Performance Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2025
- Strong net income growth of 158% YoY to $29.4 million
- Significant gain of $19.5 million from vessel sale
- Robust cash position of $108.3 million (2.4x outstanding bank debt)
- Substantial revenue backlog of $220 million
- Three newbuilding vessels secured with long-term charter contracts
- Revenue declined to $21.3 million from $22.4 million YoY
- TCE rates decreased to $30,843 from $33,857 YoY
- Aframax tanker rates dropped 43.3% YoY to $31,931 per day
- Fleet utilization slightly decreased to 97.6% from 98.0%
Insights
Performance Shipping reported strong Q1 2025 results with 164% YoY net income growth despite tanker rate softening, driven by vessel sale gains.
Performance Shipping delivered impressive financial results in Q1 2025 despite softer market conditions, with net income of $29.4 million compared to $11.4 million in Q1 2024 - representing a substantial 164% year-over-year increase. However, this remarkable profit growth was primarily driven by a $19.5 million gain from the sale of the M/T P. Yanbu vessel rather than operational improvements.
Looking at core operational metrics, revenue actually decreased slightly to $21.3 million from $22.4 million in the same period last year. This decline reflects both reduced fleet capacity following the P. Yanbu sale and lower Time Charter Equivalent (TCE) rates, which fell to $30,843 per day from $33,857 in Q1 2024. Similarly, operating cash flow decreased to $15.5 million from $17.3 million year-over-year.
The company's performance must be viewed in the context of significant market softening - Aframax tanker charter rates averaged just $31,931 per day in Q1 2025, a steep 43.3% drop from $56,338 in Q1 2024. Given this challenging environment, maintaining revenue within 5% of last year's levels demonstrates operational resilience.
The company's balance sheet strength is notable, with a cash position of $108.3 million (including restricted cash) representing 2.4 times outstanding bank debt. This provides substantial financial flexibility. Additionally, the $220 million revenue backlog from charter contracts offers earnings visibility through the market cycle.
Performance Shipping's fleet renewal strategy appears well-timed - selling the 2011-built Aframax at $39 million captured value before further market softening, as evidenced by the 13.8% year-over-year decline in 10-year-old Aframax values. Meanwhile, the company's newbuild program, with deliveries starting August 2025, positions it to capitalize on the projected improvement in tanker fleet utilization from 84.9% in 2024 to 85.3% in 2025.
ATHENS, Greece, May 27, 2025 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, today reported net income of
Revenue was
Commenting on the results of the first quarter of 2025, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our solid financial results for the first quarter of 2025 demonstrate our ability to successfully navigate the market cycle capitalizing on our efficient vessel operations and balanced fleet deployment strategy. During the quarter, our exposure to the spot market upside through the operations of our two Aframax tanker vessels under voyage charters and pool arrangements along with the robust cash flow secured through the time charter contract arrangements of our remaining fleet, enabled us to achieve a fleetwide average time charter equivalent rate of
“Notwithstanding the significant softening observed in crude oil tanker charter rates over the past year, our Company generated revenue of
“In particular, the average Aframax tanker charter rate stood at
“Pursuant to our fleet renewal and expansion strategy, focused on selective acquisitions and opportunistic sales of older vessels, we completed the sale of our 2011-built Aframax tanker, M/T P. Yanbu, during the first quarter of 2025. The transaction was concluded at a gross sale price of
“At the same time, we remain focused on our newbuild program, which remains well-supported by our strategic long-term partnership with a top-tier charterer as well as the delivery financing secured for three of our newbuilding vessels. Our financial position remains robust, with a quarter-end cash balance (including restricted cash) of approximately
Corporate Developments
Update on Outstanding Shares and Warrants
As of May 26, 2025, the Company had outstanding 12,432,158 common shares. In addition, the following common share purchase warrants were outstanding as of such date:
- Class A Warrants to purchase up to 567,366 common shares at an exercise price of
$15.75 per common share; - Warrants issued July 19, 2022, to purchase up to 1,033,333 common shares at an exercise price of
$1.65 per common share; - Warrants issued August 16, 2022, to purchase up to 2,122,222 common shares at an exercise price of
$1.65 per common share; - Series A Warrants issued March 3, 2023, which are exchangeable for up to 14,300 common shares; and
- Series B Warrants issued March 3, 2023, to purchase up to 4,097,000 common shares at an exercise price of
$2.25 per common share.
