Product tankers star in Pyxis’ stronger third-quarter result
US-listed owner notes that dry bulk chartering was lacklustre but is ‘guardedly optimistic’ about near-term prospects of both sectors
After diversifying into bulkers, Pyxis eyes further acquisitions, ‘primarily’ on product tanker side
PYXIS Tankers is looking for opportunities to acquire further product tankers, its traditional focus, after expanding its diversification into bulk carriers this year.
“Vessel values are still near historical highs but have started to moderate,” said chief executive Valentios Valentis.
“We will continue to scrutinise the secondhand market for compelling vessel acquisitions, primarily in the product tanker sector,” he said.
In the meantime, Pyxis is expected to continue to pursue share buybacks under a programme launched last year.
So far, the company has repurchased 581,000 common shares in the open market as well as redeeming all the outstanding Series A convertible preferred stock, which eliminated potential dilution of 1.8m common shares.
Third-quarter net revenues increased by 24.3% compared with the same period last year, reaching $13.8m.
Net income attributable to common shareholders was $3.6m versus $3.1m for the third quarter of 2023.
The chartering environment in the product tanker sector was healthy during the quarter, said Valentis, but on the dry bulk side the market was “lacklustre.”
The company’s three medium-range product tankers scored an average daily time charter equivalent rate per vessel of $29,826, while its three bulkers, comprising two kamsarmaxes and one ultramax, averaged $13,841 per day for the period.
Pyxis, however, was “guardedly optimistic” about prospects for both markets in the near term, he added.
The Greece-based owner acquired the kamsarmaxes in February and June this year, partly on the basis that product tankers were too highly priced.
The second kamsarmax was acquired on the strength of a 60% controlling interest in a joint venture with Valentis privately.
This was similar to the format used for Pyxis’ first dip into the dry bulk sector last year, with a 60:40 split in its ultramax bulker.
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