Performance Shipping net income nearly quadruples as tanker market looks sustainable

Photo credit: Performance Shipping / Mr. Michalopoulos, CEO

Greek tanker owner Performance Shipping nearly quadruples its net income as tanker market looks sustainable.

The Nasdaq-listed company led-by Aliki Paliou reported record net income of $18.4 million and net income attributable to common stockholders of $17.9 million for the second quarter of 2023.

The Greek company reported $18.4m of net income, nearly quadrupling the $3.9 million for the same period last year.

The revenue was jumped to $31.5m during the quarter from $16.7m in the same period of 2022, which was fuelled by rising time-charter equivalent (TCE) rates.

The specialist in aframax-size tankers reported TCE rate of $41,868, up from $24,921 for the same period in 2022.

Performance Shipping also reported its net income for the first six months period of 2023 which amounted to $34.1 million, up from $1.8m for the same period last year.

“The net income attributable to common stockholders for the six months ended June 30, 2023, amounted to $22.5 million, and resulted in earnings per share, basic and diluted, of $2.43 and $1.00, respectively,” said the company yesterday.

In an effort to rejuvenate its fleet the tanker shipowner had signed a shipbuilding deal earlier this year for the purchase of a newbuild LNG ready LR2 Aframax product/crude oil tanker with scrubber for a contract price of $62.6m.

The company has signed the deal with China Shipbuilding Trading Company, and Shanghai Waigaoqiao Shipbuilding Company for the construction of a 114,000 deadweight vessel, which is expected to be delivered during the fourth quarter of 2025.

Andreas Michalopoulos, Performance Shipping CEO, commenting on this contract, said that this contract is consistent with the company´s view that historically low tanker fleet growth in the next few years, and an aging fleet during a high seaborne trade demand period, will result in sustainably strong fundamentals and higher asset values.