Maroussi, Greece, November 22, 2024 - Pyxis Tankers Inc. (Nasdaq Cap Mkts: PXS), ("we”, "our”, "us”, the "Company” or "Pyxis Tankers”), an international shipping company, today announced unaudited results for the three and nine-month periods ended September 30, 2024.
Summary
For the three months ended September 30, 2024, our Revenues, net were $13.8 million an increase of $2.7 million, or 24.3%, over the comparable quarter in 2023. For the same period, our time charter equivalent ("TCE”) revenues were $11.7 million, an increase of $2.4 million, or 25.5%, over the comparable quarter in 2023. Our net income attributable to common shareholders for the three months ended September 30, 2024, was $3.6 million, an increase of $0.4 million over the comparable period in 2023. For the third quarter of 2024, the net income per common share was $0.34 basic and $0.31 diluted compared to the net income per common share of $0.29 basic and $0.26 diluted for the same period in 2023. Our Adjusted EBITDA for the three months ended September 30, 2024, was $6.7 million, an increase of $1.2 million over the comparable period in 2023. Please see "Non-GAAP Measures and Definitions” below.
On July 30, 2024, we agreed with an existing lender to refinance the existing debt of one of our subsidiaries, the Seventhone Corp. The amended loan agreement provides a five year amortizing bank loan, due July 2029, with similar quarterly repayments, priced at SOFR plus 2.40% (from 3.35%) and is secured by, among other things, the vessel "Pyxis Theta”. In addition, the same lender agreed to reduce the interest margin from 3.15% to 2.40% applicable to our subsidiary's Eleventhone Corp. ("Pyxis Lamda”) credit facility which matures in December 2026. As of September 30, 2024, the outstanding balance of these two separate loans aggregated $26.5 million, and the average reduction in interest margin was 85 basis points.
Valentios Valentis, our Chairman and Chief Executive Officer, commented:
"We are pleased to report solid results for the third fiscal quarter of 2024 with revenues, net of $13.8 million and net income attributable to common shareholders of $3.6 million with basic earnings per share of $0.34 basic and $0.31 diluted. In the quarter ended September 30, 2024, the product tanker sector continued to experience a healthy chartering environment driven by global demand for transportation fuels, tight inventories of many petroleum products, supportive refinery activity, combined with the significant effects of the ongoing conflicts in Ukraine and the Middle East which has led to continued market dislocation of shifting trade patterns and ton-mile expansion of seaborne cargo transportation. During the third quarter, we reported an average daily TCE for our MRs of $29,826. Despite the usual seasonal slowdown, the product tanker environment remains resilient, and as of November 20, 2024, 69% of our MR available days in the quarter ending December 31, 2024, were booked at an average estimated TCE of $24,630 per day. We own and operate three modern eco-efficient MRs, one of which are currently employed under short-term time charters and two on spot voyage. On the dry bulk side, chartering conditions have recently been lackluster. For the quarter ended September 30, 2024, our three mid-sized eco-efficient bulk carriers generated an average TCE of $13,841 per day. All of our dry bulk vessels are currently employed under short-term time charters, and as of November 20, 2024, the average estimated TCE was $13,190/d with bookings of 55% of available days in the 2024 fourth quarter.
We are guardedly optimistic about the chartering environment for product tankers and dry bulk carriers for the near-term. Modest global demand growth for seaborne cargoes across a broad range of refined petroleum products and dry-bulk commodities is expected to continue with the respective orderbooks remaining relatively manageable. Longer-term supply/demand fundamentals remain constructive, especially given the fleet age profiles of both sectors. Even though inflation is decelerating with the possibility of further interest rate cuts and continued moderate global economic growth, the uncertainty surrounding macro-economic conditions and unfolding global events necessitate continued prudent risk management. Beyond the expected uptick in demand for the winter season, the tanker sector may benefit from the prospect of greater restrictions against certain sanctioned countries which may help offset the effects of the possible de-escalation of armed conflicts. However, the potential expansion of tariffs amongst major trading partners is likely to lead to further market dislocation and volatility.
Vessel values are still near historical highs but have started to moderate. We will continue to scrutinize the second-hand market for compelling vessel acquisitions, primarily in the product tanker sector. In the meantime, we expect to continue to pursue the repurchase of additional common shares under our authorized program, while repaying scheduled bank debt as well as maintaining operational and capital discipline. Since June, 2023, and as of November 20, 2024 we have repurchased of 581K common shares in the open market and redeemed all the outstanding Series A Convertible Preferred Stock, which eliminated potential dilution of 1.8 million common shares, or in aggregate 2.38 million shares on a fully diluted basis, further enhancing shareholder value. "
Results for the Three Months ended September 30, 2023 and 2024
Amounts relating to variations in period-on-period comparisons shown in this section are derived from the interim consolidated financials presented below (Amounts are presented in million U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted).
