Q1 2024 Pyxis Tankers Inc Earnings Call
Operator: Good day and welcome to the Pyxis Tankers conference call to discuss the financial results for the first quarter of 2024. I must advise you that the conference call is being recorded. Additionally, a live webcast of today's conference call and accompanying presentation is available on Pyxis Tankers' website, which is www.pyxistankers.com. Hosting the call is Mr. Eddie Valentis. Chairman and Chief Executive Officer of Pyxis Tankers. Mr. Henry Williams, Chief Financial Officer of the company. I would like to pass the floor to one of your speakers today, Mr. Eddie Valentis. Please go ahead, sir. Hello everyone.
Good day and welcome to the Pyxis tankers conference call to discuss the financial results for the first quarter 2024.
I must advise you that the conference call is being recorded.
Additionally, a live webcast of today's conference call and accompanying presentation is available on pyxis tankers website, which is www dot pyxis tankers dotcom.
Speaker Change: Hosting the call is Mr. Ediva Lantus Qi.
Speaker Change: Chairman and Chief Executive Officer of Pyxis tankers and Mr. Henry Williams, Chief Financial Officer of the company.
Speaker Change: I would like to pass the floor to one of your speakers today Mr. Eddie villages. Please go ahead Sir.
Valentios Valentis: Hello everyone, and thank you for joining our call for results for the three months ended March 31st, 2024. The effects on global seaborne trade from the Russian-Ukraine war have been further compounded by the conflict in the Red Sea. Overall, global economic activity has been resilient, including the OECD, despite the tight monetary policies by many central banks. However, inflation is persisting, and the prospects of interest rate cuts have been lowered to later this year.
Eddie villages: Hello, everyone and thank you for joining our call. This is a result of the three months ended March 31st 2024.
Eddie villages: The effect.
Eddie villages: Seaborne trade somewhere else and Ukraine, while I have been further compounded by the conflict embedded see overall global economic activity has been the resilience, including the OECD. Despite the tight monetary policies by many central banks inflation is persisting in the prospects of interest rate cuts have been longer too.
Valentios Valentis: However, the fundamentals for our two markets, product tankers, and drivable carriers, are positive, characterized by healthy charter rates and a rising asset value. While market conditions are dynamic and beyond our control, we expect to continue to successfully manage our operations through this overly tight time. Before commenting on our solid operating and financial results for the most recent period, please let me draw your attention to some important legal notices on slide 2 that we recommend you read, including our presentation today, which will include forward-looking statements. Thank you. Turning to slide 3.
Eddie villages: Later this year however, the fundamentals for two markets product tankers and dry bulk carriers are positive.
Eddie villages: That said I used by healthy charter rates and the rising asset values right.
While market conditions are dynamic and beyond our control, we expect to continue to successfully manage out of basins.
Speaker Change: Oh look how many times.
Valentios Valentis: Our most recent quarterly results reflected healthy financial performance in revenues and profitability despite operating fewer tankers. After selling two MRs in 2023 for significant gains, we operated three product tankers in Q1 2024. However, during the quarter, we expanded our dry bulk fleet with the addition of more than cancer marks and ended the period with five vessels in the company's fleet. In the quarter ended March 31, we generated consolidated time charter equivalent revenues (TCE) of $10.2 million, an increase of 10.2% over the same period in 2023.
Speaker Change: Before commenting on our solid operating and financial results for the most recent period. Please let me draw your attention to some important legal notifications on slide two that recommend you read including our presentation today, which will include forward looking statements. Thank you.
Valentios Valentis: Our daily TCE for our eco fleet was approximately $27,600, for which the Air Mars averaged $31,719 in Q1 2024, and our mid-sized bunkers averaged $16,950. For the most recent period, we reported an empty income of 3.6 million over 33 cents basic EPS, which was lower without the gain on vessel sale in Q1 2023. Our adjusted EBITDA in the most recent period was a solid $6,000,000. The perfect tanker chartering environment should remain strong throughout the first quarter of 2024. Despite slower economic activity, armed hostilities contributed to tighter inventories of refined petroleum products, which continue to be below five-year averages in a number of locations around the world.
Valentios Valentis: Changing trade patterns, expansion of tonne miles, and dislocation to end markets create arbitrage opportunities. Nevertheless, despite higher crude prices over the last year, refinery activity continues to be supported by reasonably healthy crack spreads reflecting good global demand. These developments bode well for product tanker charter aid. As of May 16th, 83% of available days in Q2 2024 were booked for our MRs at an average TCE rate of $32,500 per day. Two of our MRs are employed under short-term time charters and one in the spot market.
