6-K 1 d8227531_6-k.htm
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2019
Commission File Number: 001-35025

PERFORMANCE SHIPPING INC.
(Translation of registrant's name into English)
Pendelis 18, 175 64 Palaio Faliro, Athens, Greece
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [X]       Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ].

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ].

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.


INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this Report on Form 6-K as Exhibit 99.1 is a press release dated May 10, 2019 of Performance Shipping Inc. (the “Company”) announcing the Company's financial results for the first quarter ended March 31, 2019.

The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company's registration statement on Form F-3 (File no. 333-197740), filed with the U.S. Securities and Exchange Commission (the "SEC") with an effective date of August 13, 2014, the Company's registration statement on Form F-3 (File no. 333-215748), as amended and filed with the SEC with an effective date of March 7, 2017, and the Company's registration statement on Form F-3 (File No. 333-216944), filed with the SEC with an effective date of May 11, 2017.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


PERFORMANCE SHIPPING INC.
(registrant)


Dated: May 10, 2019
By:
/s/ Andreas Michalopoulos
   
Andreas Michalopoulos
   
Chief Financial Officer




Exhibit 99.1

   
Corporate Contact:
   
Ioannis Zafirakis
   
Director, Chief Strategy Officer and Secretary
   
Telephone: + 30-216-600-2400
   
Email: izafirakis@pshipping.com
   
Website: www.pshipping.com
     
For Immediate Release
   
     
   
Investor and Media Relations:
   
Edward Nebb
   
Comm-Counsellors, LLC
   
Telephone: + 1-203-972-8350
   
Email: enebb@optonline.net

PERFORMANCE SHIPPING INC. REPORTS FINANCIAL RESULTS
FOR THE FIRST QUARTER ENDED MARCH 31, 2019


ATHENS, GREECE, May 10, 2019 – Performance Shipping Inc. (NASDAQ: DCIX), (the “Company”), a global shipping company specializing in the ownership of containerships, today reported a net loss of $0.2 million for the first quarter of 2019, compared to a net loss of $3.9 million for the same period of 2018.
Time charter revenues were $5.5 million for the first quarter of 2019, compared to $8.0 million for the same period of 2018. This decrease was primarily due to the decrease in size of the Company’s fleet, and was partially offset by the increased time charter rates achieved as a result of improved market conditions.
As of May 9, 2019, the Company had 26,753,851 shares of common stock issued and outstanding.  The Company has been advised by the Nasdaq Stock Market LLC (“Nasdaq”) that its common shares, which trade on the Nasdaq under the symbol “DCIX,” have regained compliance with the minimum bid price requirements under Nasdaq Listing Rule 5450(a)(1).


Fleet Employment Profile (As of May 9, 2019)
 
Performance Shipping Inc.’s fleet is employed as follows:
 
             
Vessel
Gross Rate (USD Per Day)
Com*
Charterers
Delivery Date to Charterers**
Redelivery Date to Owners***
Notes
BUILT    TEU
2 Panamax Container Vessels
             
PAMINA
$11,950
5.00%
Hyundai Merchant Marine Co., Ltd.
23-Aug-18
5-May-19
 
 
$8,800
5.00%
5-May-19
5-Sep-19 - 5-Nov-19
 
2005   5,042
           
DOMINGO
$12,800
3.50%
CMA CGM
3-Aug-18
3-Apr-19
 
 
$10,500
3.50%
3-Apr-19
3-Sep-19 - 3-Nov-19
1
2001   3,739
           
             
2 Post - Panamax Container Vessels
             
PUCON
$18,000
3.75%
Orient Overseas Container Line Ltd.
21-Jun-18
26-Mar-19
 
 
$15,000
3.75%
26-Mar-19
26-May-19 - 26-Jun-19
 
2006   6,541
           
ROTTERDAM
$18,200
3.75%
Wan Hai Lines (Singapore) Pte Ltd.
12-Jul-18
12-May-19 - 15-Jul-19
2
2008   6,494
         

* Total commission paid to third parties.
** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
*** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1 Vessel off hire from April 3, 2019 to April 5, 2019.
2 Based on the latest information.






