Financial Performance - For the six months ended June 30, 2022, net income from continuing operations was $1.8 million, a significant improvement from a net loss of $5.9 million in the same period of 2021, reflecting a recovery in the tanker market[26]. - Revenue for the six months ended June 30, 2022, was $25.3 million, an increase of 44.4% compared to $17.5 million for the same period in 2021[52]. - Operating income for the six months ended June 30, 2022, was $2.9 million, compared to an operating loss of $5.0 million for the same period in 2021[52]. - The company reported a net income of $1,790,000, a significant improvement compared to a net loss of $5,500,000 for the same period in 2021[55]. - The company experienced an increase in revenues due to higher spot charter rates attributed to increased OPEC+ production and sanctions on Russian crude oil exports[64]. Revenue and Utilization - Voyage and time charter revenues increased to $25.3 million for the six months ended June 30, 2022, up 45% from $17.5 million in the same period of 2021, driven by improved time charter equivalent rates[28]. - Fleet utilization improved to 97.7% for the six months ended June 30, 2022, compared to 81.5% in the same period of 2021, indicating enhanced operational efficiency[15]. - Time charter equivalent (TCE) rate rose to $18,888 for the six months ended June 30, 2022, compared to $8,667 in the same period of 2021, reflecting favorable market conditions[15]. - Revenue from continuing operations for the six months ended June 30, 2022, amounted to $13,225 from spot charters, $0 from time-charters, and $12,050 from pool charters, compared to $11,441, $5,998, and $74 respectively for the same period in 2021, indicating a significant increase in spot charters revenue by 15.6% and pool charters by 162.2%[76]. Expenses - Voyage expenses decreased to $8.7 million for the six months ended June 30, 2022, down 13% from $10 million in the same period of 2021, primarily due to a reduction in spot charters[29]. - Vessel operating expenses increased to $6.3 million for the six months ended June 30, 2022, up from $5.8 million in 2021, attributed to higher daily operating expenses[30]. - General and administrative expenses rose to $3.3 million for the six months ended June 30, 2022, compared to $3 million in 2021, mainly due to increased bonuses[32]. - The company reported a depreciation and amortization expense of $4,070,000 for the six months ended June 30, 2022, compared to $3,653,000 for the same period in 2021[55]. Cash Flow and Liquidity - Net cash used in operating activities for the six months ended June 30, 2022, was $1.6 million, slightly higher than $1.5 million for the same period in 2021[40]. - Net cash used in investing activities increased to $4.0 million for the six months ended June 30, 2022, from $0.9 million in the same period in 2021, primarily due to vessel acquisitions[41]. - Cash and cash equivalents as of June 30, 2022, amounted to $13.3 million, up from $9.6 million as of December 31, 2021[38]. - Working capital increased to $10.8 million as of June 30, 2022, compared to $4.2 million as of December 31, 2021[37]. - The company has a minimum cash liquidity requirement of $5,000,000 as of June 30, 2022, which was reduced from $9,000,000[93]. Debt and Financing - As of June 30, 2022, the company's aggregate outstanding debt was $51.2 million, reflecting its financing strategy for vessel-specific debt[23]. - The total long-term debt, net of deferred financing costs, amounted to $46,007,000, an increase from $38,208,000 as of December 31, 2021, representing a 20% increase[88]. - The company has secured term loans with Nordea Bank and Piraeus Bank, with total loan facilities of up to $59,000,000 and $31,526,000 respectively, to finance tanker vessel acquisitions[90][91]. - The weighted average interest rate on the company's bank loans for the six months ended June 30, 2022, was 3.25%, compared to 2.92% for the same period in 2021[96]. - Interest expense on long-term bank debt for the six months ended June 30, 2022, was $789,000, a slight decrease from $824,000 in the same period of 2021[97]. Shareholder Activities - The company completed a direct offering of 17 million common shares at $0.35 per share, raising net proceeds of $5.33 million on July 19, 2022[45]. - The total number of common shares outstanding increased to 10,395,030 as of June 30, 2022, from 5,082,726 as of December 31, 2021[53]. - The Company completed an underwritten public offering of 7,620,000 units at a price of $1.05 per unit, receiving net proceeds of approximately $7,126[121]. - The Company suspended its ATM offering in May 2022 after issuing 526,916 common shares and receiving net proceeds of $1,338[119]. Risks and Compliance - The company continues to face counterparty risk, particularly in depressed market conditions, which could impact financial performance[17]. - The company received a notice from NASDAQ regarding non-compliance with the minimum bid price requirement, with a grace period until January 9, 2023, to regain compliance[48]. - The company has not yet experienced adverse financial impacts from COVID-19 as of June 30, 2022, but acknowledges potential future risks[64]. - The ongoing conflict between Russia and Ukraine has created uncertainty, but currently, none of the company's contracts have been affected by these events[65]. Asset Management - The carrying amounts of major classes of assets of discontinued operations as of June 30, 2022, totaled $47, unchanged from December 31, 2021, while total major classes of current liabilities decreased slightly from $120 to $116[73]. - The net book value of vessels as of June 30, 2022, was $120,534, down from $123,036 as of December 31, 2021, due to depreciation[86]. - The allowance for estimated credit losses on outstanding freight and demurrage receivables was $158 as of June 30, 2022, up from $121 as of December 31, 2021, reflecting an increase in expected credit losses[79]. - The maximum aggregate amount of loss due to credit risk from charterers that accounted for more than 10% of revenue was $1,587 as of June 30, 2022, compared to $405 as of December 31, 2021, indicating increased credit risk exposure[78].

