Pyxis Tankers Inc. Reports Net Loss of $2.3 Million

Pyxis Tankers Inc. an emerging growth pure play product tanker company, today announced unaudited results for the three months ended March 31, 2019.

Summary

For the three months ended March 31, 2019, our time charter equivalent revenues were $4.8 million which contributed to a net loss of $2.3 million, or a loss per share (basic and diluted) of $0.11 and our Adjusted EBITDA (see “Non-GAAP Measures and Definitions” below) was $0.5 million.

Valentios Valentis, our Chairman and CEO commented:

“Our operating results for the first quarter of 2019 reflected the contribution from the short-term time charters of our medium-range product tankers (“MR”) which we had entered into during the fourth quarter of 2018 as well as continued cost discipline. The average TCE for our MR’s was approximately $12,700 during the quarter. The continued underperformance of our smaller tankers reduced our improving fleet-wide results for the period.

During Q1 2019, our eco-modified MR, the Pyxis Malou, completed her 10th year special survey, including installation of a U.S. Coast Guard approved ballast water treatment system. This major dry-docking was completed within a total of 28 days of off-hire and at a total cost of $1.4 million, including the environmental upgrade. Upon re-delivery from the shipyard, the vessel was employed under a short-term time charter which expires in the Fall, 2019. During the most recent quarter, we took the opportunity to fix two of our younger MR’s operating under time charters at a rate of approximately $15,400/day/vessel for one year with a charterer’s option to extend for an additional year at $17,500/day/vessel starting in the second quarter 2020. The Pyxis Delta will finish her time charter shortly, and we would expect it, along with the Pyxis Malou and the two Handysize tankers, to operate in the spot market upon completion of their existing charters since we believe rates will improve in the second half of this year. As of May 17, 2019, 43% of remaining days of 2019, excluding optional periods, are covered with our MR’s at a gross rate of approximately $15,000/day.

We believe that we may see a sustainable improvement in vessel earnings based upon the positive fundamentals of supply and demand growth, plus incremental demand for the MR sector with the start of IMO 2020 regulations. Continued world-wide demand growth for refined petroleum products of 3% or more per annum should outpace the declining orderbook for MR’s, especially after vessel scrapping and delays in new build deliveries. The distribution of new compliant low-sulphur fuels through the massive global network of ports and marine storage facilities should increase ton-mile demand and expand trading routes for MR’s. The possibility of arbitrage opportunities within our sector would be icing on the cake.

During the first quarter of 2019, we continued to focus on the efficiency of our operating structure, with our fleet-wide daily operating expenses of $6,022 per vessel, an improvement of 1.4% over the same period in 2018. Total daily operational costs, which include management fees and General and Administrative expenses, for our eco-efficient MR’s continued to be competitive within our sector at approximately $7,580/day.

Going forward, we plan to continue to focus on providing a safe and efficient means of transporting refined products for our customers under a strategy of mixed chartering vessel employment. We plan to continue to explore avenues for growth, strategically and through capital formation. We are optimistic about the near-term prospects for our sector and the Company, and look forward to taking advantage of the various opportunities as they arise to enhance shareholder value.” 

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