Performance Shipping reports Q1 EPS 29c vs. 55c last year

Reports Q1 revenue $22.4M vs. $29.5M last year. Commenting on the results of the first quarter of 2024, Andreas Michalopoulos, CEO, stated: “During the first quarter of 2024, the tanker market remained solid supported by the ongoing shift in trade patterns arising from the Russian oil trade and Red Sea disruptions and resulting in longer haul tanker voyages. The increased ton-mile demand, in conjunction with limited supply growth, continues to sustain tanker charter rates at firm levels. This enabled our Company to achieve a fleetwide average time charter equivalent rate of $33,857 per day, corresponding to quarterly revenues of $22.4 million. As a result, during the quarter ended March 31, 2024, we generated net income attributable to common stockholders of $11.0 million, representing an increase of 137%, compared to the same period in 2023. Going forward, we believe that the solid tanker market environment will be sustainable, prompting our continued focus on a fleet deployment strategy that emphasizes balanced exposure to short- and medium-term time charter contracts and the spot market. Specifically, five of our Aframax tankers are currently operating under time charter contracts with first-class charterers, securing a fixed revenue backlog of approximately $38.5 million, based on the minimum duration of each contract. Our remaining two Aframax tankers operate under pool arrangements, benefiting from exposure to the prevailing robust Aframax spot rates. Looking ahead, we believe our fleet expansion and renewal strategy is consistent with our view of continuing favorable market fundamentals. As previously announced, we have entered into shipbuilding contracts for the construction of three LNG-ready LR2 Aframax tankers and one LR1 chemical/product oil tanker, expected to be delivered to our Company between late 2025 and early 2027. These vessels, which will be equipped with scrubbers and water ballast treatment systems, will feature the latest high-specification engines and comply with stringent emission requirements. Our decision to acquire these three identical LR2 Aframax “sister” vessels, along with our first LR1 chemical/product oil tanker, reflects our focus on fuel efficiency and our commitment to participate in the energy transition. Our newbuilding commitments are supported by the recently announced 5-year time charter employment contracts for our three newbuilding LR2 Aframax tankers, which will generate gross revenues of $169.8 million and supplement our existing revenue backlog of $38.5 million. We believe that our financial position is strong, with a quarter-end cash balance of approximately $60.8 million representing 1.1x our outstanding bank debt, and aggregate revenue backlog of $208.3 million, corresponding to 94% of all our remaining newbuilding capital expenditures.”