Tanker Revenues Boost Performance Shipping’s Earnings

Athens-based shipowner Performance Shipping reported revenue growth in the fourth quarter of 2019, which was mainly driven by earnings of the first two tankers in the company’s fleet. 

Illustration; Image Courtesy: Pixabay under CC0 Creative Commons license

Voyage and time charter revenues rose to USD 10.6 million in Q4 2019 from USD 6.1 million seen in the same period of 2018.

“This increase is mainly attributable to the revenues contributed by the tanker vessels Blue Moon and Briolette, acquired in August and November 2019, respectively, and is partially offset by the decreased revenues of the container vessels Pamina and Pucon, following their sale in October and November 2019, respectively,” the company explained.

In the fourth quarter of 2019, Performance Shipping suffered a net loss of USD 12.2 million, compared to a net loss of USD 0.4 million for the corresponding period of 2018.

According to the company, the Q4 2019 loss includes USD 13.9 million of impairment charges for one vessel, without which the result for the quarter would have been net income of USD 1.7 million.

“We are very excited about Performance Shipping Inc.’s increased tanker presence, which has contributed to turning the company profitable by USD 1.7 million this quarter, excluding the non-cash accounting impairment losses of USD 13.9 million associated with the reduction of our exposure to the container segment,” Andreas Michalopoulos, the Company’s Deputy Chief Executive Officer, Chief Financial Officer and Treasurer, commented.

Net loss for the year ended December 31, 2019, amounted to USD 32.1 million, compared to a net loss of USD 52.9 million for the previous year.

Announcing the financial results, the company said it took delivery on January 27 of M/T P. Fos, formerly Virgo Sun, a 2007-built Aframax tanker. In November 2019, the company signed an agreement to buy the 115,577 dwt ship.

Performance Shipping’s fleet currently consists of one Panamax container vessel and three Aframax tankers.