- Performance Shipping Inc. Achieves $12.4M Q3 Net Income with Higher TCE Rates.
- Performance Shipping Sees Profit Growth in Q3 2024 Amid Strategic Fleet Moves.
- Q3 2024: Performance Shipping Inc. Reports Strong Earnings and Increased TCE Rates.
Performance Shipping Inc., an international shipping company owning a fleet of vessels of tanker, reported net income of $12.4 million and net income available to common stockholders of $12.0 million for the quarter ended September 30, 2024. This compares to net income of $10.4 million in Q3 2023 and $9.9 million available to common stockholders. Earnings per share, or EPS, for the third quarter of 2024 was basic $0.96 and diluted $0.32, reports Performance Shipping.
Revenue and TCE Rates Analysis
Revenue for the third quarter of 2024 was $22.9 million, or $22.1 million net of voyage expenses. Revenue was down slightly to $24.1 million in the third quarter of 2023. The primary contributor to this decline is fewer ownership days as a result of the sale of vessel P. Kikuma in December 2023. However, the decline in revenue was partly covered through higher time-charter equivalent rates since the average fleetwide TCE rate for Q3 2024 stood at $34,307 versus $31,787 during the same period of 2023.
Cash Flow Highlights
Cash generated from operations was $16.1 million during the third quarter of 2024. This implies a decline of 5 per cent compared to the Q32023 level at $17.9 million. Cash flow remains strong and continues to support the maintenance of operations within the direction for growth in the firm.
Nine-Month Financial Review
Performance Shipping reported a net income of $34.0 million for the nine months through September 30, 2024, versus $44.5 million for the comparable period in 2023. Net income attributable to common stockholders was $32.7 million in the nine months, or basic and diluted EPS of $2.65 and $0.87, respectively.
A comparison of the $32.4 million net income attributable to common stockholders for the nine months of 2023 and basic and diluted EPS of $3.26 and $1.25, respectively, to the nine months ended September 30, 2022, shows that net income and net income attributable to common stockholders differs since the former includes non-cash items of $10.6 million, which were not factored into operating cash flows.
CEO Comments on Q3 2024 Performance and Market Outlook
“We are pleased with our solid third-quarter 2024 performance, which reflected an increase in revenue, net income, and basic and diluted EPS compared to the prior quarter. During this quarter, tanker charter rates maintained their average year-to-date levels, supported by constrained supply growth and increased tonne-mile demand resulting from longer haul tanker voyages due to Red Sea disruptions and the Atlantic–Asia trade growth.” Going forward, we believe that our balanced fleet deployment strategy, combined with our exposure to the spot market through pool arrangements, will provide steady cash flows and opportunities to capitalize on the solid market fundamentals of our sector.
Fleet Strategy and Future Plans
“Given our pipeline, we anticipate that we will be able to redeploy our vessels at attractive charter rates during the seasonally strong fall and winter period. At the same time, we remain focused on employing our opening vessels and continuing to secure delivery financing for our new building vessels.”
Newbuild Program and Strategic Partnerships
“Looking ahead, our newbuild program is supported by a strategic partnership with a top-tier charterer and we maintain close relationships with international shipping leaders. At the same time, our existing fleet continues to generate strong cash flows. We are executing a clear strategy and believe we have a strong foundation for continued growth and shareholder value creation.”
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Source: Performance shipping
