Performance Shipping (US:PSHG)2024-07-26 13:57Financial Performance - For the six months ended June 30, 2024, net income was $21.6 million, a decrease of 37% compared to $34.1 million for the same period in 2023[28]. - Total revenue for the six months ended June 30, 2024, was $42.9 million, down 30% from $61.0 million in the same period of 2023[27]. - Operating income for the first half of 2024 was $21,065,000, down 43.5% from $37,275,000 in 2023[49]. - Net income for the six months ended June 30, 2024, was $21,616,000, a decline of 36.5% compared to $34,083,000 in 2023[53]. - Earnings per common share, basic, decreased to $1.68 in 2024 from $2.43 in 2023, representing a 30.9% decline[51]. - Net income attributable to common stockholders was $20,699,000 for the six months ended June 30, 2024, compared to $22,533,000 in 2023, reflecting a decrease of approximately 8.1%[135]. Revenue and Expenses - Voyage and time charter revenues decreased to $42.9 million for the six months ended June 30, 2024, from $60.984 million in the same period of 2023[16]. - Time Charter Equivalent (TCE) rate for the six months ended June 30, 2024, was $32,414, a decrease from $41,526 in the same period of 2023[16]. - Daily vessel operating expenses increased to $7,790 for the six months ended June 30, 2024, from $7,135 in the same period of 2023[16]. - Voyage expenses decreased to $1.6 million from $2.5 million, a reduction of 36.0%, primarily due to a shift from spot charters to pool charters[30]. - General and administrative expenses increased to $3.7 million from $3.4 million, a rise of 8.8%, mainly due to higher legal costs[32]. Cash Flow and Investments - Net cash provided by operating activities was $31.7 million, down from $40.8 million, reflecting a decrease of 22.8% due to lower revenues[40]. - Net cash used in investing activities increased to $32.7 million from $11.5 million, a rise of 184.3%, primarily due to advances for vessels under construction[41]. - The company has made advances for vessels under construction totaling $43,988,000 as of June 30, 2024, significantly up from $11,303,000 at the end of 2023[47]. Assets and Liabilities - Total current assets as of June 30, 2024, were $68,049,000, down 15% from $79,914,000 at the end of 2023[47]. - Total fixed assets increased to $239,789,000 as of June 30, 2024, up 12.3% from $213,455,000 at the end of 2023[47]. - Total liabilities decreased to $56,413,000 as of June 30, 2024, down 7.5% from $63,082,000 at the end of 2023[47]. - Stockholders' equity increased to $254,040,000 as of June 30, 2024, up 8.9% from $233,184,000 at the end of 2023[47]. Debt and Financing - Interest and finance costs significantly decreased by 80% to $1.1 million for the six months ended June 30, 2024, compared to $5.4 million in the same period of 2023[27]. - The company expects to manage interest rate exposure through regular operating and financing activities[26]. - As of June 30, 2024, total long-term debt net of deferred financing costs amounted to $51,176, with current debt at $7,436 and non-current debt at $43,740[78]. - The Company has secured term loans with Nordea Bank and Alpha Bank, with total loan amounts of $17,501 and $33,950 respectively as of June 30, 2024[78][83]. Shareholder Equity and Dividends - The company reported a total accumulated deficit of $280,416,000 as of June 30, 2024, compared to $335,507,000 as of June 30, 2023, indicating an improvement of 16.4%[55]. - Cash dividends paid in the first half of 2024 were $917,000, compared to $951,000 in the same period of 2023, indicating a decrease of 3.6%[57]. - The total number of common shares outstanding increased from 11,439,272 on June 30, 2023, to 12,432,158 on June 30, 2024, reflecting an increase of 8.7%[55]. Market Conditions and Future Outlook - The decrease in revenues was attributed to weaker market conditions in the tanker industry and a reduction in fleet ownership days due to the disposal of the vessel P. Kikuma[28]. - The company continues to monitor macroeconomic factors such as rising inflation and geopolitical tensions that could impact its financial condition and operations[62]. Contracts and Agreements - A sale and leaseback agreement for a newbuild LR2 Aframax tanker vessel was entered into, totaling $44.3 million, with charter rates of $7,132 per day for eight years[45]. - The Company has entered into four shipbuilding contracts for three product/crude oil tankers and one product oil/chemical tanker, with gross contract prices totaling approximately $249,673[73].