March 2022 ® PERFORMANCE Shipping Inc. A Pure - Play Tanker Company Disclosure 2 Matters discussed in this presentation may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or perfor ...

Financial Performance - Revenue for the year ended December 31, 2021, was $36.491 million, compared to $46.283 million in 2020, marking a decline of approximately 21%[347]. - Revenue from continuing operations for 2021 was $36.5 million, a decrease of 13.1% compared to $42.0 million in 2020[385]. - Net loss from continuing operations for 2021 amounted to $10.1 million, compared to a net income of $2.3 million in 2020, primarily due to weaker market conditions in the tankers' industry[387]. - The Time Charter Equivalent (TCE) rate for 2021 was $9,963, a significant decrease from $18,745 in 2020, indicating a decline in daily earnings[347]. - Average time charter equivalent (TCE) rates for tanker vessels decreased to $9,963 in 2021 from $20,228 in 2020[389]. - Daily operating expenses decreased to $6,740 in 2021 from $6,835 in 2020, indicating improved cost management[347]. - General and administrative expenses decreased by 28.8% to $5.7 million in 2021, down from $8.0 million in 2020, due to lower compensation costs and reduced brokerage fees[394]. Fleet and Operations - For the year ended December 31, 2021, ownership days increased to 1,825 from 1,689 in 2020, reflecting a growth in fleet size[347]. - Fleet utilization for 2021 was 85.5%, down from 89.7% in 2020, suggesting reduced efficiency in vessel employment[347]. - Vessel operating expenses rose to $12.3 million in 2021, a 33.7% increase from $9.2 million in 2020, attributed to an increase in the average number of tanker vessels owned[391]. - Voyage expenses from continuing operations increased by 33.3% to $19.2 million in 2021, up from $14.4 million in 2020, mainly due to higher bunker costs[390]. - The company employs its vessels under time and voyage charter contracts, with time charter revenues recognized over the term of the charter as the service is provided[374]. - Under pooling arrangements, the company earns a portion of total revenues generated by the pool, with revenue recognized on a quarterly basis when the vessel has participated in the pool[377]. Future Expectations - The company expects revenues to increase in 2022 with further fleet expansion, despite current market challenges[351]. - Vessel operating expenses are anticipated to rise in 2022 if the fleet expands, influenced by market conditions and operational costs[354]. - General and administrative expenses are expected to remain stable in 2022, reflecting fixed costs associated with public company operations[357]. - The company expects to incur additional capital expenditures for vessel upgrades and surveys, impacting cash flow needs[427]. Financial Position - As of December 31, 2021, working capital was $4.2 million, a decrease from $17.6 million in 2020[403]. - Cash and cash equivalents as of December 31, 2021, amounted to $9.6 million, down from $21.4 million in the previous year[404]. - As of December 31, 2021, the company had $50.2 million of long-term debt outstanding under bank loan facilities[414]. - The outstanding balance on the Piraeus Facility was $25.8 million as of December 31, 2021[424]. Market Conditions - Crude oil demand is projected to return to pre-pandemic levels and increase by 3.4% in 2022, reaching 100.1 million barrels per day[430]. - Crude tanker dwt demand is projected to grow by 7.1% in 2022, while the crude tanker fleet is expected to grow by 3.5%[431]. - The average spot earnings for an Aframax tanker in 2021 was $8,242 per day, compared to $22,161 in 2020, indicating a significant decline in earnings[432]. Depreciation and Impairment - The carrying values of the vessels as of December 31, 2021, were as follows: Blue Moon at $27.5 million, Briolette at $28.6 million, P. Fos at $24.8 million, P. Kikuma at $23.4 million, and P. Yanbu at $21.0 million[370]. - The company estimates the useful life of its tanker vessels to be 25 years and 30 years for container vessels, with depreciation calculated on a straight-line basis[380]. - In 2021, the company did not record any impairment charge, while it recorded an impairment charge of $0.3 million in 2020 for one container vessel classified as held for sale[366]. - The company evaluates the carrying amounts of long-lived assets, including vessels, to determine if impairment losses are required based on future undiscounted net operating cash flows[381]. Currency and Interest Rate Risks - The company generates all revenues in U.S. dollars but incurs over 55% of general and administrative expenses in other currencies, primarily the Euro, in 2021[556]. - Approximately 10% of the company's operating expenses were incurred in currencies other than the U.S. dollar in 2021, compared to 8% in 2020[556]. - The U.S. dollar has depreciated against the Euro since around 2002, increasing the dollar cost of expenses incurred in Euros[556]. - The company has not used financial derivatives to mitigate exchange rate fluctuation risks but may consider doing so in the future[557]. - Currently, the company does not view the risk from exchange rate fluctuations as material to its operations[557]. - The potential increase in expenses incurred in other currencies could expand the company's exposure to currency fluctuation losses in the future[556]. Interest Expenses - Interest expense as of December 31, 2021, amounted to $50.2 million, with expectations for an increase in 2022 due to higher average debt levels[358]. - An average increase of 1% in interest rates in 2021 would have resulted in interest expenses of $2.1 million, an increase of about 31% from $1.6 million[553].

