Q2 2024 Pyxis Tankers Inc Earnings Call

August 12, 2024

Operator: Good day and welcome to the Pyxis Tankers conference call to discuss the financial results for the second 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 Bulletin. 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 Valentis. Sir, please go ahead.

Operator: Good day, and welcome to the Pixis Tankers conference call to discuss the financial results for the second quarter 2024.

Good day.

Speaker Change: Welcome to the Pyxis tankers conference call to discuss the financial results for the second quarter 2024.

Operator: I must advise you that the conference call is being recorded.

Speaker Change: Must advise you that the conference call is being recorded.

Operator: Additionally, a live webcast of today's conference call and accompanying presentation is available on Pixis Tankers' website, which is www.pixistankers.com. We'll see the call is Mr. Eddie Valentis, Chairman and Chief Executive Officer of Pixis Tankers, and Mr. Henry Williams, Chief Financial Officer of the company.

Speaker Change: Additionally.

Speaker Change: A live webcast of today's conference call and accompanying presentation is available on pyxis tankers website, which is www dot pyxis tankers dotcom.

Hosting the call is Mr. Eddie Bulletin, Tisch, Chairman and Chief Executive Officer, Pyxis tankers, Mr. Henry Williams, Chief Financial Officer of the company.

Operator: 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 Valentis. Please, go ahead.

Operator: I would like to pass the floor to one of your speakers today, Mr. Eddie Valentis. Sir, please go ahead.

Speaker Change: I would like to pass supports one of your speakers today, Mr. Eddie Galactus, Sir Please go ahead.

Eddie Valentis: Hello everyone, and thank you for joining our call for results for the three months ended June 30th, 2024. The disruption to global seaborne trade from the Russia-Ukraine war and the conflict in the Middle East continues. Global economic activity remains resilient despite the tight monetary policies by many central banks. Inflation is decelerating, and interest rate cuts are expected starting this fall.

Eddie Valentis: Hello everyone, and thank you for joining our call for results of the three months ended June 30th, 2024. The disruption on global cyber trade from the Russia-Ukraine war and the conflict in the Middle East continues. Global economic activity remains resilient despite the tight monetary policies by many central banks. Inflation is decelerating and interest rate cuts are expected starting this fall. The fundamental outlook for our two markets, product tankers and dry bulk carriers, remains positive, characterized by healthy chart rates and rising asset values. But market conditions are dynamic and can be significantly influenced by macroeconomic and geopolitical events, which are beyond our control.

Eddie Valentis: Hello everyone, and thank you for joining our call for results for the three months ended June 30, 2024. The disruption to global seaborne trade from the Russia-Ukraine war and the conflict in the Middle East continues. Global economic activity remains resilient despite the tight monetary policies by many central banks. Inflation is decelerating, and interest rate cuts are expected starting this fall.

Eddie Valentis: Hello, everyone and thank you for joining our call, but he's also for the three months ended June 30th 'twenty to 'twenty four.

Eddie Valentis: The disruption in global seaborne trade from there I'll say, Ukraine War and the conflict in the Middle East convenience.

Eddie Valentis: Economic activity remains at a Zealand despite the tight monetary policies by many central banks.

Speaker Change: Inflation is decelerating and interest rate cuts I'd expect that starting this fall.

Eddie Valentis: The fundamental outlook for our two markets, product tankers and dry bulk carriers, remains positive, characterized by healthy charter rates and rising asset values. However, market conditions are dynamic and can be significantly influenced by macroeconomic and geopolitical events which are beyond our control. Before commenting on our 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 four good-looking statements. Thank you.

Speaker Change: The fundamental outlook for our two markets product tankers and dry bulk carrier industry remain positive characterized by healthy charter rates.

Speaker Change: Zing asset light, but.

Speaker Change: Market conditions are dynamic.

Speaker Change: And can be significantly influenced by macroeconomic and geopolitical events, which are beyond our control.

Eddie Valentis: Before commenting on our operating and financial results for the most recent period, please let me draw your attention to some important legal notifications on slide two that we recommend you read, including our presentation today, which will include forward-looking statements. Thank you. Turning to slide three. Our most recent quarterly results reflected strong financial performance in revenues and profitability, given by healthy market conditions and our successful expansion into the dry bulk sector. With the acquisition of the 2015 build comes our max in late June, our fleet of six modern midsize eco vessels consists of three MR2 product tankers, one ultra max, and two larger comes our max's bulk areas.

Speaker Change: Before commenting on our operating and financial results for the most recent period. Please let me draw your attention to some important legal notifications on slide two that's the way recommend you read including our presentation today, which will include forward looking statements. Thank you.

Eddie Valentis: Turning to slide 3, our most recent quarterly results reflected strong financial performance in revenues and profitability driven by healthy market conditions and our successful expansion into the dry bulk sector. With the acquisition of the 2015-built Kamsar Maxx in late June, our fleet of six modern mid-sized eco-vessels consists of three MR2 product tankers, one Ultramaxx, and two larger Kamsar Maxx bulk carriers. In the quarter ended June 30, 2024, we generated consolidated time charter equivalent revenues of $12.2 million, marking an increase of almost 42% over the same period in 2023.

Turning to slide three.

Speaker Change: Our most recent quarterly results reflected strong financial performance in revenues and profitability driven by healthy market conditions, and our successful expansion into the dry bulk sector.

With the acquisition of the 2015 Bill Com's IMAX in late June our fleet of six modern mid size Eco vessels consists of three M. R. Two product tankers, one ultra amongst and two larger comes on boxes bulk ideas.

Eddie Valentis: In the quarter ended June 30th, 2024, we generated consolidated time chart equivalent revenues of 12.2 million. Marking an increase of almost 42% over the same period in 2023. Our daily time chart equivalent for our fleet in Q2, 2024 was approximately 29,150, of which the Mars averaged close to 32,900 and our midsize bulk is averaged 22,300 dollars per day. For the most recent period, we reported net income of 5 million or 48 cents basically PS substantially better than Q2, 2023. Our adjusted EBDA in the most recent period rose to $8 million. The product tanker charting environment remains strong throughout the second quarter of 2024.

Speaker Change: In the quarter ended June 32024, we generated consolidated.

Speaker Change: Holiday the time charter equivalent revenues of 12.2 million, marking an increase of almost 42% over the same period in 2023.

Eddie Valentis: Our daily time charter equivalent for our fleet in Q2 2024 was approximately $29,150, of which the MRs averaged close to $32,900, and our mid-sized bunkers averaged $22,300 per day. For the most recent period, we reported net income of $5,048,000, substantially better than Q2 2023. Our adjusted EBITDA for the most recent period rose to $8,000,000.

