Greek product tanker company Pyxis Tankers reported a wider net loss in the fourth quarter of 2018, driven by low time charter equivalent (TCE) revenues.
The company’s net loss stood at USD 3.4 million in the three months ended December 31, 2018, compared to USD 1.4 million seen in the corresponding period a year earlier.
TCE revenues dropped to USD 4.4 million in Q4 2018 from USD 5.4 million recorded in the same quarter of 2017.
“Our operating results for the fourth quarter of 2018 reflected a deterioration over the comparable period in 2017. Spot charter rates for medium range tankers (MRs) in the beginning of the fourth quarter, 2018 were near record lows but rebounded towards the end of the period,” Valentios Valentis, Pyxis Tankers’ Chairman and CEO, commented.
He added that the company decided to fix three of Pyxis Tankers’ MRs on short-term time charter contracts in order to ride out the difficult period.
“Through the summer 2019, we expect chartering activity to be choppy within the product tanker sector. However, starting in the fall, we expect the market to improve significantly beyond the historical seasonal upswing of the fourth quarter. The primary reason is the worldwide impact of new IMO regulations regarding the use of low-sulphur fuels for a majority of the shipping industry,” Valentis continued.
During the past year, Pyxis Tankers said it focused on costs and debt. The company completed debt refinancings of four of its vessels in order to take advantage of a sizeable debt discount from one of its lenders who was exiting the industry, enhance balance sheet liquidity and extend debt maturities.
“Over the near-term, we will continue to pursue cost-effective, growth capital to further improve our liquidity and selectively acquire MR2s of up to 10 years of age.”
“We remain optimistic about the fundamentals of the product tanker market, and this fall should commence a sustainable period of an attractive chartering environment. We believe that Pyxis Tankers is positioned to take advantage of various opportunities to enhance shareholder value,” Valentis concluded.
Pyxis Tankers’ fleet comprises six tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids. The fleet has a total size of 216,600 dwt and a total value of USD 101.72 million, according to data provided by VesselsValue.