Performance Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2025

Rhea-AI Summary

Performance Shipping (NASDAQ:PSHG), a global tanker vessel operator, reported Q2 2025 financial results with net income of $9.1 million and earnings per share of $0.69 basic and $0.23 diluted. Revenue reached $18.1 million, down from $20.5 million in Q2 2024, primarily due to fleet reduction following the P. Yanbu vessel sale.

The company achieved a strong fleetwide TCE rate of $32,295 per day, up from $30,970 in Q2 2024, despite operating in a softer charter rate environment. The company's financial position was strengthened by a $100 million Nordic bond offering in July, bringing total cash position to approximately $192 million. The company maintains an aggregate secured revenue backlog of $240 million and operates a fleet of 6 vessels with 3 newbuildings on order.

[ "Increased TCE rate to $32,295 per day from $30,970 year-over-year", "Strong cash position of $192 million after Nordic bond offering", "Secured revenue backlog of approximately $240 million", "Six-month net income grew to $38.5 million from $21.6 million year-over-year", "100% fleet utilization in Q2 2025" ]

Positive

• None.

Negative

• Revenue decreased to $18.1 million from $20.5 million year-over-year
• Net income declined to $9.1 million from $10.2 million year-over-year
• Fleet reduction to 6 vessels from 7 vessels after P. Yanbu sale
• Operating cash flow decreased to $11.3 million from $14.4 million year-over-year

Insights

Financial Analyst

PSHG reported mixed Q2 results with higher TCE rates but lower overall revenue due to fleet reduction; cash position strengthened for growth strategy.

Performance Shipping's Q2 2025 results reveal a somewhat mixed financial picture. The company reported $9.1 million in net income, down 11% from $10.2 million in Q2 2024. Revenue declined to $18.1 million from $20.5 million year-over-year, primarily due to reduced fleet size following the sale of P. Yanbu in March 2025.

Despite the smaller fleet, the company achieved improved efficiency with fleetwide TCE rates increasing to $32,295 per day, up 4.3% from $30,970 in Q2 2024. This improvement came despite broader market headwinds, as evidenced by the 16.4% year-over-year decline in average Aframax tanker charter rates to $42,765 per day.

The company's six-month performance was notably stronger, with net income for H1 2025 reaching $38.5 million, a substantial 78% increase from $21.6 million in H1 2024. This suggests a particularly strong Q1 performance.

From a balance sheet perspective, PSHG has significantly bolstered its financial position, reporting approximately $192 million in cash (adjusted for recent bond proceeds), providing substantial liquidity for its stated fleet expansion strategy. The company's recent $100 million Nordic bond offering represents a strategic non-dilutive capital raise that enhances acquisition capabilities.

The company's secured revenue backlog of approximately $240 million provides stability and visibility for future cash flows. This is supported by time charter contracts secured for all newbuilding vessels, creating a foundation for reliable future earnings.

The tanker market context remains challenging but stable, with fleet supply growing faster than demand. Fleet utilization averaged 84.6% in 2024 and is expected to slightly improve to 85.2% in 2025 before declining to 83.7% in 2026, indicating potential future market softness. The company's focus on younger, more environmentally sustainable vessels positions it well within this evolving market landscape.

ATHENS, Greece, July 30, 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 $9.1 million and net income attributable to common stockholders of $8.6 million for the second quarter of 2025. These results are compared to a net income of $10.2 million and net income attributable to common stockholders of $9.7 million for the same period in 2024. Earnings per share, basic and diluted, for the second quarter of 2025 were $0.69 and $0.23, respectively.

Revenue was $18.1 million ($17.6 million net of voyage expenses) for the second quarter of 2025, compared to $20.5 million ($19.7 million net of voyage expenses) for the same period in 2024. This decrease was attributable to the decrease in the ownership days following the sale of the vessel P. Yanbu in March 2025, despite the increase in time-charter equivalent rates (“TCE rates”) realized during the quarter. Fleetwide, the average TCE rate for the second quarter of 2025 was $32,295, compared with an average rate of $30,970 for the same period in 2024. During the second quarter of 2025, net cash provided by operating activities was $11.3 million, compared with net cash provided by operating activities of $14.4 million for the second quarter of 2024.

Net income for the six months ended June 30, 2025, amounted to $38.5 million, compared to a net income of $21.6 million for the six months ended June 30, 2024. Net income attributable to common stockholders for the six months ended June 30, 2025, amounted to $37.6 million, and resulted in earnings per share, basic and diluted, of $3.02 and $1.00, respectively. Net income attributable to common stockholders for the six months ended June 30, 2024, amounted to $20.7 million, and resulted in earnings per common share, basic and diluted, of $1.68 and $0.55, respectively.

Commenting on the results of the second quarter of 2025, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“During the second quarter of 2025, the tanker market remained firm, supported by steady ton-mile demand and heightened volatility particularly in June due to geopolitical tensions in the Middle East. Our Company, through its balanced fleet deployment strategy and efficient vessel operations, delivered solid financial results and achieved a fleetwide average time charter equivalent (TCE) rate of $32,295 per day.

