Performance Shipping (US:PSHG)2022-08-05 20:32Financial 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].