Performance Shipping Inc. (NASDAQ: PSHG) (the “Company”), a global
shipping company specializing in the ownership of tanker vessels,
today reported a net loss and net loss from continuing and
discontinued operations attributable to common stockholders of $2.5
million for the fourth quarter of 2020, compared to a net loss and
net loss from continuing and discontinued operations attributable
to common stockholders of $12.2 million for the same period in
2019. Loss per share for the fourth quarter of 2020 was $0.51,
while loss per share for the fourth quarter of 2019 was $3.17.
Voyage and time charter revenues from continuing
and discontinued operations were $7.2 million ($3.9 million net of
voyage expenses) for the fourth quarter of 2020, compared to $10.6
million ($8.5 million net of voyage expenses) for the same period
in 2019. This decrease was mainly attributable to the decreased
time-charter equivalent rates (TCE rates) achieved during the
quarter as a result of the depressed market conditions. Fleetwide,
the average time charter equivalent rate for the fourth quarter of
2020 was $10,114, compared with an average rate of $23,153 for the
same period of 2019. During the fourth quarter of 2020, net cash
provided by operating activities of continuing and discontinued
operations was $0.9 million, compared with net cash used in
operating activities of continuing and discontinued operations of
$0.3 million for the fourth quarter of 2019.
Net income from continuing and discontinued
operations for the year ended December 31, 2020, amounted to $3.8
million, compared to a net loss from continuing and discontinued
operations of $32.1 million for the year ended December 31, 2019.
Net income from continuing and discontinued operations attributable
to common stockholders for the year ended December 31, 2020,
amounted to $5.2 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 $1.06
and $1.05, respectively. Net loss from continuing and discontinued
operations attributable to common stockholders for the year ended
December 31, 2019, was $32.1 million, resulting in a loss per share
of $11.19.
Fourth Quarter 2020 and Subsequent
Developments:
- Appointment of Andreas
Michalopoulos as Chief Executive Officer and Anthony Argyropoulos
as Chief Financial Officer in October 2020;
- Initiation of new variable
quarterly dividend policy and declaration of $0.01 dividend per
share (or $0.1 per share, as adjusted after the one-for-ten reverse
stock split) to all shareholders in October 2020;
- Introduction of new business
strategy and posting of the relevant presentation on the Company’s
website in October 2020;
- Effectiveness of a one-for-ten
reverse stock split to comply with NASDAQ’s minimum share price
rule in November 2020;
- Acquisition of 2011-built Aframax
tanker vessel “P. Yanbu” for $22.0 million in November 2020;
- The signing of a loan agreement with Piraeus Bank S.A. for up
to $31.5 million in December 2020, for the partial refinancing of
the existing Nordea loan and additional financing for the “P.
Yanbu”;
- Signing of a supplemental loan
agreement with Nordea for repayment schedule re-structuring in
December 2020;
- Delivery of the Aframax tanker
vessel “P. Yanbu” in December 2020;
- Entry into an At-The-Market
Offering Agreement with H.C. Wainwright Co., LLC, pursuant to which
the Company may, at its discretion, sell its common shares at
market prices.
Commenting on the results of the fourth quarter
of 2020, Mr. Andreas Michalopoulos, the Company’s Chief Executive
Officer, stated:
“Spot charter rates during the fourth quarter of
2020 were the lowest in more than 30 years as a result of a
combination of weak consumer and industrial demand, and low crude
oil and refined petroleum products production. We, at Performance
Shipping Inc., nevertheless managed to earn a time charter
equivalent rate of $10,114 over our available days compared to the
average daily spot Aframax tanker rate of $5,713 during the
quarter. We expect the spot charter market to gradually recover
through 2021 as the COVID-19 pandemic recedes and demand for crude
oil and refined petroleum products recovers. Unfortunately, due to
unprecedented low market conditions, we cannot declare and pay a
dividend at the present time, but we are pleased to include for the
first time in our earnings release our fourth quarter dividend
calculation, a specific and transparent table based on which we
determine whether we shall pay a dividend.
