Pyxis Tankers Inc., an emerging growth pure play product tanker company, today announced unaudited results for the three months ended March 31, 2018.
* For the three months ended March 31, 2018, our time charter equivalent revenues were USD 4.5 million, which resulted in net income of USD 0.6 million, or earnings per share (basic and diluted) of USD 0.03, and our Adjusted EBITDA (see “Non-GAAP Measures and Definitions” below) was USD 0.1 million.
* On February 28, 2018, we refinanced existing indebtedness of USD 26.9 million for Secondone, Thirdone and Fourthone with a new 5-year secured term loan of USD 20.5 million and cash of USD 2.1 million. The remaining balance of approximately USD 4.3 million was written-off by the previous lender at closing, which was recorded as gain from debt extinguishment in the first quarter of 2018.
Valentios Valentis, Chairman and CEO commented:
“Overall, our operating results for the first quarter of 2018 were mixed. Early in the period, we expected a challenging spot charter market for medium range tankers (“MRs”), and consequently, we took the opportunity to fix all of our MR’s under short-term time charters at fair rates which averaged around USD 14,900 per day. However, our small tankers underperformed, and we continue to explore avenues to maximize value, including longer-term solutions, such as, vessel sale or bare boat charter arrangements. During the quarter, we also incurred unscheduled work for one of our vessels, which negatively affected the total operating days for the period.
“As for the balance of 2018, we continue to expect chartering activity to be choppy but with a modest upward trend, especially for the second half of the year. As of May 7, 2018, 66% of the available days in the second quarter were booked for our MRs at an average of USD 14,900/day, exclusive of options. Our recent employment strategy positions us to take advantage of improving rates later this year. We continue to believe in a longer term, sustainable improvement in charter rates as a result of attractive market fundamentals, such as, significantly lower scheduled deliveries of new build MRs combined with projected solid growth in consumption by end-markets and increasing export-oriented petroleum refinery cargoes. Over the long-term, we intend to maintain our strategy of a mix of time and spot charters.
“While the capital markets continue to be challenging for tanker companies, we will continue to pursue cost-effective, growth capital to further improve our liquidity and selectively acquire MR2s. We remain optimistic about the fundamentals of the product tanker market, specifically for MR’s, and believe that Pyxis Tankers has the platform and position to take advantage of them.”
Sea News, May 16