Speaker Change: Turning to slide three.
Speaker Change: Our most recent quarterly results reflected healthy financial performance in the revenues and profitability. Despite operating she had think is after selling through a modest implanted 23 or four significant gains. So we operated three product tankers in Q1 2024.
During the quarter, we expanded our dry bulk fleet with the addition of more than a comps and ended the period with five vessels in the Companys fleet in the quarter ended March 31st we generated consolidated time charter equivalent revenues P. C of $10 2 million and <unk>.
Speaker Change: Case of 10, 2% over the same period in 2023.
Speaker Change: David P C for Eco fleet was approximately $27600.
Speaker Change: So the mass averaged 31719, Q1, 'twenty 'twenty, four and a midsized bank because I was $16960.
For the most recent periods are reported to maintain net income of $3 6 million.
Speaker Change: 33 cents basic EPS, which was zero air without the gain on vessel sale in Q1 2023.
Speaker Change: Okay.
Speaker Change: Our adjusted EBITDA in the most recent period was a solid 6 million.
Speaker Change: The product tanker chartering environment remained strong throughout the first quarter expenses 24, despite slower economic activity facilities contributed to tighter inventories of refined petroleum products, which continued to be below five year averages in a number of locations around the world changing trends.
Speaker Change: <unk> expansion is don't mind, some dislocation to end markets could you anything arbitrage opportunities despite higher crude prices over the last year and he finally activity continues to be supported by at least an absolute crack spreads reflecting good global demand.
Speaker Change: Developments bolstered the conservative outlook for product tanker charter rates.
Speaker Change: As of May 16th 83% of available days in Q2, 'twenty 'twenty four we're booked well in March at an average TCE rate of 32500 Boes per day.
Speaker Change: And as I implied that the short term time charters unwinding of the spot market.
Valentios Valentis: The supply and demand fundamentals for the dry bulk sector look to be relatively balanced for 2024. Recently, we expanded our fleet with the acquisition of our second mid-size dry bulk carrier. In mid-February 2024, we closed on the purchase of a 2015 built Kamsa Max. As of May 16th, our two scrubber-fitted bulk carriers were booked for 92% of available days at an average TCE of $18,400 per day, both employed under short
Speaker Change: The supply and demand fundamentals for the dry bulk sector looks to be relatively balanced for 'twenty 'twenty. Four recently, we expanded our fleet with acquisition of our second mid size dry bulk cargo in mid February 'twenty to 'twenty four we closed on the purchase of a 2015 become so much as of May 16th to <unk>.
Speaker Change: Scrubber fitted bulk that is well booked for 92% of available days in Q2.
Speaker Change: That is D C of $18400 per day, both employed and the short term time charters.
Valentios Valentis: Considering the favorable prospects for both sectors and our existing capital resources, along with established lending relationships, we remain committed to actively pursuing value-enhancing investment opportunities. For example, we have decided to further expand our fleet by investing in the acquisition of a sister ship of our conqueror, Stereid. Also, our board has authorized the purchase of an additional 1 million common shares in the open market. Over the past year, the company has spent 1.6 million to acquire over 415,000 shares, which represent about 9% of the outstanding public float at May 2023. In addition, we have just announced the redemption of approximately 25% of the outstanding Series A Compatible Preferred Shares scheduled for June.
Speaker Change: Considering the favorable prospects for both sectors and our existing capital resources, along with established lending relationships remain committed to actively pursuing value enhancing investment opportunities.
Speaker Change: We have decided to further expand our fleet by investing in the acquisition of a sister ship of a Comcast State also our board has authorized the purchase of an additional $1 million.
Speaker Change: Common shares in the open market.
Speaker Change: For the past year. The company has spent $1 6 million to acquire over 415000 says which represent about 9% of outstanding public float at May 2023. In addition, we have just announced the redemption of approximately 25% of that.
Speaker Change: Standing series, a convertible preferred shares scheduled for June.
Valentios Valentis: Please click on slide four for information on our existing fleet and employment activities. We are continuing to prudently maintain our mixed chartering strategy of time and spot charters with a focus on diversification by customer and duration. As you can see, four of our vessels are on staggered short-term time charters, which provide us with attractive fixed revenues over defined periods of time and optimized working capital. The Pyxis Lambda, our youngest vessel, continues to operate in the spot market. Notably, the average age of the vessels in our fleet is below the industry averages, with RMRs at 9.7 years and 8 years, point two years for our Valkyrs.
