Wednesday, May 18, 2022

Pyxis Tankers (PXS)
Disappointing results following drop in utilization

We currently own a modern fleet of five tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids. We are focused on growing our fleet of medium range product tankers, which provide operational flexibility and enhanced earnings potential due to their “eco” features and modifications. We are positioned to opportunistically expand and maximize our fleet due to competitive cost structure, strong customer relationships and an experienced management team whose interests are aligned with those of its shareholders. For more information, visit: http://www.pyxistankers.com.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter results were weak. Pyxis reported a 10% decline in Time Charter Equivalent (TCE) revenues in the 2022-1Q versus 2021-1Q due primarily to lower fleet utilization and a jump in voyage-related costs and commissions. TCE revenues of $3.8m were below our estimate of $5.8m. Fleet utilization decreased to 74% from 100% due, in part, to the accidental grounding of a tanker.  Voyage costs ($3.1m versus $1.0m) rose due to increased use of spot employment and higher bunker fuel cost resulting from the drop in utilization.

Lower revenues mean lower cash flow generation. Adjusted EBITDA in the first quarter was ($0.7)m versus $0.8m for the same period last year. We had been expecting EBITDA of $2.1 million. Net income was ($3.4m)/($0.09) per share versus ($2.0m)/($0.07) per share. Our estimate was ($1.9m)/($0.04) per share. Excluding nonrecurring losses from the sale of a vessel and losses from debt extinguishment, net income would have been ($2.9m)/($0.08) per share, still a larger loss than anticipated….

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.