Performance Shipping Inc Stock Price, News & Analysis

Performance Shipping (NASDAQ: PSHG) has announced the acquisition of the M/T Phoenix Beacon, a 105,525 dwt Aframax tanker, for US$35 million. The vessel, equipped with a ballast water treatment system, is expected to be delivered by early December 2022 and will be rebranded as M/T P. Monterey. The purchase will be financed through approximately US$30 million in bank debt and available cash, maintaining a modest financial leverage. The CEO expressed confidence that the acquisition will enhance cash flow and indicated that the shares are undervalued, representing about 10% of the estimated net asset value.

Performance Shipping Inc. (NASDAQ: PSHG) has entered into a time charter contract with Trafigura for the M/T Alpine Amalia, to be renamed P. Aliki, with a gross charter rate of $45,000 per day for 7 to 10 months. This deal is expected to generate between $9.5 million and $13.7 million in gross revenue, translating into $5.7 million to $8.2 million in cash flow post debt service. The charter aims to secure fixed revenue amidst favorable market conditions for shipping rates, especially with the firm's fleet expansion and partnerships.

Performance Shipping Inc. (NASDAQ: PSHG) has accepted a commitment letter for a term loan facility of up to US$18,250,000 from Alpha Bank A.E. This facility will finance 50% of the acquisition cost for the M/T Alpine Amalia, soon to be renamed P. Aliki. The loan, repayable in twenty quarterly installments of US$500,000 each with a balloon payment of US$8,250,000, is set to commence in November. The CEO highlighted the positive impact of this financing on the company's growth in the refined petroleum sector, with current charter rates at over US$40,000 per day.

Performance Shipping Inc. (NASDAQ: PSHG) has signed a Memorandum of Agreement to acquire the 105,304 dwt LR2 Aframax oil product tanker, M/T Alpine Amalia, for $36.5 million. The vessel, built by Hyundai Heavy Industries in 2010, is expected for delivery in November 2022. The acquisition will be financed through cash from equity offerings and a new senior secured debt facility. This marks the company's entry into the refined petroleum product tanker sector, with expectations of premium charter rates and high utilization.

Performance Shipping Inc. (NASDAQ: PSHG) announced the termination of its At The Market Offering Agreement with H.C. Wainwright & Co., effective August 23, 2022. The agreement had allowed the company to raise capital by selling shares, resulting in approximately $1.3 million raised from the sale of 526,916 shares. The company has decided not to pursue additional capital raises under this agreement. Performance Shipping specializes in tanker vessel ownership, with its fleet currently engaged in spot voyages and charters.

Performance Shipping (NASDAQ: PSHG) announced a direct offering of 33.3 million common shares and warrants, priced at $0.45 each, generating approximately $15 million in gross proceeds. The offering, slated to close around August 16, 2022, involves institutional investors and is facilitated by Maxim Group LLC. The warrants are immediately exercisable for five years at the same price. The offering is made under the company's effective shelf registration statement with the SEC, ensuring investors receive a prospectus supplement detailing the transaction.

Performance Shipping Inc. (NASDAQ: PSHG) reported a net income of $3.9 million for Q2 2022, a significant turnaround from a net loss of $2.6 million in Q2 2021. Revenue increased to $16.7 million, driven by improved time-charter equivalent (TCE) rates averaging $24,921 per day, compared to $9,728 in the same period last year. For the six months ending June 30, 2022, net income was $1.8 million, up from a loss of $5.5 million. The company completed its sixth Aframax tanker acquisition and is positioned to benefit from a strengthening charter rate environment.

Performance Shipping Inc. (NASDAQ: PSHG) has announced a new time charter contract for its Aframax tanker, M/T Blue Moon, with Teekay Chartering Limited. The contract, which commenced recently, guarantees a gross charter rate of US$23,000 per day for 24 months, potentially generating approximately US$16.8 million in gross revenue. This agreement is part of the company's strategy to secure fixed revenue amid fluctuating charter rates and underscores its commitment to providing stable returns for shareholders.

Performance Shipping (NASDAQ: PSHG) announced a securities purchase agreement to raise approximately $5.95 million through a registered direct offering of 17,000,000 common shares at $0.35 per share, along with warrants for an equivalent number of shares. These warrants will be immediately exercisable with a similar exercise price of $0.35 and will expire in five and a half years. The transaction is expected to close around July 19, 2022, subject to customary conditions.