Performance Shipping Inc. (NASDAQ: DCIX), (the “Company”), a global
shipping company specializing in the ownership of vessels, today
reported a net loss of $1.6 million for the second quarter of 2019,
compared to a net loss of $42.3 million for the same period of
2018. The loss for the second quarter of 2019 includes $0.3 million
of impairment charges of one vessel, while the loss for the second
quarter of 2018 includes $15.6 million of impairment charges of one
vessel and $19.0 million of aggregate loss on sale of three
vessels.
Time charter revenues were $4.5 million for the
second quarter of 2019, compared to $6.3 million for the same
period of 2018. This decrease was primarily due to the decrease in
size of the Company’s fleet, and was partially offset by the
increased time charter rates achieved as a result of improved
market conditions.
Net loss for the six months ended June 30, 2019,
amounted to $1.7 million, compared to a net loss of $46.2 million
for the six months ended June 30, 2018. The loss for the six months
ended June 30, 2019 includes $0.3 million of impairment charges of
one vessel, while the loss for the six months ended June 30, 2018
includes $15.6 million of impairment charges of one vessel and
$16.7 million of aggregate loss on sale of six vessels. Time
charter revenues for the six months ended June 30, 2019, amounted
to $10.0 million, compared to $14.3 million for the six months
ended June 30, 2018.
As of July 28, 2019, the Company had 36,277,660
shares of common stock issued and outstanding.
Fleet Employment Profile (As of July 26,
2019) |
|
Performance Shipping Inc.’s fleet is employed as follows: |
|
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|
|
|
|
|
Vessel |
Gross Rate (USD Per Day) |
Com* |
Charterers |
Delivery Date to Charterers** |
Redelivery Date to Owners*** |
Notes |
BUILT CAPACITY |
|
|
|
|
|
|
2 Aframax Tanker Vessels |
MAERSK JEDDAH |
- |
- |
- |
- |
- - - |
1 |
(tbr. Blue Moon) |
|
|
|
|
|
|
2011 104,623DWT |
|
|
|
|
|
|
MAERSK JAMNAGAR |
- |
- |
- |
- |
- - - |
2 |
(tbr. Briolette) |
|
|
|
|
|
|
2011 104,588DWT |
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Panamax Container Vessels |
|
|
|
|
|
|
|
PAMINA |
$11,950 |
5.00% |
Hyundai Merchant Marine Co., Ltd. |
23-Aug-18 |
5-May-19 |
|
|
$8,800 |
5.00% |
5-May-19 |
5-Sep-19 - 5-Nov-19 |
|
2005 5,042TEU |
|
|
|
|
|
|
DOMINGO |
$12,800 |
3.50% |
CMA CGM |
3-Aug-18 |
3-Apr-19 |
|
|
$10,500 |
3.50% |
3-Apr-19 |
3-Sep-19 - 3-Nov-19 |
3 |
2001 3,739TEU |
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Post - Panamax Container Vessels |
PUCON |
$15,000 |
3.75% |
Orient Overseas Container Line Ltd. |
26-Mar-19 |
6-Jun-19 |
4 |
|
$19,500 |
3.75% |
Wan Hai Lines (Singapore) Pte Ltd. |
27-Jun-19 |
31-Aug-19 - 25-Sep-19 |
|
2006 6,541TEU |
|
|
|
|
|
|
ROTTERDAM |
$18,200 |
3.75% |
Wan Hai Lines (Singapore) Pte Ltd. |
12-Jul-18 |
30-Jun-19 |
|
|
$20,500 |
3.75% |
25-Jul-19 |
28-Sep-19 - 23-Oct-19 |
|
2008 6,494TEU |
|
|
|
|
|
|
* Total commission paid to third parties. |
** In case of newly acquired vessel with time charter attached,
this date refers to the expected/actual date of delivery of the
vessel to the Company. |
*** Range of redelivery dates, with the actual date of redelivery
being at the Charterers’ option, but subject to the terms,
conditions, and exceptions of the particular charterparty. |
1 Expected date of delivery to the Company by early August
2019. |
2 Expected date of delivery to the Company by the beginning of
November 2019. |
3 Vessel off hire from April 3, 2019 to April 5, 2019. |
4 Vessel on unscheduled drydocking from June 9, 2019 to June 13,
2019. |
Summary of Selected Financial & Other
Data |
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
STATEMENT OF OPERATIONS DATA (in thousands of US
Dollars): |
Time charter revenues |
$ |
4,547 |
|
$ |
6,269 |
|
$ |
10,016 |
|
$ |
14,260 |
|
Voyage expenses |
|
325 |
|
|
256 |
|
|
603 |
|
|
635 |
|
Vessel operating expenses |
|
3,182 |
|
|
4,101 |
|
|
5,829 |
|
|
9,727 |
|
Net loss |
|
(1,566 |
) |
|
(42,300 |
) |
|
(1,747 |
) |
|
(46,245 |
) |
FLEET DATA |
Average number of vessels |
|
4.0 |
|
|
6.6 |
|
|
4.0 |
|
|
8.6 |
|
Number of vessels |
|
4.0 |
* |
|
5.0 |
|
|
4.0 |
* |
|
5.0 |
|
Ownership days |
|
364 |
|
|
603 |
|
|
724 |
|
|
1,551 |
|
Available days |
|
364 |
|
|
591 |
|
|
724 |
|
|
1,539 |
|
Operating days |
|
340 |
|
|
589 |
|
|
696 |
|
|
1,443 |
|
Fleet utilization |
|
93.4 |
% |
|
99.7 |
% |
|
96.1 |
% |
|
93.8 |
% |
AVERAGE DAILY RESULTS |
Time charter equivalent (TCE) rate (1) |
$ |
11,599 |
|
$ |
10,174 |
|
$ |
13,001 |
|
$ |
8,853 |
|
Daily vessel operating expenses (2) |
$ |
8,742 |
|
$ |
6,801 |
|
$ |
8,051 |
|
$ |
6,271 |
|
|
|
|
|
|
|
|
|
|
* Number of vessels does not include the vessels that the Company
has contracted to purchase but have not been delivered to the
Company as at June 30, 2019. |
_____________________
(1) Time charter equivalent rates, or TCE
rates, are defined as our time charter revenues, net, 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 on time
charters with daily earnings generated by vessels on voyage
charters, because charter hire rates for vessels on voyage charters
are generally not expressed in per day amounts while charter hire
rates for vessels on time charters are generally expressed in such
amounts.
