Q3 2023 Pyxis Tankers Inc Earnings Call

Speaker 1: Good day and welcome to the PICSIS Tankers conference call to discuss the financial results for the third quarter of 2023. As a reminder, today's call is...

Good day and welcome to the Pyxis tankers conference call to discuss the financial results for the third quarter of 2023 as a reminder, today's call is being recorded.

Speaker 1: Additionally, a live webcast of today's conference call and an accompanying presentation is available on PICSIS Tankers website, which is www.PICSIStankers.com.

Additionally, a live webcast of today's conference call and in the company.

He's in Taishan is available on Pyxis tankers website, which is www dot pyxis tankers dotcom.

Speaker 1: Hosting the call is Mr. Eddie Valentes, Chairman and Chief Executive Officer of Pixis Tankers and Mr. Henry Williams, Chief Financial Officer of the company. I would like to pass the floor to one of your speakers today. Mr. Eddie Valentes, please go ahead.

Hosting the call is Mr. Edival on dish, Chairman and Chief Executive Officer of Pyxis tankers and Mr. Henry Williams, Chief Financial Officer of the company.

I would like to pass the floor to one of your speakers today, Mr. Eddie prevent US. Please go ahead Sir.

Speaker 2: Good morning, everyone, and thank you for joining our call for the last of the three months and September 13, 2023.

Good morning, everyone and thank you for joining our call, but he's out of the three.

Three months ended September. Thank you. Thank you.

Thanks.

Speaker 2: The Russia-Ukraine war continues to be centre stage for the impact to the global energy markets and disrupt economic and strategic priorities as well as global relationships on trade.

There I'll say, Ukraine wall continues to be center stage, so the impact to the global energy markets and disrupted economic and strategic priorities as well.

Great.

Speaker 2: There is some turmoil in the Middle East may have far reaching implications for all, including increasing global availability for the oil market.

The recent turmoil in the middle East May have fired heating applications, including increasing global will it be before they all end markets.

Speaker 2: Restrictive monetary policies have resulted in slowing economic activity and, most recently, lowering of inflation within many OECD countries.

Restricted monetary policy, if somebody's ASIC and slowing economic activity and most recently knowing of inflation within many OECD countries.

Speaker 2: China's economic recovery continues to lack expectations.

China's economic recovery continues to lag expectations in.

Speaker 2: In spite of these geopolitical and macroeconomic events, the product-tank effector maintains solid chartering activity and high asset value.

In spite of these geopolitical and macroeconomic events the product tanker sector maintained solid chartering activity and high asset values.

Speaker 2: pixels. We continue to successfully navigate through these uncertain times and we're pleased to report good operating and financial results for the most recent period.

We continue to successfully navigate through these uncertain times and we're pleased to report good operating and financial results for the most recent period.

Speaker 2: Before starting, please let me draw your attention to some important legal modifications on slide 2 that we recommend you read, including our presentation today, which will include forward-looking statements. Thank you.

Before starting please let me throw a good attention to some important legal actions on slide two.

I commend you read including our presentation today, which will include forward looking statements. Thank you.

Please turn to slide three.

Speaker 2: Our most recent quarterly results reflected healthy financial performance and revenues, operating cost control, and profitability, despite the effects of operating one fewer vessel in our fleet. In the third quarter, end of September 2023, we generated consolidated time charter equivalents.

Our most recent quarterly does that reflect the nine.

Nine months performance and they have a news operating cost control and profitability. Despite the fact, although up anything once you are basically not fleet.

In the third quarter ended September 23, we generated consolidated the time charter equivalent TCE.

Speaker 2: disease of $9.3 million, a decrease of...

He sees.

$9.3 million a decrease of.

Speaker 2: 2.7 million over the same period in 2022. Our daily time charter equivalent for our four ECO-MRs in Q3 2023 was approximately $28,000, which was down 3.6% over the same quarter last year due to less spot chartering activity.

$2 7 million over the same periods in two.

Our daily time charter equivalent for our four equally modest in Q3.

But he was approximately $28000, which was down three 6% over the same quarter last year due to less spot chartering.

Davidson.

Speaker 2: We reported net income of $3.1 million, or $0.29 basically PS, for the most recent period, which was down from last year. Our adjusted EBITDA in Q3'23 was $5.5 million. Please note, our third quarter results were a sequential improvement from Q2'21.

