Pyxis Tankers Announces Financial Results for the Three Months Ended March 31, 2024
Pyxis Tankers (NASDAQ: PXS) reported unaudited results for Q1 2024, with net revenues of $11.8 million, a 1.6% increase from Q1 2023. Net income attributable to common shareholders was $3.4 million, translating to $0.33 per basic share, down from $0.81 in Q1 2023. Adjusted EBITDA rose by $1.8 million to $6.0 million. A significant event was the $26.625 million acquisition of the 'Konkar Asteri'. The company also plans a joint venture to acquire another vessel, 'Konkar Venture', for $30 million. Additionally, the Board approved $1 million for share repurchases and authorized the redemption of 100,000 preferred shares. The tanker and dry-bulk sectors remain strong, with high charter rates and utilization.
- Net revenues for Q1 2024 increased by $0.2 million to $11.8 million compared to Q1 2023.
- Adjusted EBITDA rose by $1.8 million to $6.0 million, despite fewer ownership days.
- Solid average daily TCE for MR tankers at $31,790, a 35.2% increase from Q1 2023.
- Acquired 'Konkar Asteri' for $26.625 million, commencing operations on February 29, 2024.
- Board approved $1 million for additional share repurchases.
- Joint venture to acquire 'Konkar Venture' for $30 million, with a 60% ownership stake.
- Interest income of $0.7 million was received during Q1 2024.
- Reduced general and administrative expenses by 44.0% to $0.7 million.
- Net income per common share decreased to $0.33 basic and $0.30 diluted, down from $0.81 basic and $0.71 diluted in Q1 2023.
- Q1 2023 net income included a significant $8 million gain from the sale of 'Pyxis Malou', absent in Q1 2024.
- Interest and finance costs increased by $0.1 million to $1.5 million due to higher interest rates.
- Total funded debt increased to $73.8 million by March 31, 2024, from $60.95 million at the end of 2023.
- Decrease in voyage related costs and commissions by 31.3%, indicating reduced spot employment.
Pyxis Tankers Inc.’s financial results for Q1 2024 present a mixed outlook. Net revenues were
The Time Charter Equivalent (TCE) revenues rose by
Operationally, the company’s MR fleet displayed strong performance with a substantial daily TCE rate increase of
Liquidity-wise, the firm maintained a robust cash position of
Short-term, the results seem positive with operational efficiency and improved market conditions. Long-term, investor confidence might hinge on the successful integration of new vessels and maintaining high TCE rates amid global economic uncertainties.
Pyxis Tankers’ strategic decisions reflect a proactive approach towards fleet expansion and optimizing shareholder value. The acquisition of the Konkar Asteri and the planned joint venture for Konkar Venture highlight a diversified strategy, balancing between product tankers and dry-bulk carriers.
The additional $1.0 million allocation for the share repurchase program and the preferred stock redemption aim to enhance shareholder returns, showing a commitment to value creation. These moves could potentially stabilize the stock price and instill greater investor confidence.
The company’s decision to invest in eco-efficient vessels with advanced systems like ballast water treatment and scrubbers aligns with global environmental standards, potentially reducing operational risks and future regulatory costs.
Market dynamics, including strong global demand for transportation fuels and dry-bulk commodities, along with favorable chartering rates, bode well for Pyxis Tankers. However, geopolitical factors and macroeconomic uncertainty require cautious navigation to sustain growth.
For retail investors, understanding these strategies and their potential impact on financial health is critical. While current initiatives are promising, ongoing diligence on market conditions and company performance remains essential.
Maroussi, Greece, May 21, 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 months ended March 31, 2024.
Summary
For the three months ended March 31, 2024, our Revenues, net were
On February 15, 2024, we took delivery, from an unaffiliated third party, of an 82,013 dwt dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. The
On May 16, 2024, the Company’s Board of Directors (the “BOD”) approved certain key strategic and financial actions which should further enhance shareholder value. First, the Company has allocated up to an additional
Valentios Valentis, our Chairman and CEO, commented:
“We are pleased to report solid results for the first fiscal quarter, 2024 with Revenues, net of
Tanker asset values have continued to be exceptionally strong, and we have not uncovered any compelling acquisition opportunities of modern second-hand eco-MR’s. However, our solid financial position has given us the capability to further expand our dry-bulk operations. In February, we completed the acquisition of 2015-built Kamsarmax, the “Konkar Asteri”, and in May, the independent and disinterested directors of our Board of Directors (“BOD”) unanimously approved the investment in a sister-ship, the “Konkar Venture”. We have decided to structure this latest dry bulk investment as an operating joint venture similar to the acquisition of the “Konkar Ormi” in September, 2023. The Company will own
At this juncture, we expect the chartering environment for product tankers and dry-bulk carriers to remain constructive for at least 2024. Solid global demand for seaborne cargoes across a wide range of refined petroleum products and dry-bulk commodities is expected to continue with the respective orderbooks remaining relatively manageable. While moderating inflation and the prospect of softening monetary policies by many central banks later this year promote additional optimism, the growing complexity within our two sectors and the uncertainty surrounding macro-economic conditions and global events necessitate continued prudent management. Leveraging our significant financial resources and strong relationships, we will continue to pursue value-enhancing transactions including share buybacks, while upholding operational and capital discipline."
