Performance Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2020
ATHENS, GREECE, July 30, 2020 – Performance Shipping Inc. (NASDAQ: PSHG) (the “Company”), a global shipping company specializing in the ownership of vessels, today reported net income and net income attributable to common stockholders of $4.6 million for the second quarter of 2020, compared to a net loss and net loss attributable to common stockholders of $1.6 million for the same period in 2019. Earnings per common share, basic and diluted, for the second quarter of 2020 were $0.09, while loss per share for the second quarter of 2019 was $0.06.
Voyage and time charter revenues were $16.0 million ($11.8 million net of voyage expenses) for the second quarter of 2020, compared to $4.5 million ($4.2 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 our Aframax tanker vessels. Fleetwide, the average time charter equivalent rate for the second quarter of 2020 was $26,092, compared with an average rate of $11,599 for the same period of 2019. As a result, during the second quarter of 2020, net cash provided by operating activities was $2.9 million, compared with net cash used in operating activities of $0.7 million for the second quarter of 2019.
Net income for the six months ended June 30, 2020 amounted to $5.9 million, compared to a net loss of $1.7 million for the six months ended June 30, 2019. Net income attributable to common stockholders for the six months ended June 30, 2020 amounted to $7.4 million, due to a one-time gain of $1.5 million derived from the repurchase of the Series C preferred shares, and resulted in earnings per common share, basic and diluted, of $0.15. Net loss attributable to common stockholders for the six months ended June 30, 2019 was $1.7 million, resulting in a loss per share of $0.08.
Other Second Quarter 2020 Developments:
- 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 365,086 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 second quarter of 2020, Mr. Andreas Michalopoulos, the Company’s Deputy Chief Executive Officer, stated:
“During the second quarter of 2020, we continued to operate profitably with all four Aframax tankers contributing to our operations. We took advantage of favorable market conditions to secure a time charter contract of minimum seventeen (17) months to maximum nineteen (19) months for our M/T Blue Moon at $28,000 per day. The tanker charter market, as expected, has weakened on the back of lower demand due to COVID-19 and lower supply as OPEC cuts output and a flattening oil price curve. We believe the tanker market will recover during the fall and winter months, and we will be ready to take advantage of that possible recovery should it occur. ”
Novel Coronavirus Risks:
On March 11, 2020, the World Health Organization declared the Novel coronavirus disease (“COVID-19”) outbreak a pandemic. In response to the ongoing outbreak, many countries, ports and organizations, including those where the Company conducts a large part of its operations, have implemented measures to combat the outbreak, such as quarantines, travel restrictions, and physical distancing requirements. Such measures have, and will likely continue to, negatively affect the global economy. Any prolonged restrictive measures in order to control the spread of COVID-19 or other adverse public health developments in Asia or in other geographies in which the Company’s vessels operate may significantly impact the demand for the Company’s vessels. The extent to which COVID-19 will impact the Company’s results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity and duration of the virus and the actions to contain or treat its impact or a potential second wave, among others. Accordingly, an estimate of the impact cannot be made at this time. However, if the COVID-19 pandemic worsens, additional restrictions are imposed, or current restrictions are imposed for a longer period of time in response to the outbreak, it may have a material adverse effect on the Company’s future results of operation and financial condition…
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