Finally, the Company had 50,726 shares of its Series B Convertible Cumulative Perpetual Preferred Stock and 1,423,912 shares of its Series C Convertible Cumulative Redeemable Perpetual Preferred Stock outstanding.
Tanker Market Update for the First Quarter of 2025:
- Tanker fleet supply was 698.0 million dwt, up
0.4% from 695.0 million dwt from the previous quarter and up1.0% from Q1 2024 levels of 691.4 million dwt. - The tanker sector continues to exhibit healthy dynamics, with tonne-mile demand projected to grow by
0.4% in 2025. This growth comes against the backdrop of a constrained fleet supply, driven by a shrinking pool of environmentally compliant vessels. However, geopolitical challenges remain on the horizon, particularly the gradual easing of Red Sea-related trade flow shifts and the complexities that may arise from a potential tightening of U.S. sanctions on trade activities and charter rates. - Tanker fleet supply in deadweight terms is estimated to grow by
2.1% in 2025 and by3.9% in 2026. - Tanker fleet utilization averaged
84.9% in 2024, while analysts expect that it will slightly improve to levels of85.3% in 2025 and84.8% in 2026. - Newbuilding tanker contracting was 3.6 million dwt in the first quarter, resulting in a tanker orderbook-to-fleet ratio of
14.7% . - Daily spot charter rates for Aframax tankers averaged
$31,931 , down17.6% from the previous quarter average of$38,746 and down43.3% from Q1 2024 average of$56,338. - The value of a 10-year-old Aframax tanker at the end of the first quarter was
$50.0 million , down3.9% from$52.0 million in the previous quarter, and down13.8% from$58.0 million in Q1 2024. - The number of tankers used for floating storage (excluding dedicated storage) stood at 102 (11.2 million dwt) in the first quarter, up
15.4% from 74 (9.7 million dwt) at the end of the previous quarter and up2.0% from 91 (10.9 million dwt) in Q1 2024. - Global oil consumption was 103.2 million bpd, down
0.07% from the previous quarter level of 103.2 million bpd, and up1.5% from Q1 2024 levels of 101.7 million bpd. - Global oil production was 103.2 million bpd, down
0.08% from the previous quarter level of 103.3 million bpd and up1.0% from Q1 2024 levels of 102.2 million bpd. - OECD commercial inventories were 2,719 million barrels, down
0.01% from the previous quarter level of 2,742 million barrels, and down0.01% from Q1 2024 levels of 2,757 million barrels.
The above market outlook update is based on information, data, and estimates derived from industry sources. There can be no assurances that such trends will continue or that anticipated developments in tanker demand, fleet supply or other market indicators will materialize. While we believe the market and industry information included in this release to be generally reliable, we have not independently verified any third-party information or verified that more recent information is not available.