For the three months ended September 30, 2024, we reported Revenues, net of $13.8 million, or 24.3% higher than $11.1 million in the comparable 2023 period. Our net income attributable to common shareholders was $3.6 million, or $0.34 basic and $0.31 diluted net income per common share, compared to a net income attributable to common shareholders of $3.1 million, or $0.29 basic and $0.26 diluted net income per common share, for the same period in 2023. The weighted average number of basic common shares decreased by 0.17 million to 10.57 million in the most recent period versus the third quarter of 2023. The weighted average number of diluted common shares also decreased in 2024 to 11.9 million shares, which assumes the full conversion of all the outstanding Series A Convertible Preferred Stock in the most recent period. The average MR daily TCE rate during the third quarter of 2024 was $29,826 or 6.4% higher than the $28,024 MR daily TCE rate for the same period in 2023, due to better market conditions. The new dry-bulkers, the Ultramax carrier (which was acquired in September of 2023) and the two Kamsarmaxes (which were acquired in February and June of 2024), had an average TCE rate of $13,841 for the third quarter of 2024. The revenue mix of the MR tankers for the third quarter of 2024 was 59% from short-term time charters and 41% from spot market employment, while the dry-bulk carriers were hired for short-term time charters. Adjusted EBITDA increased by $1.2 million to $6.7 million in the third quarter of 2024 from $5.5 million for the same period in 2023 primarily due to 167 more ownership days for our fleet, from 385 days in the third quarter of 2023 compared to 552 in the third quarter of 2024, and higher average TCE rates for our MRs.
Tanker fleet Three months ended
September 30, Nine months ended
September 30,(Amounts in thousands of U.S. dollars, except for daily TCE rates) 2023 2024 2023 2024 MR Revenues, net 1 $ 11,098 9,593 32,219 29,417 MR Voyage related costs and commissions 1 (1,654) (1,480) (4,910) (3,972)MR Time charter equivalent revenues 1, 3 $ 9,444 8,113 27,309 25,445 MR Total operating days 1 337 272 1,075 808 MR Daily Time Charter Equivalent rate 1, 3$/d 28,024 29,826 25,404 31,492 Average number of MR vessels 1 4.0 3.0 4.3 3.0 Dry-bulk fleet Three months ended
September 30, Nine months ended
September 30,(Amounts in thousands of U.S. dollars, except for daily TCE rates) 2023 2024 2023 2024 Dry-bulk Revenues, net 2 $ n/a 4,199 n/a 10,090 Dry-bulk Voyage related costs and commissions 2 n/a (642) n/a (1,465)Dry-bulk charter equivalent revenues 2, 3 $ n/a 3,557 n/a 8,625 Dry-bulk Total operating days 2 n/a 257 n/a 509 Dry-bulk Daily Time Charter Equivalent rate 2,3$/d n/a 13,841 n/a 16,946 Average number of Dry-bulk vessels 2 n/a 3.0 n/a 2.2 Total fleet Three months ended
September 30, Nine months ended
September 30,(Amounts in thousands of U.S. dollars, except for daily TCE rates) 2023 2024 2023 2024 Revenues, net 1, 2 $ 11,098 13,792 32,219 39,507 Voyage related costs and commissions 1, 2 (1,654) (2,121) (4,910) (5,436)Charter equivalent revenues 1, 2, 3 $ 9,444 11,671 27,309 34,071 Total operating days 1, 2 337 529 1,075 1,317 Daily Time Charter Equivalent rate 1, 2, 3$/d 28,024 22,060 25,404 25,870 Average number of vessels 1,2 4.0 6.0 4.3 5.2
1 a) The eco-efficient MR "Pyxis Epsilon” was sold to an unaffiliated buyer on December 15, 2023.
b) Our non-core small tankers, "Northsea Alpha” and "Northsea Beta”, which were sold on January 28, 2022 and March 1, 2022, respectively, have been excluded in the above table. Both vessels were under spot employment for approximately 7 and 36 days, respectively, in 2022 as of the delivery date to their buyer. For the nine months ended September 30, 2022, "Revenues, net” attributable to these vessels was $595 thousand and "Voyage related costs and commissions” was $386 thousand. For the three and nine months ended September 30, 2023, the same expenses attributable to these vessels were nil and $10 thousand, respectively.
c) Also, a $6 thousand write-off of "MR Voyage related costs and commissions” related to the previous year's voyage commissions of the "Pyxis Delta” has been excluded in the nine months of 2023.