Speaker Change: Please flip to slide for more information on our existing fleet unemployment activities. We are continuing to prudently maintain our mixed chartering strategy of time on spot charters with a focus on diversification by customer and duration as.
You can see photos of our vessels are understand against certain time charters, which provide us with attractive fixed.
Speaker Change: Well defined periods of time, and lump sum and optimize working capital.
Speaker Change: The pictures Lambda our youngest vessel continues to operate in the spot market, notably the average age of the vessels in our fleet is below the industry average is without in mice at nine seven years and eight.
Valentios Valentis: The next special surveys are scheduled to occur next year for the Conqueror study and our latest acquisition, which will be named the Conqueror Venture. Please turn to slide 5 and now to review the acquisition details for the Concur Venture. The company, through a 60% owned subsidiary, has agreed to enter into a joint venture agreement to purchase an eco-efficient Kamsa Max bulker built in 2015 at a leading Chinese yard. The Concur Venture, fitted with a balanced water treatment system, will be acquired for $30 million, which is expected to be funded by a combination of bank debt, cash, and the issuance of restricted common stock by the company.
Speaker Change: Probably two years for a bulk is the next special surveys are scheduled to occur next year for the cone kind of steady and our latest acquisition, which will be named the Concord adventure.
Speaker Change: Please turn to slide five now to review the acquisition dictate for the conquer venture the company through our 60% owned subsidiary has agreed to enter into a joint venture agreement to purchase <unk>.
Speaker Change: Patients come stomach bulker built in 2015 at the leading Chinese got the conquer venture fitted with a ballast water treatment system, we acquired for $30 million, which is expected to be funded by a combination of bank debt cash and the issuance of restricted common stock by the company.
Valentios Valentis: As one of the sellers of the vessel, I have agreed to receive 1.5 million in restricted common shares of the company, priced at a premium to the current share price as part of the purchase consideration. The vessel-owning subsidiary expects to enter into a new 16.5 million, 5-year secured amortizing PAC loan, which will be priced at a rate of SOFR plus 2.15%. The balance of the purchase price, vessel working capital, transaction fees, and other closing costs will be funded by $13.2 million in total cash, of which the company will contribute $7.3 million.
Speaker Change: As Ron over to sellers of the vessel I have agreed to see one 5 million in restricted common shares of the company that is at a premium to the current share price as part of the purchase consideration the vessel owning subsidiaries expects to enter into a new $16 5 million.
Speaker Change: Five year secured amortizing bank loan, which will be priced up their rate of sulfur glass, 2.15%.
Speaker Change: The balance of the purchase price vessel working capital transaction fees. Another closing Cogs will be funded by $13 2 million in total cask of which the company will contribute seven 3 million.
Valentios Valentis: As a further sign of commitment to the company, I have agreed to reinvest $5.9 million in cash for the remaining 40% minority interest in the new ship-owning subsidiary. The transaction was unanimously approved by the company's independent directors.
As a further sign of commitment to the company and have agreed to invest $5 9 million in cash for the remaining 40% minority interest anything else chip owned by owning subsidiary.
Speaker Change: Transaction or was a miserable must be approved by the company's independent directors. It is anticipated that.
Valentios Valentis: It is anticipated that the acquisition of the Conquer venture, which is subject to customary closing conditions, will be completed in June 2024. Afterward, we will have a balanced fleet of 6 eco-vessels in our fleet, 3 MRs, and 3 bulkers. Please turn to slide seven to review several macroeconomic considerations which will support fundamental product tanker demand. Since our update two months ago, there hasn't been much change except that market conditions continue to be very healthy with a positive outlook for the balance of 2024.
Speaker Change: Acquisition of the Cook, a restaurant, which is subject to customary closing conditions will be completed in June 2020 for Aster roads, we will have a balanced slate of six eco vessels in our fleet.
Speaker Change: I'm sorry bankers.
Speaker Change: Please turn to slide seven to review several macroeconomic considerations, which will support fundamental product tanker demand since our updates two months ago and there hasnt been much change except market conditions continue to be very healthy with a positive outlook for the balance of 2024.