Financial Performance - For the year ended December 31, 2020, ownership days increased to 1,689 from 1,516 in 2019, while operating days excluding ballast leg decreased to 1,258 from 1,401 in 2019[360]. - The Time Charter Equivalent (TCE) rate for the year ended December 31, 2020, was $18,745, up from $15,435 in 2019, reflecting a 21.5% increase[360]. - Voyage and time charter revenues for the year ended December 31, 2020, were $46,283 million, a substantial increase from $26,846 million in 2019[360]. - In 2020, the net income from continuing operations was $2.3 million, a significant improvement from a net loss of $6.8 million in 2019, driven by an increase in the tanker fleet and revenues[402]. - Voyage and time-charter revenues from continuing operations surged to $42.0 million in 2020, up 566.7% from $6.3 million in 2019, due to the full-year contribution of newly acquired vessels[399]. - The company reported a net income of $1.5 million from discontinued operations in 2020, a recovery from a net loss of $25.3 million in 2019[403]. Operational Efficiency - Fleet utilization excluding ballast leg dropped to 74.5% in 2020 from 92.4% in 2019, indicating a significant decrease in operational efficiency[360]. - Daily operating expenses decreased to $6,835 in 2020 from $7,468 in 2019, showing a reduction of approximately 8.5%[360]. - Vessel operating expenses from continuing operations increased to $9.2 million in 2020, compared to $1.1 million in 2019, primarily due to a larger fleet size[408]. - The average daily operating expenses for continuing operations rose to $6,746 in 2020 from $5,968 in 2019, influenced by COVID-19 related disruptions[408]. Debt and Financing - As of December 31, 2020, the company's aggregate outstanding debt was $58.1 million, with expectations for increased interest and finance expenses in 2021 due to higher average debt levels[371]. - Interest and finance costs from continuing operations increased to $2.1 million in 2020, up from $0.7 million in 2019, due to higher average debt levels[418]. - As of December 31, 2020, the company had $58.1 million of long-term debt outstanding under loan facilities[437]. - The outstanding balance on the Piraeus Facility was $30.0 million, drawn down from a total facility of $31.5 million[447]. Asset Valuation and Impairment - The company recorded an impairment charge of $0.3 million for one container vessel in 2020 and $31.6 million for three vessels in 2019 due to their classification as held for sale[378]. - As of December 31, 2020, the aggregate carrying value of five tanker vessels exceeded their aggregate charter-free market values by approximately $31.5 million[379]. - The net book value of the vessels increased from $82.9 million in 2019 to $128.1 million in 2020[382]. - The company evaluates the carrying amounts of vessels to determine if impairment losses are required based on future undiscounted net operating cash flows[393]. Market Outlook - The global crude oil demand is projected to rebound by 6.0% in 2021, following a severe -8.9% drop in 2020[452]. - The total trading Aframax crude tanker fleet is projected to grow by approximately 5.0% in 2021, while crude Aframax fleet capacity is expected to grow by a modest 2.5%[454]. Cash Flow and Liquidity - As of December 31, 2020, cash and cash equivalents amounted to $21.4 million, a decrease from $26.4 million in the prior year[427]. - Net cash provided by operating activities in 2020 was $13.2 million, significantly increasing from a net cash used of $4.2 million in 2019, primarily due to revenue contributions from tanker vessels[429]. - Net cash used in investing activities in 2020 was $40.1 million, which included $63.4 million for the acquisition of three tanker vessels and $23.5 million in net proceeds from the sale of two container vessels[430]. - As of December 31, 2020, the company's working capital was $17.6 million, down from $27.3 million in 2019, indicating a decrease in liquidity[425]. Currency and Risk Management - Approximately 45% of general and administrative expenses were incurred in currencies other than the U.S. dollar in 2020[589]. - The company has historically incurred around 8% of its operating expenses in currencies other than the U.S. dollar in 2020[589]. - The company does not currently consider the risk from exchange rate fluctuations to be material for its results of operations[590]. - The company may consider using derivative financial instruments in the future to manage exposure to interest rate and currency risks[590].