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Pyxis Tankers (PXS) – Outstanding quarter shows sensitivity to shipping rates

Transportation
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Tuesday, August 09, 2022

Pyxis Tankers (PXS)
Outstanding quarter shows sensitivity to shipping rates

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.

Pyxis reported strong top-line results due to higher shipping rates. Results carried through to earnings. Pyxis reported 2022-2Q net revenues of $16.1 million vs. $7.7 million for the same period last year as higher energy prices and a disruption in global oil flow routes due to the Russia/Ukraine war resulted in higher tanker shipping rates. The average TCE rate for the quarter was $21,070 vs. $12,280 and could go higher in the third quarter with 57% of capacity fixed at $30,500. Meanwhile, operating costs per day declined to $6,181 from $6,697 leading to net income of $4.6 million or $0.38 per diluted versus ($1.4 million) or ($0.16 per share).

Cash flow is strong and the balance sheet is reasonable. Adjusted EBITDA was $7.3 million up from $0.4 million. The company’s cash position has grown to $6.2 million with $73.8 million in debt. Debt represents approximately 60% of capitalization (net debt is 55%). Debt is well supported by a increasingly more valuable asset base. Financing costs are an average 4.6%. The utilization rate for the quarter was 98%, a large improvement above first quarter rates of 74% that suffered from the accidental grounding of a tanker….

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. 

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