“This TCE rate, resulting in aggregate revenues of $18.1 million, compares favorably to the average rate of $30,970 per day during the equivalent period in 2024. This strong performance was achieved despite operating a smaller fleet and in a softer charter rate environment. Indicatively, the average Aframax tanker charter rate stood at $42,765 per day during the second quarter of 2025, representing a 16% year-over-year decline from the average daily charter rate of $51,140 per day recorded in the same period last year.

“Our Company remains committed to executing its fleet renewal and expansion strategy, aiming to acquire a younger, more competitive, and environmentally sustainable fleet. This will be pursued through a combination of our well-supported newbuilding program and selective acquisitions of secondhand vessels.

“Our financial strength, enhanced by our access to $100 million of non-dilutive and leverageable capital raised through our successful Nordic bond offering completed in July, provides significant liquidity to pursue our acquisition strategy. Our financial position remains robust, evidenced by a quarter-end -adjusted for the bond proceeds- cash position of approximately $192 million, and an aggregate secured revenue backlog of approximately $240 million.

“With a disciplined and conservative capital structure, we are well positioned to pursue fleet expansion initiatives that support long-term growth and sustainable value creation for our shareholders.”

Corporate Developments

Update on Outstanding Shares and Warrants

As of July 29, 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 Second Quarter of 2025:

• Tanker fleet supply was 701.6 million dwt, up 0.5% from 697.9 million dwt from the previous quarter and up 1.4% from Q2 2024 levels of 692.0 million dwt.
• Tanker demand is expected to show modest growth, with crude tanker demand supported by increased OPEC+ exports and projected DWT demand growth of 0.6% in 2025. In contrast, product tanker demand is set to decline by 0.9% in 2025, amid weak refining margins, soft oil demand, and reduced inter-basin trade. However, shifts in refining capacity and ongoing geopolitical rerouting could provide some support later in the year.
• Tanker fleet supply in deadweight terms is estimated to grow by 2.4% in 2025 and by 3.8% in 2026.
• Tanker fleet utilization averaged 84.6% in 2024, while analysts expect that it will slightly improve to levels of 85.2% in 2025 but decline to 83.7% in 2026.
• Newbuilding tanker contracting was 5.8 million dwt in the second quarter, resulting in a tanker orderbook-to-fleet ratio of 15.0%.
• Daily spot charter rates for Aframax tankers averaged $42,765, up 33.9% from the previous quarter average of $31,931 and down 16.4% from Q2 2024 average of $51,140.
• The value of a 10-year-old Aframax tanker at the end of the second quarter was $50.0 million, unchanged from the previous quarter, and down 16.7% from $60.0 million in Q2 2024.
• The number of tankers used for floating storage (excluding dedicated storage) stood at 119 (12.3 million dwt) in the second quarter, up 15.5% from 103 (11.5 million dwt) at the end of the previous quarter and up 2.6% from 116 in Q2 2024.
• Global oil consumption was 103.2 million bpd, up 1.0% from the previous quarter level of 102.2 million bpd, and up 0.4% from Q2 2024 levels of 102.7 million bpd.
• Global oil production was 104.5 million bpd, down 1.1% from the previous quarter level of 103.4 million bpd and up 1.6% from Q2 2024 levels of 102.8 million bpd.
• OECD commercial inventories were 2,796 million barrels, up 1.7% from the previous quarter level of 2,749 million barrels, and down 1.3% from Q2 2024 levels of 2,834 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 June 30,						For the six months ended June 30,
			2025			2024			2025			2024
			(unaudited)			(unaudited)			(unaudited)			(unaudited)
STATEMENT OF OPERATIONS DATA:
	Revenue	$	18,143		$	20,508		$	39,476		$	42,879
	Voyage expenses		510			780			2,628			1,584
	Vessel operating expenses		4,568			5,049			9,037			9,924
	Net income		9,074			10,185			38,501			21,616
	Net income attributable to common stockholders		8,616			9,727			37,586			20,699
	Earnings per common share, basic		0.69			0.79			3.02			1.68
	Earnings per common share, diluted		0.23			0.26			1.00			0.55
FLEET DATA
	Average number of vessels		6.0			7.0			6.5			7.0
	Number of vessels		6.0			7.0			6.0			7.0
	Ownership days		546			637			1,169			1,274
	Available days		546			637			1,169			1,274
	Operating days (1)		546			634			1,154			1,258
	Fleet utilization		100.0%			99.5%			98.7%			98.7%
AVERAGE DAILY RESULTS
	Time charter equivalent (TCE) rate (2)	$	32,295		$	30,970		$	31,521		$	32,414
	Daily vessel operating expenses (3)	$	8,366		$	7,926		$	7,731		$	7,790

       