Eddie Valentis: Our daily time charter equivalent for our fleet in Q2 2024 was approximately $29,150, of which the MRs averaged close to $32,900, and our mid-sized bunkers averaged $22,300 per day. For the most recent period, we reported net income of $5.48 million, substantially better than Q2 2023. Our adjusted EBITDA for the most recent period rose to $8 million.

Speaker Change: Daily time charter equivalent for our fleet in Q2, 'twenty 'twenty four was approximately 29150 of which their Mas averaged close to 32.

Speaker Change: <unk> thousand 900, and our mid sized bonkers averaged $22300 per day for the most recent period, we reported net income of 5 million or 48 cents basically P. S substantially better than Q2 2020 same alright.

Speaker Change: Adjusted EBITDA in the most recent period rose two 8 million the product tanker chartering environment remained strong throughout the second quarter of 'twenty 'twenty four despite slower global economic activity and sustained at these contingencies are tighter inventories of refined petroleum products.

Eddie Valentis: The product-tanker chartering environment remained strong throughout the second quarter of 2023. However, despite slower global 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 worldwide. This has led to changing trade patterns, expansion of tonne miles, and arbitrage opportunities due to dislocations in certain end markets. Global refinery activity remains constructive in spite of moderating crack spreads and consumption, especially as we move further into the historically seasonally slower third quarter.

Eddie Valentis: The product-tanker chartering environment remained strong throughout Q2 2023. However, despite slower global 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 worldwide. This has led to changing trade patterns, expansion of tonne miles, and arbitrage opportunities due to dislocations in certain end markets. Global refinery activity remains constructive in spite of moderating crack spreads and consumption, especially as we move further into the historically seasonally slower third quarter.

Eddie Valentis: Despite slower global economic activity, our hostilities contribute to tighter inventories of refined petroleum products, which continue to be below five-year averages in a number of locations worldwide. This has led to changing trade patterns, expansion of ton miles, and arbitrage opportunities due to dislocations in certain end marks. The Global Refinery Activity remains constructive in spite of moderating crack spreads and consumption, especially as we move further into the historically, seasonally slower third quarter. Overall, many of these developments reinforce a positive outlook for Porter Tankers after AIDS. As of August 9, 68% of available days in Q3 2024 were booked for our MRs at an average estimated TCE rate of 33,850 days per day, similar to what we reported in the three-month period ended June 30.

Speaker Change: Continued to be below five year averages in the number of.

Speaker Change: Allocations worldwide.

Speaker Change: This has led to changing trade patterns expansion of ton miles and arbitrage opportunities due to dislocation in certain end markets.

Speaker Change: Global refinery activity remains constructive in spite of modern anything crack spreads and consumption, especially as we move further into the historically seasonally slower third quarter.

Eddie Valentis: Overall, many of these developments reinforce a positive outlook for product anchor charter rates. As of August 9th, 68% of available days in Q3 2024 were booked for our MRs at an average estimated TCE rate of 33,850 per day, similar to what we reported in the three-month period ended June 30th. Two of our MRs are employed under short-term time charters and one in the spot market.

Speaker Change: Although at all.

Speaker Change: Many of these developments reinforce our positive outlook for part D. I think that's out that eights as of August 968% of available days in Q3 2024 were booked for all of that modest at an average estimated D. C. At eight of 333800 unsafe to debate per day same.

Speaker Change: Miller to what we reported in the three months period ended June 30th.

Eddie Valentis: Two of our MRs are employed under short-term fine charges, and one in the spot market. The supply demands for the dry bulk sector continue to be relatively balanced for 2024. Our positive view on the dry bulk sector is further reflected by the recent acquisition of the concaventure assistorship to the camps and max we purchased back in February. As of August 9, our three modern bulk areas were booked for 76% of available days in Q3 at an average estimated TCE of 17,200 per day, all employed under short-term fine charges. 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, active investment opportunities.

Speaker Change: Two of our monitoring client on their short term time charters and one in the spot market.

Eddie Valentis: The supply-demand fundamentals for the dry bulk sector continue to be relatively balanced for 2024. Our positive view of the dry bulk sector is further reflected by the recent acquisition of the Conquer Venture, a sister ship to the Kamsa Max we purchased back in February. As of August 9th, our three modern bulk carriers were booked for 76% of available days in Q3, at an average estimated TCE of $17,200 per day, all employed under short-term timeshots.

The supply demand fundamentals for the dry bulk sector continued to be relatively balanced for 'twenty to 'twenty four our positive view on the dry bulk sector.

Further reflected by the recent acquisition of the concur adventure a sister ship to the camps IMAX with purchased back in February as of August nine our city modern bulk guy. He is booked for 76% of available days in Q3 at an average estimated D. C 17.

Speaker Change: 17200 per day, all employed under short term time charters.

Eddie 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, accretive investment opportunities. However, we have yet to find compelling acquisitions of modern MRs, given current prices, which are reaching 10-year historical highs. While dry bulk values have also continued to appreciate, we have grown more selective in pursuing acquisitions in this sector. In the meantime, we expect to strengthen our balance sheet, amortizing scheduled debt and repurchasing additional shares.

Speaker Change: 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 accretive investment opportunities. However, we have yet to find compelling acquisitions of modern and Morris.

Eddie Valentis: However, we have yet to find compelling acquisitions of modern MRs, given current prices, which are reaching 10-year historical highs. While dry bulk values have also continued to appreciate, we have grown more selective in pursuing acquisitions in this sector. In the meantime, we expect to strengthen our balance sheet, amortizing scheduled debt and repurchasing additional shares.

Speaker Change: Given current prices with China, reaching 10 year historical highs.

Eddie Valentis: While dry bulk values have also continued to appreciate, we have grown more selective in pursuing acquisitions in this sector. In the meantime, we expect to strengthen our balance sheet, amortizing scheduled debt and repurchasing additional shares. Please flip to slide four for information on our existing fleet and employment activity. We are continuing to prudently maintain our mixed chartering strategy of time and spot charters with a focus on diversification by customer and duration.

I'll die bulk values have also continued to appreciate we have grown more selective in pursuing acquisitions in the sector and in the meantime, we expect to strengthen our balance sheet amortizing scheduled debt and repurchasing additional shares.

