Performance Shipping Inc Stock Price, News & Analysis

Performance Shipping Inc. (NASDAQ: PSHG) reported strong Q1 2025 financial results with net income of $29.4 million, up 158% from $11.4 million in Q1 2024. Revenue was $21.3 million, slightly down from $22.4 million in Q1 2024. The company achieved a fleetwide average TCE rate of $30,843, compared to $33,857 in Q1 2024. A significant highlight was the sale of the M/T P. Yanbu vessel for $39 million, resulting in a $19.5 million gain. The company maintains a robust financial position with $108.3 million in cash and a substantial revenue backlog of $220 million. Performance Shipping operates a fleet of 6 Aframax tankers and has 4 newbuild vessels on order, with three secured under five-year time charter contracts.

Performance Shipping (NASDAQ: PSHG), a global tanker vessel operator, has announced the filing of its 2024 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC) for the fiscal year ended December 31, 2024.

The Annual Report, which includes the company's audited consolidated financial statements, is accessible through both the SEC's website and Performance Shipping's corporate website. The company will provide shareholders with free hard copies of the Annual Report upon request.

Performance Shipping Inc. (NASDAQ: PSHG) has entered into a forward sale and exclusivity agreement for its 2009-built Aframax tanker, M/T P. Sophia. The agreement grants an unaffiliated third party exclusive rights to bid for converting the vessel into a Floating Production Storage and Offloading (FPSO) vessel for a national oil company's offshore project.

If the buyer wins the auction by April 5, 2026, they will purchase M/T P. Sophia for US$36,050,000. An additional US$1,000,000 bonus will be paid if delivery occurs before September 30, 2025. During the exclusivity period, PSHG can continue operating the vessel but cannot sell it to other parties until the auction concludes in April 2026.

Performance Shipping (NASDAQ: PSHG) has announced the sale of its 2011-built Aframax tanker vessel M/T P. Yanbu for US$39 million to an unaffiliated third party. The debt-free vessel, originally acquired in Q4 2020 for US$22 million, is expected to generate a gain of approximately US$21.5 million in Q1 2025.

The transaction aligns with the company's fleet renewal strategy, focusing on fleet modernization through newbuild programs and selective second-hand vessel acquisitions. Following this sale and the delivery of three newbuild LR2 Aframax tankers, the company's fleetwide average age will decrease from 14 to 10 years by January 2026.

The sale will boost PSHG's cash balance to over US$105 million, more than double their year-end debt balance of US$47.7 million. The company anticipates the delivery of three newbuild LNG-ready LR2 Aframax tankers and one newbuild LR1 chemical/product oil tanker, with the first LR2 tanker expected around August 2025.

Performance Shipping (NASDAQ: PSHG) has secured a sale and leaseback agreement for its third newbuild LR2 Aframax tanker, completing financing for all three newbuilding LNG-ready, scrubber-fitted vessels. The bareboat financing amounts to $45 million, with the vessel being chartered back for eight years.

The agreement includes 96 monthly installments at $6,850 per day plus variable rate at SOFR plus 2.05% annually, with a $25 million balloon payment. All three vessels are chartered to Clearlake Shipping for five years at $31,000 per day upon delivery.

The total bareboat financing of $134.6 million represents 70% of the $192.9 million shipbuilding contract cost. The daily breakeven rate is estimated at $25,000 per newbuild tanker. Deliveries are scheduled for August and September 2025, and January 2026, reducing fleet average age from 14 to 10 years.

Performance Shipping Inc. (NASDAQ: PSHG) reported Q4 2024 financial results with net income of $9.7 million, down from $25.0 million in Q4 2023. Revenue decreased to $21.7 million from $23.8 million year-over-year, primarily due to reduced ownership days following the P. Kikuma vessel sale and lower TCE rates.

For full-year 2024, net income was $43.7 million compared to $69.4 million in 2023. The company maintained a strong financial position with $71.3 million in cash at quarter-end, representing 1.5x outstanding bank debt. The fleet's average TCE rate for Q4 2024 was $32,652, slightly down from $33,114 in Q4 2023.

The company has an aggregate revenue backlog of $227.0 million and operates with five vessels under time charters earning an average of $36,200 per day, helping to offset lower spot market rates.

Performance Shipping (NASDAQ: PSHG) has extended its time charter contract with ST Shipping & Transport, a Glencore subsidiary, for the M/T P. Monterey Aframax tanker. The contract extension features a gross charter rate of US$28,000 per day for twelve months (+/- 30 days), commencing mid-January and expected to generate approximately US$9.38 million in gross revenue.

The company's secured revenue backlog now stands at US$62 million, or US$232 million including contracts for three Aframax LR2 newbuildings. The fleet currently consists of six vessels under time charter arrangements and one vessel in spot market pool participation. Two more vessels are expected to be redelivered from period charters in the coming months.

Performance Shipping (NASDAQ: PSHG) has secured a 21-month time charter contract with American Eagle Tankers (AET) for its Aframax tanker vessel, M/T Blue Moon. The contract, starting in January, features a daily rate of $28,000, expected to generate approximately $17.4 million in gross revenue for the minimum charter duration.

The agreement with AET, a MISC Group member, involves the 2011-built, 104,623 dwt vessel. This new collaboration increases the company's secured revenue backlog to $59.4 million for operating vessels and $169.8 million for three new buildings, demonstrating the company's strategy to secure stable income streams in volatile market conditions.

Performance Shipping (NASDAQ: PSHG) has released its 2023 Sustainability Report, demonstrating its commitment to Environmental, Social, and Governance (ESG) transparency and accountability. The comprehensive report, which adheres to the Global Reporting Initiative Universal Standards 2021, details the company's initiatives in sustainable and responsible operations throughout 2023. The report, focusing on the tanker vessel operator's ESG practices and corporate governance framework, is now accessible on the company's website.