The ATM agreement we will enter into today will position
us to fund our stated growth strategy of gradually doubling the
size of our fleet over the next twelve to twenty-four months
through access to the public equity capital markets when our
industry and share price recover in the future.”
Tanker Market Update:
- Fleet supply was 641.0 million dwt,
up 0.3% from 638.9 million dwt from the previous quarter, and up
3.0% from Q4 2019 levels of 622.3 million dwt.
- Demand is estimated to have
increased by 2.0% from the previous quarter and 12.5% from Q4 2019
levels.
- Crude tanker fleet utilization was
estimated at 79.6%, down from 84.5% from the previous quarter and
down from Q4 2019 levels of 89.3%.
- Newbuilding contracting at 9.3
million dwt resulted in a further reduction of the orderbook to
7.7% of the fleet, the lowest level since 1996.
- Daily spot charter rates for
Aframax tankers averaged $5,713, down 34.3% from the previous
quarter average of $8,698 and down 89.0% from Q4 2019 average
of $52,853.
- The value of a 10-year-old Aframax
tanker ended the quarter at $20.5 million, down 10.9% from the
previous quarter assessed value of $23 million, and down 31.7% from
Q4 2019 assessed value of $30 million.
- Tankers used for floating storage
(excluding dedicated storage) was 232 (38.3 million dwt), down
29.9% from 331 (47.6 million dwt) from the previous quarter and up
231.4% from Q4 2019 levels of 70 (16.5 million dwt).
- Global oil consumption was 95.5
million bpd, up 2.3% from the previous quarter level of 93.4
million bpd, and down 6.1% from Q4 2019 levels of 101.7 million
bpd.
- Global oil production was 92.3
million bpd, up 1.2% from the previous quarter level of 91.2
million bpd and down 9.1% from Q4 2019 levels of 101.6 million
bpd.
- OECD commercial inventories were
3,045.2 million barrels, down 3.9% from the previous quarter level
of 3,168.9 million barrels, and up 5.8% from Q4 2019 levels of
2,878.8 million barrels.
Novel Coronavirus Risks:
On March 11, 2020, the World Health Organization
declared the novel coronavirus (“COVID-19”) outbreak a pandemic. In
response to the 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 other emergency public
health measures in an effort to contain the outbreak. Such measures
have resulted in a significant reduction in global economic
activity and extreme volatility in the global financial markets,
which has reduced the global demand for oil and oil products, which
the Company’s vessels transport. 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 of the virus and the actions to contain or
treat its impact, 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, the adverse impact on the global economy and the rate
environment for tankers may deteriorate further, which may result
in a material adverse effect on the Company’s business, results of
operations, cash flows, financial condition, vessel values, and
ability to pay dividends.
|
Summary
of Selected Financial & Other Data |
|
|
|
For the three months ended December 31, |
|
For the years ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
STATEMENT
OF OPERATIONS DATA (in thousands of US Dollars): |