Eddie Valentis: Please flip to slide 4 for information on our existing fleet and employment activities. We are continuing to prudently maintain our mixed chartering strategy of time and spot charges, with a focus on diversification by customer and duration. As you can see, five of our vessels are under staggered short-term time charges, which provide us with attractive fixed revenues over defined periods of time and optimize working capital. The Pixies Lambda, our youngest vessel, continues to operate in the spot market. Notably, the average of the vessels in our fleet is materially below the industry averages, with our MRs at 9.9 years and 8.7 years for our bulk years.

Eddie Valentis: Please flip to slide four for information on an existing fleet and employment activity. 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, five 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.

Please flip to slide four for information on existing fleet unemployment activities.

Eddie Valentis: As you can see, five 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 materially below the industry averages, with RMRs at 9.9 years and 8.7 years for our bulkiers. The next special surveys are scheduled to occur during the first half of next year for the Concar Asteri and the Concar Ventures.

Speaker Change: We are continuing to prudently maintain our mixed chartering strategy of time on spot charters with a focus on diversification by castle Mountain donation as you can see five a lot of vessels are under staggered short term time charters, which provide us with attractive fixed savings over defined periods of time and optimize work.

Speaker Change: <unk> 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 materially below the industry averages with RMR is at nine nine years and 8.7 years for our bulk carriers. The next special surveys are scheduled to occur during the <unk>.

Eddie Valentis: Notably, the average age of the vessels in our fleet is materially below the industry averages, with RMRs at 9.9 years and 8.7 years for our bulkiers. The next special surveys are scheduled to occur during the first half of next year for the Concar Asteri and the Concar Ventures.

Eddie Valentis: The next special surveys are scheduled to occur during the first half of next year for the concarstery and the concar venture.

Speaker Change: First half of next year, what are the current kind of staying on the concrete adventure.

Eddie Valentis: Please turn to slide 6 to review several macroeconomic and global low-in-market considerations which support fundamental product anchor demand. Market conditions, especially for refined petroleum products, continue to be very healthy and drive a positive outlook for the balance of 2024. Over the longer term, we expect demand for the product anchor sector to be boosted by refinery additions led by the Middle East and Asia, as you can see on slide 7. According to Drury, 3.7 million barrels per day of net new refinery capacity is scheduled to come online this year through 2028. Much of the incremental refining capacity will be export driven, which should lead to further expansion of tonmai.

Eddie Valentis: Please turn to slide 6 to review several macroeconomic and global oil market considerations which support fundamental product tanker demand. Market conditions, especially for refined petroleum products, continue to be very healthy and drive a positive outlook for the balance of 2024. Over the longer term, we expect demand for the product tanker sector to be boosted by refinery additions led by the Middle East and Asia, as you can see on slide 7. According to Drury, 3.7 million barrels per day of net new refinery capacity is scheduled to come online this year through 2028.

Speaker Change: Please turn to slide six to review several macroeconomic and Globaloney, Mike its considerations, which support fundamental product tanker demand.

Speaker Change: Market conditions, especially for refined petroleum products continue to be very healthy and drive a positive outlook for the balance of 2024 over the longer term, we expect demand for the product tanker sector to be boosted by refinery additions led by the Middle East and Asia as you can see on slide seven according to draw.

Speaker Change: <unk> three 7 million barrels per day of net new refinery capacity is scheduled to come online. This year through 2028 much of the incremental refining capacity will be export driven which should lead to further expansion of ton miles.

Eddie Valentis: Much of the incremental refining capacity will be export-driven, which should lead to further expansion of tonne miles. As you can see on slide 8, the impact of the ongoing Russian-Ukrainian war and the Israeli-Hamas conflict has continued to sustain strong chatter rates, lengthen sailing distances, and expand tonne miles. Unfortunately, escalating tensions in the Middle East are directly affecting the oil markets, adding to the overall market uncertainty. Let's move on to slide 9.

Eddie Valentis: Much of the incremental refining capacity will be export-driven, which should lead to further expansion of tonnemiles. As you can see on slide 8, the impact of the ongoing Russian-Ukrainian war and the Israeli-Hamas conflict has continued to sustain strong chatter rates, lengthen sailing distances, and expand tonnemiles. Unfortunately, escalating tensions in the Middle East are directly affecting the oil markets, adding to the overall market uncertainty. Let's move on to slide 9.

Eddie Valentis: As you can see on slide 8, the impact of the ongoing Russian Ukrainian war and the Israeli Hamas conflict have continued to sustain strong charter aids, lengthened sailing distances, and expand on miles. Unfortunately, escalating tensions in the Middle East are directly affecting the oil markets, adding to the overall market uncertainty.

Speaker Change: As you can see on slide eight.

Speaker Change: The impact of the ongoing Russian and Ukrainian War and these that Amy Hamas conflict have continued to sustain strong charter rates lengthen sailing distances and expand ton Mike. Unfortunately, escalating tensions in the middle east out of directly affecting the only markets, adding to the overall market uncertainty.

Eddie Valentis: Let's move on to slide 9. The combination of robust chartering conditions of the last one and a half years and continued positive outlook by owners has resulted in a significant increase in orders for the construction of new product tankers. According to Dury, since the beginning of 2023, there have been orders for the construction of 231 new MR2s, with the order book standing at 274 vessels or 16.1% of the global fleet at July 31st. By the end of 2025, 104 MRs are scheduled for delivery. Surprisingly, only 11 MRs have been delivered during the first seven months this year, according to Dury.

Speaker Change: Let's move on to slide nine.

Eddie Valentis: The combination of robust chartering conditions over the last two and a half years and continued positive outlook by owners has resulted in a significant increase in orders for the construction of new product tankers. According to Drury, since the beginning of 2023, there have been orders for the construction of 231 new MR2s, with the order book standing at 274 vessels, or 16.1% of the global fleet at July 31. By the end of 2025, 104 MRs are scheduled for delivery. However, surprisingly, only 11 MRs have been delivered during the first 7 months of this year, according to Drury.

Speaker Change: The combination of robust chartering conditions over the last two and a half years.

Speaker Change: And continued positive outlook mall by owners has resulted in a significant increase in orders for the construction of new product tankers. According to <unk> since the beginning of 2023 that have been or this what are the construction of 271, new EMR twos with the order book standing at 270.

Speaker Change: Four vessels or 16.1% of the global fleet at July 31st.

Speaker Change: By the end of 'twenty 25, 104 M ours are scheduled for delivery.

Speaker Change: Surprisingly only 11, there must have been delivered during the first seven months. This year. According to <unk>. So sleep buds my further affect the actual number of deliveries due to significant backlogs, mainly Asian yards don't have available construction slots for our mice with deliveries in two plus years. It is important to note.

