Core Viewpoint - Performance Shipping Inc. has secured a new two-year time charter contract with Aramco Trading Fujairah FZE for the M/T Briolette, which is expected to generate approximately US$28.7 million in gross revenue over the minimum duration of the charter [1][2]. Company Overview - Performance Shipping Inc. is a global provider of shipping transportation services specializing in tanker vessels, employing its fleet on spot voyages, pool arrangements, and time charters [3]. Charter Contract Details - The new charter contract commenced on June 2, 2024, and has a gross charter rate of US$41,000 per day, which is US$8,500 higher than the previous contract [1][2]. - This contract represents the third agreement with Aramco, highlighting the company's commitment to quality and reliability in seaborne transportation services [2]. - The company now has a contract backlog of US$228.1 million, which includes three five-year contracts for its Aframax LR2 newbuildings [2]. Fleet and Market Position - Out of the company's seven operating vessels, two are trading in the spot market, while five are on time charters, with one expiring by the end of August and two in the last quarter of 2024 [2]. - If current market conditions persist, the company anticipates securing higher rates for vessels with expiring charters in 2024 [2].

Core Viewpoint - Performance Shipping Inc. has secured a new two-year time charter contract with Aramco Trading Fujairah FZE for the M/T Briolette, which is expected to generate approximately US$28.7 million in gross revenue over its minimum duration [1][2]. Group 1: Contract Details - The new charter commenced on June 2, 2024, and has a gross charter rate of US$41,000 per day, which is US$8,500 higher than the previous contract [1][2]. - This contract represents the third agreement between the company and Aramco, highlighting the reliability of the company's services [2]. Group 2: Financial Outlook - The company now has a contract backlog of US$228.1 million, which includes three five-year contracts for its Aframax LR2 newbuildings [2]. - The company anticipates that if current market conditions persist, it will be able to secure higher rates for vessels with charters expiring in 2024 [2]. Group 3: Company Overview - Performance Shipping Inc. specializes in the ownership of tanker vessels and provides shipping transportation services through spot voyages, pool arrangements, and time charters [3].

ATHENS, Greece, May 30, 2024 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, today reported net income of $11.4 million and net income attributable to common stockholders of $11.0 million for the first quarter of 2024. The 2024 first quarter results compared to a net income of $15.7 million and net income attributable to common stockholders of $4.6 million for the same period in 2023. Earnings pe ...

ATHENS, Greece, May 30, 2024 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, today reported net income of $11.4 million and net income attributable to common stockholders of $11.0 million for the first quarter of 2024. The 2024 first quarter results compared to a net income of $15.7 million and net income attributable to common stockholders of $4.6 million for the same period in 2023. Earnings pe ...

Financial Performance - For the year ended December 31, 2023, the company reported revenue of $108.938 million, a significant increase from $75.173 million in 2022, representing a growth of 45.3%[356]. - Revenue for 2023 amounted to $108.9 million, a 44.8% increase from $75.2 million in 2022, driven by higher average time charter equivalent rates and increased fleet utilization[389]. - Net income from continuing operations for 2023 was $69.4 million, up 91.2% from $36.3 million in 2022, attributed to fleet size increase and improved vessel utilization[388]. Operational Efficiency - The Time Charter Equivalent (TCE) rate for 2023 was $36,954, up 24.9% from $29,579 in 2022, indicating improved daily earnings from vessels[356]. - Fleet utilization improved to 98.7% in 2023, compared to 96.8% in 2022, reflecting enhanced efficiency in vessel employment[356]. - Daily operating expenses increased to $7,537 in 2023 from $6,683 in 2022, marking a rise of 12.8%[356]. - Ownership days increased to 2,901 in 2023, up from 2,069 in 2022, indicating fleet expansion and increased operational capacity[356]. - Voyage expenses decreased significantly to $4.4 million in 2023 from $14.9 million in 2022, primarily due to vessels operating under time charter agreements[390]. Cost Management - The company incurred total