(2) 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.
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
vessels. The Company’s current fleet of vessels are employed
primarily on time charters with leading charterers.
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 statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "may," "should," "expect," "pending" and similar
expressions 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 the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for containership capacity,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, 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, potential
disruption of shipping routes due to accidents or political events,
vessel breakdowns and instances of off-hires and other factors.
Please see our filings with the 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, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
Time charter revenues |
$ |
4,547 |
|
|
$ |
6,269 |
|
|
$ |
10,016 |
|
|
$ |
14,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
325 |
|
|
|
256 |
|
|
|
603 |
|
|
|
635 |
|
Vessel operating expenses |
|
3,182 |
|
|
|
4,101 |
|
|
|
5,829 |
|
|
|
9,727 |
|
Depreciation and amortization of deferred charges |
|
874 |
|
|
|
1,274 |
|
|
|
1,740 |
|
|
|
3,100 |
|
General and administrative expenses |
|
1,555 |
|
|
|
1,914 |
|
|
|
3,463 |
|
|
|
3,859 |
|
Impairment losses |
|
261 |
|
|
|
15,626 |
|
|
|
261 |
|
|
|
15,626 |
|
Loss on vessels' sale |
|
- |
|
|
|
18,968 |
|
|
|
- |
|
|
|
16,679 |
|
Foreign currency losses / (gains) |
|
- |
|
|
|
(41 |
) |
|
|
5 |
|
|
|
(33 |
) |
Operating loss |
$ |
(1,650 |
) |
|
$ |
(35,829 |
) |
|
|
(1,885 |
) |
|
|
(35,333 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
Interest and finance costs |
|
- |
|
|
|
(6,482 |
) |
|
|
- |
|
|
|
(10,939 |
) |
Interest income |
|
84 |
|
|
|
11 |
|
|
|
138 |
|
|
|
27 |
|
Total other income / (expenses), net |
$ |
84 |
|
|
$ |
(6,471 |
) |
|
|
138 |
|
|
|
(10,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,566 |
) |
|
$ |
(42,300 |
) |
|
$ |
(1,747 |
) |
|
$ |
(46,245 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(5.16 |
) |
|
$ |
(0.08 |
) |
|
$ |
(6.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, basic and
diluted |
|
24,961,196 |
|
|
|
8,196,451 |
|
|
|
21,710,494 |
|
|
|
7,068,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June
30, |
|
For the six months ended June
30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,566 |
) |
|
$ |
(42,300 |
) |
|
$ |
(1,747 |
) |
|
$ |
(46,245 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(1,566 |
) |
|
$ |
(42,300 |
) |
|
$ |
(1,747 |
) |
|
$ |
(46,245 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
|
|
|
(Expressed in thousands of US Dollars) |
|
|
|
|
|
June 30, 2019 |
|
|
December 31, 2018* |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
16,742 |
|
$ |
10,493 |
Advances for vessel acquisitions and other vessels'
costs |
|
10,027 |
|
|
- |
Vessels, net |
|
84,123 |
|
|
85,870 |
Other fixed assets, net |
|
982 |
|
|
998 |
Other assets |
|
3,510 |
|
|
2,725 |
Total assets |
$ |
115,384 |
|
$ |
100,086 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
$ |
2,751 |
|
$ |
4,510 |
Total stockholders' equity |
|
112,633 |
|
|
95,576 |
Total liabilities and stockholders' equity |
$ |
115,384 |
|
$ |
100,086 |
|
|
|
|
|
|
* The balance sheet data as of December 31, 2018 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, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
Net Cash used in Operating Activities |
$ |
(652 |
) |
|
$ |
(521 |
) |
|
$ |
(644 |
) |
|
$ |
(542 |
) |
Net Cash provided by / (used in) Investing Activities |
|
(2 |
) |
|
|
42,398 |
|
|
|
441 |
|
|
|
73,004 |
|
Net Cash provided by / (used in) Financing Activities |
|
- |
|
|
|
(23,592 |
) |
|
|
6,452 |
|
|
|
(55,542 |
) |
Corporate Contact:
Ioannis Zafirakis
Director, Chief Strategy Officer and Secretary
Telephone: + 30-216-600-2400
Email: izafirakis@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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