US$1,050,000 each, with a balloon payment of US$8,750,000 due in mid-2030 [2]. - The average payable margins will decrease by 23% compared to existing loan agreements, while the amortization profile remains unchanged [2]. - The extension of loan maturities by over two and a half years means no substantial debt maturities are scheduled before mid-2030 [2]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of tanker vessels [3]. - The company employs its fleet on spot voyages, through pool arrangements, and on time charters [3].

Core Viewpoint - Performance Shipping Inc. has entered into a long-term time charter contract with Mercuria Energy Trading S.A. for a new LR1 tanker, enhancing revenue visibility and stability for the company [1][2][3]. Group 1: Charter Agreement Details - The vessel will be chartered for a firm period of four years at a daily gross charter rate of US$23,750, with options for three additional one-year extensions [2]. - The daily rate will increase by US$850 for the first two optional years and by US$1,200 for the third optional year, contingent on mutual agreement for the third year [2]. Group 2: Financial Implications - The long-term charter is expected to generate stable earnings above the vessel's free cash flow breakeven level, increasing revenue visibility into 2027 and beyond [3]. - The secured revenue backlog for the company increases by approximately US$35 million, totaling about US$255 million based on the minimum duration of each charter [3]. - The contract enhances fixed charter coverage, reducing the cash flow breakeven rate required on open days, thereby strengthening the company's financial stability in a volatile market [3]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of tanker vessels and employing its fleet on spot voyages, pool arrangements, and time charters [4].

Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels, employing its fleet on spot voyages, pool arrangements, and time charters [3] Bond Issuance - The company plans to arrange a series of fixed income investor calls starting on June 6, 2025, with a potential five-year USD denominated senior unsecured bond issue to follow, subject to market conditions [1] - The net proceeds from the contemplated bond issue will be used for fleet expansion, renewal, and general corporate purposes [1] Regulatory Compliance - The senior unsecured bonds, if issued, will be offered only to qualified institutional buyers in the United States under Rule 144A and to non-U.S. persons outside the United States under Regulation S [2] - The bonds will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption [2]

Financial Performance - Performance Shipping Inc. reported a net income of $29.4 million for Q1 2025, a significant increase from $11.4 million in Q1 2024, representing a 164% year-over-year growth in net income attributable to common stockholders [1][6] - Earnings per share for Q1 2025 were $2.33 (basic) and $0.76 (diluted), compared to $0.89 (basic) and $0.29 (diluted) in Q1 2024 [14] Revenue and Expenses - Revenue for Q1 2025 was $21.3 million, down from $22.4 million in Q1 2024, primarily due to a decrease in ownership days following the sale of the vessel P. Yanbu and lower time-charter equivalent (TCE) rates [2][4] - The average TCE rate for Q1 2025 was $30,843 per day, down from $33,857 in Q1 2024 [14] Market Conditions - The average Aframax tanker charter rate in Q1 2025 was $31,931 per day, significantly lower than $56,338 in the same period last year, indicating a softening in crude oil tanker charter rates [5][12] - Despite the decline in charter rates, the Aframax tanker market remains resilient, supported by solid market fundamentals, with spot rates averaging approximately $40,700 per day [5] Fleet Management - The company completed the sale of the Aframax tanker M/T P. Yanbu for a gross sale price of $39 million, resulting in a gain of $19.5 million [6] - The company maintains a robust financial position with a cash balance of approximately $108.3 million, which is 2.4 times its outstanding bank debt, and a revenue backlog of $220 million [7] Fleet Data - As of May 26, 2025, the company had 12,432,158 common shares outstanding and various warrants for common shares [8][9] - The fleet utilization rate was 97.6% in Q1 2025, slightly down from 98.0% in Q1 2024 [14] Industry Outlook - The tanker fleet supply is projected to grow by 2.1% in 2025, with a constrained fleet supply due to a shrinking pool of environmentally compliant vessels [12] - Global oil consumption was 103.2 million barrels per day in Q1 2025, showing a slight increase from 101.7 million barrels per day in Q1 2024 [12]

Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services specializing in the ownership of tanker vessels [2] - The company employs its fleet on spot voyages, through pool arrangements, and on time charters [2] Financial Reporting - The company has filed its 2024 Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - The Annual Report includes the company's audited consolidated financial statements and is accessible through the SEC's website and the company's website [1]

