Performance Shipping Inc.

Aframax tanker owner riding strong rates with top-decile margins and good ROE, but cyclical and tightly controlled.

Strengths

• Exceptional margins (operating 61.7%, net 59.4%, both >90th pct) and OCF margin 59.5%
• ROE 15.5% (75th pct), ROA 8.9% (71.4th), interest coverage 7.6x

Risks

• Tanker rates are highly cyclical/volatile; revenue already down ~3.7%
• Concentrated control (Chairperson majority voting), CFO conflict-of-interest and litigation flags

Notable findings

• Restatement00 per common share, subject to the conditions set forth in the Amended and Restated Offer to Purchase, dated October 30, 2023, as further amended and supplemented (the “Offer”) 8-K ↗