Eddie Valentis: Slippage may further affect the actual number of deliveries. Due to significant backlogs, many Asian yards don't have available construction slots for MRs with deliveries in 2 plus years. It is important to note that 13.5% of the global MR2 fleet, or 230 tankers, 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, and that pace has yet to pick up. Overall, we continue to estimate the net fleet growth for MRs to be about 2% this year, very low by historical standards. Turning to slide 10.

Eddie Valentis: Slippage may further affect the actual number of deliveries. Due to significant backlogs, many Asian yards don't have available construction slots for MRs with deliveries in 2 plus years. It is important to note that 13.5% of the global MR2 fleet, or 230 tankers, 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, and that pace has yet to pick up. Overall, we continue to estimate the net fleet growth for MRs to be about 2% this year, very low by historical standards. Turning to slide 10.

Eddie Valentis: So, slippage may further affect the actual number of deliveries. Due to significant backlogs, many Asian yards don't have available construction slots for MRs with deliveries in two plus years. It is important to note that 13.5% of the global MR2 fleet, or 230 tankers, are 20 years of age or older. Given this large number combined with declining economics of operating all the vessels, major scrapping should occur over the next five years, but with a strong market only four MRs were demolished in 2023, and that pace has yet to pick up. Overall, we continue to estimate the net fleet growth for MRs to be about 2% this year, very low by historical standards.

Speaker Change: That 13, 5% of the global him or her to fleet or 230, <unk> tankers at 20 years of age or older.

Speaker Change: Given this large number combined with declining economics of operating older vessels may just scrapping should occur over the next five years, but with a strong market only four in mice were demolished in 2023 and that pace has yet to pick up overall, we continue to estimate the net fleet growth for a milestone.

Speaker Change: About 2% this year very low by historical standards.

Eddie Valentis: Turning to slide 10, we see the strong chartered conditions have led to steep increases in MR2s prices across the board. Values for second hand owners remain well above 10-year averages. According to RO ship brokers, 94 MR2s were sold in the first seven months of 2024, up 24% year-on-year, marking the largest number on the record. Tanker sales continue to be concentrated in all their tonnage. Construction contracts for new buildings in South Korea now exceed 52 million, excluding yard supervision and add-ons. Prices for young acquisition MR2 vessels are preference, are approaching the cost of a new build, making viable acquisition candidates difficult to find, in our opinion.

Speaker Change: Turning to slide 10.

Eddie Valentis: We see that strong chartering conditions have led to steep increases in MR2 prices across the board. Values for second-hand tonnage remain well above the 10-year average. According to RO Ship Brokers, 94 MR2s were sold in the first seven months of 2024, up 24% year-over-year, marking the largest number on record. However, tanker sales continue to be concentrated in older tonnage. Construction contracts for new buildings in South Korea now exceed 52 million won, excluding yard supervision and add-ons.

Speaker Change: We see the strong chartering conditions have led to steep increases in them or two's prices across the board values for second hand tonnage remained well above 10 year averages. According to auto ship brokers 94 them are twos were sold in the first seven months of 'twenty 'twenty four up 25, 4% year over year.

Speaker Change: <unk> the largest number on the record <unk> sales continued to be concentrated in older tonnage construction contracts for new buildings in South Korea, now exceed 52 million, excluding yard supervision and add ons prices for younger I could echo fishing them onto vessels, a preference or a P.

Eddie Valentis: Prices for young, eco-efficient MR2 vessels, our preference, are approaching the cost of a new build, making viable acquisition candidates difficult to find, in our opinion. Now, I would like to provide some updates for the dry bulk sector, so please flip to slide 12. Overall, the supply-demand fundamentals for the sector look reasonably balanced for the remainder of 2024. Considering a moderate correlation to global GDP growth of 3.2% in 2024, demand for dry bulk commodities should remain positive.

Eddie Valentis: Prices for young eco-efficient MR2 vessels, our preference, are approaching the cost of a new build, making viable acquisition candidates difficult to find, in our opinion. Now, I would like to provide some updates for the dry bulk sector, so please flip to slide 12. Overall, the supply-demand fundamentals for the sector look reasonably balanced for the remainder of 2024. Considering a moderate correlation to global GDP growth of 3.2% in 2024, demand for dry bulk commodities should remain positive.

Speaker Change: <unk> the cost of a new build making viable acquisition candidates difficult to find in our opinion now I would like to provide some updates for the dry bulk sector. So please flip to slide 12.

Eddie Valentis: Now, I would like to provide some updates for the dry bulk sector, so please flip to slide 12. Overall, the supply-demand fundamentals for the sector look reasonably balanced for the remainder of 2024. Considering a moderate correlation to global GDP growth of 3.2% in 2024, demand for dry bulk commodities should remain positive. The dry bulk trade is estimated to grow 2.6% to almost 5.7 billion tons this year, with tonnage miles to increase by 3.9% due to the effects of armed hostilities, and to a lesser extent, port congestion and restrictions caused by adverse weather conditions. To a fair extent, the supply picture for dry bulk carriers looks manageable in the near term.

Speaker Change: Overall, the supply demand fundamentals for the sector look reasonably balanced for the remainder of 2020 for considering a moderate correlation to global GDP growth of three 2% in 'twenty to 'twenty four demand for dry bulk commodities should remain positive.

Eddie Valentis: The dry bulk trade is estimated to grow 2.6% to almost 5.7 billion tons this year, with ton miles to increase by 3.9% due to the effects of armed hostilities and, to a lesser extent, port congestion and restrictions caused by adverse weather conditions. To a fair extent, the supply picture for dry bulk carriers looks manageable in the near term. Drury estimates the order book for Panamax carriers, which include Campsamax-class vessels, to be 406 vessels, or 12.4% of the global fleet, but a similar percentage are 20 years of age or more, which should eventually lead to more scrapping.

Eddie Valentis: The dry bulk trade is estimated to grow 2.6% to almost 5.7 billion tons this year, with ton miles to increase by 3.9% due to the effects of armed hostilities and, to a lesser extent, port congestion and restrictions caused by adverse weather conditions. To a fair extent, the supply picture for dry bulk carriers looks manageable in the near term. Drury estimates the order book for Panamax carriers, which include Campsamax-class vessels, to be 406 vessels or 12.4% of the global fleet, but a similar percentage are 20 years of age or more, which should eventually lead to more scrapping.

Speaker Change: The dry bulk trade is estimated to grow 2.6% almost $5 7 billion tons. This year with ton miles to increase by three 9% due to the effects of armed hostilities and to a lesser extent port congestion and restrictions caused by adverse weather conditions to a fedex fans the supply picture for dry Bud.