We reported net income of $3 1 million or 29 cents basic EPS for the most recent periods, which was down from last year. Our adjusted EBITDA in Q3 was $5 5 million.

Please note our third quarter results was a sequential improvement from Q2.

Speaker 2: In September , we announced two important strategic decisions for our company. First, we closed the 6.8 million equity investment in a joint venture for the acquisition of the 2016 Japanese-built Ultramax dry bulb carrier, which has been renamed the Conqueror Mi.

In September we announced two important strategic decisions for our company.

We closed the six planes 8 million equity investment in a joint venture for the acquisition of the 2016 jump on these big ultra much dry bulk.

Which has been renamed the Concord out of me.

Speaker 2: We control the joint venture through 60% ownership with a balance held by an affiliate by our CEO .

We control the joint venture for a 60% ownership with the violence.

We believe these counter cyclical investment in the first class equal that suit with the scrubber and ballast water treatment system.

Speaker 2: We believe this counter-cyclical investment in a first-class eco-vessel, which is scrubber and ballast water system fitted, should provide attractive returns to Pyxis tankers through a well-managed structure. Second, we have agreed to sell the 2015 vessel, Pyxis Epsilon, for a very attractive price, 10-year high, of almost 41 million.

Should provide attractive returns the pyxis tankers, so that well manage that Axa second we have agreed to sell the 2015 vessel Pyxis Epsilon for a variety of attractive price 10 year high of almost 41 million now.

Speaker 2: The vessel's sale should close in December and net us approximately $26.4 million in cash after repayment of associated bank debt and transaction fees and expenses. Similar to the sale of our 2009-built MR earlier this year, we should make a sizable profit on the disposition of our eight-year-old.

The vessel sale should close in December.

Let us approximately $26 4 million in cash after repayment of associated with bank debt and transaction fees and expenses.

Similar to the sale of our 2009 and Oh yeah.

Yeah, well it should make a sizable blocks on the disposition of about a year all the time here in the fourth quarter, we expect to realize a gain of $17 1 million or $1 $62, but outstanding shares or $168.

Speaker 2: In the fourth quarter, we expect to realize a gain of $17.1 million or $1.62 per current outstanding share or $1.38 per diluted.

Diluted share.

Speaker 2: Upon closing of this latest transaction, we expect to have over $57 million in available cash to pursue additional opportunities.

Upon closing of this latest transaction, we expect to have over 57 million in available cash.

To pursue additional opportunities.

Speaker 2: These funds, combined with the potential availability of moderate amounts of lower cost bank debt, could furnish us with the firepower to double the size of our fleet under the right circumstances.

These funds combined with the potential availability of a moderate amount lower costs, but that could certainly says that firepower to double the size of our fleet.

Under the right circumstances.

As you can see on slide four.

Speaker 2: World events have significantly impacted us.

World events have significantly impacted our sector over the course of the third quarter the product tanker environment experienced normal seasonal improvement in charter rates more than anything economic activity was accompanied by a reasonable demand what transportation shows worldwide despite higher prices.

Speaker 2: over the course of the third quarter, the product banker environment experienced normal seasonal improvement charted.

Speaker 2: Moderating economic activity was accompanied by a reasonable demand for transportation fees worldwide, despite higher prices.

The ongoing Russia, Ukraine Wall continues to result in moderating inventories of petroleum products, which remain below five year averages.

Speaker 2: The ongoing Russia-Ukraine war continued to result in moderating inventories of petroleum products, which remained below five-year averages.

Speaker 2: in numerous locations around the world, changing trade patterns, expansion of stone mines, dislocations in markets, creating arbitrage opportunities, and high transportation costs. For example, in the U.S., recently reported inventories of diesel were 13% lower than five-year average.

In the numerous locations around the world changing trade patterns expansion of ton miles.

<unk> send markets gave an arm because opportunities and high transportation costs. For example in the U S recently and it wasn't in my tourism season.

Per cent lower than five year averages.

Speaker 2: Refinery throughput should pick up in the fourth quarter as seasonal maintenance programs are completed combined with healthy crack spreads from solid global demand for products and lower crude.

So it picked up in the fourth quarter as seasonal maintenance programs uncompleted combined with crack spreads from solid global demand for products and lower prices.

Speaker 2: These developments support a constructive outlook for product-tanker charters.

These developments support constructive outlook for product tanker charter rates. Please.

