Q2 2020 Pyxis Tankers Inc Earnings Call

Please continue to stand by feel confident we'll begin shortly.

Good day and welcome to the picks this time 'cause comes in school to discuss the financial results for the second quarter 2020, <unk>. As a reminder, today's call is being recorded. Additionally, a life webcast of today's conference call I'm an accompanying presentation.

It's a favorable on pyxis can cause website, which is www dot pyxis tankers dot com.

Hosting the call today is at the scientists chairman and Chief Executive Officer of Pyxis tank cars.

We Williams Chief Financial Officer.

I would not like.

I would now introduce it picks his time cousin's Chief Executive Officer I'd be Fallon test. Please go ahead sorry.

Good afternoon, everyone and thank you for joining our call for the three month result, and the June or give wasn't.

First of all I Hope you your family friends and colleagues are managing for the better you bring with them dynamic.

I couldn't <unk> on before stocking. Please let me draw your attention to some work on legal look a case of 'em slide tool that will go menu, the including up isn't based from today, which will include forward looking statements.

Thank you.

Turning to slide three.

I would result for the second quarter of Twentytwenty reflected an improvement from an operating perspective.

Over the comparable periods of 2019.

But for the Buck the same about all.

The non me go 2006 been fixes Delta.

In Q2 went to 20 would generate that time charter equivalent revenues of 4.5 million.

Almost 1 million lower on the same fields in 2019.

We had one you're getting our fleet due to the thing about this vessel and they here.

We had the net loss of 1.2 million or six cents per share for the three month and the drilling a good centstwenty both improvements over the same period in the prior year.

Our adjusted EBITDA for Q2.

Declined slightly to 1.1 billion.

The book I think its operating environment during the second quarter twin declines experienced unprecedented one lumpy from one extreme spike during late they put in Latin <unk> Jude due to a surprising increasing the Memphis thoughts vessels, which was followed by a beep right descent.

But our operating results for the second quarter Twentytwenty by my math reflected the stability of contribution from the time charters. We had previously entered into during 2019.

Maybe im range for the bank is as one last continued cost discipline.

The average daily PC for <unk>.

$14800 during Q2.

As of August six 6% to 2% awhile available days in the third quarter 23, P. are booked with RMR, oh, but at the growth rate.

$15125.

Why do we believe they made over the years continued to face difficult operating conditions. We have stayed positive on the long term outlook for the product tanker sector and our company.

Please turn to slide four for information on our fleet on current employment activities.

The Pyxis Absalom recently returned from her for Special survey, which included thinks I may some of US close got approved ballast water treatment systems.

He is currently employed on those so time charter with stuck with taught that has options.

Im increasing rates over the next nine month smug tankers will continue to operate in the spot market I think they undertake the second special surveys later this year.

Moving forward.

We expect to focus on saw their compliance hoppers as one last both topic, especially for the smaller thanks.

Following up on my earlier comments about the product tanker market. Please turn to slide six for an update.

God forbid 19 has dramatically abuse personal and commercial activities.

Boxspring worldwide and resulted in a huge decline and be mindful petroleum products, especially transportation fuels, that's a visible guzzling onset.

A steep contango price environment briefly occurred in April which resulted in template I'd.

That's the month for floating storage of petroleum products, combined with port congestion and odd because gravy.

Starting early may substantial oil production could pay month by leaving producing nations.

So the area rests on the U.S., what a map by the start of gradual recoveries in made many major economies.

[noise] despite efforts to improve public safety for the prevention of carbon 19.

Hi, good setting government on Central Bank stimulus programs exceeding 10 billion, the Boston <unk> Global economic recovery has not been schools.

Inventory drawdowns of refined products, either resulting in lower demand for seaborne cargoes and the big double standards in helping the market. Consequently charter rates have fallen significantly and have recently bought them.

For example, they because people want to get times, how that's what I'm equally fixing that <unk> is approximately $14500, which is unfortunately close to that Fannie rabbits.

Turning to slide seven.

Overall, we expect the second half of trying to trying to do provide favorite items have them.

The global economic recoveries for the good thing it will be bumpy as future implications of covering thanks, Deane I have yet to be best.

Every bound of global economic growth in places like the one based on the IMF updated forecast for an increase of five foot fell 5.4%, we'd be a very welcome scenario.

Hey, Dan off selling that consumption than depletion or started to refined petroleum products as well as modest on mine expansion from the chain, they're going to find any landscape should provide added support to the product tanker sector.

Moving to slide eight.

The supply outlook for him on those remain positive.