voyage expenses of $4.358 million in 2023, a decrease from $14.861 million in 2022, suggesting improved cost management[356]. - Vessel operating expenses increased to $21.9 million in 2023 from $13.8 million in 2022, with daily operating expenses rising to $7,537 from $6,683[391]. - Interest and finance costs increased to $9.6 million in 2023 from $4.0 million in 2022, driven by higher loan interest rates averaging 7.60% compared to 4.85% in 2022[395]. Asset Valuation - The company has not recorded any impairment charges for its vessels in 2023, 2022, and 2021, indicating stable asset valuations[370]. - The company has determined that there were no indications of potential impairment for any of its vessels for the years 2023 and 2022[385]. - The total carrying value of all vessels was $203.9 million as of December 31, 2023, down from $238.2 million in 2022[373]. - As of December 31, 2023, the aggregate carrying value of all vessels exceeded their aggregate charter-free market values by approximately $98.7 million, compared to $119.9 million as of December 31, 2022[371]. Financing and Debt - As of December 31, 2023, the company's aggregate outstanding debt was $55.2 million, which may impact future financing costs[364]. - The company was in compliance with all loan covenants as of December 31, 2023[431]. - The company entered into a shipbuilding contract for a product/crude oil tanker with a gross contract price of $63.3 million, expected delivery by the end of October 2025[433]. - Two additional shipbuilding contracts were signed for two LNG-ready LR2 Aframax product/crude oil tankers at a gross purchase price of $64.8 million each, with expected deliveries in January and April 2026[434]. Market Conditions - Global crude oil demand increased by 2.3% in 2023 and is projected to rise by 1.5% in 2024, reaching 102.8 million barrels per day[437]. - Crude Aframax dwt demand is projected to increase by 2.3% in 2024, supported by recovering crude oil demand from China and other developing regions in Asia[438]. - The ongoing war in Ukraine has caused volatility in the tanker market, but as of December 31, 2023, the company's financial results have not been adversely affected[442]. Currency and Inflation Impact - Approximately 46% of general and administrative expenses and 15% of operating expenses were incurred in currencies other than the U.S. dollar in 2023, primarily in Euros[569]. - The company has not engaged in derivative instruments to hedge currency fluctuations, as Euro expenses represented 6% of revenues in both 2023 and 2022[570]. - Elevated inflation and interest rate increases are impacting the company's operating expenses due to global price pressures[444]. - The company expects tighter monetary policy and potentially higher long-term interest rates to drive a higher cost of capital[444].

Financial Performance - Net income for Q4 2023 was $25.0 million, an increase from $23.8 million in Q4 2022, with net income attributable to common stockholders rising to $24.5 million from $9.4 million[1][3] - For the full year 2023, net income attributable to common stockholders was $56.9 million, a 374% increase from $12.0 million in 2022, with earnings per share rising to $5.43 from $1.91[3][20] - Total revenue for the year 2023 reached $108.94 million, up 45% from $75.17 million in 2022[30] - Revenue for Q4 2023 was $23.8 million, down from $27.8 million in Q4 2022, primarily due to decreased time-charter equivalent rates, with average TCE rates at $33,114 compared to $40,469 in the previous year[2][20] - Revenue for Q4 2023 was $23.84 million, a decrease of 14% from $27.77 million in Q4 2022[30] - Operating income for Q4 2023 was $26.21 million, compared to $25.42 million in Q4 2022, reflecting a 3% increase[30] - Net income for Q4 2023 was $24.96 million, slightly up from $23.84 million in Q4 2022[32] - The company reported a comprehensive income of $24.95 million for Q4 2023, up from $23.91 million in Q4 2022[32] Cash and Debt Management - The company reported a cash balance of approximately $68.3 million at the end of 2023, reflecting a 72% increase from the previous year[4] - Cash and cash equivalents increased to $68.27 million as of December 31, 2023, from $39.73 million a year earlier[33] - Long-term bank debt decreased significantly to $54.89 million from $127.68 million in the previous year[33] - Net cash provided by operating activities for the year 2023 was $67.96 million, compared to $33.85 million in 2022, indicating a 100% increase[34] Fleet and Revenue Generation - The fleet's average TCE rate for the