Pyxis Tankers Inc.
Q1 2020 Earnings Call Transcript

Published: 3 Jun 2020

[Operator:]

Ladies and gentlemen, thank you for standing by. And welcome to the Pyxis Tankers Conference Call to Discuss the Financial Results for the First Quarter [Technical Difficulty]. As a reminder, today's call is being recorded. Additionally, a live webcast for today's conference call and an accompanying presentation is available on the Pyxis Tankers website, which is www.pyxistankers.com. Hosting the call today is Eddie Valentis, Chairman and Chief Executive Officer of Pyxis Tankers; and Henry Williams, Chief Financial Officer. I would now like to introduce Pyxis Tankers' Chief Executive Officer, Eddie Valentis. Please go ahead sir.

[Eddie Valentis:]

Thank you, operator. Good morning, everyone and thank you for joining our call for the three months results ended March 31, 2020. I hope you're all listening to this presentation from a safe place, and you and your loved ones have not been affected by this terrible pandemic, which we hope will soon be behind us. Before starting, please let me draw your attention to some important legal notifications on slide 2 that we recommend you read, including our presentation today, which will include forward-looking statements. Thank you. Turning to slide 3. Our results for the first quarter of 2020 reflected an improvement from an operating perspective over the comparable period of 2019 and completion of the sale of our oldest vessel

[Henry Williams:]

Thanks, Eddie. Let's start with our unaudit results for the three months ended March 31, 2020 on slide 11. Our time charter equivalent revenues for Q1 2020, which we define as voyage revenues minus voyage-related costs and commissions were $5 million, an increase of 3.8% from the same period in 2019, primarily as a result of higher rates and better utilization despite the sale of the Pyxis Delta early in the quarter. In Q1 2020, our daily TCE rate fleet-wide was over $11,900, a 12% improvement over the comparable 2019 period and utilization improved 370 basis points to 91.4%. The small tankers continue to negatively affect our results. Turning to slide 12. We incurred a net loss of $1.2 million for the three months ended March 31, 2020 or $0.06 basic and diluted loss per share based upon 21.4 million weighted average shares outstanding, compared to a higher net loss of $2.3 million or $0.11 basic and diluted loss per share based on a slightly lower share count. Overall, lower cost reflected the elimination of the Pyxis Delta during Q1 2020. Better TCE revenues combined with continued cost discipline, resulted in a $700,000 improvement of adjusted EBITDA to $1.2 million in the most recent quarter. Please turn to slide 13, which reviews our recent fleet data by vessel type. Given the size of our fleet, changes in these metrics relate to a single vessel and one reporting period can have disproportionate effects on the total fleet operating results. Focusing on the quarter ended March 2020, we'd like to point out three key takeaways. The TCE for our three eco-MRs averaged approximately $15,400 per day. The average TCE for our small tankers improved nicely to about $5,600 a day with better utilization in the spot market. And fleet-wide daily vessel operating expenses were less than $5,700 a day, a 6% improvement over Q1 of 2019. Please turn to slide 14 to review our capitalization at March 31, 2020. At quarter close, our consolidated leverage ratio was on par with many other publicly traded tanker companies as net funded debt stood at 60% of total capitalization. No balloon payments are due for another 2.25 years. With that, I would like to turn the call back over to Eddie to conclude our presentation.

[Eddie Valentis:]

Thank you, Henry. The second half of 2020 will be challenging because of continued volatile chartering conditions within the context of unpredictable global economic recovery and the uncertain developments of the COVID-19 pandemic. We continue to be optimistic in the long term, given the fundamental supply and demand outlook for our industry. MRs will continue to build a workforce within the product banking sector, providing stability of cash flows and solid asset values. We appreciate your interest in Pyxis Tankers and thank you for joining our call today. We look forward to reporting on future progress at Pyxis Tankers. Be safe, be well.

[End of Q&A:]

Thank you, very much. That does conclude the conference for today. Thank you for participating. You may all disconnect.