Valentios Valentis: Over the longer term, we expect demand for the product tanker sector to be supported by refinery additions led by the Middle East and Asia. According to Drury, nearly 4.4 million barrels per day of net new refinery capacity is scheduled to come online by 2028. Much of the incremental refining capacity will be export-driven, which should lead to further expansion of ton miles. As you can see on slide 8, the impact of the ongoing Russian-Ukraine war and, more recently, the Israeli-Hamas conflict has helped boost charter rates, lengthen sailing distances, and expand ton miles. However, these types of black swan events only add to market uncertainty. Let's move on to slide 9.
Speaker Change: Uh huh.
Speaker Change: We expect demand for the product tanker sector to be supported by a refinery additions led by the middle East and Asia. According to truly maybe $4 4 million barrels per day of net new refinery capacity is scheduled to come online by 2028 much of the incremental refining capacity will be X.
<unk>, driven which should lead to further expansion of ton miles.
As you can see on slide eight the impact of that wasn't going to Russia, and Ukraine War and more recently the things Randy Moss conflict have helped boost the charter rates lengthen sailing distances and expand upon my however, this types of black Swan events only.
Speaker Change: Add to market uncertainty.
Speaker Change: Let's move on to slide nine.
Valentios Valentis: The combination of robust chartering conditions for the last two plus years and continued positive outlook by owners has resulted in a significant pickup in orders for the construction of new product tankers since 2022. According to Aarhus Shipbroking, at the start of May, the order book for MR2s stood at 9.8% of the global fleet, all 180 vessels, with a manageable delivery schedule. Due to significant backlogs, many Asian yards don't have available construction slots for MR2 deliveries until the second half of 2026 or later. Delays in scheduled new build deliveries continue to be an unpredictable factor and ran 9.7% last year.
Speaker Change: The combination of robust chartering conditions. The last two plus years and continued positive outlook by honest has resulted in a significant pickup in orders for the construction of new product tankers since 2022 according to honestly breaking at the start of May that were booked.
Speaker Change: Or two stood at nine 8% of the global fleet or 100, and maybe vessels with a manageable delivery schedule.
Speaker Change: Significant backlogs, mainly Asian yards don't have a variable cost cycle construction slot play in mice with deliveries until the second half of 2026 or later delays in scheduled newbuild deliveries continue to be unpredictable factor and around nine 7% last year. It is important to note.
Valentios Valentis: It is important to note that 13.8% of the global MR2 fleet, or 254 vessels, a number exceeding the order book, are 20 years of age or older. Given this large number, combined with the declining economics of operating older vessels, major scrapping should occur over the next five years. But with a strong market, only four MRs were demolished in 2023. Overall, we continue to estimate the Netflix growth for a month to be about 2% this year.
Speaker Change: That 13, 8% of the global Lemon two fleet or 254 vessels and number exceeding the book at 20 years of age or older. Given this large number combined with declining economics of operating older vessels majors scrapping should occur over the next five years.
Speaker Change: But with a strong market only for their minds was the mildest in 'twenty to 'twenty three.
Speaker Change: We continue to make the net fleet growth for amounts will be up about 2% this year.
Valentios Valentis: Turning to slide 10, strong chartering conditions have led to steep increases in MR2 prices across the board, while values for second-hand tonnage remain well above 10-year averages. Construction contracts for new buildings to South Korea now exceed $49 million, excluding yard supervision and add-ons. Prices for young eco-efficient MR2 vessels, our preference, are approaching the cost of the new build, making viable acquisition candidates difficult to find. Now, I would like to quickly touch on some updates for the dry bulk sector, so please flip to slide 12.
Speaker Change: Turning to slide 10.
Speaker Change: Strong traffic conditions have led to steep in cases and amato prices across the book values for second hand tonnage remained well above 10 years' averages construction context, one of your buildings to South Korea, not exceed 14 9 million excluding yards supervision and add ons of prices for young equal fish.
Speaker Change: And my two vessels our preference.
Speaker Change: Closing the cost of a new build and making viable acquisition candidates difficult to find now I would like to quickly touch on some updates for the dry bulk sector. So please flip to slide 12.
Valentios Valentis: Overall, the supply and demand fundamentals for the sector look reasonably balanced for 2024. Considering a reasonable correlation to global GDP growth of 3.2% in 2024, demand for dry bulk commodities should remain positive. In early May, a leading research firm estimated dry bulk trade should grow 2% to 5.6 billion tons this year, but tonnage increased 5% due to the effects of armed hostilities and, to a lesser extent, restrictions caused by adverse weather conditions.
Speaker Change: Alright.
Speaker Change: The supply and demand fundamentals for the sector.