CONTINUING
AND DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
Voyage and time charter
revenues |
$ |
7,205 |
|
$ |
10,580 |
|
$ |
46,283 |
|
$ |
26,846 |
|
|
Voyage expenses |
|
3,311 |
|
|
2,083 |
|
|
14,622 |
|
|
3,447 |
|
|
Vessel operating expenses |
|
2,412 |
|
|
2,605 |
|
|
11,544 |
|
|
11,321 |
|
|
Net income / (loss) |
|
(2,548 |
) |
|
(12,228 |
) |
|
3,777 |
|
|
(32,057 |
) |
|
Net income / (loss)
attributable to common stockholders |
|
(2,548 |
) |
|
(12,228 |
) |
|
5,190 |
|
|
(32,057 |
) |
|
Earnings / (Loss) per common
share, basic |
|
(0.51 |
) |
|
(3.17 |
) |
|
1.06 |
|
|
(11.19 |
) |
|
Earnings / (Loss) per common
share, diluted |
|
(0.51 |
) |
|
(3.17 |
) |
|
1.05 |
|
|
(11.19 |
) |
FLEET
DATA |
|
Average number of vessels |
|
4.2 |
|
|
4.0 |
|
|
4.6 |
|
|
4.2 |
|
|
Number of vessels |
|
5.0 |
|
|
4.0 |
|
|
5.0 |
|
|
4.0 |
|
|
Ownership days |
|
385 |
|
|
367 |
|
|
1,689 |
|
|
1,516 |
|
|
Available days |
|
385 |
|
|
367 |
|
|
1,689 |
|
|
1,516 |
|
|
Operating days, excluding
ballast leg (1) |
|
254 |
|
|
330 |
|
|
1,258 |
|
|
1,401 |
|
|
Operating days, including
ballast leg (2) |
|
321 |
|
|
351 |
|
|
1,515 |
|
|
1,422 |
|
|
Fleet utilization, excluding
ballast leg |
|
66.0% |
|
|
89.9% |
|
|
74.5% |
|
|
92.4% |
|
|
Fleet utilization, including
ballast leg |
|
83.4% |
|
|
95.6% |
|
|
89.7% |
|
|
93.8% |
|
AVERAGE
DAILY RESULTS |
|
Time charter equivalent (TCE)
rate (3) |
$ |
10,114 |
|
$ |
23,153 |
|
$ |
18,745 |
|
$ |
15,435 |
|
|
Daily vessel operating
expenses (4) |
$ |
6,265 |
|
$ |
7,098 |
|
$ |
6,835 |
|
$ |
7,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the years ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
STATEMENT
OF OPERATIONS DATA (in thousands of US Dollars): |
CONTINUING
OPERATIONS |
|
|
|
|
|
|
|
|
|
Voyage and time charter
revenues |
$ |
7,205 |
|
$ |
5,050 |
|
$ |
42,045 |
|
$ |
6,301 |
|
|
Voyage expenses |
|
3,311 |
|
|
1,928 |
|
|
14,434 |
|
|
2,460 |
|
|
Vessel operating expenses |
|
2,412 |
|
|
800 |
|
|
9,208 |
|
|
1,122 |
|
|
Net income / (loss) |
|
(2,548 |
) |
|
(1,371 |
) |
|
2,295 |
|
|
(6,743 |
) |
|
Net income / (loss)
attributable to common stockholders |
|
(2,548 |
) |
|
(1,371 |
) |
|
3,708 |
|
|
(6,743 |
) |
|
Earnings / (Loss) per common
share, basic |
|
(0.51 |
) |
|
(0.35 |
) |
|
0.76 |
|
|
(2.35 |
) |
|
Earnings / (Loss) per common
share, diluted |
|
(0.51 |
) |
|
(0.35 |
) |
|
0.75 |
|
|
(2.35 |
) |
FLEET DATA |
|
Average number of vessels |
|
4.2 |
|
|
1.4 |
|
|
3.7 |
|
|
0.5 |
|
|
Number of vessels |
|
5.0 |
|
|
2.0 |
|
|
5.0 |
|
|
2.0 |
|
|
Ownership days |
|
385 |
|
|
132 |
|
|
1,365 |
|
|
188 |
|
|
Available days |
|
385 |
|
|
132 |
|
|
1,365 |
|
|
188 |
|
|
Operating days, excluding
ballast leg (1) |
|
254 |
|
|
102 |
|
|
945 |
|
|
138 |
|
|
Operating days, including
ballast leg (2) |
|
321 |
|
|
123 |
|
|
1,202 |
|
|
159 |
|
|
Fleet utilization, excluding
ballast leg |
|
66.0% |
|
|
77.3% |
|
|
69.2% |
|
|
73.4% |
|
|
Fleet utilization, including
ballast leg |
|
83.4% |
|
|
93.2% |
|
|
88.1% |
|
|
84.6% |
|
AVERAGE DAILY RESULTS |
|
Time charter equivalent (TCE)
rate (3) |
$ |
10,114 |
|
$ |
23,652 |
|
$ |
20,228 |
|