| Summary of Selected Financial & Other Data | |||||||
| (in thousands of US Dollars, except per share data, fleet data and average daily results) | For the three months ended March 31, | ||||||
| 2025 | 2024 | ||||||
| (unaudited) | (unaudited) | ||||||
| STATEMENT OF OPERATIONS DATA: | |||||||
| Revenue | $ | 21,333 | $ | 22,371 | |||
| Voyage expenses | 2,118 | 804 | |||||
| Vessel operating expenses | 4,469 | 4,874 | |||||
| Net income | 29,427 | 11,431 | |||||
| Net income attributable to common stockholders | 28,970 | 10,972 | |||||
| Earnings per common share, basic | 2.33 | 0.89 | |||||
| Earnings per common share, diluted | 0.76 | 0.29 | |||||
| FLEET DATA | |||||||
| Average number of vessels | 6.9 | 7.0 | |||||
| Number of vessels | 6.0 | 7.0 | |||||
| Ownership days | 623 | 637 | |||||
| Available days | 623 | 637 | |||||
| Operating days (1) | 608 | 624 | |||||
| Fleet utilization | |||||||
| AVERAGE DAILY RESULTS | |||||||
| Time charter equivalent (TCE) rate (2) | $ | 30,843 | $ | 33,857 | |||
| Daily vessel operating expenses (3) | $ | 7,173 | $ | 7,651 | |||
___________________
| (1) | Operating days are the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation counts as on-hire the days of the ballast leg of the spot voyages, as long as a charter party is in place. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. |
| (2) | Time charter equivalent rates, or TCE rates, are defined as revenue (voyage, time charter and pool revenue), less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels despite changes in the mix of charter types (i.e., voyage (spot) charters, time charters and bareboat charters). |
| (3) | Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period. |
| Fleet Employment Profile (As of May 26, 2025) | |||||||
| Performance Shipping Inc.’s fleet is employed as follows: | |||||||
| Vessel | Year of Build | Capacity | Builder | Vessel Type | Charter Type | Notes | |
| Operating Aframax Tanker Vessels | |||||||
| 1 | BLUE MOON | 2011 | 104,623 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
| 2 | BRIOLETTE | 2011 | 104,588 DWT | Sumitomo Heavy Industries Marine & Engineering Co., LTD. | Crude | Time-Charter | |
| 3 | P. SOPHIA | 2009 | 105,071 DWT | Hyundai Heavy Industries Co., LTD | Crude | Pool | |
| 4 | P. ALIKI | 2010 | 105,304 DWT | Hyundai Heavy Industries Co., LTD | Product | Time-Charter | |
| 5 | P. MONTEREY | 2011 | 105,525 DWT | Hyundai Heavy Industries Co., LTD | Crude | Time-Charter | |
| 6 | P. LONG BEACH | 2013 | 105,408 DWT | Hyundai Heavy Industries Co., LTD | Product | Time-Charter | |
| Newbuilding LR1 and LR2 Tanker Vessels | |||||||
| 7 | HULL 1515 | - | 114,000 DWT | China Shipbuilding Trading Company Limited and Shanghai Waigaoqiao Shipbuilding Company Limited | Product | Time-Charter | 1,2 |
| 8 | HULL 1596 | - | 114,000 DWT | China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. | Product | Time-Charter | 1,2 |
| 9 | HULL 1597 | - | 114,000 DWT | China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. | Product | Time-Charter | 1,2 |
| 10 | HULL 1624 | - | 75,000 DWT | Jiangsu Yangzijiang Shipbuilding Group Co., Ltd. | Chemical/ Product | - | 2 |
| 1 | As previously announced, the Company has secured five-year time charter contracts for three of its newbuilding vessels, with employment to commence upon delivery of the vessels to the Company. | ||||||
| 2 | Expected delivery dates to the Company, as per current management's estimations, are: August 2025 for Hull 1515, September 2025 for Hull 1596, January 2026 for Hull 1597, and January 2027 for Hull 1624. | ||||||
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements and on time charters.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts, including with respect to the delivery of the vessels we have agreed to acquire, future market conditions and the prospective financing and employment of our vessels. The words “believe," “anticipate," “intends," “estimate," “forecast," “project," “plan," “potential," “will," “may," “should," “expect," “targets," “likely," “would," “could," “seeks," “continue," “possible," “might," “pending” and similar expressions, terms or phrases may identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to vessels we agree to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including COVID-19, and their impact on the demand for seaborne transportation of petroleum and other types of products, changes in governmental rules and regulations or actions taken by regulatory authorities, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine and the war between Israel and Hamas, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the US Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