Speaker Change: And they'll be balanced for 2020 for considering a reasonable correlation to global GDP growth of three 2% and 20 played before demand for dry bulk commodities.
Speaker Change: We remain positive in early May and leading research firm estimate the dry bulk trade should grow 2% to $5 6 billion tons. This year, but they've increased 5% due to the effects of this.
Speaker Change: And to a lesser extent restrictions caused by adverse weather conditions.
Valentios Valentis: To a fair extent, the supply picture for dry bulk carriers looks manageable. Recently, Arrow estimated that the order book for Panamax carriers, which include Campsamax-class vessels, was 271 vessels, or 10.9% of the global fleet. A significantly higher percentage, 17.3% of the global fleet, is 20 years of age or more, which should eventually lead to more scrapping. At the beginning of May, the order book for Ultramax stood at 379 units, or 26.3% of the global fleet of this highly versatile vessel class. 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.
Speaker Change: They extend the supply picture for the dry bulk carriers look my miserable recently estimated that the order book for Panamax God is what's include comps how much class vessels.
271 vessels or 10, 9% of the global fleet.
Speaker Change: A significantly higher percent, that's 17% of the global fleet is 20 years of age or more which should eventually lead to more scrapping at the beginning of May the order book of all time access stood at 379 units or 26, 3% of the global fleet of the heart of this highly.
Speaker Change: Vessel by vessel class.
Speaker Change: 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.
Henry P. Williams: Thanks, Eddie. On slide 14, let's review our unaudited results for the three months ended March 31, 2024. Our time charter equivalent revenues for Q1 of 24, which we define as revenues net minus forage related costs and commissions, rose to $10.2 million, an increase of 10.2% as we operated fewer product tankers but benefited from higher spot rates and the addition of the dry bulk. Strong charting conditions were reflected in our daily TCE for our MRs, which jumped to $31,790 in Q1 of 24. During the quarter, the overall fleet generated TCE of almost $27,600 per vessel through a mix of short-term, time, and spot charters.
Speaker Change: Okay.
Henry P. Williams: Thanks, Eddie on Slide 14, Let's review our unaudited results for the three months ended March 31, 2024, our time charter equivalent revenues for Q1 of 'twenty, four which we define as revenues net minus voyage related costs and commissions were always to $10 $2 million an increase.
Henry P. Williams: A 10, 2% as we operated pure product tankers, but benefited from a higher spot rates and the addition of the dry bulk vessels.
Henry P. Williams: Strong chartering conditions were reflected in our daily TCE or mr's, which jumped to $31790.
Henry P. Williams: In Q1 of 'twenty four during.
Henry P. Williams: During the quarter. The overall fleet generated TCE of almost $27600 per vessel through a mix of short term time and spot charters.
Henry P. Williams: Moving to slide 15, we generated net income to common shareholders of $3.4 million for the three months ended March 31, 2024, or 33 cents basic and $0.30 diluted EPS compared to net income of $8.7 million, or $0.81 basic and $0.71 diluted income per share, for the same period in 2023. The results from a year ago reflected the sale of our 2009 built MR, for which we generated a gain of $8 million. Please note that 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.
Henry P. Williams: Moving to slide 15, we generated net income to common shareholders of $3 $4 million for the three months ended March 31, 2024, or 33 cents basic.
Henry P. Williams: And 30 cents diluted EPS compared to net income of $8 7 million.
Henry P. Williams: Or <unk> 81, basic and <unk> 71 diluted income per share the same period in 2023.
Henry P. Williams: The results from a year ago reflected the sale of our 2009 built EMR, which we generate a gain of $8 million.
Henry P. Williams: Please note that for accounting purposes, the fully diluted earnings calculation assumes the potential conversion of all of the outstanding series, a convertible preferred stock into common shares and the elimination of the associated dividend in Q1 of 2024 to increase seat in GCE.
Henry P. Williams: In Q1 of 2024, the increase in TCE revenues of $900,000 and lower G&A expenses of $600,000 flowed through to adjusted EBITDA, which increased $1.8 million to $6 million. Now I'll flip to slide 16 to review our capitalization at March 31, 2024. At quarter close, our consolidated leverage ratio of net funded debt stood at 14% of total capitalization. Our weighted average interest rate was 8.2% for the most recent quarter, and the next bank loan maturity is scheduled for July of 2025. I should point out that at the end of March 24, our total cash machine aggregated $49 million. Most of our excess cash is invested in short-term money market instruments, which currently earn 5.4%.
