Athens, Greece - May 18, 2020
Performance Shipping Inc. (NASDAQ: PSHG) (the “Company”), a global shipping company specializing in the ownership of vessels, today reported net income of $1.3 million for the first quarter of 2020, compared to a net loss of $0.2 million for the same period in 2019. Net income attributable to common stockholders for the first quarter of 2020 amounted to $2.8 million, and earnings per common share, basic and diluted, for the same period were $0.06 (if adjusted for the effect of a one-time gain of $1.5 million derived from the repurchase of the Series C preferred shares, the earnings per share would have been $0.03). Net loss attributable to common stockholders for the first quarter of 2019 was $0.2 million, and loss per share for the same period was $0.01.
Voyage and time charter revenues were $13.5 million ($9.2 million net of voyage expenses) for the first quarter of 2020, compared to $5.5 million ($5.2 million net of voyage expenses) for the same period in 2019. This increase was mainly attributable to the increased time-charter equivalent rates (TCE rates) contributed by the Company’s Aframax tanker vessels M/T Blue Moon, M/T Briolette and M/T P. Fos. Fleet-wide, the average time charter equivalent rate for the first quarter of 2020 was $21,386, compared with an average rate of $14,419 for the same period of 2019. As a result, during the first quarter of 2020, net cash provided by operating activities was $7.1 million, compared with $8,000 for the first quarter of 2019.
Other First Quarter 2020 Developments:
• Delivery of the Aframax tanker M/T P. Fos in January 2020
• Acquisition and delivery in March 2020 of the Aframax tanker M/T P. Kikuma
• Agreement for the sale of the containership M/V Rotterdam in January 2020
• Loan drawdown of $26.0 million in aggregate from Nordea Bank Abp, Filial i Norge to support the acquisition cost of the M/T P. Fos and the M/T P. Kikuma
• Establishment of a Share Repurchase Program for up to $6.0 million of common shares
• Repurchase and cancellation of 452,768 common shares under the Share Repurchase Program
• Issuance of 1,352,152 common shares pursuant to conversions of Series B-2 preferred shares
• Repurchase and cancellation of all outstanding Series C preferred voting shares.
• Delivery of the containership M/V Rotterdam to her new owners in April 2020
• Issuance of 600,000 common shares pursuant to conversions of Series B-2 preferred shares
• Repurchase and cancellation of all remaining Series B-2 preferred shares in April 2020
• Repurchase and cancellation of 176,832 common shares under the Share Repurchase Program
• Receipt of NASDAQ notification for extension of the compliance period to cure the bid price deficiency to November 2020
Commenting on the results of the first quarter of 2020, Mr. Andreas Michalopoulos, the Company’s Deputy Chief Executive Officer stated:
“We are very excited about Performance Shipping Inc.’s tanker presence, which increased further during the first quarter and resulted in our second consecutive quarter of profitability on an adjusted net income basis. We started the year with two Aframax tankers and two containerships and moved into the second quarter with four Aframax tankers and one containership. During the first quarter of 2020, we redeemed all of our Series C voting shares, and in April 2020, we canceled the outstanding Series B-2 convertible preferred shares. This marked an important step in simplifying our outstanding securities as we now only have shares of common stock outstanding. Following the delivery of the M/V Rotterdam to her buyer in April 2020, we now have approximately $30.5 million in cash, paving the way to acquire a fifth Aframax tanker and become a pure tanker owning company. We believe that our independent management team, transparent structure, and corporate governance, coupled with the adherence to our strategy, will, in time, result in our common shares trading in line with their intrinsic value.”
Performance Shipping Inc. press release