Speaker 2: Please move to slide five for information on our existing fleet and employment activities. We're continuing to prudently maintain our mixed up charting strategy of time and spot charters with a focus on diversification by customer and duration. As you can see, we currently own and operate a fleet of four eco-efficient DMRs, which has an average age of 8.9 years, about four years younger than the industry average of 15.

Please move to slide five core information on that existing fleet unemployment activities, while continuing to prudently maintain a makes sense I think bothered at all the time and spot charters with a focus on diversification by customer.

As you can see what kind of deal nobody does for Equinix isn't demand, which.

Which has an average age of eight nine years about four years younger than the industry average of 14 years as previously mentioned the Pyxis Epsilon.

Speaker 2: As previously mentioned, the PIX reception will be delivered to her buyers shortly after concluding her current charter. Three of our tankers are currently contracted under short-term disease and one in the spot market. As of November 20th, 84 percent of the available days in Q4 for RMRs were booked at an average estimated TCE rate of approximately 29,600, which.

Thereby shortly after concluding chapter three of our tankers are currently contracted funding circle you see one in the spot market as of November 1980, 4% of the available days in Q4 for a modest were booked at an average estimated D. C at eight Oclock smartly.

9600 wage.

Speaker 2: at this point represent a 6% sequential increase over our Q3 daily charting results.

At this point and represents a 6% sequential increase over our Q3 results.

Speaker 2: Our newly acquired Dry Valkyrie, the Conqueror Me, started her maiden voyage in early October under a short-term PC at $16,250 per day.

Our newly acquired that dry bulk.

He started her maiden voyage.

Under a short term D C at $16250 per day.

Next turn to slide seven.

Speaker 2: Turn to slide seven for a further update on the product anchor market. In addition to my prior comments about the market, economic activity for most of the world has been resilient despite the effects of restrictive monetary policies, the Ukrainian war, and other geopolitical events.

The update on the product tanker market. In addition to my prior comments about the market economic activity for most of the world has been resilient. Despite the effects of restricted monetary policies that you pay.

And ward and other geopolitical events D U N G. Seven gross baths on seaborne Cognizant Olympics, which started in early February 20th century City and subsequent price gaps have been limited the Russian revenues trailed the market dislocation, which has been compounded by lower inventories.

Speaker 2: The EU and G7 Group ban on seaborne cargoes of Russian refined products, which started in early February 2023 and subsequent price caps, have limited Russian revenues.

Speaker 2: created market dislocation which has been compounded by lower inventories of certain refined petroleum products in many parts of the globe.

Offsetting that is fine, but it doesn't bother us in many parts of the globe.

Speaker 2: Product exports from the refineries located in the Middle East, U.S., and certain parts of Asia continue expanding. At the end of October , a leading research firm forecast product tankers on mile demand to grow 6% in 2024, with cargo volumes to rise 3.5%.

Product exports from the refineries located in the Middle East and Central Pennsylvania continue expanding at the end of October and leading research firm forecast.

Online demand to grow 6% in 2024 with cargo volumes to rise today.

5%.

Please turn to slide eight to review.

Speaker 2: Please turn to slide 8 to review several macroeconomic considerations which support fundamental sector.

So, but macroeconomic considerations would support fundamental secular demand.

Speaker 2: Historically, cheap on trade or refined products has been moderately correlated to global GDP growth. In October , the IMF slightly revised global GDP growth estimate to average just under 3% per annum for 2023-2024 due to buoyant economic activity, primarily in the OECD, offset by the adverse effect of significantly higher interest rates and persistently high but declining inflation.

Alrighty seaborne trade of refined products has modestly correlated to global GDP.

The IMF slightly by global GDP growth estimates of it.

But on them.

Paul into buoyant economic activity, primarily in the OECD offset by that disaster.

Thanks of significantly higher grades and persistently high but declining inflation.

Speaker 2: In November , the IEA slightly revised its estimate of global oil consumption to increase 2.4 million barrels per day or 2.4% to an average of 102 million barrels per day in 2023.

In November the IEA slightly revised its estimate of global license Samsung So increased $2 4 million barrels a day or two 4% on average.

2 million barrels per day in 'twenty to 'twenty three.

A continuation of the recent crude oil production cuts of $1 3 million Bucks, but they buy so it would be anything from Russia is expected to result in tighter supply through year end. However.

