Performance Shipping Inc - PSHG STOCK NEWS

Performance Shipping (NASDAQ: PSHG) has secured a sale and leaseback agreement for its second newbuild LR2 Aframax tanker. The bareboat financing amounts to $45.39 million for a vessel with a contract price of $64.85 million. The agreement includes a 10-year bareboat charter with monthly installments of $211,500 plus variable rate at SOFR plus 2.1%, and a $20 million balloon payment. The vessel, expected for delivery in Q1 2026, has been pre-chartered to Clearlake Shipping for 5 years at $31,000 per day, with extension options. The daily cashflow breakeven is estimated at $24,390.

Performance Shipping Inc. (NASDAQ: PSHG) reported financial results for Q2 2024:

- Net income: $10.2 million
- Revenue: $20.5 million
- Earnings per share: $0.79 (basic), $0.26 (diluted)
- Average TCE rate: $30,970
- Cash balance: $62.7 million

The company owns 7 operating Aframax tankers and has orders for 4 newbuild tankers. Six vessels are on time charters, with a fixed revenue backlog of $61.1 million. The company secured 5-year charters for 3 newbuilds, adding $169.8 million to the backlog.

CEO Andreas Michalopoulos noted a solid tanker market supported by trade pattern shifts and supply growth. The company focuses on a balanced fleet deployment strategy and expansion with fuel-efficient, low-emission vessels.

Performance Shipping Inc. (NASDAQ: PSHG), a global tanker vessel company, announced that Alliance Global Partners (AGP) has initiated analyst coverage with a 'Buy' rating and a US$6.50 price target. This development marks a significant milestone for the company, potentially increasing its visibility among investors and in the financial markets. However, it's important to note that the company emphasizes that analyst reports represent the views of the analysts and not necessarily those of Performance Shipping Inc. The company also disclaims responsibility for the content, accuracy, or timing of these reports.

Performance Shipping Inc. (NASDAQ: PSHG) has secured a sale and leaseback agreement for its previously announced newbuild LR2 Aframax tanker. The bareboat financing totals $44.25 million for an eight-year period, with a daily rate of $7,132 and a balloon payment of $23.7 million. The implied interest rate is Term SOFR plus 2.425% per annum.

The vessel, expected to be delivered in Q4 2025, has been chartered to Clearlake Shipping Pte for five years at $31,000 per day. CEO Andreas Michalopoulos highlighted the attractive financing terms and the vessel's appreciated value since its order at $63.25 million. The company's remaining capital expenditures for the vessel are $19 million before delivery and $34.8 million upon delivery.

Performance Shipping announced a new time charter contract with Trafigura for its 2010-built LR2 Aframax tanker, M/T P. Aliki. The charter runs from June 16, 2024, for a minimum of 4.5 months up to nearly 6 months, with a daily gross rate of $47,000 for the minimum period, rising to $48,500 thereafter. This deal is set to generate around $6.4 million in gross revenue. CEO Andreas Michalopoulos highlighted the strategic benefit of securing short-term fixed revenue while keeping the vessel available for the fall and winter spot market.

Performance Shipping (NASDAQ: PSHG) has secured a new time charter contract with Aramco Trading Fujairah for its 2011-built Aframax tanker, M/T Briolette. The contract is for approximately 24 months at a daily rate of $41,000, expected to generate around $28.7 million in gross revenue. This new rate is $8,500 higher than the previous contract. The company now has a contract backlog of $228.1 million, including three five-year contracts for newbuildings. CEO Andreas Michalopoulos highlighted the ongoing partnership with Aramco and the potential for higher rates for expiring charters in 2024.

Performance Shipping (NASDAQ: PSHG) reported a net income of $11.4 million for Q1 2024, with $11.0 million attributable to common stockholders, down from $15.7 million in Q1 2023. Earnings per share were $0.89 basic and $0.29 diluted, compared to $0.68 and $0.55, respectively, in Q1 2023. Revenue fell to $22.4 million, largely due to lower TCE rates and the sale of a vessel. Average fleetwide TCE rates were $33,857, down from $41,157. Net cash from operations was $17.3 million.

The company secured a $38.5 million revenue backlog through time-charter contracts. Future plans include expanding the fleet with LNG-ready tankers, supporting a $208.3 million revenue backlog. The tanker market saw a 4.1% increase in demand, with supply growth expected in 2024 and 2025.

Outstanding shares were 12.3 million, alongside multiple warrants and preferred stocks. The tanker fleet supply and demand metrics showed modest growth.

Performance Shipping Inc. (NASDAQ: PSHG) has signed a shipbuilding contract for a newbuilding LR1 tanker vessel with a contract price of US$54.1 million. The vessel will be equipped with advanced engines and emission compliance systems. This marks the company's fourth shipbuilding contract, with future deliveries scheduled from October 2025 to January 2027. The company's revenue backlog stands at US$203.9 million, securing growth and sustainability in the energy transition.