Performance Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2021

Athens, Greece - November 9, 2021

Performance Shipping Inc. (NASDAQ: PSHG) (the “Company”), a global shipping company specializing in the ownership of tanker vessels, today reported a net loss from continuing and discontinued operations attributable to common stockholders of $2.2 million for the third quarter of 2021, compared to net income from continuing and discontinued operations attributable to common stockholders of $0.4 million for the same period in 2020. Loss per share, basic and diluted, for the third quarter of 2021 was $0.43, while earnings per share, basic and diluted, for the third quarter of 2020 was $0.08.

Revenue from continuing and discontinued operations was $9.3 million ($4.3 million net of voyage expenses) for the third quarter of 2021, compared to $9.5 million ($6.7 million net of voyage expenses) for the same period in 2020. This decrease was mainly attributable to the decreased time-charter equivalent rates (TCE rates) achieved during the quarter as a result of depressed market conditions, and was partially counterbalanced by the increase in ownership days, after the acquisition of the M/T P. Yanbu in December 2020. Fleetwide, the average time charter equivalent rate for the third quarter of 2021 was $9,335, compared with an average rate of $15,990 for the same period in 2020. During the third quarter of 2021, net cash provided by operating activities of continuing and discontinued operations was $0.2 million, compared with net cash provided by operating activities of continuing and discontinued operations of $2.3 million for the third quarter of 2020.

Net loss from continuing and discontinued operations for the nine months ended September 30, 2021, amounted to $7.7 million, compared to net income from continuing and discontinued operations of $6.3 million for the nine months ended September 30, 2020. Net loss from continuing and discontinued operations attributable to common stockholders for the nine months ended September 30, 2021, amounted to $7.7 million, and resulted in a loss per share, basic and diluted, of $1.52. Net income from continuing and discontinued operations attributable to common stockholders for the nine months ended September 30, 2020, amounted to $7.8 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 $1.62 and $1.59, respectively.

As of September 30, 2021, the Company’s number of shares issued and outstanding was 5,082,726.

Commenting on the results of the third quarter of 2021, Mr. Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“Spot charter rates in the third quarter of 2021 remain depressed as a result of oil-producing countries maintaining their marginal increases in crude oil and refined petroleum products production, despite the increased level of oil consumption and oil prices and the depletion of global inventories. So far, in the current quarter, we have seen an improvement in charter rates and demand for seaborne oil transportation, and we believe that the tanker charter rate environment will continue to recover in the medium term. During the second quarter of 2021, we completed the special survey and installation of a ballast water treatment system on our M/T Briolette. We will take advantage of the weak market to commence and complete similar work on our M/T P. Fos and our M/T Blue Moon during the fourth quarter. As a result of our financial results, and in accordance with our dividend policy, we will not declare a dividend for our Q3 2021 results from operations.”

Performance Shipping Inc. press release