Performance Shipping Inc Stock Price, News & Analysis

Performance Shipping (NASDAQ: PSHG) announced a Memorandum of Agreement to acquire the M/T Fos Hamilton, a 105,408 dwt LR2 Aframax oil tanker, for US$43.75 million. Built in 2013, the tanker features an eco-engine that enhances fuel efficiency and complies with the Ballast Water Management Convention. The delivery is expected by mid-December 2022, with financing sourced from the sale of an older vessel and a new senior secured debt facility. This acquisition aims to strengthen PSHG's position in the refined petroleum product sector, nearly doubling the fleet size to eight modern tankers.

Performance Shipping Inc. (NASDAQ: PSHG) has announced a time charter contract for the M/T Briolette with Aramco Trading Fujairah FZE, generating an estimated US$16.8 million over 18 months at a rate of US$32,500 per day. This contract highlights the company's strong position in the current charter rate environment, with five tankers now under time charter arrangements totaling approximately US$85 million in fixed revenues. The company anticipates leveraging favorable market conditions to optimize cash flow through additional operations.

Performance Shipping Inc. (NASDAQ: PSHG) reported a record net income of $10.7 million for Q3 2022, a significant turnaround from a net loss of $2.2 million in Q3 2021. Revenue surged to $22.1 million, driven by increased time-charter equivalent rates, averaging $34,411 per day. The company also announced a 1-for-15 reverse stock split, effective November 15, 2022, to comply with Nasdaq listing requirements. CEO Andreas Michalopoulos noted promising tanker market trends and a strong cash position of approximately $26 million, representing 1.4x its market capitalization.

Performance Shipping Inc. (NASDAQ: PSHG) has delivered the M/T P. Aliki, a 2010-built LR2 Aframax oil product tanker, for $36.5 million. The acquisition was financed by $18.25 million cash and a $18.25 million loan from Alpha Bank S.A. The vessel will begin a time charter with Trafigura at a daily rate of $45,000, generating revenue between $9.5 million to $13.7 million over seven to ten months. This marks the company's entry into the refined petroleum tanker sector, promising stable market fundamentals and significant cash flow potential.

Performance Shipping Inc. (NASDAQ: PSHG) announced plans to secure a term loan facility of up to $37.4 million from Piraeus Bank S.A. The funding will be drawn in two advances upon delivery of the M/T Phoenix Beacon, to be renamed P. Monterey. The facility aims to refinance a part of the existing loan for the M/T P. Kikuma and finance the new vessel. It carries an interest rate of SOFR plus 2.45% per annum and has a repayment plan spanning 20 quarters, including a final balloon payment of $15.4 million.

Performance Shipping Inc. (NASDAQ: PSHG) announced a time charter contract with ST Shipping & Transport Pte Ltd for its newly acquired tanker, M/T P. Monterey. The charter will generate approximately US$22 million in gross revenue over a minimum two-year period at a rate of US$32,000 per day, starting in December. This agreement means over half of the company’s fleet will now be under time charter contracts, providing fixed revenues totaling about US$68 million, significantly enhancing financial stability.

Performance Shipping Inc. (NASDAQ: PSHG) announced a secured term loan facility of up to US$18,250,000 with Alpha Bank S.A. to finance 50% of its seventh tanker vessel acquisition, M/T P. Aliki. The loan will be repaid in 20 quarterly installments of US$500,000 and a final balloon payment of US$8,250,000. This partnership with Alpha Bank aims to reduce the company's debt costs and enhance operational funding. The facility will be secured against the vessel itself, demonstrating the bank's confidence in the company's financial outlook.

Performance Shipping Inc. (NASDAQ: PSHG) has secured a time charter contract with ST Shipping & Transport Pte Ltd for its vessel M/T P. Yanbu. The charter rate is set at US$30,000 per day for 24 months, with expected gross revenue of US$20.6 million during the minimum duration. Currently, the company has three Aframax tankers under contract at attractive rates, ensuring steady cash flow. The M/T P. Yanbu is a 105,391 dwt tanker, enhancing the company's operational capacity in the tanker shipping industry.

Performance Shipping Inc. (NASDAQ: PSHG) announced the sale of the Aframax tanker vessel “M/T P. Fos” for a gross price of $34 million, with delivery set for November 2022. The CEO highlighted that this sale capitalizes on rising tanker values and will provide $25 million in net cash for acquiring a younger vessel, thus modernizing the fleet and enhancing competitiveness. The company aims to leverage its renewed fleet during a favorable charter rate environment to improve cash flows. This move is part of the broader fleet renewal strategy as new vessels are expected to arrive soon.