Pyxis Tankers, an emerging growth pure play product tanker company, today announced unaudited results for the three and six months ended June 30, 2018.
For the three months ended June 30, 2018, their time charter equivalent revenues were $5.1 million, which resulted in net loss of $1.3 million, or loss per share (basic and diluted) of $0.06, and their Adjusted EBITDA (see “Non-GAAP Measures and Definitions” below) was $1.1 million.
Valentios Valentis, the Chairman and CEO commented:
“Overall, our operating results for the second quarter of 2018 were mixed. As the quarter unfolded, the time charters for our medium range tankers (“MRs”) rolled-off into a very difficult spot market at much lower rates. Weaker demand for MRs was caused by temporary market disruptions in the Atlantic basin, led by lower activity in the Gulf of Mexico, continued drawdown of inventories of refined petroleum products in storage and intrusion of larger ships, mainly newbuild crude carriers, which transported clean products on their maiden voyages. Three out of four of our MR tankers are currently in the spot market, which we hope will improve by this fall. As for our small tankers, we experienced a nice improvement in trading activity compared to the first quarter of 2018. We have continued to focus on our costs during this challenging period. The success of our efforts was clearly demonstrated during the second quarter as our total operational costs, which we define as operating expenses, general and administrative expenses and management fees per vessel per day, improved. For example, our modern eco-efficient MRs achieved an average of just over $7,500 per vessel per day in the second quarter of 2018.
“As for the balance of 2018, we continue to expect chartering activity to be challenging but with a modest upward trend as we move into the fourth quarter, which is seasonally a stronger period. We continue to believe in a longer term, sustainable improvement in charter rates as a result of attractive market fundamentals, such as significantly lower scheduled deliveries of new build MRs combined with projected solid growth in consumption by end-markets and increasing export-oriented petroleum refinery cargoes. Over the long-term, we intend to maintain our strategy of a mix of time and spot charters. Our disciplined cost structure should create operating leverage and enhance profitability when charter rates improve.
“We remain optimistic about the fundamentals of the product tanker market, specifically for MRs, and believe that Pyxis Tankers has the platform and position to take advantage of them.”
For the full results, please click here.