Performance Shipping revenue climbs 59% on tanker fleet expansion

Performance Shipping (NASDAQ:PSHG) reported a 59% increase in first-quarter revenue for 2026, driven by a larger operational fleet and stronger charter rates that accelerated the company's operating cash generation.

The Athens-based tanker owner and operator stated that its revenue for the three months ended March 31, 2026, rose to $33.8 million, up from $21.3 million in the first quarter of 2025.

This top-line momentum was primarily driven by strategic fleet expansion, which increased the company's average fleet size to 10.9 vessels during the quarter, alongside a higher average time charter equivalent (TCE) rate of $32,520 per day.

Net income for the first quarter landed at $10.2 million, translating to a basic earnings per share of $0.79.

While this represents a decrease from the net income of $29.4 million reported in the opening quarter of 2025, the year-over-year comparison was heavily impacted by a non-recurring $19.5 million accounting gain from a vessel sale embedded in the prior-year period.

The underlying operational efficiency of the expanded fleet was reflected in the company's liquidity and cash dynamics.

Net cash provided by operating activities increased to $23 million for the quarter.

Performance Shipping closed the period with approximately $127 million in cash and cash equivalents, a baseline that management projects will expand to roughly $192 million on a pro forma basis following the finalization of pending vessel sales.

Looking forward, the company has insulated its baseline cash flow against spot-market volatility by securing a contracted revenue backlog valued near $0.5 billion.

This backlog is supported by fixed charter coverage encompassing approximately 90% of available fleet days for the remainder of 2026, and 80% for the full year of 2027.

To fund its ongoing fleet renewal strategy—which includes newly ordered newbuild vessels and specialized long-term charters—the company also utilized a $50 million bond tap issuance maturing in 2029.