full year 2023 was $36,954, up from $29,579 in 2022, indicating improved revenue generation capabilities[20] - Daily spot charter rates for Aframax tankers averaged $61,277 in Q4 2023, a 123.6% increase from the previous quarter[15] - The company has a fixed revenue backlog of approximately $52.7 million from five Aframax tankers under short- and medium-term time charter contracts as of early 2024[6] - The company plans to continue leveraging its fleet for spot voyages and time charters to optimize revenue generation[24] Future Outlook - The tanker market is projected to see a 5.0% increase in demand in billion ton-miles for 2024, supported by growth in global crude oil trade volumes[13] - The company entered into shipbuilding contracts for three LNG-ready, scrubber-fitted LR2 Aframax tankers, expected to be delivered between late 2025 and early 2026[7] Shareholder Actions - The company repurchased 293,767 shares for approximately $0.7 million under a $2 million share buyback program approved in August 2023[5][8] - The weighted average number of common shares outstanding increased to 12,095,795 in Q4 2023 from 4,065,977 in Q4 2022[30]

Financial Performance - For Q3 2023, Performance Shipping reported a net income of $10.4 million, a slight decrease from $10.7 million in Q3 2022, with net income attributable to common stockholders at $9.9 million compared to $10.4 million in the same period last year[1][2] - Revenue for Q3 2023 was $24.1 million, up from $22.1 million in Q3 2022, driven by an increase in ownership days despite a decrease in time-charter equivalent (TCE) rates, which averaged $31,787 compared to $34,411 in Q3 2022[2][4] - For the nine months ended September 30, 2023, net income reached $44.5 million, a significant increase from $12.5 million in the same period of 2022, with earnings per share of $3.26 compared to $2.35 in 2022[3][21] - Operating income for the nine months ended September 30, 2023, was $49.325 million, compared to $14.560 million for the same period in 2022[34] - Earnings per common share, basic, for Q3 2023 was $0.88, down from $3.83 in Q3 2022[34] Cash and Assets - The company achieved a cash balance of approximately $85.4 million at the end of Q3 2023, representing a 115% increase from the end of 2022[4] - Cash and cash equivalents increased to $85.396 million from $39.726 million as of December 31, 2022[36] - Total assets as of September 30, 2023, were $332.038 million, up from $292.979 million as of December 31, 2022[36] - Total stockholders' equity increased to $209.367 million as of September 30, 2023, from $155.705 million as of December 31, 2022[36] Revenue Backlog and Contracts - A fixed revenue backlog of approximately $39 million is expected starting Q4 2023, as five Aframax tankers are under time charter contracts[7] - The company has entered into a contract for a newbuild LNG-ready LR2 Aframax tanker with a delivery date in 2025 and plans to sell its oldest Aframax tanker for $39.3 million[8] Market Conditions - Daily spot charter rates for Aframax tankers averaged $27,409 in Q3 2023, down 54.2% from the previous quarter and down 47.9% from Q3 2022[16] - Global oil consumption was 101.4 million bpd in Q3 2023, up 0.7% from the previous quarter and up 1.4% from Q3 2022[17] - The company anticipates future market conditions to be influenced by global economic factors and changes in the tanker shipping industry[31] Share Repurchase - The company completed a $2 million share repurchase program in Q3 2023 and has initiated a second $2 million share repurchase program[6][10] Other Transactions - The company sold the vessel P. Kikuma, expected to be delivered in December 2023[25] Cash Flow - The company reported net cash provided by operating activities of $17.883 million for Q3 2023, up from $11.761 million in Q3 2022[37]

[Q1 2023 Earnings Highlights & Management Commentary](index=1&type=section&id=Q1%202023%20Earnings%20Highlights%20%26%20Management%20Commentary) Performance Shipping Inc. achieved record Q1 2023 net income and EPS, driven by robust tanker market fundamentals and strategic fleet growth [Q1 2023 Financial Highlights](index=1&type=section&id=Q1%202023%20Financial%20Highlights) Performance Shipping Inc. achieved significant financial growth in Q1 2023, with record net income and EPS, primarily due to strong Time Charter Equivalent (TCE) rates in the tanker market | Metric | Q1 2023 | Q1 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | **Financial Performance** | | | | | Net Income | $15.7 million | ($2.1) million | 855% increase | | Net Income Attributable