(See financial tables attached)
| PERFORMANCE SHIPPING INC. | |||||||
| FINANCIAL TABLES | |||||||
| Expressed in thousands of U.S. Dollars, except for share and per share data | |||||||
| UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| For the three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| REVENUE: | |||||||
| Revenue | $ | 21,333 | $ | 22,371 | |||
| EXPENSES: | |||||||
| Voyage expenses | 2,118 | 804 | |||||
| Vessel operating expenses | 4,469 | 4,874 | |||||
| Depreciation and amortization of deferred charges | 3,328 | 3,300 | |||||
| General and administrative expenses | 2,104 | 2,124 | |||||
| Gain on vessels' sale | (19,456 | ) | - | ||||
| Provision for credit losses | 30 | - | |||||
| Foreign currency losses | - | 11 | |||||
| Operating income | $ | 28,740 | $ | 11,258 | |||
| OTHER INCOME / (EXPENSES): | |||||||
| Interest and finance costs | (35 | ) | (665 | ) | |||
| Interest income | 718 | 833 | |||||
| Changes in fair value of warrants' liability | 4 | 5 | |||||
| Total other income / (expenses), net | $ | 687 | $ | 173 | |||
| Net income | $ | 29,427 | $ | 11,431 | |||
| Dividends on preferred stock | (457 | ) | (459 | ) | |||
| Net income attributable to common stockholders | $ | 28,970 | $ | 10,972 | |||
| Earnings per common share, basic | $ | 2.33 | $ | 0.89 | |||
| Earnings per common share, diluted | $ | 0.76 | $ | 0.29 | |||
| Weighted average number of common shares, basic | 12,432,158 | 12,279,676 | |||||
| Weighted average number of common shares, diluted | 38,675,532 | 39,080,005 | |||||
| UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
| For the three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net income | $ | 29,427 | $ | 11,431 | |||
| Comprehensive income | $ | 29,427 | $ | 11,431 | |||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||
| (Expressed in thousands of US Dollars) | ||||
| March 31, 2025 | December 31, 2024* | |||
| ASSETS | (unaudited) | |||
| Cash, cash equivalents and restricted cash | $ | 108,273 | $ | 71,314 |
| Advances for vessels under construction and other vessels' costs | 72,116 | 58,468 | ||
| Vessels, net | 168,994 | 189,577 | ||
| Other fixed assets, net | 30 | 34 | ||
| Other assets | 9,347 | 11,000 | ||
| Total assets | $ | 358,760 | $ | 330,393 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Long-term bank debt, net of unamortized deferred financing costs | $ | 45,600 | $ | 47,459 |
| Other liabilities | 8,490 | 7,691 | ||
| Total stockholders' equity | 304,670 | 275,243 | ||
| Total liabilities and stockholders' equity | $ | 358,760 | $ | 330,393 |
| * The balance sheet data as of December 31, 2024 has been derived from the audited consolidated financial statements at that date. | ||||
| OTHER FINANCIAL DATA | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2024 | |||||
| (unaudited) | (unaudited) | |||||
| Net Cash provided by Operating Activities | $ | 15,538 | $ | 17,340 | ||
| Net Cash provided by / (used in) Investing Activities | $ | 23,304 | $ | (22,515 | ) | |
| Net Cash used in Financing Activities | $ | (1,883 | ) | $ | (2,342 | ) |
Corporate Contact: Andreas Michalopoulos Chief Executive Officer, Director and Secretary Telephone: + 30-216-600-2400 Email: amichalopoulos@pshipping.com Website: www.pshipping.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email: enebb@optonline.net
FAQ
What was Performance Shipping's (PSHG) net income for Q1 2025?
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What was the sale price of PSHG's vessel P. Yanbu in Q1 2025?
What is Performance Shipping's current fleet size and newbuild orders?
What was PSHG's revenue and TCE rate in Q1 2025?