$ |
20,431 |
|
|
Daily vessel operating
expenses (4) |
$ |
6,265 |
|
$ |
6,061 |
|
$ |
6,746 |
|
$ |
5,968 |
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS (5) |
|
|
|
|
|
|
|
|
|
Time charter revenues |
$ |
- |
|
$ |
5,530 |
|
$ |
4,238 |
|
$ |
20,545 |
|
|
Voyage expenses |
|
- |
|
|
155 |
|
|
188 |
|
|
987 |
|
|
Vessel operating expenses |
|
- |
|
|
1,805 |
|
|
2,336 |
|
|
10,199 |
|
|
Net income / (loss) |
|
- |
|
|
(10,857 |
) |
|
1,482 |
|
|
(25,314 |
) |
|
Net income / (loss)
attributable to common stockholders |
|
- |
|
|
(10,857 |
) |
|
1,482 |
|
|
(25,314 |
) |
|
Earnings / (Loss) per common
share, basic |
|
- |
|
|
(2.82 |
) |
|
0.30 |
|
|
(8.84 |
) |
|
Earnings / (Loss) per common
share, diluted |
|
- |
|
|
(2.82 |
) |
|
0.30 |
|
|
(8.84 |
) |
FLEET DATA |
|
Average number of vessels |
|
- |
|
|
2.6 |
|
|
0.9 |
|
|
3.6 |
|
|
Number of vessels |
|
- |
|
|
2.0 |
|
|
- |
|
|
2.0 |
|
|
Ownership days |
|
- |
|
|
235 |
|
|
324 |
|
|
1,328 |
|
|
Available days |
|
- |
|
|
235 |
|
|
324 |
|
|
1,328 |
|
|
Operating days |
|
- |
|
|
228 |
|
|
313 |
|
|
1,263 |
|
|
Fleet utilization |
|
- |
|
|
97.0% |
|
|
96.6% |
|
|
95.1% |
|
AVERAGE DAILY RESULTS |
|
Time charter equivalent (TCE)
rate (3) |
$ |
- |
|
$ |
22,872 |
|
$ |
12,500 |
|
$ |
14,727 |
|
|
Daily vessel operating
expenses (4) |
$ |
- |
|
$ |
7,681 |
|
$ |
7,210 |
|
$ |
7,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________ |
(1) |
Operating days, excluding ballast leg, 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 the ballast leg of
spot voyages as off-hire days, even if a charter party exists, so
as to be in line with the accounting guidelines of ASC 606 for the
revenue recognition (“loading” to “discharging” accounting). The
shipping industry uses operating days to measure the aggregate
number of days in a period during which vessels actually generate
revenues. |
(2) |
Operating days, including ballast leg, are the number of available
days in a period less the aggregate number of days that our vessels
are off-hire. The specific calculation does not count as off-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. |
(3) |
Time charter equivalent rates, or TCE rates, are defined as our
voyage and time charter revenues, 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). |
(4) |
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. |
(5) |
Discontinued Operations refer to our container vessels
segment. |
|
Fleet
Employment Profile (As of March [5], 2021) |
Performance
Shipping Inc.’s fleet is employed as follows: |
|
|
|
|
|
|
|
|
|
|
|
Vessel |
Year ofBuilt |
Capacity |
Builder |
Gross Rate(USD PerDay) |
Com* |
Charterers |
Delivery Date toCharterers |
Redelivery Date toOwners** |
|
4 Aframax Tanker Vessels |
1 |
BLUE MOON |
2011 |
104,623 DWT |
Sumitomo Heavy Industries Marine & Engineering Co., LTD. |
$28,000 |
5.00% |
Aramco Trading Company, Saudi Arabia |
19-Jun-20 |
19-Nov-21 - 18-Jan-22 |
2 |
BRIOLETTE |
2011 |
104,588 DWT |
Sumitomo Heavy Industries Marine & Engineering Co., LTD. |
Spot |
- |
- |
- |
- - - |
3 |
P.
FOS |
2007 |
115,577 DWT |
Sasebo Heavy Industries Co. Ltd |
Spot |
- |
- |
- |
- - - |
4 |
P.
