Performance Shipping Inc. · NASDAQ:PSHG
Performance Shipping — Investor Presentation (October 2020)
16 slides from Performance Shipping's investor presentation, Oct 21, 2020
Slide 1: A Pure-Play Tanker Company
October 2020 A Pure - Play Tanker Company
Slide 2: Disclosure
Disclosure 2 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.
Slide 3: Agenda
Agenda Section 2: Financial Presentation 3 Section 1: Company Overview
Slide 4: Experienced Senior Management
Experienced Senior Management 4 Name / Title Biography Symeon PaliosChairman of the Board Naval architect and engineerFounded Diana Shipping Agencies S.A. in 1972Director and Chairman of the Board of Performance Shipping Inc. Director of the UK Freight Demurrage and Defense Association Ltd. Ex-CFO P
Slide 5: History & Transition
History & Transition 5 THEN NOW Public since 2010, Nasdaq listed under ticker PSHGFocused on Panamax ContainershipsHigher leverage, no dividendsComplex ownership & capital structureParent company, large stakeholder Source: Company. CONTAINERS TANKERS Performance Shipping has completed its stated tra
Slide 6: Fleet & Employment Profile
Fleet & Employment Profile 6 Source: Company Vessel Built Shipyard Size (DWT) Type Status Special Survey Survey Cost (1) Employment Blue Moon (ex. Maersk Jeddah) 2011 Sumitomo, Japan 104,623 Aframax Delivered Aug 8, 2021 $1.3 million $28,000Saudi Aramco Briolette (ex. Maersk Jamnagar) 2011 Sumitomo,
Slide 7: Recent Developments
Recent Developments 7 Source: Company January 2020 Delivery of the Aframax tanker M/T P. FosMarch 2020 Repurchase and cancellation of all outstanding Series C preferred voting sharesDelivery of the Aframax tanker M/T P. KikumaApril 2020 Repurchase and cancellation of all remaining Series B-2 preferr
Slide 8: Focused Business Strategy
Focused Business Strategy 8 Transparent company provides investors with low leverage variable dividend exposure to the tanker sector Fleet High specifications & qualityMid-point age profile acquisitionsGrowing sector presenceContinued fleet renewal Commercial Spot market focus, short to medium term
Slide 9: Technical & Commercial Management
Technical & Commercial Management 9 Technical & Commercial Manager, Unitized Ocean Transport Limited (UOT) our Wholly Owned Subsidiary Full-Service Platform Services CharteringOperationsInsurance/ClaimsTechnicalPurchasingCrewingQuality AssuranceFinanceAccounting/ReportingLegal S&P Source: Company. K
Slide 10: Agenda
Agenda Section 1: Company Overview Section 2: Financial Presentation 10
Slide 11: Solid Balance Sheet
Solid Balance Sheet 11 Source: Company June 30, 2020 August Year End Fleet: Domingo Sale:$5.6m Aframax Acquisition:$27.0m # of Tankers 4 4 5 Asset Value $110.0m $100.0m $127.0m Bank Debt $54.2m $51.8m $60.8m # of Containers 1 Asset Value $5.6m Bank Debt - Cash $32.0m $37.3m $19.3m LTV 46.9% 51.8% 47
Slide 12: Debt Description
Debt Description 12 Source: Company Vessel Debt Drawdown($m) Debt Outstanding (June 30, 2020) Annual Repayment ($m) Interest Rate Maturity Blue Moon 16.5 15.0 2.07 L + 2.75% July 30, 2024 Briolette 16.5 15.4 2.26 L + 2.75% July 30, 2024 P. Fos 14.0 12.5 2.95 L + 2.75% July 30, 2024 P. Kikuma 12.0 11
Slide 13: Capital Markets
Capital Markets 13 Source: Company Major Shareholders Capital Markets Performance Shipping is listed on: NASDAQ Category Capital Market Ticker PSHG Outstanding Shares 50,155,299 Share Price $0.50 Market Capitalization (Oct 19, 2020) $25.1m Company has one class of equity securities, target to gradua
Slide 14: Historical Rates vs Cash Break Even
Historical Rates vs Cash Break Even 14 Source: Company Indicative Run Rate Cash Breakeven Amounts in millions except daily figures 4 Ships 5 Ships(1) 10 Ships DAILY OPEX $7,250 $7,250 $7,250 OWNERSHIP DAYS 1,460 1,825 3,650 FLEET OPEX $10.6 $13.2 $26.5 G&A EXPENSES $5.6 $5.6 $6.5 DEBT REPAYMENT $9.8
Slide 15: Through Cycle Value Generation
$62.9m $39.8m $6.7m Break-even $16,055 $14,384 -$5.9m -$13.2m 20 QuartersLast 5 YearsSpot Rates(1) Annual FCF 5 Tankers Annual FCF 10 Tankers 11 QuartersAverage FCF +$6.4m $131.9m $85.8m $19.5m Highest $52,853 Median $20,626 High $39,643 -$5.7m -$20.2m Value created under most market scenarios with
Slide 16: Attractive Equity Story
Attractive Equity Story 16 Performance Shipping is a compelling play on a continued Aframax tanker recovery 1 2 3 4 5 6 7 Source: Company
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