Summary of Selected Financial & Other Data
 
   
For the three months ended March 31,
 
   
2019
   
2018
 
   
(unaudited)
   
(unaudited)
 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
 
Time charter revenues
 
$
5,469
   
$
7,991
 
Voyage expenses
   
278
     
380
 
Vessel operating expenses
   
2,647
     
5,625
 
Net loss
   
(181
)
   
(3,945
)
FLEET DATA
 
Average number of vessels
   
4.0
     
10.5
 
Number of vessels
   
4.0
     
8.0
 
Ownership days
   
360
     
948
 
Available days
   
360
     
948
 
Operating days
   
356
     
854
 
Fleet utilization
   
98.9
%
   
90.1
%
AVERAGE DAILY RESULTS
 
Time charter equivalent (TCE) rate (1)
 
$
14,419
   
$
8,028
 
Daily vessel operating expenses (2)
 
$
7,353
   
$
5,934
 

  
(1)
Time charter equivalent rates, or TCE rates, are defined as our time charter revenues, net, less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards.  Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions.  TCE is a non-GAAP measure.  TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.

(2)
Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.


About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of containerships. The Company’s vessels are employed primarily on time charters with leading liner companies carrying containerized cargo along worldwide shipping routes.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release 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. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for containership capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

(See financial tables attached)


PERFORMANCE SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except for share and per share data

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
   
For the three months ended March 31,
 
   
2019
   
2018
 
REVENUES:
           
Time charter revenues
 
$
5,469
   
$
7,991
 
                 
EXPENSES:
               
Voyage expenses
   
278
     
380
 
Vessel operating expenses
   
2,647
     
5,625
 
Depreciation and amortization of deferred charges
   
866
     
1,825
 
General and administrative expenses
   
1,908
     
1,945
 
Gain on vessels' sale
   
-
     
(2,289
)
Foreign currency losses
   
5
     
8
 
Operating gain / (loss)
 
$
(235
)
 
$
497
 
                 
OTHER INCOME / (EXPENSES):
               
Interest and finance costs
   
-
     
(4,457
)
Interest income
   
54
     
15
 
Total other income / (expenses), net
 
$
54
   
$
(4,442
)
                 
Net loss
 
$
(181
)
 
$
(3,945
)
                 
Loss per common share, basic and diluted
 
$
(0.01
)
 
$
(0.67
)
                 
Weighted average number of common shares, basic and diluted
   
18,423,674
     
5,927,964
 
                 





UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

   
For the three months ended March 31,
 
   
2019
   
2018
 
             
Net loss
 
$
(181
)
 
$
(3,945
)
                 
Comprehensive loss
 
$
(181
)
 
$
(3,945
)
                 
CONDENSED CONSOLIDATED BALANCE SHEET DATA
         
(Expressed in thousands of US Dollars)
         
   
March 31, 2019
   
December 31, 2018*
 
ASSETS
 
(unaudited)
         
                 
 Cash and cash equivalents
 
$
17,396
   
$
10,493
 
 Vessels, net
   
85,132
     
85,870
 
 Other fixed assets, net
   
989
     
998
 
 Other assets
   
2,942
     
2,725
 
Total assets
 
$
106,459
   
$
100,086
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
 Other liabilities
 
$
2,706
   
$
4,510
 
 Total stockholders' equity
   
103,753
     
95,576
 
Total liabilities and stockholders' equity
 
$
106,459
   
$
100,086
 

* The balance sheet data as of December 31, 2018 has been derived from the audited consolidated financial statements at that date.




OTHER FINANCIAL DATA
           
             
   
For the three months ended March 31,
 
   
2019
   
2018
 
   
(unaudited)
   
(unaudited)
 
 Net Cash provided by / (used in) Operating Activities
 
$
8
   
$
(21
)
 Net Cash provided by Investing Activities
   
443
     
30,606
 
 Net Cash provided by / (used in) Financing Activities
   
6,452
     
(31,950
)