KIKUMA |
2007 |
115,915 DWT |
Samsung Heavy Industries Co Ltd., Geoje, South Korea |
Spot |
- |
- |
- |
- - - |
5 |
P. YANBU |
2011 |
105,391 DWT |
Sumitomo Heavy Industries Marine & Engineering Co., LTD. |
Spot |
- |
- |
- |
- - - |
* Total
commission paid to third parties. |
** 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. |
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
Aframax tankers. The Company's current fleet is employed primarily
in the spot market, and in some cases, on short to medium-term time
charters, with leading energy companies and traders.
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.
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, 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 the strength of world economies, fluctuations in
currencies and interest rates, general market conditions, including
fluctuations in charter hire rates and vessel values, changes in
demand for our vessels, 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,
dry-docking and insurance costs, our future operating or financial
results, 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, the length
and severity of epidemics and pandemics, including the ongoing
outbreak of the novel coronavirus (COVID-19) and its impact on the
demand for seaborne transportation of petroleum and other types of
products, 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 or events, including “trade wars”, 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 U.S. Securities
and Exchange Commission for a more complete discussion of these and
other risks and uncertainties.
Disclaimer
This press release does not constitute an offer
to sell or the solicitation of an offer to buy securities and shall
not constitute an offer, solicitation or sale in any jurisdiction
in which such offer, solicitation or sale is unlawful.
(See financial tables attached)
PERFORMANCE SHIPPING INC. |
FINANCIAL TABLES |
Expressed in thousands of U.S. Dollars, except for share and per
share data |
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUING AND
DISCONTINUED OPERATIONS) |
|
|
|
For the three months ended December 31, |
|
For the years ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
REVENUES: |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
Voyage and time charter
revenues |
$ |
7,205 |
|
$ |
10,580 |
|
$ |
46,283 |
|
$ |
26,846 |
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
3,311 |
|
|
2,083 |
|
|
14,622 |
|
|
3,447 |
|
|
Vessel operating expenses |
|
2,412 |
|
|
2,605 |
|
|
11,544 |
|
|
11,321 |
|
|
Depreciation and amortization
of deferred charges |
|
1,631 |
|
|
891 |
|
|
5,898 |
|
|
3,684 |
|
|
Management fees |
|
- |
|
|
100 |
|
|
347 |
|
|
147 |
|
|
General and administrative
expenses |
|
1,858 |
|
|
2,733 |
|
|
7,985 |
|
|
8,162 |
|
|
Impairment losses |
|
- |
|
|
13,934 |
|
|
339 |
|
|
31,629 |
|
|
(Gain) / loss on vessels'
sale |
|
- |
|
|
127 |
|
|
(319 |
) |
|
127 |
|
|
Provision for doubtful
receivables |
|
(73 |
) |
|
- |
|
|
79 |
|
|
- |
|
|
Foreign currency (gains) /
losses |
|
7 |
|
|
10 |
|
|
32 |
|
|
(7 |
) |
|
Operating income /
(loss) |
$ |
(1,941 |
) |
$ |
(11,903 |
) |
$ |
5,756 |
|
$ |
(31,664 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
Interest and finance
costs |
|
(619 |
) |
|
(398 |
) |
|
(2,089 |
) |
|
(651 |
) |
|
Interest income |
|
12 |
|
|
73 |
|
|
110 |
|
|
258 |
|
|
Total other expenses,
net |
$ |
(607 |
) |
$ |
(325 |
) |
$ |
(1,979 |
) |
$ |
(393 |
) |
|
|
|
|
|
|
|
|
|
|
Net income
/ (loss) |
$ |
(2,548 |
) |
$ |
(12,228 |
) |
$ |
3,777 |
|
$ |
(32,057 |
) |
|
|
|
|
|
|
|
|
|
|
Gain from
repurchase of preferred shares |
|
- |
|
|
- |
|
|
1,500 |
|
|
- |
|
Income allocated
to participating securities |
|
- |
|
|
- |
|
|