Financial Performance - For the year ended December 31, 2024, the company reported revenue of $87.445 million, a decrease of 19.7% from $108.938 million in 2023[411]. - Revenue for 2024 decreased to $87.5 million from $108.9 million in 2023, a decline of 19.7%[451]. - Net income for 2024 was $43.7 million, down 37.0% from $69.4 million in 2023, primarily due to reduced ownership days after the sale of the vessel P. Kikuma[450]. - Daily operating expenses increased to $7,712 in 2024, up 2.3% from $7,537 in 2023[411]. - Vessel operating expenses decreased to $19.8 million in 2024 from $21.9 million in 2023, a reduction of 9.6%[453]. - Net cash provided by operating activities in 2024 was $59.9 million, down from $68.0 million in 2023[467]. - Cash and cash equivalents increased to $71.3 million in 2024 from $68.3 million in 2023[466]. Fleet and Operational Metrics - Fleet utilization improved to 99.2% in 2024, compared to 98.7% in 2023[411]. - Ownership days decreased to 2,562 in 2024 from 2,901 in 2023, indicating a reduction in fleet size or operational capacity[411]. - Available days also decreased to 2,525 in 2024 from 2,830 in 2023, reflecting less operational availability of the fleet[411]. - Operating days fell to 2,506 in 2024, down from 2,793 in 2023, indicating reduced revenue-generating days[411]. Debt and Financing - The company’s aggregate outstanding debt as of December 31, 2024, was $47.7 million[421]. - As of December 31, 2023, the company had $55.2 million of long-term debt outstanding under bank loan facilities[475]. - The company refinanced the Nordea Facility on August 7, 2023, with an outstanding balance of $17.9 million, entering into a Revolving Credit Facility of up to $20.0 million[482]. - As of December 31, 2024, the outstanding balance on the Nordea RCF was $15.8 million[483]. - The company completed a voluntary prepayment of approximately $44.6 million of existing loans with Piraeus Bank on December 18, 2023, resulting in no outstanding amounts under Piraeus Bank loans[490]. - The company has financial covenants requiring maintenance of minimum cash liquidity of $10.0 million as of December 31, 2024[500]. Market Conditions and Expectations - The ongoing war in Ukraine has caused volatility in the tanker market, but the company's contracts have not yet been adversely affected[509]. - Global crude oil demand increased by 0.8% in 2024 and is projected to rise by 1.0% in 2025, reaching 104.1 million barrels per day[505]. - Seaborne crude oil trade is expected to grow by 1.6% in 2025, driven by a recovery in OPEC+ oil production, reaching 39.7 million barrels per day[505]. - Crude tanker dwt demand is projected to grow by 1.3% in 2025, while the crude tanker fleet is expected to grow marginally by 0.8%[506]. Asset Valuation and Impairment - The company has not recorded any impairment charges for its vessels in 2024, 2023, and 2022, despite market value volatility[429]. - As of December 31, 2024, the aggregate carrying value of all vessels exceeded their aggregate charter-free market values by approximately $88.5 million[430]. - The total carrying value of vessels decreased from $203.9 million as of December 31, 2023, to $192.0 million as of December 31, 2024, representing a reduction of approximately 5.9%[435]. - The carrying values of individual vessels were all above their charter-free market values as of the reporting dates[430][431]. - The company assessed no indications for potential impairment of any vessels for the years 2024, 2023, and 2022[448]. Future Plans and Capital Expenditures - The company expects general and administrative expenses to remain stable in 2025, although inflation may lead to increases[419]. - The company expects to draw down approximately $134.6 million under sale and leaseback agreements in the upcoming 12 months[465]. - The company entered into a shipbuilding contract for a product/crude oil tanker with a gross contract price of $63.3 million, expecting delivery in Q3 2025[499]. - The company entered into two shipbuilding contracts for two 114,000 DWT LNG-ready LR2 Aframax tankers at a gross purchase price of $64.8 million per vessel, with delivery expected in Q3 2025 and Q1 2026[501]. - A contract was signed for a scrubber fitted 75,000 DWT LR1 chemical/product oil tanker at a gross price of $56.5 million, with delivery expected in Q1 2027[502]. - The company expects to incur additional capital expenditures for vessel surveys, which may reduce operating days and increase cash flow needs[503]. Other Financial Metrics - Interest and finance costs significantly dropped to $1.4 million in 2024 from $9.6 million in 2023, an 85.4% decrease, due to lower average debt and interest rates[458]. - General and administrative expenses rose to $8.3 million in 2024 from $8.0 million in 2023, attributed to increased legal costs[455]. - Approximately 60% of general and administrative expenses were incurred in currencies other than the U.S. dollar in 2024, primarily in Euros[636].