	_____________
(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 July 29, 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	-	1
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
7	P. MASSPORT (ex Hull 1515)	2025	114,035 DWT	China Shipbuilding Trading Company Limited and Shanghai Waigaoqiao Shipbuilding Company Limited	Product	Time-Charter
Newbuilding LR1 and LR2 Tanker Vessels
8	HULL 1596	-	114,000 DWT	China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd.	Product	Time-Charter	2,3
9	HULL 1597	-	114,000 DWT	China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd.	Product	Time-Charter	2,3
10	HULL 1624	-	75,000 DWT	Jiangsu Yangzijiang Shipbuilding Group Co., Ltd.	Chemical/ Product	Time-Charter	2,3
1	The vessel P. Aliki is presently undergoing its scheduled special survey.
2	As previously announced, the Company has secured time charter contracts for all of its newbuilding vessels, with employment to commence upon delivery of the vessels to the Company.
3	Expected delivery dates to the Company, as per current management's estimations, are: 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, 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 June 30,						For the six months ended June 30,
			2025			2024			2025			2024
REVENUE:
	Revenue	$	18,143		$	20,508		$	39,476		$	42,879
EXPENSES:
	Voyage expenses		510			780			2,628			1,584
	Vessel operating expenses		4,568			5,049			9,037			9,924
	Depreciation and amortization of deferred charges		3,147			3,300			6,475			6,600
	General and administrative expenses		1,752			1,579			3,856			3,703
	Gain on vessel's sale		-			-			(19,456	)		-
	(Reversal) / Provision for credit losses		(3	)		(7	)		27			(7	)
	Foreign currency losses		69			-			69			10
	Operating income	$	8,100		$	9,807		$	36,840		$	21,065
OTHER INCOME / (EXPENSES):
	Interest and finance costs		(44	)		(443	)		(78	)		(1,108	)
	Interest income		1,020			817			1,737			1,649
	Changes in fair value of warrants' liability		(2	)		4			2			10
	Total other income, net	$	974		$	378		$	1,661		$	551
Net income		$	9,074		$	10,185		$	38,501		$	21,616
Dividends on preferred stock			(458	)		(458	)		(915	)		(917	)
Net income attributable to common stockholders		$	8,616		$	9,727		$	37,586		$	20,699
Earnings per common share, basic		$	0.69		$	0.79		$	3.02		$	1.68
Earnings per common share, diluted		$	0.23		$	0.26		$	1.00		$	0.55
Weighted average number of common shares, basic			12,432,158			12,316,214			12,432,158			12,297,945
Weighted average number of common shares, diluted			38,667,584			39,362,532			38,667,584			39,215,897
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
			For the three months ended June 30,						For the six months ended June 30,
			2025			2024			2025			2024
Net income		$	9,074		$	10,185		$	38,501		$	21,616
Comprehensive income		$	9,074		$	10,185		$	38,501		$	21,616

CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Expressed in thousands of US Dollars)
		June 30, 2025		December 31, 2024*
ASSETS		(unaudited)
Cash, cash equivalents and restricted cash	$	96,783	$	71,314
Advances for vessels under construction and other vessels' costs		92,301		58,468
Vessels, net		166,090		189,577
Other fixed assets, net		27		34
Other assets		8,599		11,000
Total assets	$	363,800	$	330,393
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term bank debt, net of unamortized deferred financing costs	$	43,739	$	47,459
Other liabilities		7,232		7,691
Total stockholders' equity		312,829		275,243
Total liabilities and stockholders' equity	$	363,800	$	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 June 30,						For the six months ended June 30,
		2025			2024			2025			2024
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net Cash provided by Operating Activities	$	11,309		$	14,353		$	26,847		$	31,693
Net Cash provided by / (used in) Investing Activities	$	(20,001	)	$	(10,175	)	$	3,303		$	(32,690	)
Net Cash used in Financing Activities	$	(2,798	)	$	(2,184	)	$	(4,681	)	$	(4,526	)

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 were Performance Shipping's (PSHG) Q2 2025 earnings results?

Performance Shipping reported net income of $9.1 million with EPS of $0.69 basic and $0.23 diluted. Revenue was $18.1 million with a TCE rate of $32,295 per day.

How much cash does Performance Shipping (PSHG) have after the Nordic bond offering?

After the $100 million Nordic bond offering in July 2025, Performance Shipping's cash position reached approximately $192 million.

What is Performance Shipping's (PSHG) current fleet size and orderbook?

Performance Shipping operates 6 tanker vessels and has 3 newbuilding vessels on order, including two 114,000 DWT vessels and one 75,000 DWT chemical/product tanker.

How did Performance Shipping's (PSHG) Q2 2025 results compare to Q2 2024?

Revenue decreased from $20.5M to $18.1M, and net income declined from $10.2M to $9.1M, though TCE rates improved from $30,970 to $32,295 per day.

What is Performance Shipping's (PSHG) secured revenue backlog?

Performance Shipping maintains an aggregate secured revenue backlog of approximately $240 million.