(87 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Net income
/ (loss) attributable to common stockholders |
$ |
(2,548 |
) |
$ |
(12,228 |
) |
|
5,190 |
|
|
(32,057 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) per common share, basic * |
$ |
(0.51 |
) |
$ |
(3.17 |
) |
$ |
1.06 |
|
$ |
(11.19 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) per common share, diluted * |
$ |
(0.51 |
) |
$ |
(3.17 |
) |
$ |
1.05 |
|
$ |
(11.19 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares, * |
|
4,966,210 |
|
|
3,854,802 |
|
|
4,875,475 |
|
|
2,864,676 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares, * |
|
4,966,210 |
|
|
3,854,802 |
|
|
4,945,562 |
|
|
2,864,676 |
|
* Comparative
figures were adjusted to give effect to the reverse stock split
that became effective on November 2, 2020. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME /
(LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the years ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
Net income
/ (loss) |
$ |
(2,548 |
) |
$ |
(12,228 |
) |
$ |
3,777 |
|
$ |
(32,057 |
) |
Other
comprehensive income / (loss) (Actuarial gain/ (loss)) |
|
(61 |
) |
|
12 |
|
|
(61 |
) |
|
12 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income/ (loss) |
$ |
(2,609 |
) |
$ |
(12,216 |
) |
$ |
3,716 |
|
$ |
(32,045 |
) |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
|
|
(Expressed in
thousands of US Dollars) |
|
|
|
|
|
December 31, 2020 |
|
December 31, 2019** |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
21,378 |
$ |
26,363 |
Advances for vessel acquisitions and other vessels' costs |
|
- |
|
11,017 |
Vessels, net |
|
128,108 |
|
82,871 |
Other fixed assets, net |
|
1,135 |
|
993 |
Other assets |
|
7,233 |
|
9,325 |
|
Total assets |
$ |
157,854 |
$ |
130,569 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of unamortized deferred financing costs |
$ |
57,666 |
$ |
32,283 |
Other liabilities |
|
3,391 |
|
4,048 |
Total stockholders' equity |
|
96,797 |
|
94,238 |
|
Total liabilities and stockholders' equity |
$ |
157,854 |
$ |
130,569 |
|
|
|
|
|
|
**The balance
sheet data as of December 31, 2019 has been derived from the
audited consolidated financial statements at that date. |
OTHER
FINANCIAL DATA (CONTINUING AND DISCONTINUED
OPERATIONS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the years ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
Net Cash provided by / (used in) Operating Activities |
$ |
881 |
|
$ |
(305 |
) |
$ |
13,176 |
|
$ |
(4,194 |
) |
Net Cash provided by / (used in) Investing Activities |
$ |
(22,235 |
) |
$ |
3,188 |
|
$ |
(40,146 |
) |
$ |
(18,517 |
) |
Net Cash provided by Financing Activities |
$ |
5,544 |
|
$ |
15,981 |
|
$ |
21,985 |
|
$ |
38,581 |
|
Dividend Policy – Quarterly
Calculations
Our Board of Directors has adopted a variable
quarterly dividend policy, pursuant to which we may declare and pay
a variable quarterly cash dividend. If declared, the quarterly
dividend is expected to be paid each February, May, August and
November and will be equal to available cash from operations during
the previous quarter after cash payments for debt repayment and
interest expense and reserves for the replacement of our vessels,
scheduled drydockings, intermediate and special surveys and other
purposes as our Board of Directors may from time to time determine
are required, after taking into account contingent liabilities, the
terms of any credit facility, our growth strategy and other cash
needs as well as the requirements of Marshall Islands law. The
declaration and payment of dividends is, at all times, subject to
the discretion of our Board of Directors. Our Board of Directors
may review and amend our dividend policy from time to time, in
light of our plans for future growth and other factors.