Speaker Change: Kind of as Luc manageable in the near term Dirty estimate so the order book for Panamax carriers, which include comps IMAX class vessels to be 400, and a six vessels or 12.4% of the global fleet, but a similar percent. That's in 20 years of age Omar which should eventually lead to more scrappy.

Eddie Valentis: Drury estimates the order book for Panamax carriers, which include campsamax class vessels, to be 406 vessels or 12.4% of the global fleet, but a similar percentage in 20 years of age or more, which should eventually lead to more scrapping. At July 31, the order book for superamax carriers, which include olderamax, stood at 607 units or 14.1% of the global fleet of this highly versatile vessel class. As you see on slide 13, prices for dry bulk carriers have also substantially appreciated. In fact, the price of a five-year-old Ultramax now matches or exceeds a new build cost.

Eddie Valentis: At July 31st, the order book for Supramax carriers, which include Ultramax, stood at 607 units, or 14.1% of the global fleet of this highly versatile vessel class. As you see on slide 13, prices for dry bulk carriers have also substantially appreciated. In fact, the price of a 5-year-old Ultramax now matches or exceeds its new build cost. Nevertheless, strong asset prices are another positive indicator for the sector. 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: At July 31st the order book for Super IMAX Goddess, which include all dramatics stood at 607 units or 14.1% of the global fleet of this highly versatile vessel class.

Speaker Change: As you see on slide 13 prices for dry bulk carriers have also substantially appreciated in fact, the price of a five year old to stomach now matches or exceeds a newbuild cost. Nevertheless, strong asset prices are another positive indicator for the sector.

Eddie Valentis: Nevertheless, strong asset prices are another positive indicator for the sector.

Eddie Valentis: Nevertheless, strong asset prices are another positive indicator for the sector. 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. Thanks, Eddie.

Henry Williams: At this point, I would like to turn the call over to Henry Williams, our Chief Financial Officer, who will discuss and finance on the results in great detail. Thanks, Eddie. On slide 15, let's review our on-auto results for the three months ended June 30, 2024. Our time-charter equivalent revenues for Q2, which we define as revenues net minus voyage-related costs and commissions, rose to $12.2 million, an increase of almost 42% as we benefited from higher-demerger income under spot charters, better market conditions, and more operating days due to the addition of the dry bulk vessels. Strong charting rates were reflected in our daily TC for our MRs, which improved to $32,868 in Q2.

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 Williams: Thanks, Eddie. On slide 15, let's review our unaudited results for the three months ended June 30, 2024. Our time charter equivalent revenues for Q2, which we define as revenues net minus voyage-related costs and commissions, rose to $12.2 million, an increase of almost 42%, as we benefited from higher demerge income under spot charters, better market conditions, and more operating days due to the addition of the dry bulk vessel. Strong charting rates were reflected in our daily TC for our MRs, which improved to $32,868 in Q2.

Henry Williams: On slide 15, let's review our unaudited results for the three months ended June 30, 2024. Our time charter equivalent revenues for Q2, which we define as revenues net minus voyage-related costs and commissions, rose to $12.2 million, an increase of almost 42% as we benefited from higher demerge income under spot charters, better market conditions, and more operating days due to the addition of the dry bulk vessel. Strong charting rates were reflected in our daily TC for our MRs, which improved to $32,868 in Q2.

Henry Williams: Thanks, Eddie on Slide 15, Let's review our unaudited results for the three months ended June 32024, our time charter equivalent revenues for Q2, which we define as revenues net minus voyage related costs and commissions rose to $12 $2 million, an increase of almost 42%.

Speaker Change: As we benefited from higher demurrage income under spot charters better market conditions and more operating days due to the addition of the dry bulk vessels.

Speaker Change: Strong chartering rates were reflected in our daily TCE for our M ours, which improved to $32868 in Q2, our brokers reported and average daily TCE of $22333 for the same period during the quarter. The overall fleet generated an average.

Henry Williams: Our bulkers reported an average daily TC of $22,333 for the same period. During the quarter, the overall fleet generated an average TC of $29,156 per vessel, almost a 17% increase through a mix of short-term time in spot charters. Moving to slide 16, we generated net income to common shareholders of $5 million for the three months ended June 30, 2024, or $0.48 basic and $0.43 diluted DPS, compared to net income of $2.8 million, or $0.25 basic, $0.23 diluted income per share in the same period in 2023. Please note, for accounting purposes, the fully diluted earnings calculations assume the potential conversion of all the outstanding Series A convertible preferred stock into common shares and the elimination of the associated dividend.

Speaker Change: Fridge TCE of $29156 per vessel, almost a 17% increase through a mix of short term time and spot charters.

Henry Williams: Moving to slide 16, we generated net income to common shareholders of $5 million for the three months ended June 30, 2024, or $0.48 basic and $0.43 diluted EPS, compared to net income of $2.8 million, or $0.25 basic and $0.23 diluted income per share in the same period in 2023. Please note for accounting purposes the fully diluted earnings calculations. Assume the potential conversion of all the outstanding Series A convertible preferred stock into common shares and the elimination of the associated dividends in Q2 2024. A majority of the increase in TCE revenues of $3.6 million flowed through to adjusted EBITDA, which increased $2.8 million to $8 million for the period.

Henry Williams: Moving to slide 16, we generated net income to common shareholders of $5 million for the three months ended June 30, 2024, or $0.48 basic and $0.43 diluted EPS, compared to net income of $2.8 million, or $0.25 basic and $0.23 diluted income per share in the same period in 2023. Please note for accounting purposes the fully diluted earnings calculations. Assume the potential conversion of all the outstanding Series A convertible preferred stock into common shares and the elimination of the associated dividend in Q2 2024. A majority of the increase in TCE revenues of $3.6 million flowed through to adjusted EBITDA, which increased $2.8 million to $8 million for the period.

Speaker Change: Moving to slide 16, we generated net income to common shareholders of $5 million for the three months ended June 30th 2024, or 48 cents basic and 43 cents diluted EPS compared to net income of $2.8 million or 25 cents basic 23.

Speaker Change: Since diluted income per share in the same period in 2023.

Speaker Change: Please note for accounting purposes, the fully diluted earnings calculations assume the potential conversion of all the outstanding series, a convertible preferred stock into common shares and the elimination of the associated dividend.

Henry Williams: In Q2, 2024, a majority of the increase in TCE revenues of $3.6 million flowed through to adjusted EBITDA, which increased $2.8 million to $8 million for the period.

