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].

Core Viewpoint - Performance Shipping Inc. has entered into a forward sale and exclusivity agreement for the conversion of its Aframax tanker, M/T P. Sophia, into a Floating Production Storage and Offloading (FPSO) vessel, contingent on the success of the Buyer in an upcoming auction [1][2][3]. Group 1: Agreement Details - The agreement grants the Buyer exclusive rights to bid for the conversion of M/T P. Sophia, with a gross sale price of US$36,050,000 if awarded by April 5, 2026 [2]. - If the vessel is delivered on or before September 30, 2025, the sale price will increase by US$1,000,000 [2]. - During the exclusivity period, the Company can operate the vessel but cannot sell it to other parties until the auction concludes [2]. Group 2: Company Strategy - The decision to enter into this forward sale is based on the vessel's specifications and suitability for conversion, allowing the Company to generate cash flow while securing a firm sale price [3]. - The Offshore Project is independent of current tanker charter rates and vessel values, indicating a strategic move to leverage specific asset capabilities [3]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in tanker vessel ownership and employing its fleet on spot voyages, pool arrangements, and time charters [4].

Core Viewpoint - Performance Shipping Inc. has successfully sold the M/T P. Yanbu for a gross sale price of US$39 million, marking a significant step in its fleet renewal strategy and expected to generate a gain of approximately US$21.5 million in Q1 2025 [1][2]. Group 1: Transaction Details - The M/T P. Yanbu was acquired in Q4 2020 for US$22 million and was debt-free at the time of sale [2]. - The sale proceeds will increase the company's cash balance to over US$105 million, more than double its year-end debt balance of US$47.7 million [2]. Group 2: Strategic Implications - The sale is part of the company's strategy to modernize its fleet through newbuild programs and selective second-hand vessel acquisitions [2]. - Following this sale and the delivery of three newbuild LR2 Aframax tankers, the fleet's average age will decrease from 14 years to 10 years by January 2026 [2]. Group 3: Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of tanker vessels, and employs its fleet on spot voyages, pool arrangements, and time charters [3].

Core Viewpoint - Performance Shipping Inc. has successfully secured financing for three newbuild LR2 Aframax tankers through a sale and leaseback agreement, which is expected to enhance the company's operational capacity and financial stability [1][2][3]. Financing Details - The total bareboat financing amount is US$45 million, with the vessel being sold and chartered back for an eight-year period at a fixed daily rate of US$6,850 plus a variable rate based on SOFR plus 2.05% per annum [2]. - A balloon payment of approximately US$25 million is due with the last installment, and the company has options to repurchase the vessel at predetermined rates after the second anniversary of the charter [2]. Newbuilding Vessels - The three newbuilding LR2 Aframax tankers, each with a deadweight tonnage of approximately 114,000 dwt, are expected to be delivered between August 2025 and January 2026 [1]. - The aggregate bareboat financing of US$134.6 million covers about 70% of the total shipbuilding contract cost of US$192.9 million, addressing nearly all remaining installments due to the shipyard [3]. Charter Agreements - The newbuild tankers have been chartered to Clearlake Shipping Pte Ltd. for five years at a rate of US$31,000 per day, with options for extension and profit sharing [3]. - The estimated daily cash flow breakeven rate, including lease payments, is about US$25,000 per tanker, which is significantly lower than the secured charter rate [3]. Fleet Renewal Strategy - The company aims to gradually renew its fleet, reducing the average age from 14 years to 10 years upon the delivery of the newbuild tankers [3].

Core Insights - Performance Shipping Inc. reported a net income of $9.7 million for Q4 2024, a decrease from $25.0 million in Q4 2023, with earnings per share of $0.74 and $0.25 for basic and diluted shares respectively [1][3][14] - The company's total revenue for Q4 2024 was $21.7 million, down from $23.8 million in the same quarter of 2023, primarily due to reduced ownership days and lower time-charter equivalent rates [2][5] - For the full year 2024, net income was $43.7 million compared to $69.4 million in 2023, with earnings per share of $3.39 and $1.11 for basic and diluted shares respectively [3][14] Financial Performance - Revenue for Q4 2024 was $21.7 million, down from $23.8 million in Q4 2023, with net cash provided by operating activities increasing to $12.1 million from $9.3 million year-over-year [2][14] - The average time-charter equivalent (TCE) rate for Q4 2024 was $32,652, a slight decrease from $33,114 in Q4 2023 [2][14] - The company experienced a decrease in fleet operating days from 2,793 in 2023 to 2,506 in 2024 due to the sale of a vessel [5][14] Market Outlook - The tanker market showed resilience with average daily charter rates for Aframax tankers at $38,746 in Q4 2024, although this was significantly lower than $61,277 in Q4 2023 [6][10] - Global oil consumption increased to 103.4 million barrels per day (bpd), up 0.4% from the previous quarter and 1.0% from Q4 2023 [10] - The tanker fleet supply is projected to grow by 2.3% in 2025, with tanker fleet utilization expected to improve slightly to 85.3% [10][12] Corporate Developments - The company maintains a robust financial position with a cash balance of approximately $71.3 million, representing 1.5 times its outstanding bank debt [8][27] - Performance Shipping has a revenue backlog of $227.0 million, supported by strategic long-term partnerships [8] - The company is cautious about redeploying its vessels and is actively managing its fleet to optimize earnings [7][8]

Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels [3] - The company employs its fleet on spot voyages, through pool arrangements, and on time charters [3] Charter Agreement - The company announced the extension of a time charter contract with ST Shipping & Transport Pte Ltd. for the M/T P. Monterey, a 2011-built Aframax tanker [1] - The gross charter rate is set at US$28,000 per day for a period of twelve months, with a +/- 30 days option for the Charterer [1] - This charter is expected to generate approximately US$9.38 million in gross revenue for the minimum duration of the charter [1] Revenue Backlog - The new charter increases the company's secured revenue backlog to approximately US$62 million [2] - When including the five-year contracts for three Aframax LR2 newbuildings, the total backlog rises to US$232 million [2] Fleet Deployment - The company's fleet currently consists of six vessels operating under time charter arrangements and one vessel trading in the spot market through pool participation [2] - The company anticipates the redelivery of two more vessels from their period charters in the coming months, indicating a positive outlook for fleet utilization [2]

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]. Charter Agreement - The company has entered into a time charter contract with American Eagle Tankers for the 2011-built, 104,623 dwt Aframax tanker vessel, M/T Blue Moon, at a gross charter rate of US$28,000 per day for a period of twenty-one months, with a potential +/- 15 days option for the Charterer [1]. - This charter is expected to generate approximately US$17.4 million of gross revenue for the minimum duration of the charter [1]. Revenue Backlog - Following this charter agreement, the company's secured revenue backlog stands at approximately US$59.4 million based on the minimum duration of each charter for operating vessels, and US$169.8 million for three new buildings [2]. Strategic Positioning - The CEO of the company expressed confidence in the collaboration with AET, highlighting the importance of this charter in navigating a volatile market and reinforcing the company's commitment to long-term value creation [2].

Core Insights - Performance Shipping Inc. has released its 2023 Sustainability Report, focusing on Environmental, Social, and Governance (ESG) issues to enhance transparency and accountability [1] - The report is aligned with the Global Reporting Initiative Universal Standards 2021, detailing the company's commitments to corporate governance and sustainable operations [1] Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of tanker vessels [3] - The company operates its fleet through spot voyages, pool arrangements, and time charters [3]