Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, today reported net income of $9.7 million and net income attributable to common stockholders of $9.2 million for the fourth quarter of 2024. These results are compared to a net income of $25.0 million and net income attributable to common stockholders of $24.5 million for the same period in 2023. Earnings per share, basic and diluted, for the fourth quarter of 2024 were $0.74 and $0.25, respectively.
Revenue was $21.7 million ($19.8 million net of voyage expenses) for the fourth quarter of 2024, compared to $23.8 million ($22.7 million net of voyage expenses) for the same period in 2023. This decrease was attributable to the decrease in the ownership days following the sale of the vessel P. Kikuma in December 2023, and the decrease in time-charter equivalent rates (“TCE rates”) realized during the quarter. Fleetwide, the average TCE rate for the fourth quarter of 2024 was $32,652, compared with an average rate of $33,114 for the same period in 2023. During the fourth quarter of 2024, net cash provided by operating activities was $12.1 million, compared with net cash provided by operating activities of $9.3 million for the fourth quarter of 2023.
Net income for 2024, amounted to $43.7 million, compared to a net income of $69.4 million for 2023. Net income attributable to common stockholders for 2024, amounted to $41.9 million, and resulted in earnings per share, basic and diluted, of $3.39 and $1.11, respectively. Net income attributable to common stockholders for 2023, amounted to $56.9 million, and resulted in earnings per common share, basic and diluted, of $5.43 and $1.91, respectively. The difference between net income and net income attributable to common stockholders for 2023, mainly reflects aggregate non-cash items of $10.6 million, as per US GAAP accounting standards, which did not affect the Company’s operating cash flows.
Commenting on the results of the fourth quarter of 2024, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our ability to maintain stable revenue year-on-year, despite a sharp decline in charter rates, demonstrates our efficient vessel operations and balanced fleet deployment strategy. By combining our exposure to the spot market upside through voyage charters and pool arrangements with the stability of time charters, we continue to optimize earnings and cash flow visibility.
“Our revenue for the fourth quarter was US$21.7 million compared to US$23.8 million for the same period last year, as five of our vessels under time charters earning on average US$36,200 per day reduced the impact of lower spot market rates.
“Despite a decrease in our fleet operating days from 2,793 in 2023 to 2,506 in 2024, due to the sale of our oldest Aframax tanker, M/T P. Kikuma in late 2023, we generated US$87.4 million in revenue compared to $108.9 million.
“During this quarter, overall modern Aframax tanker spot daily charter rates were resilient at US$38,746 though significantly lower than US$61,277 in the same period last year. In early 2025, charter rates have softened to US$29,328 despite the seasonal high winter period. We believe that, following two exceptional years, this trend is an indication that charter rates may normalize to average historical levels.
“Going forward, we remain cautious as we seek to redeploy the M/T P. Aliki which is expected to become available for new employment by mid-year, along with our two vessels currently operating in the spot market and pool arrangements.
“Our newbuild program remains well-supported by our strategic long-term partnership with a top-tier charterer. Our financial position remains robust, with a quarter-end cash balance (including restricted cash) of approximately US$71.3 million, representing 1.5x our outstanding bank debt, and an aggregate revenue backlog of US$227.0 million.”
Source: Performance Shipping Inc.
