Performance Shipping (PSHG) - 2022 Q3 - Quarterly Report

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$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$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$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$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$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].