Speaker Change: In Q2 2024.

Speaker Change: A majority of the increase in TCE revenues of $3.6 million flowed through to adjusted EBITDA, which increased $2.8 million to $8 million for the period.

Henry Williams: Now flip to slide 17 to review our capitalization at June 30, 2024. At quarter close, our consolidated leverage ratio of net funded debt suited to approximately 23% of total capitalization. Our weighted average interest rate was 8% for the most recent quarter, and the next bank loan maturity is now scheduled for December of 20, 206. I should point out that at the end of June 20, 2024, our total cash position aggregated $44.6 million. Most of the excess cash is invested in short-term money market investments, which currently earn 5.5%.

Henry Williams: Now flip to slide 17, to review our capitalization at June 30th, 2024. At quarter close, our consolidated leverage ratio of net funded debt stood at approximately 23 percent of total capitalization. Our weighted average interest rate was eight percent for the most recent quarter, and the next bank loan maturity is now scheduled for December of 2026. I should point out that at the end of June 2024, our total cash position was $44.6 million.

Speaker Change: Now flip to slide 17 to review our capitalization at June 32024 at quarter close our consolidated leverage ratio of net funded debt stood at approximately 23% of total capitalization our weighted average interest rate was 8% for the most recent quarter and the next bank.

Speaker Change: Loan maturity is now scheduled for December of 2026, I should point out that at the end of June 2024, our total cash position aggregated $44.6 million.

Henry Williams: Most of the excess cash is invested in short-term money market investments, which currently earn 5.5%. Lastly, given the recent common share buybacks, the partial redemption of the convertible preferred stock, offset by the issuance of restricted shares for the Concur Venture acquisition, we have approximately 10.7 million common shares outstanding as of August 9th and 12 million shares on a fully diluted basis. With that, I'd like to flip the presentation back over to Eddie to wrap things up.

Speaker Change: Most of the excess cash is invested in short term money market investments.

Speaker Change: Which currently earned 5.5%.

Henry Williams: Lastly, given the recent common share buybacks, the partial redemption of the convertible preferred stock, offset by the issuance of restricted shares for the Conqueror venture acquisition, we have approximately 10.7 million common shares outstanding as of August 9th, and 12 million shares on a fully diluted basis.

Speaker Change: Lastly, given the recent common share buybacks the partial redemption of the convertible preferred stock offset by the issuance of restricted shares to the Cocker venture acquisition, we have approximately $10 7 million common shares outstanding as of August 9th and 12 million shares on a fully diluted.

Eddie Valentis: With that, I'd like to flip the presentation back over to Eddie to wrap up. Thanks, Henry. The outlook for both the product anchor and dry bulk sectors remains positive in the near term, supported by healthy charting environments. While the other books for our class of vessels have grown significantly since the beginning of 2023, we find SOLAS in the large number of older vessels, which are less competitive operationally and face demolition soon. The 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 ton miles.

Speaker Change: With that I'd like to flip the presentation back over to Eddie to wrap up.

Speaker Change: Okay.

Speaker Change: Yeah.

Eddie Valentis: Thanks, Henry. The outlook for both the product tanker and dry bulk sectors remains positive in the near term, supported by healthy chartering environments. While the order books for our class of vessels have grown significantly since the beginning of 2023, we find solace in the large number of older vessels which are less competitive operationally and face demolition soon. The 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 tonnebising. Scheduled developments for the refinery landscape only enhance the long-term outlook for the product tanker sector.

Eddie: Thanks Henry.

Eddie Valentis: The outlook for both the product tanker and dry bulk sectors remains positive in the near term, supported by healthy chartering environments. While the order books for our class of vessels have grown significantly since the beginning of 2023, we find solace in the large number of older vessels which are less competitive operationally and face demolition soon. The ongoing major geopolitical conflicts continue to create operating challenges and opportunities for us.

The outlook for both the product tanker and dry bulk sectors remain positive in the near term supported by healthy chartering environments, while the order books for our class of vessels have grown significantly since the beginning of 'twenty to 'twenty three we find we find solace in the large number of older vessels.

Eddie: So, it's a less competitive operationally and face demolition soon.

Eddie: The ongoing major geopolitical conflicts continuing to create operating challenges and the opportunities for us.

Eddie Valentis: 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 tonnebrization. Scheduled developments for the refinery landscape only enhance the long-term outlook for the product tanker sector. Further, global GDP growth over the near term supports demand for a broad list of dry commodities and benefits our class of bulk carriers. We expect to utilize our solid financial position and extensive industry relationships to develop additional investment opportunities that maximize shareholder value, including selective fleet expansion.

Eddie: 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 life.

Eddie Valentis: Scheduled developments for the refinery landscape only enhance the long-term outlook for the product anchor sector. Further, global GDP growth over the near term supports demand for a broad list of dry commodities and benefits a class of bulk carriers. We expect to utilize our solid financial position and excessive industry relationships to develop additional investment opportunities that maximize shareholder value, including selective fleet expansion. We also look to continue our common share repurchase program and, of course, repays scheduled debt. Enhancing our balance sheet remains a key priority.

Eddie: Scheduled the developments for the refinery landscape only enhance the long term outlook for the product tanker sector further global GDP growth over the near term.

Eddie Valentis: In addition, global GDP growth over the near term supports demand for a broad list of dry commodities and benefits our class of bulk carriers. We expect to utilize our solid financial position and extensive industry relationships to develop additional investment opportunities that maximize shareholder value, including selective fleet expansion. We also look to continue our common share repurchase program and, of course, repay scheduled debt. Enhancing our balance sheet remains a key priority. We appreciate your interest and thank you for joining our call today. We look forward to reporting on future progress at Pyxis Tankers. This concludes today's conference. You may now disconnect your lines. Thank you for your participation.

Eddie: Supports demand for a broad list of dry commodities and benefits our class of bulk carriers.

Eddie: We expect to utilize our solid financial position and extensive industry relationships to develop additional investment opportunities that maximize shareholder value, including selective fleet expansion.

Eddie Valentis: We also look to continue our common share repurchase program and, of course, repay scheduled debt. Enhancing our balance sheet remains a key priority. We appreciate your interest and thank you for joining our call today. We look forward to reporting on future progress at Pyxis Tankers.

Eddie: We also look to continue our common share repurchase program and of course repay scheduled debt enhancing our balance sheet remains a key priority.

Eddie Valentis: We appreciate your interest and thank you for joining our call today. We look forward to reporting on future progress at Pixies Tankers.