to Common Stockholders | $4.6 million | ($11.5) million | Significant improvement | | Basic Earnings Per Share (EPS) | $0.68 | ($51.46) | Significant improvement | | Diluted Earnings Per Share (EPS) | $0.55 | ($51.46) | Significant improvement | | Revenue | $29.5 million | $8.6 million | 245% increase | | Net Revenue After Voyage Expenses | $28.0 million | $5.2 million | Significant growth | | **Operating Metrics** | | | | | Average Time Charter Equivalent (TCE) Rate | $41,157 | $12,352 | 233% increase | | Net Cash Flow from Operating Activities | $18.7 million | ($3.9) million | Significant improvement | [CEO Commentary & Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Outlook) CEO Andreas Michalopoulos highlighted the sustained strength of tanker market fundamentals, driven by shifting trade patterns and recovering Chinese demand, with the company leveraging market advantages through fleet expansion, renewal, and a $2 million share repurchase program to enhance shareholder value - Tanker market fundamentals remain **strong**, benefiting from shifting trade patterns due to Russian crude oil export sanctions and recovering Chinese demand, which drives longer-haul tanker transportation needs[3](index=3&type=chunk) - The company completed the timely acquisition of **four younger Aframax tankers** in 2022 and signed a contract in Q1 2023 for a newbuild LNG-ready LR2 Aframax vessel for 2025 delivery, aiming for fleet expansion and renewal[4](index=4&type=chunk) - A **$2 million share repurchase program** has been initiated, with 1,518,113 common shares repurchased to date at an average price of **$0.84 per share**, addressing perceived undervaluation[5](index=5&type=chunk) - Currently, **five tankers** operate under time charter contracts with total daily rates ranging from **$23,000 to $45,000**, securing approximately **$54 million** in fixed revenue over their remaining charter periods[4](index=4&type=chunk) [Tanker Market Update for the First Quarter of 2023](index=2&type=section&id=Tanker%20Market%20Update%20for%20the%20First%20Quarter%20of%202023) The Q1 2023 tanker market exhibited robust supply and demand, driven by moderate fleet growth and significant demand increases [Q1 2023 Market Trends](index=2&type=section&id=Q1%202023%20Market%20Trends) The Q1 2023 tanker market showed robust supply and demand, with moderate fleet supply growth and significant demand increases driven by Chinese imports and shifting trade patterns, alongside historically low newbuild orders and substantial year-over-year increases in secondhand vessel values and spot rates, indicating strong market fundamentals | Metric | Q1 2023 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **Supply Side** | | | | | Tanker Fleet Supply (million DWT) | 681.2 | +0.8% (from 675.5) | +3.4% (from 658.7) | | Newbuild Tanker Contracting Volume (million DWT) | 4.5 | - | - | | Tanker Orderbook to Fleet Ratio | 4.0% | 28-year low | - | | Number of Tankers in Floating Storage (million DWT) | 19.0 | -21.0% (from 23.5) | -23.0% (from 23.4) | | **Demand Side** | | | | | Tanker Demand (billion ton-miles) | Expected 7.5% growth in 2023 | - | - | | Global Oil Consumption (million bpd) | 99.9 | +0.2% (from 99.7) | +1.4% (from 98.5) | | Global Oil Production (million bpd) | 101.3 | +0.1% (from 101.2) | +2.5% (from 98.7) | | OECD Commercial Inventories (million barrels) | 2,808 | +1.5% (from 2,766) | +7.8% (from 2,604) | | **Market Prices & Utilization** | | | | | Aframax Spot Rate (daily average) | $78,764 | -13.4% (from $90,991) | +144.1% (from $32,266) | | 10-Year Old Aframax Vessel Value (million USD) | $50.0 | +11.1% (from $45.0) | +81.8% (from $27.5) | | Crude Tanker Fleet Utilization | 87.3% | -1.0% (from 88.3%) | +13.4% (from 77.0%) | [Market Outlook Disclaimer](index=3&type=section&id=Market%20Outlook%20Disclaimer) The company cautions that the market outlook is based on industry information, data, and estimates, offering no guarantee of future trend continuation or the realization of anticipated developments, as third-party information has not been independently verified, nor is the availability of updated information assured - The market outlook relies on information, data, and estimates from industry sources, with no guarantee of future trend continuation or the realization of anticipated developments[13](index=13&type=chunk) - The company has not independently verified any third-party information, nor has it verified the availability of updated information[13](index=13&type=chunk) [Detailed Financial & Operational