Results for the three months ended March 31, 2023 and 2024
Amounts relating to variations in period–on–period comparisons shown in this section are derived from the unaudited consolidated financials presented below.
For the three months ended March 31, 2024, we reported Revenues, net of
| MR tanker fleet | Three months ended March 31, | ||||
| (Amounts in thousands of U.S. dollars, except for daily TCE rates) | 2023 | 2024 | |||
| MR Revenues, net 1 | $ | 11,616 | $ | 9,688 | |
| MR Voyage related costs and commissions 1 | (2,401) | (1,295) | |||
| MR Time charter equivalent revenues 1, 3 | $ | 9,215 | $ | 8,392 | |
| MR Total operating days 1 | 392 | 264 | |||
| MR Daily Time Charter Equivalent rate 1, 3 | $/d | 23,508 | $/d | 31,790 | |
| Average number of MR vessels 1 | 4.9 | 3.0 | |||
| Dry-bulk fleet | Three months ended March 31, | ||||
| (Amounts in thousands of U.S. dollars, except for daily TCE rates) | 2023 | 2024 | |||
| Dry-bulk Revenues, net 2 | n/a | $ | 2,117 | ||
| Dry-bulk Voyage related costs and commissions 2 | n/a | (355) | |||
| Dry-bulk charter equivalent revenues 2, 3 | n/a | $ | 1,762 | ||
| Dry-bulk Total operating days 2 | n/a | 104 | |||
| Dry-bulk Daily Time Charter Equivalent rate 2,3 | n/a | $/d | 16,950 | ||
| Average number of Dry-bulk vessels 2 | n/a | 1.5 | |||
| Total fleet | Three months ended March 31, | ||||
| (Amounts in thousands of U.S. dollars, except for daily TCE rates) | 2023 | 2024 | |||
| Revenues, net 1, 2 | $ | 11,616 | $ | 11,805 | |
| Voyage related costs and commissions 1, 2 | (2,401) | (1,650) | |||
| Time Charter equivalent revenues 1, 2, 3 | $ | 9,215 | $ | 10,155 | |
| Total operating days 1, 2 | 392 | 368 | |||
| Daily Time Charter Equivalent rate 1, 2, 3 | $/d | 23,508 | $/d | 27,596 | |
| Average number of vessels 1,2 | 4.9 | 4.5 | |||
| Total Fleet Ownership days | 442 | 409 | |||
1 a) The eco-modified MR “Pyxis Malou” was sold to an unaffiliated buyer on March 23, 2023.
b) The eco-efficient MR “Pyxis Epsilon” was sold to an unaffiliated buyer on December 15, 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.
3 Subject to rounding; please see “Non-GAAP Measures and Definitions” below.
Management’s Discussion & Analysis of Financial Results for the Three Months ended March 31, 2023 and 2024
(Amounts are presented in million U.S. dollars, rounded to the nearest one hundred thousand, except daily TCE rates and as otherwise noted)
Revenues, net: Revenues, net of
Voyage related costs and commissions: Voyage related costs and commissions of
Vessel operating expenses: Vessel operating expenses of
General and administrative expenses: General and administrative expenses of
Management fees: For the three months ended March 31, 2024, management fees charged by our tanker ship manager, “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, decreased by less than
Amortization of special survey costs: Amortization of special survey costs of
Depreciation: Depreciation of
Gain from the sale of vessels, net: During the three months ended March 31, 2023, we recorded a net gain of
Loss from debt extinguishment: During the three months ended March 31, 2023, we recorded a loss from debt extinguishment of approximately
Interest and finance costs: Interest and finance costs for the quarter ended March 31, 2024, were
Interest income: Interest income of
Interim Consolidated Statements of Comprehensive Net Income
For the three months ended March 31, 2023 and 2024
(Expressed in thousands of U.S. dollars, except for share and per share data)
| Three months ended March 31, | ||||
| 2023 | 2024 | |||
| Revenues, net | $ | 11,616 | $ | 11,805 |
| Expenses: | ||||
| Voyage related costs and commissions | (2,400) | (1,650) | ||
| Vessel operating expenses | (3,337) | (3,067) | ||
| General and administrative expenses | (1,305) | (731) | ||
| Management fees, related parties | (166) | (226) | ||
| Management fees, other | (248) | (122) | ||
| Amortization of special survey costs | (85) | (97) | ||
| Depreciation | (1,402) | (1,461) | ||
| Gain from the sale of vessels, net | 8,018 | — | ||
| Operating income | 10,691 | 4,451 | ||
| Other expenses, net: | ||||
| Loss from debt extinguishment | (287) | — | ||
| Loss from financial derivative instruments | (59) | — | ||
| Interest and finance costs | (1,430) | (1,493) | ||
| Interest income | — | 654 | ||
| Total other expenses, net | (1,776) | (839) | ||
