{"id":773179,"date":"2023-07-27T16:17:37","date_gmt":"2023-07-27T20:17:37","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/performance-shipping-inc-reports-net-income-of-18-4-million-a-second-consecutive-record-1-7-million-shares-repurchased-for-the-second-quarter-2023-and-financial-results-for-the-second-quarter-and\/"},"modified":"2023-07-27T16:17:37","modified_gmt":"2023-07-27T20:17:37","slug":"performance-shipping-inc-reports-net-income-of-18-4-million-a-second-consecutive-record-1-7-million-shares-repurchased-for-the-second-quarter-2023-and-financial-results-for-the-second-quarter-and","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/performance-shipping-inc-reports-net-income-of-18-4-million-a-second-consecutive-record-1-7-million-shares-repurchased-for-the-second-quarter-2023-and-financial-results-for-the-second-quarter-and\/","title":{"rendered":"Performance Shipping Inc. Reports Net Income of $18.4 Million, a Second Consecutive Record, 1.7 Million Shares Repurchased for the Second Quarter 2023, and Financial Results for the Second Quarter and Six Months Ended June 30, 2023"},"content":{"rendered":"
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ATHENS, Greece, July 27, 2023 (GLOBE NEWSWIRE) — Performance Shipping Inc. (NASDAQ: PSHG) (\u201cwe\u201d or the \u201cCompany\u201d), a global shipping company specializing in the ownership of tanker vessels, today reported record net income of $18.4 million and net income attributable to common stockholders of $17.9 million for the second quarter of 2023. The 2023 second quarter results compared to a net income of $3.9 million and net income attributable to common stockholders of $3.7 million for the same period in 2022. Earnings per share, basic and diluted, for the second quarter of 2023 were $1.53 and $0.46, respectively.<\/p>\n

Revenue was $31.5 million ($30.5 million net of voyage expenses) for the second quarter of 2023, compared to $16.7 million ($11.3 million net of voyage expenses) for the same period in 2022. This increase was attributable to the increased time-charter equivalent rates (TCE rates) achieved during the quarter. Fleetwide, the average time charter equivalent (a non-GAAP financial measure) rate for the second quarter of 2023 was $41,868, compared with an average rate of $24,921 for the same period in 2022. During the second quarter of 2023, net cash provided by operating activities was $22.1 million, compared with net cash provided by operating activities of $2.3 million for the second quarter of 2022.<\/p>\n

Net income for the six months ended June 30, 2023, amounted to $34.1 million, compared to a net income of $1.8 million for the six months ended June 30, 2022. Net income attributable to common stockholders for the six months ended June 30, 2023, amounted to $22.5 million, and resulted in earnings per share, basic and diluted, of $2.43 and $1.00, respectively. Net loss attributable to common stockholders for the six months ended June 30, 2022, amounted to $7.8 million, and resulted in a loss per common share, basic and diluted, of $27.29. Net income attributable to common stockholders for the six-month periods ended June 30, 2023 and 2022, has been adjusted by aggregate non-cash items of $10.6 million and $9.3 million respectively, as per US GAAP accounting standards, which do not affect the Company’s operating cash flows, EBITDA or performance overall.<\/p>\n

Commenting on the results of the second quarter of 2023, Andreas Michalopoulos, the Company\u2019s Chief Executive Officer, stated:<\/p>\n

\u201cDuring the second quarter of 2023, tanker market fundamentals remained firm and our Company achieved a fleetwide average time charter equivalent rate of $41,868 per day. As a result, we generated record revenues of $31.5 million and record net income of $18.4 million during the quarter, representing increases of 88% and 375%, respectively, from the equivalent quarter in 2022. Our cash balance at the end of the quarter was approximately $70.7 million, corresponding to a 78% increase from the 2022 year-end cash balance and representing a multiple of 7.4x our current market capitalization. Our basic earnings per share for the quarter and the first six months ended June 30, 2023 were $1.53 and $2.43, respectively, compared to our closing share price on July 26, 2023 of $0.84.<\/p>\n

\u201cWe believe that the solid tanker market environment will be sustainable through 2023 and beyond. Our fleet deployment during the previous fiscal year has well positioned our Company to capitalize on the firm freight rate environment through the operation of our renewed and expanded fleet, currently consisting of eight younger and high specification Aframax tankers. Specifically, five of our tankers currently operate under time charter contracts with first-class charterers, earning gross charter rates ranging from $23,000 to $45,000 per day and resulting in aggregate fixed revenues of approximately $52.3 million for the remainder of their charter periods. Our remaining vessels operate under pool arrangements with reputable counterparties. This strategy supplements our already secured revenue backlog and enhances our current profitability by capitalizing on the robust Aframax spot rates. To further solidify our market position, in the first quarter of 2023, we entered into a contract for the purchase of a newbuild LNG-ready LR2 Aframax tanker with a 2025 delivery date. This decision reflects the Company\u2019s confidence in sustainable market fundamentals and higher asset values going forward.<\/p>\n

\u201cDespite what we consider to be strong market conditions in the sector, we believe that the value of our common shares remains extremely low when compared with our earnings and cash on hand. As previously announced, in response to our recent share price development, we have put in place a $2.0 million share buyback program, pursuant to which we have already repurchased 1,806,916 shares of common stock to date at an average price of $0.83 per share, of which approximately 1.7 million shares were repurchased during the second quarter. As we strongly believe that the program is in the best interests of both our Company and our shareholders, we will continue to take advantage of our strong balance sheet to invest opportunistically in our common stock through share buybacks under appropriate market conditions.\u201d<\/p>\n

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\n Tanker Market Update for the Second Quarter of 2023:<\/u>
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