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1. Company Snapshot

1.a. Company Description

Performance Shipping Inc., through its subsidiaries, provides shipping transportation services through its ownership of tanker vessels worldwide.It owned and operated five Aframax tanker vessels with a combined carrying capacity of 546,094 dwt.The company was incorporated in 2010 and is based in Athens, Greece.

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1.b. Last Insights on PSHG

The recent 3-month performance of Performance Shipping Inc. was negatively impacted by the sale of the 2011-built Aframax vessel M/T P. Yanbu for a gross sale price of US$39 million, resulting in a loss of a revenue-generating asset. Additionally, the company entered into a potential forward sale agreement for the 2009-built Aframax tanker M/T P. Sophia, which may lead to the conversion of the vessel into a Floating Production Storage and Offloading (FPSO) vessel, potentially disrupting its operations.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Performance Shipping Inc. Signs Shipbuilding Contracts for the Construction of Two Newbuilding Suezmax Tankers

Mar -02

Source: globenewswire.com

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Performance Shipping Inc. Announces Sale of 2009-Built Aframax Vessel M/T P. Sophia for US$35.65 Million

Feb -17

Source: globenewswire.com

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Performance Shipping Inc. Secures Three-Year Time Charter Contract for M/T P. Monterey at USD31,000 per Day

Jan -20

Source: globenewswire.com

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Performance Shipping Inc. Announces Naming and Delivery of M/T P. Marseille, the Third Vessel in Its Newbuilding Program

Jan -14

Source: globenewswire.com

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Performance Shipping (NASDAQ:PSHG) Trading Up 0.9% – Here’s What Happened

Jan -06

Source: defenseworld.net

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Performance Shipping Inc. Announces Delivery of the Second of Two 2019-Built Suezmax Tankers, M/T P. Beverly Hills

Dec -22

Source: globenewswire.com

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Performance Shipping Inc. Announces Delivery of the First of Two 2019-Built Suezmax Tankers, M/T P. Bel Air

Dec -15

Source: globenewswire.com

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Performance Shipping Inc. Provides Update on Potential Forward Sale Agreement for M/T P. Sophia

Dec -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Tanker Vessels

Expected Growth: 6.0%

Strong demand for crude oil and petroleum products, driven by global economic growth and increasing energy consumption, has led to a surge in tanker vessel utilization. Additionally, a low orderbook and scrubber-fitted vessels have improved Performance Shipping Inc.'s competitive position, resulting in a 6.0% growth rate.

7. Detailed Products

Vessel Management

A comprehensive solution for managing vessel operations, including voyage planning, cargo management, and vessel performance monitoring.

Chartering and Brokerage

A specialized service that connects ship owners and charterers, facilitating the chartering of vessels for cargo transportation.

Ship Agency

A comprehensive service that provides support for vessels calling at ports, including customs clearance, cargo handling, and logistics.

Freight Forwarding

A service that manages the logistics of cargo transportation, including customs clearance, warehousing, and delivery.

Supply Chain Management

A comprehensive solution that optimizes the entire supply chain, from procurement to delivery.

8. Performance Shipping Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Performance Shipping Inc. is medium due to the availability of alternative modes of transportation, such as air freight and trucking. However, the company's focus on specialized cargo and its strong relationships with customers mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Performance Shipping Inc.'s services and the lack of alternative providers. Customers are dependent on the company's expertise and equipment, giving them limited negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the availability of alternative suppliers of fuel, equipment, and other essential services. However, Performance Shipping Inc.'s strong relationships with suppliers and its ability to negotiate favorable terms mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the shipping industry, including significant capital requirements and regulatory hurdles. Additionally, Performance Shipping Inc.'s established reputation and customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the shipping industry and the presence of established players. Performance Shipping Inc. must continually innovate and improve its services to maintain its market share and competitiveness.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.07%
Debt Cost 5.01%
Equity Weight 80.93%
Equity Cost 5.01%
WACC 5.01%
Leverage 23.57%

11. Quality Control: Performance Shipping Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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StealthGas

A-Score: 6.2/10

Value: 8.8

Growth: 7.2

Quality: 7.8

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

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Irish Continental

A-Score: 5.0/10

Value: 2.6

Growth: 7.3

Quality: 5.5

Yield: 4.4

Momentum: 7.5

Volatility: 3.0

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Diana Shipping

A-Score: 4.6/10

Value: 7.6

Growth: 3.3

Quality: 4.6

Yield: 6.9

Momentum: 3.0

Volatility: 2.3

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Capital Product Partners

A-Score: 4.3/10

Value: 5.3

Growth: 2.7

Quality: 4.4

Yield: 6.2

Momentum: 4.0

Volatility: 3.0

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Toro

A-Score: 4.2/10

Value: 6.1

Growth: 6.2

Quality: 4.7

Yield: 0.0

Momentum: 8.5

Volatility: 0.0

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Performance Shipping

A-Score: 4.2/10

Value: 9.8

Growth: 3.8

Quality: 7.2

Yield: 0.0

Momentum: 4.0

Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.3$

Current Price

2.31$

Potential

-0.00%

Expected Cash-Flows