Speaker 2: A continuation of the recent crude oil production cuts of 1.3 million barrels per day by Saudi Arabia and Russia is expected to result in tighter supplies through year-end. However, incremental production is expected from the US, Canada, Brazil, Norway, and Guyana.

Incremental production is expected from the U S, Canada, Brazil, Norway and Brianna.

Speaker 2: Early this month, EIA reported that U.S. crude production hit a record 13.1 million barrels per day in August and further growth is expected next year. Of course, evasive actions by Iran and the temporary relaxation of Venezuelan sanctions by the U.S. supplement global oil.

Earlier this month, Yeah, you reported that U S crude production.

$17 1 million barrels per day Naga and further growth is expected next year of course.

Course, evasive actions by Iran, and the temporary relaxation of Venezuelan sanctions by the U S supplemented supplemental global oil supply.

Speaker 2: higher oil prices in the third quarter have subsequently receded due to slowing global economic conditions combined with sufficient supply.

High oil prices in the third quarter have subsequently received it due to slowing global economic conditions combined with sufficient supply.

Speaker 2: BRS tanker research recently stated that global refinery throughput should steadily rise during the current quarter to hit a record of 84.2 million barrels per day in December . Longer term, product tanker demand will be supported by net additions to global refinery landscape, further driving ton-mile expansion and cargo volumes from the US, Middle East, India, and China.

Be honest research recently stated that the global refinery throughput should stabilize during the current quarter.

$84 2 million barrels per day in December.

Longer term product tanker demand will be supported by net additions to the global refinery landscape.

Driving ton mile expansion and cargo volumes from the U S Middle East, India and China.

Now moving to slide nine.

Speaker 2: The project tanker supply picture is clear as the outlook for MR2s continues to look promising. While orders for the construction of new project tankers have picked up in 2023, the order book is still relatively low by historical standards. As of June 30th, 2023, Drury estimated the order book for MR2s at 6.6% of the global fleet or 111 vehicles.

The product tanker supply picture is clear.

This continues to look promising why all this for the construction of a new product tankers have big topics.

The order book has been relatively low by historical standards as John says, there's plenty plenty Brody estimate that the order book for a multiple of six 6% of the global sleep for 111 vessels due to huge backlogs, mainly Asian yards don't have available slots.

Speaker 2: Due to huge backlogs, many Asian yards don't have available construction slots for MRs with deliveries until 2026. Delays in new-build deliveries continue to be an unpredictable factor as Slippage has run over 12% annually for the last five years.

What did they eliminate some pay plaintiffs 96 delays.

Delays.

Ladies continues to be unpredictable.

Slippage is around 10% annually for the last five years.

Speaker 2: A known decision-making process for tanker reordering is further complicated by ongoing developments in ship and engine design, stricter environmental regulation, escalating shipbuilding costs, as well as an evolving and still unclear selection and availability of lower carbon fuels.

A known as decision, making process with bank ignore their use further complicated by ongoing developments can ship and then engine designs stricter environmental regulation escalating shipbuilding cost as well as an evolving I'm still unclear selection and availability of lower carbon fuels.

Speaker 2: as many as 144 vessels, or 8.5% of the global fleet, is 20 years of age or older. Significantly more than the older.

As many as 144 vessels or eight 5% of the global fleet is 20 years of age or older significantly more than the other.

Speaker 2: Given this large number combined with declining economics of operating order vessels, including higher adding costs, capital upgrades, possible slow steaming, as well as the implementation of new emission regulations and penalties starting in 2024, greater vessel scrapping should occur over the next five years. Thus, we continue to estimate the net fleet growth of MRs of less than 2% per year throughout 2024.

Given this large number combined with declining economics of operating older vessels, including higher admin costs capital upgrades possible slow steaming as well as the implementation of new emission regulations and penalty starting incentive for greater vessel scrapping should occur over the next five years.

Thus, we continue to estimate the net fleet growth of less than 2%.

But a year and so I'll throw out.

Turning to slide 10.

Speaker 2: Good chartering conditions have led to steep increases in asset prices across the board. In fact, a resale of a newly constructed MR2 is over $50 million for prompt delivery. Values for second-hand products are still way above $10 billion by average, but prices for older tankers continue to soften.

Good chartering foundations have led to sleep in Kansas and asset prices across the board in fact any sale of a newly constructed and my thought is over $6 billion, prompting neither values for second hand tonnage is still up way above 10, gigabyte average spot prices for older tankers continue to soften.

