PSHG - Performance Shipping: Aggressive Fleet Expansion Targets Likely To Result In Material Dilution Again

• Small Aframax tanker operator is facing substantial headwinds with the charter environment still weak and 60% of its fleet scheduled for five-year special surveys later this year.
• Cash flow from operations likely to turn negative by an estimated $10 million due to the weak charter rate environment and elevated special survey costs.
• Management is targeting to double the fleet over the next 12-24 months which would require raising substantial amounts of new equity.
• Company has already entered into a $5.9 million at-the-market offering agreement and recently filed for a $1.0 million underwritten public offering.
• With crude tanker markets still weak and management targeting aggressive fleet expansion, investors should continue to avoid the shares as the company is likely to raise new equity sooner rather than later.

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