Data](index=4&type=section&id=Detailed%20Financial%20%26%20Operational%20Data) This section provides a comprehensive overview of Performance Shipping Inc.'s financial performance and operational metrics [Summary of Selected Financial & Other Data](index=4&type=section&id=Summary%20of%20Selected%20Financial%20%26%20Other%20Data) This section provides a summary of key financial and fleet operational data for Q1 2023 and Q1 2022, including revenue, net income, EPS, fleet size, utilization, and average daily operating metrics | Metric | March 31, 2023 (Unaudited) | March 31, 2022 (Unaudited) | | :--- | :--- | :--- | | **Operating Data (thousand USD)** | | | | Revenue | $29,527 | $8,568 | | Voyage Expenses | $1,540 | $3,380 | | Vessel Operating Expenses | $5,143 | $3,327 | | Net Income / (Loss) | $15,695 | ($2,080) | | Net Income / (Loss) Attributable to Common Stockholders | $4,623 | ($11,478) | | Earnings / (Loss) Per Share, Basic | $0.68 | ($51.46) | | Earnings / (Loss) Per Share, Diluted | $0.55 | ($51.46) | | **Fleet Data** | | | | Average Number of Vessels | 8.0 | 5.0 | | Number of Vessels | 8.0 | 5.0 | | Ownership Days | 720 | 450 | | Available Days | 680 | 420 | | Operating Days (1) | 677 | 400 | | Fleet Utilization | 99.6% | 95.2% | | **Average Daily Results** | | | | Time Charter Equivalent (TCE) Rate (2) | $41,157 | $12,352 | | Daily Vessel Operating Expenses (3) | $7,143 | $7,393 | [UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS](index=7&type=section&id=UNAUDITED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This income statement details the company's revenue, expenses, operating income/loss, other income/expenses, and ultimate net income/loss for Q1 2023 and Q1 2022, along with net income attributable to common stockholders and earnings per share | Metric (thousand USD) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Revenue:** | | | | Revenue | $29,527 | $8,568 | | **Expenses:** | | | | Voyage Expenses | $1,540 | $3,380 | | Vessel Operating Expenses | $5,143 | $3,327 | | Depreciation and Amortization of Deferred Charges | $3,688 | $2,013 | | General and Administrative Expenses | $1,662 | $1,508 | | Provision for Credit Losses and Write-Offs | ($16) | $22 | | Foreign Exchange Gain / (Loss) | $30 | ($46) | | **Operating Income / (Loss)** | **$17,480** | **($1,636)** | | **Other Income / (Expenses):** | | | | Interest and Finance Costs | ($3,085) | ($445) | | Interest Income | $348 | $1 | | Change in Fair Value of Warrant Liability | $952 | - | | **Total Other Expenses, Net** | **($1,785)** | **($444)** | | **Net Income / (Loss)** | **$15,695** | **($2,080)** | | Deemed Dividend on Series B Preferred Stock Due to Common Stock Conversion | - | ($9,271) | | Deemed Dividend on Series C Preferred Stock Due to Trigger of Down-Round Provision | ($9,809) | - | | Deemed Dividend on July and August 2022 Warrants Due to Trigger of Down-Round Provision | ($789) | - | | Preferred Stock Dividends | ($474) | ($127) | | **Net Income / (Loss) Attributable to Common Stockholders** | **$4,623** | **($11,478)** | | **Earnings / (Loss) Per Share, Basic** | **$0.68** | **($51.46)** | | **Earnings / (Loss) Per Share, Diluted** | **$0.55** | **($51.46)** | | Weighted Average Common Shares Outstanding, Basic | 6,815,828 | 223,044 | | Weighted Average Common Shares Outstanding, Diluted | 8,763,703 | 223,044 | [UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)](index=7&type=section&id=UNAUDITED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20%2F%20%28LOSS%29) This comprehensive income statement indicates that the company's comprehensive income/loss for Q1 2023 and Q1 2022 aligns with net income/loss, with no other comprehensive income items included | Metric (thousand USD) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Income / (Loss) | $15,695 | ($2,080) | | **Comprehensive Income / (Loss)** | **$15,695** | **($2,080)** | [CONDENSED CONSOLIDATED BALANCE SHEET DATA](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20DATA) This balance sheet provides condensed data on the company's assets, liabilities, and stockholders' equity as of March 31, 2023, and December 31, 2022, showing significant growth in cash and cash equivalents and total stockholders' equity | Metric (thousand USD) | March 31, 2023 (Unaudited) | December 31, 2022 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Cash, Cash Equivalents, and Restricted Cash | $66,206 | $39,726 | | Advances for Vessel Acquisitions and Other Vessel Costs | $5 | - | | Vessels, Net | $234,026 | $236,607 | | Other Fixed Assets, Net | $65 | $72 | | Other Assets | $13,701 | $16,574 | | **Total Assets** | **$314,003** | **$292,979** | | **Liabilities and Stockholders' Equity** | | | | Long-Term Bank Debt, Net of Unamortized Deferred Financing Costs | $123,490 | $127,675 | | Other Liabilities | $8,381 | $9,599 | | **Total Stockholders' Equity** | **$182,132** | **$155,705** | | **Total Liabilities and Stockholders' Equity** | **$314,003** | **$292,979** | [OTHER FINANCIAL DATA (Cash Flow Summary)](index=8&type=section&id=OTHER%20FINANCIAL%20DATA%20%28Cash%20Flow%20Summary%29) This section summarizes the company's cash flow situation for Q1 2023 and Q1 2022, indicating a shift from negative to positive cash flow from operating activities and a significant increase in cash flow from financing activities | Metric (thousand USD) | Three Months Ended March 31, 2023 (Unaudited) | Three Months Ended March 31, 2022 (Unaudited) | | :--- | :--- | :--- | | Net Cash Provided by / (Used in) Operating Activities | $18,679 | ($3,863) | | Net Cash Used in Investing Activities | ($378) | ($1,161) | | Net Cash Provided by Financing Activities | $8,179 | $3,636 | [Fleet Employment Profile (As of June 21, 2023)](index=5&type=section&id=Fleet%20Employment%20Profile%20%28As%20of%20June%2021%2C%202023%29) This section details Performance Shipping Inc.'s fleet composition and employment status as of June 21, 2023 [Current Fleet Details](index=5&type=section&id=Current%20Fleet%20Details) As of June 21, 2023, Performance Shipping Inc.'s fleet comprises 8 Aframax tankers, with 5 operating under time charter contracts and 3 under pool arrangements, covering both crude oil and product transportation | | Vessel | Year Built | Deadweight Tons (DWT) | Builder | Vessel Type | Charter Type | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Aframax Tankers** | | | | | | | | 1 | BLUE MOON | 2011 | 104,623 | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude Oil | Time Charter | | 2 | BRIOLETTE | 2011 | 104,588 | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude Oil | Time Charter | | 3 | P. KIKUMA | 2007 | 115,915 | Samsung Heavy Industries Co Ltd. | Crude Oil | Pool Arrangement | | 4 | P. YANBU | 2011 | 105,391 | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude Oil | Time Charter | | 5 | P. SOPHIA | 2009 | 105,071 | Hyundai Heavy Industries Co., LTD | Crude Oil | Pool Arrangement | | 6 | P. ALIKI | 2010 | 105,304 | Hyundai Heavy Industries Co., LTD | Product | Time Charter | | 7 | P. MONTEREY | 2011 | 105,525 | Hyundai Heavy Industries Co., LTD | Crude Oil | Time Charter | | 8 | P. LONG BEACH | 2013 | 105,408 | Hyundai Heavy Industries Co., LTD | Product | Pool Arrangement | [Company Information & Legal Disclosures](index=6&type=section&id=Company%20Information%20%26%20Legal%20Disclosures) This section provides essential company information and legal disclaimers concerning forward-looking statements [About the Company](index=6&type=section&id=About%20the%20Company) Performance Shipping Inc. is a global shipping transportation service provider primarily operating through the ownership of tanker vessels, deploying its fleet via various arrangements including spot voyages, pool arrangements, and time charter contracts - Performance Shipping Inc. is a global shipping transportation service provider, focusing on the ownership and operation of tanker vessels[19](index=19&type=chunk) - The company deploys its fleet through various arrangements, including spot voyages, pool arrangements, and time charter contracts[19](index=19&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section provides a legal cautionary statement regarding forward-looking statements, explaining their definition, identification, underlying assumptions, and various risk factors that could cause actual results to differ materially from expectations, including economic conditions, market fluctuations, operating costs, regulatory changes, and geopolitical events - Forward-looking statements include, but are not limited to, declarations about plans, objectives, strategies, future events, or performance, intended to encourage companies to provide forward-looking business information[20](index=20&type=chunk) - These statements are based on various assumptions that inherently involve significant uncertainties and contingencies, are difficult to predict, and are beyond the company's control, thus offering no guarantee of achieving these expectations[22](index=22&type=chunk) - Risk factors that could cause actual results to differ materially from forward-looking statements include global economic strength, currency and interest rate fluctuations, market conditions (such as charter rates and vessel values), supply and demand changes, oil and gas production and consumption changes, operating expenses, financing availability, government regulations, litigation, geopolitical conditions (e.g., Ukraine conflict, sanctions, trade wars), terrorism, piracy, shipping route disruptions, and vessel breakdowns[23](index=23&type=chunk)