Construction contracts when you bring things now plus 47 million exclusive or not and so would it be.

Speaker 2: Construction contracts for new buildings now approach 47 million exclusive of garden supervision costs and add-ons.

These are of course and add ons.

Speaker 2: Prices for young people fishing the Martus are staying near historical highs and attractive acquisition opportunities continue to be rare. The premium price we obtained for the Pixies Epsilon exemplifies a seller's market for quality tuna.

This is for young people, especially in the muscles are staying near historic highs.

Tractive acquisition opportunities continue to be it at that.

Premium price, we obtained for the Pyxis Epsilon exemplifies a seller's market for quality tonnage.

Speaker 2: Until we can develop compelling MR project, we will continue to consider other sectors that can generate a strong value proposition for our shareholders. For example, our recent investment in the dry bulk sector utilizes our management's deep knowledge and operating experience in mid-size carriers to achieve asset diversification at a different point in the shipping industry cycle, which allow us an attractive risk return profit.

Until we can develop compelling EMR projects, we will continue to see the other sector.

Generate the strong value proposition for shareholders. For example, a recent investment in the dry bulk sector utilizes our management's deep knowledge and operating experience and mid sized Scott is blockchain.

GE asset diversification at the different point in the shipping industry cycles, which I allow us.

They used to get it done profile.

Speaker 2: Maintaining a solid balance sheet with liquidity and quality, modern fleet is paramount to the flexibility and implementation of the strategy.

Maintaining a solid balance sheet with liquidity and quality modern fleet is fine our mom to the flexibility and implementation of a slab.

Speaker 2: additional investments in the dry bulk sector may occur.

Additional investments in the dry bulk sector may occur.

Speaker 2: At this point, I would like to turn the call over to Henry Williams, our Chief Financial Officer, who will discuss our financial results in greater detail.

At this point I would like to turn the call over to Terry Williams.

<unk> financial officer, who will discuss our financing Luisa results in greater detail.

Thanks Eddie.

On Slide 12, let's review our unaudited results for the three months ended September 32023. Please note the company due to our control the Drybulk joint venture consolidates in its financial statements the newly acquired Coker or me.

Speaker 3: On slide 12, let's review our unaudited results for the three months ended September 30th, 2023. Please note, the company, due to our control of the Drybulk joint venture, consolidates in its financial statements the newly acquired Conquer Orme. While we incurred approximately $700,000 of startup expenses at the end of the quarter, no revenues were recognized as her first voyage did not start until early October .

While we incurred approximately $700000 of startup expenses at the ended the quarter No revenues were recognized as your first boards did not start until early October.

Speaker 3: Our time charter equivalent revenues for Q3'23, which we define as revenues net minus voyage related costs and commissions, declined to $9.3 million. We decreased at $2.7 million from the same period in 2022 due to lower spot charting activity, which was offset by our utilization. More importantly, with the sale of our oldest vessel in March of 23, we operated one pure MR in the most recent period.

Our time charter equivalent revenues for Q3, 23, which we define as revenues net minus voyage related costs and commissions declined to $9 3 million a decrease of $2 $7 million from the same period in 2022 due to lower spot chartering activity, which was offset.

By arguably more.

More importantly, with the sale of our oldest vessel in March of 'twenty. Three we operated one fewer emaar most recent period.

Speaker 3: In the third quarter of 23, the TCE rate for our MRs was $28,000 per day, still a healthy historical rate, but down $1,000 from the comparable 2022 period.

In the third quarter of 23 TCE rate for our <unk> was $28000 per day still a healthy historical rates are down $1000 from the comparable 2022 period.

Moving to slide 13, we generated net income to common shareholders of $3 $1 million for the three months ended September 32023, or 29 cents basic or <unk> 26 diluted EPS compared to a net income of $5 $1 million or.

Speaker 3: Moving to slide 13, we generated net income to common shareholders of $3.1 million for the three months ended September 30, 2023, or $0.29 basic or $0.26 diluted EPS compared to a net income of $5.1 million, or $0.48 basic and $0.42 diluted income per share for the same period in 22.

48, basic and 42 cents diluted income per share the same period in 'twenty two for.

Speaker 3: For accounting purposes, the fully diluted earnings calculation assumes the potential conversion of all the outstanding Series A convertible preferred stock into common shares and the elimination of the associated dividends.

For accounting purposes that fully diluted earnings calculation assumes the potential conversion of all the outstanding series, a convertible preferred stock into common shares.

