Performance Shipping Inc. reported third‑quarter 2025 results that saw net income fall to $3.9 million and revenue drop to $18.5 million, a 21% decline from the $22.9 million earned in the same period last year. Earnings per share were $0.28 basic and $0.10 diluted, matching the consensus estimate of $0.10 and leaving the company in line with analyst expectations.
The year‑over‑year slide is largely attributable to a combination of lower time‑charter equivalent (TCE) rates and a reduction in available charter days caused by the drydock of the Aframax tanker M/T P. Aliki in August 2025. In addition, the company’s financing and administrative costs rose sharply after a $100 million Nordic bond issuance and related sale‑and‑leaseback transactions, while daily operating expenses climbed from $7,418 to $9,498 per day. Together, these factors compressed margins and eroded net income despite a modest revenue decline.
Chief Executive Officer Andreas Michalopoulos explained that the softer performance reflects “higher financing and administrative expenses associated with our Nordic bond issuance and sale‑and‑lease‑back transactions, as well as increased operating costs and reduced available revenue days resulting from the scheduled drydock of our Aframax tanker, M/T P. Aliki.” He added that “tanker market conditions remained firm, supported by increased tonne‑mile demand stemming from high global demand and ongoing geopolitical disruptions.”
While the company’s quarterly EPS met expectations, it maintained a strong nine‑month performance, with net income of $42.4 million versus $34.0 million in the same period a year earlier. Performance Shipping also highlighted a secured revenue backlog of $330 million for 2026, with fixed charter coverage of 70% in 2026 and 57% in 2027, underscoring a positive long‑term outlook.
Headwinds for the quarter included lower TCE rates, the drydock of M/T P. Aliki, and higher operating costs. Tailwinds were firm tanker market fundamentals, high global demand, and the company’s fleet renewal strategy, which includes the acquisition of two 2019‑built Suezmax tankers and the delivery of two new LR2 Aframax tankers. The average fleet age has fallen to 9.2 years, positioning Performance Shipping to capture higher rates and improved operational efficiency in the coming years.
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