Financial Performance - For the year ended December 31, 2022, the company reported revenue of $75.173 million, a significant increase from $36.491 million in 2021[381]. - Revenue for 2022 was $75.2 million, a 106.0% increase from $36.5 million in 2021[418]. - Net income from continuing operations for 2022 was $36.3 million, compared to a net loss of $10.1 million in 2021, reflecting an improvement of $46.4 million[420]. - Net cash provided by operating activities in 2022 was $33.8 million, a substantial increase compared to a net cash used of $3.1 million in 2021, driven by higher revenues in the tanker shipping industry[437]. Operational Efficiency - Fleet utilization reached 96.8% for the year ended December 31, 2022, up from 85.5% in 2021, indicating enhanced operational efficiency[381]. - Daily operating expenses decreased slightly to $6,683 in 2022 from $6,740 in 2021, demonstrating effective cost management[381]. - The company incurred total voyage expenses of $14.861 million in 2022, down from $19.205 million in 2021, contributing to improved profitability[381]. - Voyage expenses decreased to $14.9 million in 2022 from $19.2 million in 2021, a reduction of 22.4%[423]. Fleet and Capacity - Ownership days increased to 2,069 in 2022 from 1,825 in 2021, indicating fleet growth and increased capacity[381]. - The total carrying value of vessels as of December 31, 2022, was $238.2 million, compared to $125.3 million in 2021[404]. - The aggregate carrying value of four tanker vessels exceeded their aggregate charter-free market values by approximately $119.9 million as of December 31, 2022[400]. - The company has transitioned to a fleet primarily operating on time charters, which provide more predictable cash flows[386]. Debt and Financing - As of December 31, 2022, the company's aggregate outstanding debt was $128.5 million, which will be managed through regular operating and financing activities[393]. - The company expects to make debt amortization payments of $16.5 million and dividends of $1.9 million in the upcoming 12 months[435]. - As of December 31, 2022, the company had $128.5 million of long-term debt outstanding under bank loan facilities, with variable interest rates ranging from 2.35% to 2.85%[444][445]. - The weighted average interest rate of bank loan facilities increased from 2.90% in 2021 to 4.85% in 2022 due to rising LIBOR and SOFR rates[597]. Market Conditions - Global crude oil demand increased by 2.2% in 2022 and is projected to rise by 1.8% in 2023, reaching 101.4 million barrels per day[466]. - The ongoing conflict between Russia and Ukraine has caused significant shifts in crude oil trade patterns, supporting tanker charter rates[469]. - The company's revenues improved in 2022 due to higher OPEC+ production and increased ton mile from sanctions on Russian crude oil exports[473]. Executive Compensation and Personnel - In 2022, the aggregate fees and bonuses for executives amounted to $2.1 million[495]. - Non-executive directors received annual compensation of $30,000 plus expenses, with the chairman receiving $60,000 and committee chairmen receiving an additional $10,000[497]. - The total number of shoreside personnel increased from 25 in 2021 to 30 in 2022, while seafaring personnel rose from 127 in 2021 to 197 in 2022[512]. Risk Factors - The company faces counterparty risk in charter agreements, which could impact financial performance if charterers fail to meet their obligations[387]. - Elevated inflation and interest rate increases are expected to impact operating expenses and the cost of capital for the company[475]. - The company has not yet experienced adverse financial effects from the COVID-19 pandemic or the war in Ukraine as of December 31, 2022[474]. Accounting and Financial Instruments - Time charter revenues are accounted for over the term of the charter as the service is provided, reflecting the company's revenue recognition policy[411]. - The company has not used any derivative instruments for hedging purposes as of the report date[444]. - The company may consider using financial derivatives in the future to mitigate exchange rate risks, although it currently does not engage in such instruments[601].