The order book and things to decline and recently, leaving him to say saws estimated though the book at 6.1% out of a worldwide fleet of over 17 Haldeman Fixable.

While a reasonable number of inmarsat scheduled for the me they made of Twentytwenty, new ordering activity continues to be very low.

New advances in shape and engine designs, but all the different Lex enough shoes I'm, the linq getting debate surrounding scrubbers complicates the investment decision for older.

A major sit broker simply estimated that new vessel deliveries slipped 27% there the first half of Twentytwenty, mainly due to the bucks of the government might be lives on shipyard personnel and the supply chain.

That makes sense, so they could either.

6.2% of the global fleet or how to Panama, 20 years or older and they financial implications of the new energy and vitamin D regulations on older less efficient glass.

Lastly cost effective capital continues to be Scott.

Further limiting your that consequently, we believe net fleet growth for them I should be around 2% this year.

Turning to slide nine very recent decline insight that AIDS have negatively affected them up to asset prices would now be lot Penny gravitas.

With little actual S&P activity. These lower by your licensing to be an overreaction, but nonetheless may lead to attractive opportunities to selectively acquire secondhand tankers at the reasonable prices and capture the potential upward movement of topic.

At this point I would like to turn the call over the Penny Williams, our Chief Financial Officer, who will discuss our financial results in great that'd be thing.

Thanks, Eddie let's start with our unaudited results for the three months ended June 32020 on slide 11.

Our time charter equivalent revenues for Q2, 20, which we define is voyage revenues minus boards related cost and commissions were $4.5 million a decrease of 17% from the same period in 2019, primarily due to the sale of the pictures Delta early this year.

In Q2, 2020, our daily Tc rate wheat, why was almost $11800, a 2% improvement over the comparable 2019 crude.

Small tech is continued to negatively affect our results.

Turning to slide 12, we incurred a net loss of $1.2 million for three months ended June Thirtyth 2020, or six cents basic and diluted loss per share based upon 21.4 or 5 million weighted average shares outstanding.

Or to a higher net loss of $1.6 million or eight cents.

Basic and diluted loss per share.

Based on 400000 fewer shares outstanding.

Oh, well lower costs more than offset the lower revenue contribution from the one m. all which was sold however, adjusted EBITDA declined slightly to $1.1 million for the most recent quarter.

Please turn to slide 13, which reviews, our recent fleet data by vessel type given the size of our fleet changes in these metrics related to a single vessel in one reporting period can have disproportionate effects on the total fleet operating results. For example, we no longer a hold the older am arm.

The pictures Delta.

Focusing on a quarter ended June of 2020.

We would like.

Out three key takeaways the tissue you for two eco efficient in one eco Mod am on.

Averaged approximately $14900 per day.

The average Tc for our small tankers improved nicely to about $5450 per day with better utilization in the spot market and fleet wide daily vessel operating expenses were less than $5500 a day, a 5% improvement over Q2 2000.

90.

Turning to slide 14, we believe it's important to review total day operational costs to run and manage a public tanker company, including overhead. These costs vary by fleet composition vessel delivery or movable company operating structure management.

We define total daily operational costs as vessel operating expenses technical and commercial management fees, plus allocable Gina expenses.

In comparison to public peers, we believe that the total daily operational costs of our modern eco fish and more to tankers at less than $8000 continues to be very competitive despite our small size.

Please turn to slide 15 to review our capitalization at June 30.

2020.

At quarter close our consolidated leverage ratio was on par with a number of other publicly traded tanker companies as net funded debt stood at 61% for total capitalization.

No balloon principal payments are due for another two and a half years. Please note that this table does not reflect the 15.25 million dollar loan refinancing of the Pyxis data, which was completed in early July.

Okay.

Third long, which provided.

Use me.

You asked by new lender Alfa Bank and gave us an incremental $4 million in liquidity on similar terms.

With that I would like to turn the call back over.

To conclude the presentation.

Thanks Henry.

We expect the second half of 20 to 21 continues to be Thailand thing with one left I taught that income basis within the context, so fun predictable global economic recovery and then add some developments on the call with 19 on dynamic.

We continue to have a positive long term outlook, given day vessel supply and the prospects floating proving to be month.

Mark we couldn't thing it will be the world because we think the product banking sector, providing stability of cash flows and solid asset light.

We appreciate your interest in Pyxis tank is thank you for joining our call today, we look forward to reporting on future product programs have been thank.

Be safe anyway.

That does conclude our conference for today.

So today.

Oh participation you may disconnect.

No. Thank you.

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Benches being completed please disconnect now hanky.

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