Elimination of the associated dividend.

Speaker 3: In Q3'23, a significant portion of the decrease in TC revenues flowed through the income statement as Justin Ibadat decreased $5.1 million to a respectful $5.5 million.

In Q3 23, a significant portion of the decrease in TCE revenues flow through the income statement as adjusted EBITDA decreased $5 $1 million to respectful.

<unk> $5 million.

Speaker 3: Now, flip to slide 14 to review our capitalization at September 30, 2023. At quarter close, our consolidated leverage ratio of net funded debt stood at 27% of total capitalization and now reflects the inclusion of the CONCORP or ME. The weighted average interest rate of our loans was about 8.25% in the most recent quarter.

Now flip to slide 14 to review our capitalization at September 32023 at quarter close our consolidated leverage ratio of net funded debt stood at 27% of total capitalization and now reflects the inclusion of the Concorde or me.

The weighted average interest rate of our loans was about $8 two 5% in the most recent quarter.

Speaker 3: The next bank loan maturity is scheduled for July of 2025.

The next bank loan maturity is scheduled for July of 2025.

I should point out.

Speaker 3: I should point out that as of September 30th, 2023, our total cash position was $34.1 million.

As of September 30th 2023, our total cash position was $34 1 million.

Speaker 3: Most of our excess cash is invested in short-term money marketing.

Most of our excess cash is invested in short term money market instruments, which currently earn an average deposit rate five 7%.

Speaker 3: which currently earn an average deposit rate of 5.7%.

Speaker 3: Upon closing of the sale of the Pixis Epsilon in December , our cash position should grow by another $26.4 million.

Upon closing of the sale of the Pyxis Epsilon in December.

Cash position should grow by another $26 $4 million.

As of December 14th we have purchased over 294000 common shares in total at an average price of $3.72, including commissions under our authorized 2 million dollar buyback program, we have up to another $900000 remaining under this program.

Speaker 3: As of November 14, we have purchased over 294,000 common shares in total at an average price of $3.72, including commissions, under our authorized $2 million buyback program. We have up to another $900,000 remaining under this program.

Speaker 3: which has been extended until May 2024.

Which has been extended until May 2024.

Speaker 3: Lastly, we have completed the 10th year special surveys for both the Pyxis Theta and Pyxis Cartiera at an average cost of $2.3 million and 43 dry docking days. Our next special survey is not scheduled until 2026. With that, I would like to turn the call back over to Eddie to conclude our presentation.

Lastly, we have completed the 10th year special surveys for both the Pyxis Theta and Pyxis Carcieri at.

At an average cost of $2 $3 million and 43 dry docking days or next special survey is not scheduled until 2026 with that I would like to turn the call back over to Eddie to conclude our presentation.

Speaker 2: Thanks, Henry. Over the near term, we expect fundamental demand to remain relatively in balance.

Thanks Henry.

The near term, we expect fundamental demand remain relatively in balance with some selling.

Speaker 2: Macroeconomic headwinds and rising uncertainty from geopolitical conflicts create challenges and opportunities for the product and sector. We continue to benefit from the combination of solid and market consumption, moderate to low refined product inventories in many parts of the world, changing trade patterns and expanding tone lines.

Macroeconomic headwinds and the rising uncertainty from geopolitical conflicts create challenges and opportunities for the product tanker sector. We continue to benefit from the combination of solid end market consumption moderate to lower refined product inventories in many parts of the world changing trade patterns.

And expanding ton miles.

Speaker 2: Scheduled developments for the refinery landscape only enhance the long-term outlook of our sector.

<unk> development for the refinery landscape only enhance the long term outlook of our sector.

Speaker 2: We will effectively utilize our strong financial position of excess cash and the potential availability of modern leverage, as well as deep industry knowledge and relationships to seize compelling investment opportunities that maximize shareholder value.

We will effectively utilize our strong financial position of excess cash and the potential availability of a mother and leverage as well as deep industry knowledge and relationships to seize compelling investment opportunities that maximize shareholder value.

We appreciate your interest and thank you for joining our call today, we look forward to reporting on future progress at Pyxis tankers enjoyed the fall and upcoming holidays and be well.

Speaker 2: We appreciate your interest and thank you for joining our call today. We look forward to reporting on future progress at Pixis Tankers. Enjoy the fall and upcoming holidays and be well.

Speaker 1: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your...

Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.