2 a) The dry-bulker "Konkar Ormi” was delivered on September 14, 2023 and commenced her initial charter on October 5, 2023.
b) The dry-bulker "Konkar Asteri” was delivered on February 15, 2024 and commenced her initial charter on February 29, 2024.
c) The dry-bulker "Konkar Venture” was delivered on June 28, 2024 and continued her employment under the existing time charter through mid-August.
d) The above data exclude the dry bulk "Konkar Ormi” delivered to our Joint Venture on September 14, 2023. The "Konkar Ormi” commenced the initial charter on October 5, 2023. Thus, "Voyage related costs and commissions” of $141 thousand related to the drybulk vessel are not included in the above table.
3 Subject to rounding; please see "Non-GAAP Measures and Definitions” below.
Management's Discussion & Analysis of Financial Results for the Three Months ended September 30, 2023 and 2024
Amounts relating to variations in period-on-period comparisons shown in this section are derived from the interim consolidated financials presented below (Amounts are presented in million U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted).
Revenues, net: Revenues, net of $13.8 million for the three months ended September 30, 2024, represented an increase of $2.7 million, or 24.3%, from $11.1 million in the comparable period of 2023. In the third quarter of 2024, our average daily TCE rate for our MR fleet was $29,826, a $1,802 per day increase from $28,024 for the same period in 2023, and for our recently acquired dry-bulk fleet was $13,841 per day. Solid market conditions continued as our MRs generated utilization of 98.6% as compared to 98.5% in the same quarter of 2023. Our dry-bulk carriers for the three months ended September 30, 2024 achieved 93.1% utilization. Total fleet ownership days in the third quarter of 2024 were 552 on an average of 6.0 vessels compared with 385 days on an average of 4.0 vessels for the same period of 2023. This increase was due to the sale of the "Pyxis Epsilon” in December 2023 which was more than offset by the acquisitions of the dry-bulk carriers "Konkar Ormi”, "Konkar Asteri” and "Konkar Venture” in September 2023, February 2024 and June 2024, respectively.
Voyage related costs and commissions: Voyage related costs and commissions of $2.1 million in the third quarter of 2024, represented an increase of $0.3 million, or 18.2%, from $1.8 million in the same period of 2023. Spot employment days for our vessels, including idle days, were 114 days in the third quarter in 2024, 18 days lower compared to 132 days in the same period of 2023, which was partially offset by the higher bunkers consumed in the third quarter of 2024. Under spot charters, all voyage expenses are typically borne by us rather than the charterer and a decrease in spot employment results in decreased voyage related costs and commissions.
Vessel operating expenses: Vessel operating expenses of $3.8 million for the three-month period ended September 30, 2024, represented an increase of $1.1 million, or 39.9% compared to same period in 2023, which reflected 167 more vessel ownership days and inflationary cost pressures.
General and administrative expenses: General and administrative expenses of $0.7 million for the third quarter of 2024 decreased by 13.9% compared to $0.8 million in the same period of 2023. The decrease was attributable to lower professional fees.
Management fees: For the three months ended September 30, 2024, management fees charged by our tanker ship manager, Pyxis Maritime Corp. ("Maritime”), our dry-bulk ship manager Konkar Shipping Agencies S.A. ("Konkar Agencies”), both affiliated entities of our Chairman and Chief Executive Officer, Mr. Valentis, and from International Tanker Management Ltd. ("ITM”), the technical manager of our MRs, increased by $0.1 million, reflecting 167 more vessel ownership days compared to the same period in 2023.
Amortization of special survey costs: Amortization of special survey costs of $0.1 million for the quarter ended September 30, 2024, remained flat compared to the same period of 2023.
Depreciation: Depreciation of $1.9 million for the quarter that ended September 30, 2024, represented an increase of $0.6 million, or 44.6% compared to $1.3 million in 2023 and reflected additional depreciation for the newly acquired bulkers "Konkar Ormi”, "Konkar Asteri” and "Konkar Venture” partially offset by depreciation ceasing of the sold tanker "Pyxis Epsilon”.