Henry P. Williams: Revenues up $900000 and lower G&A expenses of $600000 flowed through to adjusted EBITDA, which increased $1 8 million to $6 million.
Henry P. Williams: Now I'll flip to slide 16 to review our capitalization at March 31, 2024 at quarter close our consolidated leverage ratio of net funded debt stood at 14% total capitalization our.
Henry P. Williams: Our weighted average interest rate was eight 2% for the most recent quarter and the next bank loan maturity is scheduled for July of 'twenty five.
I should point out that at the end of March 24, our total cash machine aggregated $49 million.
Henry P. Williams: Most of our excess cash is invested in short term money market instruments, which currently earn five 4%.
Henry P. Williams: Last thing, as of May 16, 2024, we had repurchased in the open market 415,000 common shares in total under our initial $2 million buyback program, and there are approximately 10.5 million PXX shares currently outstanding. Please note that the planned redemption of 100,000 shares of preferred stock will avoid potential dilution from conversion into 446,000 common shares. The approved issuance of $1.5 million of restricted stock as part of the Conquer Venture acquisition, at an assumed share price of $5.60, would add about 268,000 common shares at closing.
Henry P. Williams: Lastly, as of May 16th 2024, we had repurchased in the open market 415000 common shares at a total in total under our initial tubing $1 buyback program and there are approximately $10 5 million <unk> shares currently outstanding.
Henry P. Williams: Please note that the planned redemption of 100000 shares.
Henry P. Williams: Preferred stock will avoid potential dilution from.
Henry P. Williams: From conversion into 446000 common shares.
Henry P. Williams: The approved the issuance of $1 $5 million of.
Henry P. Williams: Restricted stock as part of the Cocker venture acquisition at an assumed share price of $5 60.
Henry P. Williams: Would add about 268000 common shares at closing.
Henry P. Williams: Overall, the effect of these two transactions would reduce the fully diluted share count by approximately one quarter of a million shares at March 31 to 12.1 million fully diluted shares. With that, I'd like to flip the presentation back over to Eddie.
Speaker Change: Overall, the effect of these two transactions, which reduced the fully diluted share count by approximately one quarter of a million shares at March 31 to $12 1 million fully diluted shares.
Speaker Change: With that I'd like to flip the precedent.
Speaker Change: <unk> back over to Eddie.
Valentios Valentis: Henry, the outlook for the product tanker sector looks quite bullish for the near term. Supply and demand fundamentals for the dry bulk sector are expected to be reasonably balanced for the remainder of 2024. Ongoing major geopolitical conflicts continue to create operating challenges and opportunities for us. We continue to benefit from the combination of solid and market consumption, lower refined product inventories in many parts of the world, changing trade patterns, and expanding tonnemining. Scheduled developments for the refinery landscape only enhance the long-term outlook for the product tanker sector.
Eddie: Thanks Henry.
The outlook for product tanker sector looks quite bullish for the near term supply and demand fundamentals for the dry bulk sector I expect it to be reasonably balanced for the remainder of the remainder of 2024.
Eddie: Major geopolitical conflicts continuing to create operating challenges and opportunities for us we continue to benefit from the combination of solid end market consumption lower refined product inventories in many parts of the world changing trade patterns and expanding ton miles.
Eddie: Scheduled developments for their refinery landscape.
Speaker Change: Enhance the long term outlook for the product tanker sector global GDP growth over the near term supply demand for a broad list of dry commodities chartering conditions for dry bulk companies have also benefited from these major events, including unprecedented times as the restrictions of the Panama Canal.
Valentios Valentis: Global GDP growth over the near term supports demand for a broad list of dry commodities. Chartering conditions for dry bulk carriers have also benefited from these major events, including unprecedented transit restrictions in the Panama Canal, which are abating. We expect to utilize our strong financial position and extensive industry relationships to develop additional investment opportunities that maximize shareholder value, including further fleet expansion. The announced repurchase programs for our common and preferred stocks will be accretive and should enhance the trading of our shares. We appreciate your interest and thank you for joining our call today. We look forward to reporting on future progress at Pyxis Tankers.
Speaker Change: Abating.
Speaker Change: We expect to utilize our strong financial position and extensive industry relationships to develop additional investment opportunities.
Speaker Change: In mind shareholder value, including further fleet expansion. The amounts that are purchased programs for our common and preferred stock will be accretive and should enhance the trading of our shares.
Speaker Change: We appreciate your interest and thank you for joining our call today, we look forward to reporting on future progress at Pyxis tankers.
Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].