Slide 1: A Pure-Play Tanker Company
August 2021 A Pure - Play Tanker Company
Slide 2: Disclosure
Disclosure Matters discussed in this presentation may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. F
Slide 3: Agenda
Agenda Section 1: Company Overview Section 2: Financial Presentation Section 3: Appendix 3
Slide 4: Company Profile
Company Profile Transitioned to pure tanker fleet, new management, simple corporate structure, new strategy implementation Nasdaq: PSHG Transition completed 5 Publicly Listed since 2011 in October 2020 Aframax Tankers $46.3 million $3.8 million Basic EPS $1.06 Total Revenue in 2020 Net Income in 202
Slide 5: Experienced Senior Management
Experienced Senior Management Name / Title Biography Symeon Palios Naval architect and engineer Chairman of the Board Founded Diana Shipping Agencies S.A. in 1972 Director and Chairman of the Board of Performance Shipping Inc. Director of the UK Freight Demurrage and Defense Association Ltd.
Slide 6: Fleet & Employment Profile
Fleet & Employment Profile Mid-point age, high specifications & quality assets under spot to medium-term charters Target: another 5 tankers to be acquired in 12-24 months Special Survey Survey Vessel Built Shipyard Size (DWT) Type Status Employment Due Dates Cost (1) Blue Moon (ex. Maersk Jeddah) $2
Slide 7: Maintenance Capital Expenditures
Maintenance Capital Expenditures The table below provides a preliminary estimate for illustrative purposes of our maintenance capital expenditures and their impact on our income statement Vessel Cost Special Survey Due Days Off Quarterly Quarterly (in $ m) Dates hire Depreciation Amortization ($ a
Slide 8: Recent Developments
Recent Developments December 2020 Signed $31.5 million loan agreement with Piraeus Bank S.A., to refinance existing Nordea loan and Aframax tanker acquisition Signed a supplemental loan agreement with Nordea for repayment schedule re-profiling Took delivery of the 5th Aframax tanker M/T P. Yan
Slide 9: Focused Business Strategy
Focused Business Strategy Transparent company provides investors with low leverage variable dividend exposure to the tanker sector Growing sector presence - 2x fleet, 12-24 months High specifications & quality, reputable yards Fleet Composition Mid-point age profile acquisitions ≈ 10 years C
Slide 10: Technical & Commercial Management
Technical & Commercial Management Technical & Commercial Manager, Unitized Ocean Transport Limited (UOT) our Wholly-Owned Subsidiary Established efficient operations with low vessel operating expenses We fully fund all commercial and technical services provided by UOT Full-Service Platform Services
Slide 11: Agenda
Agenda Section 1: Company Overview Section 2: Financial Presentation Section 3: Appendix 11
Slide 12: Summary Selected Financial & Other Data
Summary Selected Financial & Other Data The table below, illustrates our consolidated statements of operations and other data for the 2nd quarter 2021 Quarter / Year Q2 / 2021 Consolidated Statement of Operations (Expressed in millions of U.S. Dollars) Voyage and Time Charter Revenues 9.116 Voyage E
Slide 13: Debt Description
Debt Description Indebtedness exclusively comprising of efficient secured amortizing loan from relationship banks, with annual repayment following new refinancing with new term loan and 5th Aframax tanker acquisition Vessel Debt Drawdown Debt Outstanding Annual Repayment Interest Rate Maturity ($m)
Slide 14: Solid Balance Sheet
Solid Balance Sheet Solid balance sheet targeting leverage at incurrence < 35% net LTV. 5th Aframax acquisition was financed organically Dec 31, 2020 Jun 30, 2021 Actual Actual # of Tankers 5 5 Asset Value (1) $96.6m $108.0m AV / Ship $19.3 $21.6 Bank Debt (2) $58.1m $54.1m Cash $21.4m $15.0m Net Ba
Slide 15: Equity Capital Markets
Equity Capital Markets Company has one class of equity securities, target to gradually increase its free float and trading volume Currently trading modestly above cash, much below replacement cost and at very deep discount to net asset value Capital Markets Exchange Nasdaq Category Capital Market Ti
Slide 16: Historical Rates vs Break Even
Historical Rates vs Break Even Further fleet expansion from 5 to 10 vessels over next 12 - 24 months expected to reduce daily breakeven level above which we generate cashflow available for dividends Indicative Run Rate Breakeven Expected daily breakeven rate per vessel (5 Aframax fleet) Amounts in m
Slide 17: Through Cycle Value Generation 1/2
Through Cycle Value Generation 1/2 We used the trailing 5-year historical Aframax spot charter rates (Q3/2016 – Q2/2021) and assumed all vessels operated in the spot market incurring the expenses in our indicative run rate breakeven table, to determine quarterly cash flows that may have been availab
Slide 18: Through Cycle Value Generation 2/2
Through Cycle Value Generation 2/2 Our dividend policy entails the payment of dividends based on a 50% payout ratio following quarters with positive cash flow and only if quarter end cash exceeds the minimum cash threshold The charts below depict what the company may have cumulatively paid in divide
Slide 19: Attractive Equity Story
Attractive Equity Story Performance Shipping is a compelling play on a tanker vessel recovery 1 The only listed pure-play Aframax tanker company greatest operational trading flexibility among crude oil segments 2 Attractive initial fleet of 5 high-quality Aframaxes built at Tier-1 shipyards in Jap
Slide 20: Agenda
Agenda Section 1: Company Overview Section 2: Financial Presentation Section 3: Appendix 20
Slide 21: Dividend Policy – Quarterly Calcs
Dividend Policy – Quarterly Calcs • The company expects to pay dividends only if Quarter / Year Q2 / 2021 during the preceding quarter both Quarterly (Expressed in millions of U.S. Dollars) Cash Flow and Quarter End Excess Cash are Voyage and Time Charter Revenues 9.116 positive Less, Voyage Expense
Slide 22: History & Transition
History & Transition Performance Shipping has completed its stated transition to more than just a pure-play tanker company THEN NOW Public since Jan. 2011, Nasdaq listed under ticker PSHG New management, 5 Aframax tankers Focused on Panamax Containerships Independent company, simplified owne
Slide 23: History & Transition (Cont'd)
History & Transition (Cont’d) Sale of container fleet, gradual transition to pure tanker fleet profile and simple corporate structure with removal of legacy corporate structure and implementation of new strategy January 2020 Delivery of the Aframax tanker M/T P. Fos March 2020 Repurchase and can