Pyxis Tankers Inc. (NASDAQ:PXS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 04:30 pm ET

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Pyxis Tankers Inc. (NASDAQ:PXS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Pyxis Tankers Conference Call to discuss the Financial Results for the Second Quarter 2020. [Operator Instructions] Additionally, a live webcast of 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 introduce Pyxis Tankers' Chief Executive Officer, Eddie Valentis. Please go ahead sir.

Executive
Eddie Valentis

Good afternoon, everyone, and thank you for joining our call for the three months results ended June 30, 2020. First of all, I hope you, your family, friends and colleagues are managing for the best during this pandemic. Secondly and 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 second quarter of 2020 reflected an improvement from an operating perspective over the comparable period of 2019, but for the impact of the sale of our oldest vessel, the non-eco 2006 built Pyxis Delta. In Q2 2020 we generated time charter equivalent revenues of $4.5 million almost $1 million lower than the same period in 2019 as we had one fewer tanker in our fleet due to the sale of our oldest vessel earlier in the year. We had net loss of $1.2 million $0.06 per share for the three months ended June 30, 2020, both improvements over the same period in the prior year.

Our adjusted EBITDA for Q2 declined slightly to $1.1 million. The product tanker chartering environment during the second quarter of 2020 experienced unprecedented volatility from an extreme spike during late April to early May due to a surprising increase in demand for storage vessels, which was followed by a rapid rate decent, but our operating results for the second quarter 2020 primarily reflected the stability and contribution from the time charters we had previously entered into during 2019 for our medium-range product tankers as well as continued cost discipline. The average daily TCE for our $14,800 during Q2, as of August 6, 62% of our available days in the third quarter of 2020 are booked with our MRs at average gross rate at $15,125. While we believe the remainder of the year should continue to face difficult chartering conditions we are still positive on the long-term outlook for the product tanker sector and our company.

Please turn to Slide 4 for information on our fleet and current employment activities. The Pyxis Epsilon recently returned from her first special survey, which included the installation of U.S. Coast Guard approved ballast water treatment system. It is currently employed under short-term charter with charter adoptions [Phonetic] in increasing rates over the next nine months. Our small tankers will continue to operate in the spot market until they undertake their second special surveys later this year. Moving forward, we expect