Pyxis Tankers Inc (NASDAQ:PXS) Q3 2017 Performance Reflects Improvement Over Q3 2016


In the last trading session, the stock price of Pyxis Tankers Inc (NASDAQ:PXS) jumped more than 62% to close the day at $6.68. Last month, the company posted unaudited results for the quarter closed September 30, 2017.

The highlights

For the quarter closed September 30, 2017, Pyxis posted time charter equivalent revenues of $5.2 million, which led in a net loss of $1.3 million and EBITDA of $0.8 million. Valentios Valentis, the CEO and Chairman, expressed that their operating performance for Q3 2017 showcased a slight improvement over the same period in 2016.

Spot charter rates for “MRs” continued to be volatile during the reported quarter, however showed slight improvement overall. Better demand growth lowered high inventories of refined offerings in storage globally to levels below 2016 and augmented voyage activity. As previously stated, they anticipated chartering activity to be irregular for most of 2017.

Consequently, they took the chance to expand their time charter coverage for Pyxis MRs on a short-term basis. They consider this employment plan positions them to take benefit of improving rates in the fourth quarter. Overall, they continue to expect longer term growth in charter rates next year as the outcome of impressive market fundamentals, like considerably lower planned deliveries of new build MRs together with estimated robust growth in consumption and enhancing export-focused petroleum refinery cargoes. Valentis added that over the long-term, they plan to maintain their mixed chartering plan.

They continue to be delighted with their cost-effective operating structure. As of the close of September 30, 2017, Pyxis net funded debt was $64.7 million, while the weighted average interest rate stood at around 3.7% during the first three quarters of 2017. They do not have a planned balloon payment on their bank debt until Q2 2020, which improves their financial flexibility. In the near-term, they will persist to follow cost-effective and flexible capital options. The team remain assured about the basics of the product tanker industry and consider that Pyxis is positioned to take benefit of them.