The net loss of $1.5 mill compares with net income of $1.3 mill for the same period in 2015. The $0.8 mill EBITDA was a decrease of $2.5 mill from $3.3 mill reported in 3Q15.
This net income decrease was primarily due to a $2.4 million fall in TCE revenues, coupled with a $0.1 mill increase in general and administrative expenses.
For the first nine months of this year, Pyxis reported net income of $19,000, compared to net income of $2.9 mill for the same period in 2015. EBITDA was $6.6 mill, a decrease of $2.4 mill from $9 mill recorded in 3Q15.
Agasin the decrease in net income was primarily due to a $1.7 mill decrease in TCE revenues, coupled with a $1 mill increase in general and administrative expenses.
Valentios Valentis, Pyxis chairman and CEO, commented:"Our third quarter 2016 results were directly related to the poor chartering market for our vessels. A continuation and deepening of the fall in spot charter rates since the second quarter of the year has negatively affected virtually all product tanker operators, including ourselves.
“The principal reasons are substantial new vessel deliveries, record high inventories in storage of refined products and limited opportunities for arbitrage trading. By the end of the quarter, we only had two of our six tankers on timecharters.
“We are guardedly optimistic that charter rates will improve later in the fourth quarter, typically a stronger seasonal period, due to colder weather in the Northern Hemisphere, which results in increased demand for heating oil and longer wait times at numerous ports.
“As previously stated, we continue to believe the chartering environment should materially improve starting in the latter half of 2017, due to attractive market fundamentals - dramatically lower scheduled deliveries from the newbuild tankers orderbook combined with projected demand growth.
“Consequently, as the remaining timecharters we have will be expiring in the last quarter of 2016, we intend to continue to focus on a mixed chartering strategy of spot and time charters.
"We continue to be pleased about our disciplined cost structure. In the third quarter 2016, our total daily operational costs, which include vessel operating expenses, general and administrative costs and management fees, for our eco-efficient MRs and our eco-modified MR were $7,434 and $8,009 per vessel, respectively, a modest improvement over the second quarter.
“Our net debt stood at $71.4 mill at 30th September, 2016, and we have no balloon loan principal payments until 2018. Our weighted average interest rate during the nine months ended 30th September, 2016 was 3.24%.
"As part of our strategic plan, Pyxis Tankers continues to be on the look-out for acquisitions. The long-term economics for the acquisition of a quality secondhand MR2 are even more attractive today with vessel prices substantially below 10-year averages. The challenge is funding - access to cost-effective capital, especially equity," he concluded.