Pyxis Tankers Inc., a growth-oriented pure play product tanker company, today announced unaudited results for the three months and year ended December 31, 2020.
Summary
For the three months ended December 31, 2020, our Revenues, net were $4.5 million. For the period, our time charter equivalent (“TCE”) revenues were $3.6 million, a decrease of approximately $2.6 million or 41.9% over the comparable period in 2019 primarily due to 151 fewer operating days of our fleet reflecting the sale of our oldest MR in early 2020, the lower utilization of our small tankers as a result of the special surveys that both vessels have undergone during the quarter, as well as the lower charter rates by approximately $2,100 per day in Q4 2020 from the comparable 2019 period. Our net loss decreased by $1.0 million to $2.6 million from $3.6 million in the comparable period in 2019 primarily the result of these factors including the $2.8 million non-cash loss on vessel held-for-sale in the fourth quarter of 2019, representing the sale of the 2006 built MR, Pyxis Delta, that closed in January 2020. For the fourth quarter 2020, loss per share (basic and diluted) was $0.12. Our Adjusted EBITDA was negative $0.2 million, which represented a decrease of $2.1 million over the comparable period in 2019. Please see “Non-GAAP Measures and Definitions” below.
Valentios Valentis, our Chairman and CEO, commented:
“The chartering environment for product tankers in the fourth quarter of 2020 continued to be depressed, reflecting no seasonal rebound in the northern hemisphere due to the continued negative impact of COVID-19 on the demand for refined petroleum products. Through our short-term time charters, we were able to achieve an average TCE of $12,291/day for our MRs during the quarter, which was disappointing, but generally better than rates that could have been achieved in the spot market.
The short-term demand outlook for our sector continues to be difficult. However, we are encouraged by signs of expanding economic activity. The rebound started in Asia last fall and positive signs of recovery have recently become evident in the west. In January, the IMF revised upward its 2021 global outlook for GDP growth to 5.5%. The softening of government lockdowns in the U.S. and Europe from the most recent surge of the virus is a welcome relief. The growing availability of effective vaccines cannot be understated. Inventories of refined products should reach 5 year averages soon, especially after the conclusion of many refinery maintenance programs and demand returns for transportation fuels as we move into summer and worldwide economic activity expands. During this challenging environment, we have continued to focus our employment strategy for our MRs on shorter-term, staggered time charters to mitigate risk and provide predictable cash flow. As of March 19, 2021, we had booked 100% of available days for the first quarter of 2021 at an average rate of approximately $13,200 per day for our MRs and 75% of available days during Q2, 2021 at a similar level.
During these arduous times, we have concluded some important operating and financial objectives. In the second half of 2020, we completed special surveys on three of our vessels. We have no major scheduled drydockings until 2023 when the Pyxis Theta undergoes her second special survey with BWTS installation. Over the last five months, we have raised $30 million of equity capital in two financings. In October, we completed a $5 million offering of units consisting of convertible preferred shares and detachable warrants to purchase common stock over a five year period. Both of these securities have a strike price of $1.40 per share. The net proceeds of $4.3 million from this public offering were used for working capital and debt repayment. In February 2021, we completed a $25.0 million private placement offering by selling 14.28 million common shares at $1.75 per share to institutional investors. The net proceeds of $23.1 million are expected to be used for similar purposes as well as opportunistic vessel acquisitions in the clean products sector. Also, this past week we signed a commitment letter with one our banks to refinance the outstanding debt for the Pyxis Epsilon. We will combine $7.5 million of cash with a new 5 year loan of $17 million to reduce overall leverage, lengthen our debt maturities and obtain an interest rate savings of 7.5%.
Our stronger financial position should help us take advantage of opportunities to grow our company in an accretive manner. As economies are gradually exiting lockdowns and solid global GDP growth kicks in, this should result in rising demand for the seaborne transportation of a broad range of petroleum products. In the meantime, the supply picture continues to look better due to the continued low ordering of new tankers and the likely increase of scrapping of older tonnage. Overall, we maintain a positive outlook about the long-term prospects for the product tanker sector.”
Results for the three months ended December 31, 2019 and 2020
For the three months ended December 31, 2020, we reported a net loss to common shareholders of $2.7 million, approximately $0.9 million less compared to the same period in 2019. The improvement was the result of the non-cash loss on vessel held-for-sale of $2.8 million in the fourth quarter of 2019, the sale of which closed in January 2020. During the fourth quarter of 2020, our Revenues, net were $4.5 million or 38.4% lower compared to the same period in 2019 as a result of lower charter rates of 17%. Furthermore, fewer operating days for our MRs, 368 days during the fourth quarter of 2019 compared to 255 days in 2020, primarily resulted from one less MR in our fleet during the most recent period. Additionally, both of our small tankers completed their special surveys during the fourth quarter of 2020 resulting in fewer operating days, in particular 95 days during the fourth quarter of 2020 vs. 133 days in 2019. Adjusted EBITDA of negative $0.2 million represented a decrease of $2.1 million from $1.9 million in the same period of 2019.
Results for the years ended December 31, 2019 and 2020
For the year ended December 31, 2020, we reported a net loss to common shareholders of $7.0 million. Loss per share basic and diluted for the year ended December 31, 2020 was $0.32. In 2019, our net loss was $8.3 million with a loss per share basic and diluted of $0.39. In 2020, lower revenues, net of $6.1 million or 21.9%, compared to 2019 were partially offset by an aggregate decrease of approximately $3.8 million in vessel operating expenses, management fees, depreciation and interest and finance costs, net, which primarily reflected the impact from the sale of Pyxis Delta and the repayment of its loan. Furthermore, the decline in our revenues, net was also partially offset by $0.8 million decrease in voyage related costs and commissions as a result of the fewer operating days of our small tankers which were employed under spot charter arrangements. These differences were counterbalanced by the recognition of a $2.8 million loss on vessel held for sale in 2019 resulting in a $1.4 million improvement in the bottom line for the year ended December 31, 2020. However, our Adjusted EBITDA of $2.7 million represented a decrease of $3.1 million from $5.8 million for the same period in 2019.
