Performance Shipping Inc (PSHG) 6-K, filed Dec 2, 2020

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 December 2020

Commission File Number: 001-35025

PERFORMANCE SHIPPING INC.

  \(Translation of registrant's name into English\)

373 Syngrou Avenue, 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 an investor presentation prepared dated December 2020 prepared by Performance Shipping Inc. (the "Company") for use in investor presentations.

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, and the Company's registration statement on Form F-3 (File No. 333-237637), filed with the SEC with an effective date of April 23, 2020.

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: December 2, 2020	By:	/s/ Andreas Michalopoulos
		Andreas Michalopoulos
		Chief Executive Officer

Exhibit 99.1

December 2020 A Pure - Play Tanker Company

Disclosure 2 Matters discussed in this presentation 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 presentation 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 vessels, changes in operating expenses, including bunker prices, dry-docking and insurance costs, the market for 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, the length and severity of the novel coronavirus (COVID-19) pandemic and its impact on the demand for seaborne transportation of petroleum and other types of products, 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.

Agenda Section 2: Financial Presentation 3 Section 1: Company Overview

Experienced Senior Management 4 Name / Title Biography Symeon PaliosChairman of the Board Naval architect and engineerFounded Diana Shipping Agencies S.A. in 1972Director and Chairman of the Board of Performance Shipping Inc. Director of the UK Freight Demurrage and Defense Association Ltd. Ex-CFO Performance Shipping Inc. (2010-2020)Ex-CFO Diana Shipping Inc. (2006-2020)Previous experience: Merrill Lynch, Nestle S.A. and McKinsey and CompanyMSc in Economics, MBA & Master’s degree in Management Sciences specialized in Finance Managing Director, Seaborne Capital Advisors20+ years investment banking & corporate finance experiencePreviously with Cantor Fitzgerald & Co and Jefferies & Company, Inc. in the United StatesMBA in Finance, Bentley College, Waltham Massachusetts Source: Company. Anthony ArgyropoulosCFO Andreas MichalopoulosCEO, Director and Secretary

History & Transition 5 THEN NOW Public since Jan. 2011, Nasdaq listed under ticker PSHGFocused on Panamax ContainershipsHigher leverage, no dividendsComplex ownership & capital structureParent company, large stakeholder Source: Company. CONTAINERS TANKERS Performance Shipping has completed its stated transition to more than just a pure-play tanker company New management, 5 Aframax tankers Independent company, simplified ownership and securitiesFocused commercial and financial strategy Strong Corporate governance, majority independent BODIn-house management, UOT-wholly owned subsidiary 2020

Fleet & Employment Profile 6 Source: Company Vessel Built Shipyard Size (DWT) Type Status Special Survey Survey Cost (1) Employment Blue Moon (ex. Maersk Jeddah) 2011 Sumitomo, Japan 104,623 Aframax Delivered Aug 8, 2021 $1.3 million $28,000Saudi Aramco Briolette (ex. Maersk Jamnagar) 2011 Sumitomo, Japan 104,588 Aframax Delivered Mar 25, 2021 $1.3 million Spot P. Yanbu (ex. Kalamas) 2011 Sumitomo, Japan 105,391 Aframax To be delivered (early Dec 2020) Completed until 2026 - Spot P. Fos (ex. Virgo Sun) 2007 Sasebo, Japan 115,577 Aframax Delivered Dec 12, 2021 $1.5 million Spot P. Kikuma (ex. FSL Shanghai) 2007 Samsung,S. Korea 115,915 Aframax Delivered Oct 26, 2022 $1.5 million Spot Mid-point age, high specifications & quality assets under spot to medium term charters Represents estimated cost of special survey, drydock and ballast water treatment system. Target another 5 tankers to be acquired in 12-24 months

Recent Developments 7 Source: Company January 2020 Delivery of the Aframax tanker M/T P. FosMarch 2020 Repurchase and cancellation of all outstanding Series C preferred voting sharesDelivery of the Aframax tanker M/T P. KikumaApril 2020 Repurchase and cancellation of all remaining Series B-2 preferred sharesReceipt of NASDAQ notification for extension of the compliance period to cure the bid price deficiency to November 2020Sale and delivery to her owners of the Post-Panamax containership, the M/V Rotterdam, for gross proceeds of $18.5mJune 2020 Secured a time charter contract of minimum seventeen (17) months to maximum nineteen (19) months for our M/T Blue Moon at $28,000 per day with Saudi AramcoAugust 2020 Sale and delivery to her new owners of the last containership in our fleet, the M/V Domingo, for gross proceeds of $5.6mOctober 2020 Appointment of new management teamInitiation of a variable quarterly dividend policy and leverage targetDeclaration of first US $0.1 dividend payable in November 2020November 2020Effected reverse stock split to comply with NASDAQ minimum price ruleProcured term loan to partly refinance debt and fund acquisitionSinged an MOA agreement for the acquisition of 5th Aframax tanker with debt and cash on handRegains compliance with Nasdaq minimum bid price requirement Gradual transition to pure tanker fleet profile and simple corporate structure with removal of legacy corporate structure and implementation of new strategy