Interest and finance costs: Interest and finance costs for the quarter ended September 30, 2024, were $1.8 million compared to $1.4 million in the comparable period in 2023, represented an increase of $0.4 million, or 31.0%. This increase was attributed to higher average debt levels offset by lower SOFR referenced interest rates paid on all the floating rate bank debt. On July 30, 2024, we agreed with an existing lender to refinance the Seventhone Corp. ("Pyxis Theta”) outstanding debt of $10.75 million. The amended agreement provides a five year amortizing bank loan with similar quarterly repayment with a maturity of July 2029 and reduce pricing to SOFR plus 2.40% (from SOFR plus 3.35%). In addition, the same bank agreed to reduce the interest rate margin from 3.15% to 2.40% on the outstanding $16.5 million loan to the Eleventhone Corp. ("Pyxis Lamda”).
Interest income: Interest income of $0.6 million was received during the quarter ended September 30, 2024 from the Company's short term time deposits compared to $0.4 million for the same period in 2023, an increase of $0.2 million, or 47.2%, due to higher cash balances.
Management's Discussion and Analysis of Financial Results for the Nine Months ended September 30, 2023 and 2024
Amounts relating to variations in period-on-period comparisons shown in this section are derived from the interim consolidated financials presented below (Amounts are presented in million U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted).
Revenues, net: Revenues, net of $39.5 million for the nine months ended September 30, 2024, represented an increase of $7.3 million, or 22.6%, from $32.2 million in the comparable period of 2023. In the nine-month period of 2024, our MR daily TCE rate for our three MRs was $31,492, a $6,088 per day increase from the 2023 period as a result of higher demurrage income due to greater spot chartering activity and better market conditions. Revenues, net also enhanced due to the dry vessel additions which contributed 509 operating days. For the 2024 period, our dry-bulk daily TCE rate was $16,946.
Voyage related costs and commissions: Voyage related costs and commissions of $5.4 million for the nine months ended September 30, 2024, increased $0.4 million from $5.1 million in the same period of 2023. For the nine months ended September 30, 2024, our MRs were on spot charters or unfixed for 364 days in total, compared to 302 days in 2023. This higher spot chartering activity for our MRs contribute higher voyage costs which are typically borne by us rather than the charterer, thus an increase in spot employment results in increased voyage related costs and commissions. In the first nine-months of 2024 these higher expenses were offset by lower bunker fuel costs.
Vessel operating expenses: Vessel operating expenses of $9.9 million for the nine months ended September 30, 2024, represented a $1.4 million or 16.5% increase compared to $8.5 million for the same period in 2023. This increase was mainly attributed to the 227-day increase in ownership days from 1,191 for the nine months ended September 30, 2023 to 1,418 for the 2024 period.
General and administrative expenses: General and administrative expenses of $2.2 million for the nine months ended September 30, 2024, represented a decrease of $0.6 million or 20.2%, from $2.8 million in the comparable period in 2023, mainly due to the performance bonus of $0.6 million that paid in the first quarter of 2023 to Maritime, partially offset by increased administrative fees due to Maritime and Konkar Agencies which were adjusted by 3.5% to reflect the 2024 inflation rate in Greece.
Management fees: For the nine months ended September 30, 2024, management fees increased $0.2 million with the comparable period of 2023. Management fees represent the charges by Maritime, Konkar Agencies, and ITM.
Amortization of special survey costs: Amortization of special survey costs of $0.3 million for the nine months ended September 30, 2024, remained stable compared to the same period in 2023.
Depreciation: Depreciation of $5.0 million for the nine months ended September 30, 2024, increased by $1.0 million or 26.6% compared to $4.0 million in the comparable period of 2023. The increase was attributed to the additions of newly acquired dry-bulk vessels partially counterbalanced by the ceasing of depreciation from the sales of tankers "Pyxis Malou” during the first quarter of 2023 and "Pyxis Epsilon” in late 2023.
Gain from the sale of vessels, net: During the nine months ended September 30, 2023, we recorded a gain from the sale of the "Pyxis Malou” of $8.0 million, which occurred in the first quarter of 2023.
Loss from debt extinguishment: During the nine months ended September 30, 2023, we recorded a loss from debt extinguishment of $0.3 million reflecting the write-off of the remaining unamortized balance of deferred financing costs, which were associated with the first quarter loan repayments from the sale of the "Pyxis Malou” and debt refinancing of the "Pyxis Karteria”.