Financial Performance - For the nine months ended September 30, 2022, net income from continuing operations was $12.5 million, a significant increase from a net loss of $8.1 million in the same period of 2021, reflecting a recovery in the tanker market [20]. - Voyage and time charter revenues for the nine months ended September 30, 2022, amounted to $47.4 million, up 77% from $26.8 million in the same period of 2021 [19]. - Revenue for the nine months ended September 30, 2022, was $47,406,000, a 76.5% increase from $26,844,000 in 2021 [51]. - Operating income for the same period was $14,560,000, compared to an operating loss of $6,710,000 in 2021 [51]. - Net income from continuing operations was $12,465,000, a significant recovery from a net loss of $8,056,000 in 2021 [51]. - Earnings per common share for continuing operations was $0.16, compared to a loss of $1.60 per share in 2021 [51]. - Total net income attributable to common stockholders was $2,595,000, compared to a loss of $7,656,000 in 2021 [51]. - Comprehensive income for the nine months ended September 30, 2022, was $12,465,000, compared to a loss of $7,656,000 in 2021 [51]. Revenue and Expenses - The increase in revenues was attributed to strong demand for crude oil and changes in trading patterns due to sanctions on Russian crude oil exports [20]. - Voyage expenses decreased to $12.0 million for the nine months ended September 30, 2022, down 21% from $15.1 million in the same period of 2021 [19]. - Vessel operating expenses increased to $9.6 million for the nine months ended September 30, 2022, compared to $8.6 million in the same period of 2021, primarily due to increased ownership days following the acquisition of a new vessel [24]. - Daily operating expenses rose to $6,597 for the nine months ended September 30, 2022, compared to $6,273 in the same period of 2021 [6]. - General and Administrative Expenses for the nine months ended September 30, 2022 were $4.7 million, up 9.3% from $4.3 million in the same period of 2021, primarily due to increased bonuses [26]. - Interest and Finance Costs from continuing operations increased to $2.2 million for the nine months ended September 30, 2022, compared to $1.4 million in the same period of 2021, reflecting a rise in average interest rates from 2.91% to 4.28% [28]. Cash Flow and Debt - Net cash provided by operating activities for the nine-month period ended September 30, 2022 was $10.2 million, a significant increase from a cash outflow of $1.3 million in the same period of 2021 [35]. - Net cash used in investing activities rose to $34.8 million for the nine months ended September 30, 2022, compared to $1.8 million in the same period of 2021, mainly due to increased vessel acquisition costs [36]. - Net cash provided by financing activities for the nine months ended September 30, 2022 was $50.6 million, significantly higher than the $5.9 million used in financing activities in the same period of 2021 [37]. - As of September 30, 2022, cash and cash equivalents were $35.5 million, a substantial increase from $9.6 million as of December 31, 2021 [33]. - The company’s total outstanding debt as of September 30, 2022, was $74.1 million [16]. - The total long-term debt of Performance Shipping Inc. was $68,677,000, an increase from $49,898,000 as of December 31, 2021, representing a 37.5% increase [90]. Vessel Operations and Strategy - Fleet utilization improved to 97.3% for the nine months ended September 30, 2022, compared to 84.7% in the same period of 2021 [6]. - The company shifted its vessel employment strategy from spot to pool arrangements, contributing to decreased voyage expenses [23]. - The company operates its fleet through a wholly-owned subsidiary, Unitized Ocean Transport Limited, and has eliminated intercompany transactions in its consolidated financial statements [56]. - For the nine months ended September 30, 2022, revenue from continuing operations totaled $18,719 from spot charters, $1,887 from time charters, and $26,800 from pool charters, compared to $17,486, $8,574, and $784 respectively in 2021 [72]. Future Outlook and Risks - The company expects to fund operations through cash on hand, cash generated from operations, bank debt, and equity offerings in the next twelve months [32]. - The ongoing conflict between Russia and Ukraine has the potential to disrupt the company's business, but currently, none of its contracts have been affected [62]. - The company has not been adversely affected by COVID-19 as of September 30, 2022, although future impacts remain uncertain [61]. - The company continues to evaluate the potential impact of reference rate reform on its financial statements, with no contracts yet changed to a new reference rate as of September 30, 2022 [66]. Shareholder Activities - The Company declared and paid dividends on Series B preferred shares amounting to $496 for the nine months ended September 30, 2022 [112]. - The total number of Series C Preferred Shares issued to Mango was 1,314,792, with an aggregate liquidation preference of $32,870 [113]. - The Company completed an At The Market (ATM) offering, issuing 526,916 common shares and receiving net proceeds of $1,338 during the nine months ended September 30, 2022 [123]. - The underwritten public offering on June 1, 2022, involved 7,620,000 units at a price of $1.05 per unit, resulting in net proceeds of $7,126 [124]. - A direct offering on July 18, 2022, raised approximately $5,271 from the sale of 17,000,000 common shares and warrants at a combined effective purchase price of $0.35 [126].