Performance Shipping Inc. Announces the Initiation of a Variable Quarterly Dividend Policy and Declaration of Quarterly Dividend
ATHENS, GREECE, October 20, 2020 – Performance Shipping Inc. (NASDAQ: PSHG), (the “Company”), a global shipping company specializing in the ownership of tankers, today announced that its Board of Directors has approved a new dividend policy pursuant to which the Company may declare and pay a variable quarterly cash dividend. If declared, the quarterly dividend is expected to be paid each February, May, August and November.
The Company’s Board of Directors has declared its first such dividend on its common stock of $0.01 per share, in accordance with the newly approved policy. The cash dividend will be payable on or around November 9, 2020 to the shareholders of record at the close of business on October 30, 2020.
The amount of the Company’s quarterly dividend for each quarter, if any, will be determined based on available cash from operations during the previous quarter after cash payments for debt repayment and interest expense and reserves for the replacement of vessels, reserves for the statutory maintenance capital expenditures of vessels and other purposes as the Board of Directors may from time to time determine are required, after taking into account contingent liabilities, the terms of any credit facility, the Company’s growth strategy and other cash needs as well as the requirements of Marshall Islands law.
Commenting on the dividend payment, Mr. Andreas Michalopoulos, the Company’s Chief Executive Officer stated:
“We are pleased to commence the process of returning cash to our shareholders. The Company has a strong cash position, which as of September 30, 2020, was equivalent to approximately $0.74 per share in cash and cash equivalents. The initiation of a variable common stock dividend reflects our commitment to delivering shareholder value and emphasizes our confidence that a variable dividend policy will provide the groundwork for our long-term growth and value-creation. Today’s important development follows the completion of our transition, which started in June 2019, to a pure tanker owning company with a fleet of four (4) modern Aframax tankers. Moving forward, we believe we have the resources to grow our fleet further and maintain our low net financial leverage to our goal of less than 35% of the value of our vessels, which will complement our variable dividend policy”.