Pyxis Tankers Inc. (Nasdaq Cap Mkts: PXS), (the “Company” or “Pyxis Tankers”), an international shipping company, announced unaudited results for the three months and year ended December 31, 2024.
For the three months ended December 31, 2024, our revenues, net were $12.0 million. For the same period, our time charter equivalent (“TCE”) revenues were $7.9 million, a decrease of $4.0 million, or 33.6%, over the comparable period in 2023. Our Adjusted net income for the fourth quarter, 2024 was $0.3 million with Adjusted income per common share of $0.03 basic and diluted. Our Adjusted EBITDA for the three months ended December 31, 2024, was $3.3 million, a decrease of $4.5 million over the comparable period in 2023.
On October 20, 2024, the Company fully redeemed all the remaining outstanding 303,171 shares of its 7.75% Series A Cumulative Convertible Preferred Stock (the "Preferred Shares”) for $7.6 million. Upon redemption, all outstanding Preferred Shares were cancelled by the Company, cash dividends in respect of these shares were no longer payable and the right to convert the Preferred Shares into an aggregate of 1,353,442 common shares was extinguished. The Preferred Shares also ceased trading on the Nasdaq Capital Market, where they were previously listed under the ticker symbol “PXSAP.”
As the fair value of the Preferred Shares redemption was greater than the carrying amount, a retained earnings reduction of $2.7 million was recognized as a deemed dividend to the preferred shareholders in the fourth quarter for the full PXSAP redemption. Consequently, in the fourth quarter, 2024, the Νet loss attributable to common shareholders was $2.4 million or $0.23 basic and diluted loss per share. Please see “Non-GAAP Measures and Definitions” below, including “Adjusted net income”, which reflects the effect from the full redemption of our Preferred Shares.
CEO, Valentios Valentis, commented “Profitable last quarter amid deteriorating market conditions”
We reported our fourth fiscal quarter, 2024 results with Revenues, net of $12.0 million and Adjusted net income of $0.3 million for the period.
During this recent quarter, the product tanker sector experienced decelerating chartering activity due to softening global demand for transportation fuels, seasonal refinery maintenance and moderating inventories of various refined petroleum products. In the quarter ended December 31, 2024, our MR2 tankers, or MRs, generated an average TCE rate of $22,084 per day. Since the beginning of 2025, the product tanker environment has remained volatile. As of March 13, 2025 our MRs were booked at an average estimated TCE of $25,079 per day, with 85% of our MR available days booked in the quarter ending March 31, 2025. Our fleet of three modern eco-efficient MRs is currently employed under short-term time charters for two vessels and on spot voyage for one tanker.
On the dry-bulk side , chartering conditions have remained disappointing due to soft demand for certain commodities and the declining growth of the Chinese economy. In the quarter ended December 31, 2024, our three mid-sized bulkers generated an average TCE rate of $11,582 per day. As of March 13, 2025, our bulkers were booked at an average estimated TCE of $15,028 per day, with 78% of available days booked in the quarter ending March 31, 2025. All of our dry-bulk carriers are currently employed under short-term time charters, with the exception of one vessel undergoing its special survey.
Optimistic view with challenges ahead – Stable demand but, growing vessel supply
For the remainder of 2025, we expect the chartering environment for both product tankers and the dry-bulk market to remain challenging. While stable global demand for seaborne cargoes of a broad range of refined petroleum products and dry-bulk commodities is expected to continue, vessel supply is anticipated to increase due to scheduled deliveries of newbuilds. However, the supply growth is projected to remain relatively manageable for this year. Historically, demand growth for many refined products and dry-bulk commodities has been reasonably correlated to global GDP growth. The IMF recently estimated that global economies will grow annually by 3.3% in both 2025 and 2026. According to Drewry, as of February 28, 2025, the MR orderbook stood at 282 tankers, or 16.3% of global fleet, but 277 MRs, or 16%, are 20 years of age or more. Net supply growth for MR2 of approximately 5% this year is a fair estimate in our opinion. On the dry-bulk side, fleet growth for 2025 is expected to outpace demand growth. However, potential scrapping and slow-steaming of a large number of older bulkers could help mitigate some of the pressure on chartering conditions. Overall fundamental cargo demand is further supported by the ton-mile effects stemming from the continued hostilities of the Russian-Ukrainian war and tensions in the Middle East, as well as resurgence of piracy off the east coast of Somalia. While the possibility of lasting peace and the prospect of softening monetary policies by many central banks promote some optimism, the growing complexity within our sectors, coupled with the uncertainty surrounding macro-economic conditions and global events, including the impact of tariffs and other trade restrictions, necessitate continued prudent management.
Concluded major financial initiatives to enhance shareholder value – common stock buyback program completed & convertible preferred stock fully redeemed to avert potential dilution
At the end of January 2025 we fully utilized our prior authorized expanded $3.0 million common share repurchase program. Since summer 2023, we have acquired over 730,000 common shares in the open market at an average cost of $4.03 per share, excluding commissions. As of the date of this report, we have no ability under our common share repurchase program to purchase any additional common shares. During 2024, we also redeemed all of the outstanding Preferred Shares, which eliminated potential shareholder dilution of approximately 1.8 million common shares. This financial milestone also removed the associated monthly cash dividends, while simultaneously strengthening the trading profile and market perception of our common shares.
