Pyxis Tankers Inc. announces financial results for the three months and year ended December 31, 2019

Mar 26 2020


Pyxis Tankers Inc. (the “Company” or “Pyxis Tankers”) a growth-oriented pure play product tanker company, announced unaudited results for the three months and year ended December 31, 2019.

Summary

For the three months ended December 31, 2019, our Revenues, net were $7.3 million and our time charter equivalent revenues increased by $1.8 million, or 39.5%, to $6.2 million compared to the same period in 2018. For the quarter ended December 31, 2019, our net loss was $3.6 million, or a loss per share (basic and diluted) of $0.17, which was primarily due to a non-cash loss of $2.8 million (or $0.13/share) on the sale of our oldest vessel, the Pyxis Delta, that was recognized during the period. Our Adjusted EBITDA was $1.9 million, an increase of $1.7 million over the comparable 2018 quarter. Please see “Non-GAAP Measures and Definitions” below.

 

Valentios Valentis, our Chairman and CEO commented:

“Our operating results for the three months ended December 31, 2019 reflected a better overall market compared to the same period in 2018. During the fourth quarter, 2019 charter rates for medium range tankers (“MRs”) continued to improve primarily as a result of seasonal demand and strong market fundamentals. We operated all of our MR’s on staggered time charters in order to obtain predictable cash flow, especially in light of the various uncertainties surrounding the impact of new 2020 IMO fuel regulations. In addition to normal seasonal demand for heating oil in the Northern Hemisphere, the improving rate environment was also a result of incremental cargoes for marine gasoil and new compliant low-sulphur fuel blends as well as a dramatically stronger crude tanker market which caused a number of larger product tankers to trade dirty cargoes thereby reducing available capacity to transport clean petroleum products, such as, diesel or jet fuel.  We took advantage of this positive environment to sell the Pyxis Delta, our 2006 built non-eco tanker in order to achieve some of our strategic, operating and financial goals. The net proceeds were applied to de-lever our balance sheet, improve liquidity and better position us for growth. Further, we avoided operating this older, higher consuming vessel, which would be less competitive moving forward, and incurring the costs of a major upcoming special survey, which would have included the installation of the vessel’s ballast water treatment system.

 

Since early January 2020, the chartering environment has been very volatile. But, the overall impact of Covid-19 on the MR product tanker market has been limited so far. Initially, the spot market collapsed in the South East Asia region due to the dramatic decline in demand, the extended Lunar holidays in China and the ripple economic effects of the virus. However, spot rates have rebounded over the last couple of weeks. The Atlantic Basin spot market has held-up reasonably well despite a warm winter and the delayed arrival of Covid-19 in the Western Hemisphere, the impact of which is still to be determined. The period market has softened, which is usual for this time of the year, as refinery turn-arounds start to occur as well as fears of lower demand. Since the beginning of the year, the one-year time charter rate has declined by about $1,300/day for an Eco-MR to approximately $17,200/day. 

 

Clearly, we are concerned about the health and welfare of all affected by the virus and we are hopeful that this will be a short-lived disruption. We continue to believe in a longer term, sustainable period of attractive charter rates as a result of improving product tanker fundamentals, such as, a relatively low newbuild orderbook for MRs combined with rebounding growth in consumption and increasing export-oriented petroleum refinery cargoes. In the short-term, silver-linings include lower bunker costs, tighter price spreads between high and low sulphur fuel oil, evolving arbitrage trading opportunities and lower net supply growth, primarily associated with delays in newbuild deliveries and drydockings, including scrubber installations. In this respect, we feel our mixed chartering strategy, modern eco fleet and stable operating cost structure will be beneficial during these uncertain times.”

 

Results for the three months ended December 31, 2018 and 2019

For the three months ended December 31, 2019, we reported a net loss of $3.6 million, or a loss per share of $0.17 (basic and diluted), compared to a net loss of $3.4 million, or a loss per share of $0.16 (basic and diluted) for the same period in 2018. For the three months ended December 31, 2019, our Revenues, net were $7.3 million, a decrease of $0.2 million, or 2.9%, from $7.5 million in the comparable period of 2018. For the three months ended December 31, 2019, our time charter equivalent revenues of $6.2 million represented an increase of $1.8 million from $4.4 million in the three months ended December 31, 2018.  The increase in time charter equivalent revenues was mainly attributable to lower spot chartering activity, which resulted in a significant decrease of $2.0 million in voyage related costs and commissions for the three months ended December 31, 2019. However, this decrease was offset by the loss on vessel held-for-sale of $2.8 million, or $0.13 loss per share (basic and diluted), representing the expected non-cash loss from sale of Pyxis Delta that closed in January 2020. Our Adjusted EBITDA was $1.9 million for the three-month period ended December 31, 2019, representing an increase of $1.7 million from $0.2 million for the same period in 2018.

 

Results for the years ended December 31, 2018 and 2019

For the year ended December 31, 2019, we reported a net loss of $8.3 million, or $0.39 basic and diluted loss per share, which represents an increase in the net loss of $0.1 million compared to the same period in 2018. Our Revenues, net in 2019 totalled $27.8 million compared to $28.5 million in 2018, while our time charter equivalent revenues of $22.6 million in 2019 represented an increase of $6.0 million from $16.6 million in the prior year. The increase in time charter equivalent revenues was attributable to a decrease of $6.7 million in voyage related costs and commissions as a result of lower spot chartering activity as well as an improvement in the period market. Operating results in 2019 were reduced by the loss on vessel held-for-sale of $2.8 million and in 2018 by a vessel impairment charge of $2.3 million. Interest and finance costs increased by $1.3 million in 2019 and a gain on debt extinguishment of $4.3 million recognized in 2018 resulted in comparable net losses for both years ended December 31, 2018 and 2019 of $8.2 and $8.3 million, respectively.

 

Our 2019 Adjusted EBITDA was $5.8 million, representing an increase of $5.9 million from negative $0.1 million for the same period in 2018.

 



Previous: Stolt-Nielsen Limited publishes Annual Report 2019

Next: Nippon Paint Marine’s A-LF Sea chosen by leading LNG carrier operator


March 2020

Eco-performance, safety, digital Underwater hull cleaning by robot - Where is tanker shipping going based on looking at oil and gas