Performance Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2025

Core Insights - Performance Shipping Inc. reported a net income of $7.6 million for Q4 2025, down from $9.7 million in Q4 2024, with earnings per share of $0.57 and $0.19 for basic and diluted shares respectively [1][2][3] - The company's total revenue for Q4 2025 was $26.2 million, an increase from $21.7 million in Q4 2024, primarily due to increased ownership days from new vessel deliveries [2][4] - For the full year 2025, net income rose to $50.0 million from $43.7 million in 2024, with earnings per share increasing to $3.87 from $3.39 [3][4] Financial Performance - Revenue for Q4 2025 was $26.2 million, net of voyage expenses, compared to $21.7 million in Q4 2024 [2][15] - The average Time Charter Equivalent (TCE) rate for Q4 2025 was $32,221, slightly lower than $32,652 in Q4 2024 [2][18] - Net cash provided by operating activities was $9.7 million in Q4 2025, down from $12.1 million in Q4 2024 [2][30] Operational Highlights - The company generated total revenues of $84.2 million for the fiscal year 2025, compared to $87.4 million in 2024 [4][15] - The fleet's average age is expected to decline to nine years following the delivery of new vessels and the sale of the oldest vessel [6][7] - The company has a revenue backlog of approximately $350 million, with fixed charter coverage of 88% for 2026 and 72% for 2027 [5][6] Market Outlook - The tanker market is expected to remain firm in 2026, driven by growth in seaborne oil trade and increased exports from the Middle East and Latin America [5][10] - Seaborne oil trade is projected to grow by approximately 0.7% in 2026 and 1.4% in 2027, while fleet supply is estimated to grow by 4.2% in 2026 and 5.5% in 2027 [10][12] - Daily spot charter rates for Aframax and Suezmax tankers have seen significant increases, with Aframax rates averaging $61,382 and Suezmax rates averaging $77,370 in Q4 2025 [16][10] Corporate Developments - The company completed a $50 million tap issuance under its Nordic bonds and is projected to increase its cash position to approximately $135 million [7][12] - The company has entered into several time-charter contracts for its vessels, including contracts with Repsol Trading SA and ExxonMobil [12][10] - The company has secured contracts for the construction of two new Suezmax tankers, expected to be delivered in 2028 and 2029 [6][12]