Performance Shipping’s earnings flipped to the black in the fourth quarter as the New York-listed tanker owner took advantage of rising rates.
The Greek shipowner reported a net profit of $23.8m during the final three months of 2022, reversing a net loss of $2.05m a year earlier.
Net income attributable to common shareholders came in at a considerably smaller $9.41m, but that was still a significant improvement on the $2.05m loss logged in the fourth quarter of 2021.
“During the fourth quarter of 2022, tanker market fundamentals continued to improve, supported by new trade patterns emerging in response to continuing sanctions on Russian crude oil exports and shifts in the location of new refinery capacity leading to longer haul tanker voyages,” said chief executive Andreas Michalopoulos of the results.
Performance reported $27.8m in revenue for the quarter, which was a jump from the $9.65m earned a year earlier.
That was driven by rising time-charter equivalent rates, which soared to an average of nearly $40,500 per day, beating the $13,400 per day reported in the fourth quarter of 2021.
The quarterly result lifted Performance’s full-year net income to $36.3m, reversing a loss of nearly $9.71m in 2021.
“We believe that the tanker market developments since the beginning of 2022 are sustainable through 2023 and beyond,” Michalopoulos said.
The company, which owns eight aframax tankers, ended the year with $40m in cash on its balance sheet.
| Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | |
| Revenue | $27.8m | $9.65m | $75.2m | $36.5m |
| Voyage expenses | $2.84m | $4.15m | $14.9m | $19.2m |
| Vessel operating expenses | $4.24m | $3.74m | $13.8m | $12.3m |
| Net income (loss) | $23.8m | ($2.05m) | $36.3m | ($9.71m) |
| Net income (loss) attributable to commmon shareholders | $9.41m | ($2.05m) | $12m | ($9.71m) |
