Performance Shipping Inc. · NASDAQ:PSHG
Performance Shipping — Investor Presentation (March 2021)
21 slides from Performance Shipping's investor presentation, Mar 8, 2021
Slide 1: A Pure-Play Tanker Company
March 2021 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 Section 3: Appendix
Slide 4: Company Profile
Company Profile 4 Source: Company 5 Aframax Tankers $46.3 million Total Revenue in 2020 LTV Net Loan to Value ratio 35% $3.8 million Net Income in 2020 Nasdaq: PSHG Publicly Listed since 2011 EPS Earnings per Share in 2020 $1.06 Basic Transitioned to pure tanker fleet, new management, simple corpora
Slide 5: Experienced Senior Management
Experienced Senior Management 5 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 6: Fleet & Employment Profile
Fleet & Employment Profile 6 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 Dec 1, 2021 $1.3 million $28,000Saudi Aramco Briolette (ex. Maersk Jamnagar) 2011 Sumitomo, Japan 104,588 A
Slide 7: Recent Developments
Recent Developments 7 Source: Company October 2020 Appointment of new management teamInitiation of a variable quarterly dividend policy and leverage targetDeclaration of first US $0.1 dividend payable in November 2020November 2020Effected reverse stock split to comply with Nasdaq minimum price ruleP
Slide 8: Focused Business Strategy
Focused Business Strategy 8 Transparent company provides investors with low leverage variable dividend exposure to the tanker sector Fleet Composition Source: Company Target net leverage below 35% LTV at incurrenceEquity capital markets reliance for disciplined growthReserves for fleet replacement &
Slide 9: Technical & Commercial Management
Technical & Commercial Management 9 Technical & Commercial Manager, Unitized Ocean Transport Limited (UOT) our Wholly-Owned Subsidiary Full-Service Platform Services CharteringOperationsInsurance/ClaimsTechnicalPurchasingCrewingQuality AssuranceFinanceAccounting/ReportingLegal S&P Source: Company. K
Slide 10: Agenda
Agenda Section 2: Financial Presentation 10 Section 1: Company Overview Section 3: Appendix
Slide 11: Summary Selected Financial & Other Data
Summary Selected Financial & Other Data 11 Source: Company The table below, illustrates our consolidated statements of operations and other data for the 4th quarter 2020 Basic and dilutedOperating days include ballast leg
Slide 12: Debt Description
Debt Description 12 Source: Company Vessel Debt Drawdown($m) Debt Outstanding (Dec 31, 2020) Annual Repayment($m) Interest Rate Maturity Blue Moon 16.5 13.9 1.77 L + 2.75% Jul 2024 Briolette 16.5 14.2 1.96 L + 2.75% Jul 2024 P. Yanbu 8.8 8.8 0.98 L + 2.85% Dec 2024 P. Fos 14.0 10.6 1.59 L + 2.85% De
Slide 13: Solid Balance Sheet
Solid Balance Sheet 13 Dec 31, 2020 Dec 31, 2020 Actual As Adjusted # of Tankers 5 5 Asset Value (1) $96.6m $96.6m AV / Ship $19.3 $19.3 Bank Debt (2) $58.1m $56.4m Cash $21.4m $19.7m Net Bank Debt $36.7m $36.7m LTV 60.1% 58.4% Net LTV 37.9% 37.9% Net Asset Value $59.9m $59.9m NAV / Share $11.8 $11.
Slide 14: Equity Capital Markets
Equity Capital Markets 14 Source: Company Major Shareholders Capital Markets Exchanged Nasdaq Category Capital Market Ticker PSHG Outstanding Shares 5,082,726 Indicative Share Price $6.0 Market Capitalization $30.5m Enterprise Value $67.2m EV / Ship $13.4m Company has one class of equity securities,
Slide 15: Historical Rates vs Break Even
Historical Rates vs Break Even 15 Source: Company Indicative Run Rate Breakeven Amounts in millions except daily figures 5 Ships 10 Ships DAILY OPEX $7,000 $7,000 OWNERSHIP DAYS 1,825 3,650 FLEET OPEX $12.8 $25.5 G&A EXPENSES $5.7 $6.5 DEBT REPAYMENT (1) $7.9 $11.4 INTEREST EXPENSE (2) $1.6 $2.4 MAI
Slide 16: Through Cycle Value Generation
$14.9m $6.4m $1.2m Break-even $16,267 $13,511 -$3.3m -$5.0m 20 QuartersLast 5 YearsSpot Rates (1) Quarterly FCF 5 Tankers Quarterly FCF 10 Tankers 9 Quarters Total FCF +$50.4m $32.3m $15.3m $4.8m Highest $52,853 Median $20,328 High $32,624 -$4.2m -$7.5m Value created under most market scenarios with
Slide 17: Dividend Policy – Quarterly Calcs
Dividend Policy – Quarterly Cals 17 The company expects to pay dividends only if during the preceding quarter both Quarterly Cash Flow and Quarter End Excess Cash are positiveQuarter End Excess Cash is defined as actual end of quarter Cash and Cash Equivalents over Minimum Cash Threshold. Minimum Ca
Slide 18: Attractive Equity Story
Attractive Equity Story 18 Performance Shipping is a compelling play on a tanker vessel recovery 1 2 3 4 5 6 7 Source: Company
Slide 19: Agenda
Agenda Section 2: Financial Presentation 19 Section 1: Company Overview Section 3: Appendix
Slide 20: History & Transition
History & Transition 20 THEN NOW Public since Jan. 2011, 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 stat
Slide 21: History & Transition (Cont'd)
History& Transition (Cont’d) 21 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
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