In accordance with our dividend policy, and
taking into account the above-listed factors, we expect to pay
dividends only if during the preceding quarter Quarterly Cash Flow
is positive and Quarter-End Excess Cash is also positive. As a
general guideline, the amount of any such dividends is expected to
be based on a pay-out ratio of the lower of i) Quarterly Cash Flow;
and ii) Quarter-End Excess Cash. So long as our end of quarter
outstanding debt exceeds our equity market capitalization our
pay-out ratio is expected to be 50%. We will consider increasing
the pay-out ratio gradually up to a maximum level of 90% that we
may achieve when our end of quarter outstanding debt is less than
10% of our equity market capitalization. Quarter-End Excess Cash is
defined as actual end of quarter Cash and Cash Equivalents over our
Minimum Cash Threshold. Minimum Cash Threshold is defined as the
sum of minimum liquidity pursuant to our loan agreements and $1.5
million per vessel. Our bank facilities currently require us to
maintain minimum liquidity of $9.0 million.
Quarterly Cash Flow is equal to voyage and time
charter revenues less voyage expenses, less vessel operating
expenses, less general and administrative expenses, less - the
greater of i) net interest expense and repayment of long-term bank
debt or ii) fleet replacement reserves - and less maintenance
reserves for our fleet.
We believe the above approach will ensure the
sustainability of our Company and replacement of our fleet as
during quarters where either Excess Cash is negative or Quarterly
Cash Flow is negative, we will not pay dividends until Quarterly
Cash Flow is positive and Excess Cash is also positive. Below are
our calculations of Quarter-End Excess Cash and Quarterly Cash Flow
for the fourth quarter of 2020.
DIVIDEND
CALCULATIONS |
(Expressed in
thousands of U.S. Dollars) |
|
|
|
For the three months ended December 31, 2020 |
|
Voyage and time charter revenues |
$ |
7,205 |
|
|
Less, Voyage expenses |
$ |
(3,311 |
) |
|
Less, Vessel operating
expenses |
$ |
(2,412 |
) |
|
Less, General and
administrative expenses |
$ |
(1,668 |
) |
|
|
|
|
|
Less, Greater of (I)
or (II): |
|
|
|
Interest and finance
costs |
$ |
(619 |
) |
|
Plus, Repayment of long-term
bank debt |
$ |
(2,453 |
) |
|
Total
(I) |
$ |
(3,072 |
) |
|
Or |
|
|
|
Replacement reserve
(II) |
$ |
(1,714 |
) |
|
|
|
|
|
Less, Maintenance reserve |
|
(438 |
) |
Quarterly
Cash Flow (A) |
$ |
(3,696 |
) |
|
|
|
|
|
Cash and cash equivalents |
$ |
21,378 |
|
|
Less, Minimum Cash
Threshold |
$ |
16,500 |
|
Quarter-End Excess Cash (B) |
$ |
4,878 |
|
|
|
|
|
Quarterly Cash
Flow Test (A) >0, AND |
|
Not eligible for
dividend |
Quarter-End Excess
Cash Test (B) >0 |
|
Eligible for dividend |
Cash
Available for Dividend, lower (A) or (B) |
$ |
- |
|
|
Payout
ratio |
|
50 |
% |
Quarterly
Dividend |
$ |
- |
|
|
|
|
|
(1) |
General and administrative expenses, for the purpose of calculating
dividends, exclude non-cash items. |
(2) |
Replacement reserves reflect the aggregate annual amount of cash
that the Company retains to fund the replacement of each of its
vessels. In addition to the replacement reserve retained and
reinvested at a certain annual rate or equivalent debt repayment,
the Company estimates at the specific expected replacement date to
utilize funds from the proceeds of the scrap value of the vessels
and the assumption of a modest level of debt to purchase the
replacement vessel assuming such replacement is for a ten-year-old
vessel at the ten-year historical mid-cycle value. |
(3) |
Maintenance reserves are based on an estimated cost for the
drydock, intermediate and special surveys of the vessels in our
fleet over the recurring statutory five-year survey period. They
are used, instead of actual maintenance costs when incurred, for
purposes of calculating the quarterly dividend to remove the
additional cash flow variability during quarters that drydocks
occur. |
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
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