Focused Business Strategy 8 Transparent company provides investors with low leverage variable dividend exposure to the tanker sector Fleet Composition Growing sector presenceHigh specifications & qualityMid-point age profile acquisitionsContinued fleet renewal Fleet Deployment Spot market focus, short to medium term chartersEstablished commercial relationshipsPresence in all major marketsEast and west of Suez Canal Financial Parameters Governance & Management Significant expertise in technical, commercial, financialIn-house technical and commercial managerMajority independent BOD, transparent corporate structureManagement a major shareholder, aligned interest Target net leverage below 35% LTV at incurrenceEquity capital markets reliance for disciplined growthDebt repayment and reserves for fleet replacementCash to shareholders through variable cash dividendsOnly one class of shares of common stock Source: Company ESG efforts, strive towards sustainable development goals

Technical & Commercial Management 9 Technical & Commercial Manager, Unitized Ocean Transport Limited (UOT) our Wholly Owned Subsidiary Full-Service Platform Services CharteringOperationsInsurance/ClaimsTechnicalPurchasingCrewingQuality AssuranceFinanceAccounting/ReportingLegal S&P Source: Company. Key Professionals Access to Top-Tier Charterers Mr. Ioannis Karagiannis – Commercial Director Captain Nikolaos Gavalas – Operations DirectorCaptain Panos Chatzikyriakos – HSQE DirectorMr. Argyris L. Chachalis – Technical Director Established efficient operations with low vessel operating expenses We fully fund all commercial and technical services provided by UOT

Agenda Section 1: Company Overview Section 2: Financial Presentation 10

Solid Balance Sheet 11 Source: Company Sep 30, 2020 Sep 30, 2020 Actual Pro - Forma # of Tankers 4 5 Asset Value $89.6m $103.0m Bank Debt $51.7m $58.1m Cash $37.2m $21.5m LTV 57.7% 56.4% Net LTV 16.2% 35.5% Solid balance sheet targeting leverage at incurrence < 35% net LTV. 5th Aframax acquisition was financed organically Pro – Forma adjustments include:$2.5m quarterly principal installment in October$8.8m debt to be incurred for the acquisition of the P. Yanbu$13.2m cash to be used for the acquisition of the P. Yanbu

Debt Description 12 Source: Company Vessel Debt Drawdown($m) Debt Outstanding (Nov 30, 2020) Annual Repayment($m) Interest Rate Maturity Blue Moon 16.5 13.9 1.77 L + 2.75% Jul 2024 Briolette 16.5 14.2 1.96 L + 2.75% Jul 2024 P. Yanbu 8.8 8.8 0.98 L + 2.85% Dec 2024 P. Fos 14.0 11.0 1.59 L + 2.85% Dec 2024 P. Kikuma 12.0 10.2 1.59 L + 2.85% Dec 2024 TOTAL 67.8 58.1 7.89 - - Bank Relationships Significant reduction in annual repayment following new refinancing with new term loan and 5th Aframax tanker acquisition

Capital Markets 13 Source: Company Major Shareholders Capital Markets Exchange NASDAQ Category Capital Market Ticker PSHG Outstanding Shares 5,015,501 Indicative Share Price $5.00 Market Capitalization $25.1m Company has one class of equity securities, target to gradually increase its free float and trading volume Average Daily Trading Volume (last 30 days) Aliki Palios, Director 46.73% Other Officers and Directors 3.20% Public free Float 50.07% # Shares 165,707 $ Value $830,786 Currently trading at cash, and at a very deep discount to our net asset value.

Historical Rates vs Cash Break Even 14 Source: Company Indicative Run Rate Cash Breakeven Amounts in millions except daily figures 5 Ships 10 Ships DAILY OPEX $7,250 $7,250 OWNERSHIP DAYS 1,825 3,650 FLEET OPEX $13.2 $26.5 G&A EXPENSES $5.6 $6.5 DEBT REPAYMENT (1) $7.9 $13.9 INTEREST EXPENSE (2) $1.6 $2.9 TOTAL OUTFLOWS $28.3 $49.8 DAILY CASH BREAK EVEN RATE $15,518 $13,645 The above figures do not include non-cash items which will result in differences with actual reported results. Debt repayment for 10 ships based on additional $44m debt with repayment profile similar to the existing term loans.(2) Based on LIBOR at 0.16%. Expected daily breakeven rate per vessel (5 Aframax fleet) 5th Aframax acquisition and debt refinancing will reduce daily breakeven significantly High and Low represent one standard deviation. Further reduction expected as we grow our fleet

$63.8m $40.8m $7.6m Break-even $15,518 $13,645 -$4.9m -$12.2m 20 QuartersLast 5 YearsSpot Rates(1) Annual FCF 5 Tankers Annual FCF 10 Tankers 10 QuartersAverage FCF +$6.7m $134.5m $88.5m $22.1m Highest $52,853 Median $20,626 High $39,643 -$3.1m -$17.6m Value created under most market scenarios with median and above charter rates generating multiples of free cash flow after debt repayment compared to those below median(1) Refers to Aframax tankers quarterly spot charter rates from Q4 2015 through Q3 2020. 10 QuartersAverage FCF -$1.8m Low $13,404 Lowest $9,238 10 QuartersAverage FCF +$15.1m 10 QuartersAverage FCF-$1.9m Annual free cash flow available for dividends after $7.9 and $13.9 million debt repayment under 5 and 10 tankers, respectively Through Cycle Value Generation Source: Company 15

Attractive Equity Story 16 Performance Shipping is a compelling play on a continued Aframax tanker recovery 1 2 3 4 5 6 7 Source: Company

Performance Shipping Inc 6-K, filed Dec 2, 2020

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