| Net income | $ | 8,915 | $ | 3,612 |
| Loss attributable to non-controlling interest | — | 38 | ||
| Net income attributable to Pyxis Tankers Inc. | $ | 8,915 | $ | 3,650 |
| Dividend Series A Convertible Preferred Stock | (219) | (209) | ||
| Net income attributable to common shareholders | $ | 8,696 | $ | 3,441 |
| Income per common share, basic | $ | 0.81 | $ | 0.33 |
| Income per common share, diluted | $ | 0.71 | $ | 0.30 |
| Weighted average number of common shares, basic | 10,706,972 | 10,508,560 | ||
| Weighted average number of common shares, diluted | 12,602,547 | 12,328,849 | ||
Consolidated Balance Sheets
As of December 31, 2023 and March 31, 2024
(Expressed in thousands of U.S. dollars, except for share and per share data)
| December 31, | March 31, | |||
| 2023 | 2024 | |||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $ | 34,539 | $ | 24,304 |
| Short-term investment in time deposits | 20,000 | 22,500 | ||
| Inventories | 957 | 2,941 | ||
| Trade accounts receivable, net | 4,964 | 4,187 | ||
| Due from related parties | 194 | — | ||
| Prepayments and other current assets | 226 | 535 | ||
| Total current assets | 60,880 | 54,467 | ||
| FIXED ASSETS, NET: | ||||
| Vessels, net | 99,273 | 124,455 | ||
| Advance for vessel acquisition | 2,663 | — | ||
| Total fixed assets, net | 101,936 | 124,455 | ||
| OTHER NON-CURRENT ASSETS: | ||||
| Restricted cash, net of current portion | 1,800 | 2,150 | ||
| Deferred dry-dock and special survey costs, net | 1,622 | 1,529 | ||
| Prepayments and other non-current assets | 75 | 75 | ||
| Total other non-current assets | 3,497 | 3,754 | ||
| Total assets | $ | 166,313 | $ | 182,676 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Current portion of long-term debt, net of deferred financing costs | $ | 5,580 | $ | 6,501 |
| Trade accounts payable | 1,695 | 1,630 | ||
| Due to related parties | 990 | 1,282 | ||
| Hire collected in advance | 1,173 | 848 | ||
| Accrued and other liabilities | 646 | 1,048 | ||
| Total current liabilities | 10,084 | 11,309 | ||
| NON-CURRENT LIABILITIES: | ||||
| Long-term debt, net of current portion and deferred financing costs | 55,370 | 67,280 | ||
| Total non-current liabilities | 55,370 | 67,280 | ||
| COMMITMENTS AND CONTINGENCIES | — | — | ||
| STOCKHOLDERS' EQUITY: | ||||
| Preferred stock ( | — | — | ||
| Common stock ( | 11 | 11 | ||
| Additional paid-in capital | 110,799 | 110,610 | ||
| Accumulated deficit | (14,270) | (10,815) | ||
| Total equity attributable to Pyxis Tankers Inc. and subsidiaries | 96,540 | 99,806 | ||
| Non-controlling interest | 4,319 | 4,281 | ||
| Total stockholders' equity | 100,859 | 104,087 | ||
| Total liabilities and stockholders' equity | $ | 166,313 | $ | 182,676 |
Interim Consolidated Statements of Cash Flows
For the three months ended March 31, 2023 and 2024
(Expressed in thousands of U.S. dollars)
| Three months ended March 31, | |||||||
| 2023 | 2024 | ||||||
| Cash flows from operating activities: |
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FAQ
What were Pyxis Tankers' net revenues for Q1 2024?
Pyxis Tankers reported net revenues of $11.8 million for Q1 2024.
How did Pyxis Tankers' net income per common share change in Q1 2024?
Net income per common share for Q1 2024 was $0.33 basic and $0.30 diluted, down from $0.81 basic and $0.71 diluted in Q1 2023.
What was the average daily TCE rate for Pyxis Tankers' MR fleet in Q1 2024?
The average daily TCE rate for the MR fleet was $31,790 in Q1 2024.
What actions did Pyxis Tankers' Board approve on May 16, 2024?
The Board approved $1 million for additional share repurchases and authorized the redemption of 100,000 preferred shares.
What is the total cost of the 'Konkar Asteri' acquisition?
The acquisition cost for 'Konkar Asteri' was $26.625 million.
What is the planned acquisition cost for 'Konkar Venture'?
The planned acquisition cost for 'Konkar Venture' is $30 million.
How much did Pyxis Tankers' Adjusted EBITDA increase in Q1 2024?
Adjusted EBITDA increased by $1.8 million to $6.0 million in Q1 2024.
What was the interest income for Pyxis Tankers in Q1 2024?
Pyxis Tankers received $0.7 million in interest income during Q1 2024.
Pyxis Tankers Inc.
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Deep Sea Freight Transportation
Transportation and Warehousing
United States of America
Maroussi
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