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 conference. You may now disconnect your lines. Thank you for your participation.

Speaker Change: This concludes today's conference you may now disconnect your lines. Thank you for your participation.

Operator: Good day, and welcome to the Pixis Tankers Conference call to discuss the financial results for the second 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 Pixis Tankers website, which is www.pixistankers.com. We'll see the call is Mr. Eddie Valentis, Chairman and Chief Executive Officer of Pixis Tankers and Mr. Henry Williams, Chief Financial Officer of the company.

Operator: We'll see the call is Mr. Eddie Valentis, Chairman and Chief Executive Officer of Pixis Tankers and Mr. Henry Williams, Chief Financial Officer of the company.

Operator: I would like to pass the floor to one of your speakers today, Mr. Eddie Valentis. Sir, please go ahead.

Operator: I would like to pass the floor to one of your speakers today, Mr. Eddie Valentis.

Operator: Sir, please go ahead.

Eddie Valentis: Hello everyone and thank you for joining our call for results of the three months ended June 30th, 2024. The disruption on global cyber trade from the Russia Ukraine war and the conflict in the Middle East continues. Global economic activity remains resilient despite the tight monetary policies by many central banks. Inflation is decelerating and interest rate cuts are expected starting this fall. The fundamental outlook for our two markets, product tankers and dry bulk carriers remain positive, characterized by healthy chart rates and rising asset values. But market conditions are dynamic and can be significantly influenced by macroeconomic and geopolitical events which are beyond our control.

Eddie Valentis: Inflation is decelerating and interest rate cuts are expected starting this fall. The fundamental outlook for our two markets, product tankers and dry bulk carriers remain positive, characterized by healthy chart rates and rising asset values. But market conditions are dynamic and can be significantly influenced by macroeconomic and geopolitical events which are beyond our control.

Eddie Valentis: Before commenting on our operating and financial results for the most recent period, please let me draw your attention to some important legal notifications on slide two that we recommend you read including our presentation today, which will include forward-looking statements. Thank you. Turning to slide three. Our most recent quarterly results reflected strong financial performance in revenues and profitability, given by healthy market conditions and our successful expansion into the dry bulk sector. With the acquisition of the 2015 build comes our max in late June, our fleet of six modern midsize eco vessels consists of three MR2 product tankers, one ultra max and two larger comes our max's bulk areas.

Eddie Valentis: Turning to slide three. Our most recent quarterly results reflected strong financial performance in revenues and profitability, given by healthy market conditions and our successful expansion into the dry bulk sector. With the acquisition of the 2015 build comes our max in late June, our fleet of six modern midsize eco vessels consists of three MR2 product tankers, one ultra max and two larger comes our max's bulk areas. In the quarter ended June 30th, 2024, we generated consolidated time chart equivalent revenues of 12.2 million.

Eddie Valentis: In the quarter ended June 30th, 2024, we generated consolidated time chart equivalent revenues of 12.2 million. Marking an increase of almost 42% over the same period in 2023. Our daily time chart equivalent for our fleet in Q2, 2024 was approximately 29,150 of which the Mars averaged close to 32,900 and our midsize bulk is averaged 22,300 dollars per day. For the most recent period, we reported net income of 5 million or 48 cents basically PS substantially better than Q2, 2023.

Eddie Valentis: Marking an increase of almost 42% over the same period in 2023. Our daily time chart equivalent for our fleet in Q2, 2024 was approximately 29,150 of which the Mars averaged close to 32,900 and our midsize bulk is averaged 22,300 dollars per day. For the most recent period, we reported net income of 5 million or 48 cents basically PS substantially better than Q2, 2023. Our adjusted EBDA in the most recent period rose to 8 million.

Eddie Valentis: Our adjusted EBDA in the most recent period rose to 8 million. The product tanker charting environment remains strong throughout the second quarter of 2024. Despite slower global economic activity, our hostilities contribute to tighter inventories of refined petroleum products, which continue to be below five year averages in a number of locations worldwide. This has led to changing trade patterns, expansion of ton miles and arbitrage opportunities due to dislocations in certain end marks. The Global Refinery Activity remains constructive in spite of moderating crack spreads and consumption, especially as we move further into the historically, seasonally, slower third quarter.

Eddie Valentis: The product tanker charting environment remains strong throughout the second quarter of 2024. Despite slower global economic activity, our hostilities contribute to tighter inventories of refined petroleum products, which continue to be below five year averages in a number of locations worldwide. This has led to changing trade patterns, expansion of ton miles and arbitrage opportunities due to dislocations in certain end marks. The Global Refinery Activity remains constructive in spite of moderating crack spreads and consumption, especially as we move further into the historically, seasonally, slower third quarter.

Eddie Valentis: Overall, many of these developments reinforce a positive outlook for Porter Tankers after AIDS. As of August 9, 68% of available days in Q3, 2024, were booked for our MRs at an average estimated TCE rate of 33,850 days per day, similar to what we reported in the three-month period ended June 30. Two of our MRs are employed under short-term fine charges and one in the spot market. The supply demands for the dry bulk sector continue to be relatively balanced for 2024.

Eddie Valentis: Our positive view on the dry bulk sector is further reflected by the recent acquisition of the concaventure assistorship to the camps and max we purchased back in February. As of August 9, our three modern bulk areas were booked for 76% of available days in Q3 at an average estimated TCE of 17,200 per day, all employed under short-term fine charges. 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, active investment opportunities.

Eddie Valentis: However, we have yet to find compelling acquisitions of modern MRs given current prices which are reaching 10-year historical highs. While dry bulk values have also continued to appreciate, we have grown more selective in pursuing acquisitions in this sector. In the meantime, we expect to strengthen our balance sheet, amortizing scheduled debt and repurchasing additional shares.

Eddie Valentis: In the meantime, we expect to strengthen our balance sheet, amortizing scheduled debt and repurchasing additional shares.

Eddie Valentis: Please flip to slide 4 for information on our existing fleet and employment activities. We are continuing to prudently maintain our mixed chartering strategy of time and spot charges with a focus on diversification by customer and duration. As you can see, five of our vessels are under staggered short-term time charges which provide us with attractive fixed revenues over defined periods of time and optimize working capital. The Pixies Lambda, our youngest vessel, continues to operate in the spot market. Notably, the average of the vessels in our fleet is materially below the industry averages with our MRs at 9.9 years and 8.7 years for our bulk years.