Interest and finance costs: Interest and finance costs for the nine months ended September 30, 2024, were $4.9 million, compared to $4.2 million in the comparable period in 2023, an increase of $0.7 million, or 16.6%. Despite lower LIBOR/SOFR indexed rates paid on all the floating rate bank debt, this increase was primarily attributable to higher average debt levels. On February 15, 2024, we completed the bank financing of the newly acquired dry-bulk carrier, "Konkar Asteri” with a five year secured loan of $14.5 million. On June 27, 2024, the Company completed the debt financing of the newly acquired dry-bulk carrier "Konkar Venture” with a $16.5 million five year secured loan from an existing lender. On July 30,2024, we agreed with an existing lender to amend the Seventhone Corp. ("Pyxis Theta”) outstanding debt of $10.75 million to a maturity of July 2029 and reduce pricing to SOFR plus 2.40%. In addition, the same bank agreed to reduce the interest margin from 3.15% to 2.40% on the outstanding $16.5 million loan to the Eleventhone Corp. ("Pyxis Lamda”).
Interest income: Interest income of $1.8 million was received during the nine-month period ended September 30, 2024 from the Company's short term time deposits increased by $1.0 million or 128.9% compared to $0.8 million for the same period in 2023. The increase was a result of higher available cash balances invested in time deposits during the most recent period.
Interim Consolidated Statements of Income
For the three months ended September 30, 2023 and 2024
(Expressed in thousands of U.S. dollars, except for share and per share data)
Three months ended September 30, 2023 2024 Revenues, net $ 11,098 $ 13,792 Expenses: Voyage related costs and commissions (1,795) (2,121)Vessel operating expenses (2,692) (3,765)General and administrative expenses (806) (695)Management fees, related parties (136) (340)Management fees, other (189) (133)Amortization of special survey costs (98) (98)Depreciation (1,317) (1,905)Allowance for credit losses 22 - Operating income 4,087 4,735 Other expenses: Interest and finance costs (1,393) (1,825)Interest income 386 568 Total other expenses, net (1,007) (1,257) Net income $ 3,080 $ 3,478 Loss assumed by non-controlling interests 261 234 Net income attributable to Pyxis Tankers Inc. $ 3,341 $ 3,712 Dividend Series A Convertible Preferred Stock (195) (147)Net income attributable to common shareholders $ 3,146 $ 3,565 Income per common share, basic $ 0.29 $ 0.34 Income per common share, diluted $ 0.26 $ 0.31 Weighted average number of common shares, basic 10,739,700 10,572,027 Weighted average number of common shares, diluted 12,562,685 11,927,523
Interim Consolidated Statements of Income
For the nine months ended September 30, 2023 and 2024
(Expressed in thousands of U.S. dollars, except for share and per share data)
Nine months ended September 30, 2023 2024 Revenues, net$32,219 $39,507 Expenses: Voyage related costs and commissions (5,068) (5,436) Vessel operating expenses (8,482) (9,881) General and administrative expenses (2,808) (2,241) Management fees, related parties (466) (838) Management fees, other (586) (377) Amortization of special survey costs (274) (292) Depreciation (3,951) (5,000) Allowance for credit losses 97 - Gain from the sale of vessels, net 8,017 - Operating income 18,698 15,442 Other expenses, net: Loss from debt extinguishment (287) - Loss from financial derivative instruments (59) - Interest and finance costs (4,201) (4,898) Interest income 799 1,829 Total other expenses, net (3,748) (3,069) Net income$14,950 $12,373 Loss assumed by non-controlling interests 261 181 Net income attributable to Pyxis Tankers Inc.$15,211 $12,554 Dividend Series A Convertible Preferred Stock (613) (530) Net income attributable to common shareholders$14,598 $12,024 Income per common share, basic$1.35 $1.14 Income per common share, diluted$1.21 $1.06 Weighted average number of common shares, basic 10,749,449 10,510,874 Weighted average number of common shares, diluted 12,551,528 11,866,370
Consolidated Balance Sheets
As of December 31, 2023 and September 30, 2024
(Expressed in thousands of U.S. dollars, except for share and per share data)
December 31, September 30, 2023 2024ASSETS CURRENT ASSETS: Cash and cash equivalents$34,539 $25,365 Short-term investment in time deposits 20,000 17,000 Inventories 957 1,020 Trade accounts receivable, net 4,964 9,332 Due from related parties 194 - Prepayments and other current assets 226 621 Total current assets 60,880 53,338 FIXED ASSETS, NET: Vessels, net 99,273 141,929 Advance for vessel acquisition 2,663 - Total fixed assets, net Read The Rest at :
