The net loss was $0.3 mill higher than the comparable period in 2018, primarily due to a rise in interest costs, the company explained.
TCE revenues were $5.5 mill, an increase of 7.6% over the comparable period last year. For the second quarter, the adjusted EBITDA was $1.3 mill.
Valentios Valentis, Pyxis Chairman and CEO, explained. “As previously stated, we felt the chartering environment for product tankers would be choppy in the second and third quarters of 2019. In fact, the spot market for MR’s has been challenging, primarily due to softer demand for refined petroleum products associated with slowing global economic conditions and seasonal trends, a significant number of newbuild deliveries, longer maintenance programmes at certain refineries, and to a lesser extent, intrusion of larger vessels, including crude carriers taking clean cargoes on their maiden voyages.
“Our employment strategy of shorter-term, staggered timecharters has proven beneficial, so far. In the second quarter of 2019, the average TCE for our MR’s was almost $13,600 per day. As of 8th August, 2019, we had 46% of remaining days in 2019 covered for our MR’s, exclusive of options, at an average rate of approximately $15,100.
“Two MR’s will be re-delivered in the fourth quarter, historically a stronger seasonal period. Moreover, at that time we expect to see the start of a sustainable improvement in vessel earnings based on the positive fundamentals of supply and demand growth, plus incremental demand for MR’s given the global impact of upcoming IMO 2020 regulations. However, we are concerned about the effects of rising trade tensions and recent geo-political events which could undermine global economic growth.
“In general, we are encouraged by the relative improvement in timecharter rates for MR’s over the last 12 months combined with our continued discipline within operational costs. We are optimistic about the near-term prospects for the product tanker sector, and for us, specifically, and look forward to taking advantage of various opportunities as they may arise to enhance shareholder value,” he concluded.
For the first six months of 2019, Pyxis reported a net loss of $3.9 mill, compared to a net loss of $0.7 mill for 2Q18.
This increase was primarily the result of a non-cash impairment charge of $1.5 mill that was recorded in 1Q18 related to the write down of the carrying amount of ‘Northsea Alpha’ and ‘Northsea Beta’ to their then fair values offset by the gain from debt extinguishment of $4.3 mill, as a result of the early prepayment of loans from Commerzbank when the existing debt for the small tankers and ‘Pyxis Malou’ was refinanced in full with Amsterdam Trade Bank in February, 2018.
Adjusted EBITDA was $1.8 mill, an increase of $0.6 mill from 2Q18, reflecting higher TCE revenues.