TCE revenue drop drags down Pyxis Tankers

Aug 11 2017

Pyxis Tankers reported a net loss of $0.8 mill on TCE revenues of $5.9 mill for the second quarter of this year. EBITDA was $1.4 mill.

Valentios Valentis, chairman and CEO, commented: "Our operating results for the second quarter of 2017 reflected an improvement within the context of a challenging chartering environment. Spot and period charter rates continued to be volatile during the quarter but improved slightly overall. Modest demand growth reduced high inventories of refined products in storage and improved voyage activity. As previously noted, we expected chartering activity to be choppy for most of 2017.

We took the opportunity to fix all of our MRs under short-term timecharters. Our MR charters have an average duration of three months as of 30th June, 2017, exclusive of options, which positions us to take advantage of improving rates. We continue to believe in a longer term improvement in rates starting in late 2017, as the result of attractive market fundamentals, such as, significantly lower scheduled deliveries of newbuild MRs combined with projected solid growth in consumption and export-oriented refinery cargoes. We intend to maintain our mixed chartering strategy over the long-term.

"We are pleased with our continued disciplined, cost-effective operating structure. In the second quarter of 2017, we saw a fleet-wide improvement in our daily vessel operating expenses, as compared to the same period in 2016.

"As of 30th June, 2017, our net funded debt stood at $66.7 mill, and the weighted average interest rate was approximately 3.6% during the first six months of 2017. In June, 2017, we amended our loan agreement with respect to two of our vessels to extend the maturity of their loans, which represent approximately $24.4 mill of our outstanding debt, for an additional four years to September, 2022. The first scheduled balloon payment with respect to our bank debt will be due in the second quarter of 2020, which enhances our financial flexibility.

"Given the recent market conditions, we decided not to proceed with our planned public equity offering. We will continue to pursue cost-effective flexible capital alternatives, primarily for growth purposes. We remain optimistic about the fundamentals of the product tanker market and believe that Pyxis Tankers is well positioned to take advantage of them," he concluded. 

The net loss of $0.8 mill in 2Q17 compares to a net income of $0.4 mill for the same period in 2016. The decrease in net income was primarily due to a $1.1 mill decrease in TCE revenues.

In addition, during 2Q17, Pyxis recorded one-off expenses of about $0.3 mill associated with the termination of the equity offering in July, 2017, which are included under general and administrative expenses for the period.

EBITDA was $1.4 mill, a decrease of $1.2 mill from $2.6 mill for 2Q16. If the  the write-off of the equity offering expenses were excluded, EBITDA and net loss would have been $1.7 mill and $0.4 mill, respectively.

For the first six months of 2017, Pyxis reported a net loss of $2.5 mill, compared to a net income of $1.5 mill for the same period in 2016. This decrease was primarily due to a $4.1 mill fall in TCE revenues.

EBITDA for 1H17 was $1.7 mill, a decrease of $4.1 mill from $5.9 mill for the same period in 2016.

In June, 2017, the lender of Sixthone Corp and Seventhone Corp (the owners of Pyxis Delta and the Pyxis Theta, respectively) agreed to extend the maturity of their respective loans from September, 2018 to September, 2022 under the same applicable margin, but with an extended amortisation schedule.

The aggregate outstanding balance of these loans as of 30th June, 2017 of $24.4 mill is scheduled to be repaid in 20 quarterly instalments of $0.65 mill each, one quarterly instalment of $1 mill and a balloon payment of $10.4 mill.


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