With an aggregate investment of $13.1 million in equity repurchases, we have effectively preserved shareholder value by preventing dilution of more than 2.5 million common shares, representing 19.4% of diluted shares, safeguarding the long-term interests of our shareholders.
Potential acquisition opportunities on the horizon as our fleet becomes “greener”
In the second half of 2024, ship values started to decline, creating what we believe will be compelling opportunities in the near future to expand our fleet of mid-sized, modern eco-efficient vessels in both in the product tanker and dry-bulk sectors. In light of this market shift, we expect to maintain our disciplined approach to capital allocation, until more attractive situations materialize which may further enable us to enhance shareholder value. Our strong financial position and deep banking relationships, provides us with the flexibility to pursue acquisition opportunities when these arise. In the near-term, we expect to continue to utilize our operating cash flow to further enhance balance sheet liquidity, repay scheduled debt and complete our high-quality maintenance program. Lastly, this spring, two of our vessels will undergo scheduled special surveys, which will include the installation of advanced, fuel-saving devices to further improve their environmental efficiency.”
Results for the three months ended December 31, 2023 and 2024
Amounts relating to variations in period–on–period comparisons shown in this section are derived from the unaudited consolidated financials presented below.
For the three months ended December 31, 2024, we reported Revenues, net of $12.0 million, or a 9.2% decrease from $13.2 million in the comparable 2023 period. Our Net income attributable to Pyxis Tankers Inc. was $0.3 million, compared to a Net income attributable to Pyxis Tankers Inc. of $21.8 million for the same period in 2023. Reported Adjusted net income was $0.3 million or Adjusted income of $0.03 basic and diluted per share, compared to an Adjusted net income of $21.6 million, or Adjusted income per common share of $2.04 basic and $1.76 diluted, for the same period in 2023. In the fourth quarter of 2023, we recognized a $17.1 million gain on the sale of the 2015 built MR tanker “Pyxis Epsilon” . The weighted average number of basic shares remained at 10.6 million in the most recent period versus the fourth quarter, 2023. The average MR daily TCE rate during the fourth quarter of 2024 was $22,084 or 27.6% lower than the $30,484 MR daily TCE rate for the same period in 2023, due to increased unfixed days of 29 in the most recent period from four days in 2023. The dry-bulk carriers had an average daily TCE rate of $11,582 for the fourth quarter of 2024 or 31.6% lower than the $16,932 daily TCE rate in the same period in 2023 due to poor market conditions. The revenue mix of the MRs for the fourth quarter of 2024 was 21% under short-term time charters and 79% from spot market employment, while the bulkers were only hired for short-term time charters. Adjusted EBITDA decreased by $4.5 million to $3.3 million in the fourth quarter of 2024 from $7.7 million for the same period in 2023.
Results for the years ended December 31, 2023 and 2024
Amounts relating to variations in period–on–period comparisons shown in this section are derived from the unaudited consolidated financials presented below.
For the year ended December 31, 2024, we reported Revenues, net of $51.5 million, an increase of $6.1 million, or 13.4%, from $45.5 million in the comparable period of 2023. During the twelve months of 2024, our MRs were contracted for 626 days or 57% under short-term time charters and for the rest of the year employed in the spot market resulting in an overall MR average daily TCE rate of $29,289. Also, during the same period, our bulkers were contracted under short-term time charters resulting in an overall dry-bulk average daily TCE rate of $15,353.
Our Net income attributable to Pyxis Tankers Inc. for the twelve months ended December 31, 2024, was $12.9 million, or Adjusted income of $1.17 per common share basic and $0.96 per common share diluted, compared to a Net income attributable to Pyxis Tankers Inc. of $37.0 million, or Adjusted income of $3.38 per common share basic and $2.94 per common share diluted in 2023. During the previous year 2023, we recognized an aggregate gain from vessels sales of $25.1 million which included an $8.0 million gain from the 2009 built “Pyxis Malou” sale in the first quarter of 2023 and $17.1 million gain from “Pyxis Epsilon” sale in the fourth quarter of 2023. During the year ended December 31, 2024, we generated a higher MR daily TCE rate of $29,289 and higher MR fleet utilization of 96.1%, compared to a daily TCE rate of $26,633 and utilization of 95.7% for the same period in 2023. During 2024, we operated on average three MR tankers compared to an average of 4.2 MRs in the prior year. During the year 2024, we expanded our dry-bulk fleet with the acquisitions of the 2015-built scrubber-fitted “Konkar Asteri” in February 2024 and a sister-ship, the 2015-built “Konkar Venture” in June 2024. The dry-bulk vessels achieved daily TCE rates of $15,353 and utilization of 82.9% in the year ended 2024, compared to daily TCE rate of $15,323 and utilization of 80.7% during the prior year. In 2024, we operated an average of 2.4 bulk carriers compared to 0.3 in 2023.