Eddie Valentis: Please flip to slide 4 for information on our existing fleet and employment activities. We are continuing to prudently maintain our mixed chartering strategy of time and spot charges with a focus on diversification by customer and duration. As you can see, five of our vessels are under staggered short-term time charges which provide us with attractive fixed revenues over defined periods of time and optimize working capital. The Pixies Lambda, our youngest vessel, continues to operate in the spot market.

Eddie Valentis: Notably, the average of the vessels in our fleet is materially below the industry averages with our MRs at 9.9 years and 8.7 years for our bulk years. The next special surveys are scheduled to occur during the first half of next year for the concarstery and the concar venture.

Eddie Valentis: The next special surveys are scheduled to occur during the first half of next year for the concarstery and the concar venture.

Eddie Valentis: Much of the incremental refining capacity will be export driven which should lead to further expansion of tonmai. As you can see on slide 8, the impact of the ongoing Russian Ukrainian war and the Israeli Hamas conflict have continued to sustain strong charter aids, lengthened sailing distances and expand on miles. Unfortunately, escalating tensions in the Middle East are directly affecting the oil markets, adding to the overall market uncertainty.

Eddie Valentis: Let's move on to slide 9. The combination of robust chartering conditions of the last one and a half years and continued positive outlook by owners has resulted in a significant increase in orders for the construction of new product tankers. According to Dury, since the beginning of 2023, there have been orders for the construction of 231 new MR2s with the order book standing at 274 vessels or 16.1% of the global fleet at July 31st.

Eddie Valentis: By the end of 2025, 104 MRs are scheduled for delivery. Surprisingly, only 11 MRs have been delivered during the first seven months this year according to Dury. So, slippage may further affect the actual number of deliveries. Due to significant backlogs, many Asian yards don't have available construction slots for MRs with deliveries in two plus years. It is important to note that 13.5% of the global MR2 fleet or 230 tankers are 20 years of age or older.

Eddie Valentis: Given this large number combined with declining economics of operating all the vessels, major scrapping should occur over the next five years, but with a strong market only four MRs were demolished in 2023, and that pace has yet to pick up. Overall, we continue to estimate the net fleet growth for MRs to be about 2% this year, very low by historical standards.

Eddie Valentis: Overall, we continue to estimate the net fleet growth for MRs to be about 2% this year, very low by historical standards. Turning to slide 10, we see the strong chartered conditions have led to steep increases in MR2s prices across the board. Values for second hand owners remain well above 10 year averages. According to RO ship brokers, 94 MR2s were sold in the first seven months of 2024, up 24% year-on-over-year, marking the largest number on the record.

Eddie Valentis: Turning to slide 10, we see the strong chartered conditions have led to steep increases in MR2s prices across the board. Values for second hand owners remain well above 10 year averages. According to RO ship brokers, 94 MR2s were sold in the first seven months of 2024, up 24% year-on-over-year, marking the largest number on the record. Tanker sales continue to be concentrated in all their tonnage. Construction contracts for new buildings in South Korea now exceed 52 million excluding yard supervision and add-ons. Prices for young acquisition MR2 vessels are preference, are approaching the cost of a new build, making viable acquisition candidates difficult to find in our opinion.

Eddie Valentis: Tanker sales continue to be concentrated in all their tonnage. Construction contracts for new buildings in South Korea now exceed 52 million excluding yard supervision and add-ons. Prices for young acquisition MR2 vessels are preference, are approaching the cost of a new build, making viable acquisition candidates difficult to find in our opinion.

Eddie Valentis: Now, I would like to provide some update for the dry bulk sector, so please flip to slide 12. Overall, the supply demand fundamentals for the sector look reasonably balanced for the remainder of 2024. Considering a moderate correlation to global GDP growth of 3.2% in 2024, demand for dry bulk commodities should remain positive. The dry bulk trade is estimated to grow 2.6% to almost 5.7 billion tons this year, with tonnage miles to increase by 3.9% due to the effects of armed hostilities, and to a lesser extent, port congestion and restrictions caused by adverse weather conditions.

Eddie Valentis: To a fair extent, the supply picture for dry bulk carriers look manageable in the near term. Drury estimates the order book for Panamax carriers which include campsamax class vessels to be 406 vessels or 12.4% of the global fleet, but a similar percentage in 20 years of age or more, which should eventually lead to more scrapping. At July 31, the order book for superamax carriers which include olderamax stood at 607 units or 14.1% of the global fleet of this highly versatile vessel class.

Eddie Valentis: As you see on slide 13, prices for dry bulk carriers have also substantially appreciated. In fact, the price of a five-year-old Ultramax now matches or exceeds a new build cost. Nevertheless, strong asset prices are another positive indicator for the sector.

Eddie Valentis: At this point, I would like to turn the call over to Henry Williams, our chief financial officer who will discuss and finance on the results in great detail. Thanks, Eddie. On slide 15, let's review our on-auto results for the three months ended June 30, 2024. Our time-charter equivalent revenues for Q2, which we define as revenues net minus voyage-related costs and commissions, rose to $12.2 million, and increase of almost 42% as we benefited from higher-demerge income under spot charters, better market conditions, and more operating days due to the addition of the dry bulk vessels.

Henry Williams: At this point, I would like to turn the call over to Henry Williams, our chief financial officer who will discuss and finance on the results in great detail. Thanks, Eddie. On slide 15, let's review our on-auto results for the three months ended June 30, 2024. Our time-charter equivalent revenues for Q2, which we define as revenues net minus voyage-related costs and commissions, rose to $12.2 million, and increase of almost 42% as we benefited from higher-demerge income under spot charters, better market conditions, and more operating days due to the addition of the dry bulk vessels.

Eddie Valentis: Strong charting rates were reflected in our daily TC for our MRs, which improved to $32,868 in Q2. Our bulkers reported an average daily TC of $22,333 for the same period. During the quarter, the overall fleet generated an average TC of $29,156 per vessel, almost a 17% increase through a mix of short-term time in spot charters.

Henry Williams: Strong charting rates were reflected in our daily TC for our MRs, which improved to $32,868 in Q2. Our bulkers reported an average daily TC of $22,333 for the same period. During the quarter, the overall fleet generated an average TC of $29,156 per vessel, almost a 17% increase through a mix of short-term time in spot charters.

Henry Williams: Moving to slide 16, we generated net income to common shareholders of $5 million for the three months ended June 30, 2024, or $0.48 basic and $0.43 diluted DPS, compared to net income of $2.8 million or $0.25 basic, $0.23 diluted income per share in the same period in 2023. Please note, for accounting purposes, the fully diluted earnings calculations assume the potential conversion of all the outstanding Series A convertible preferred stock into common shares and the elimination of the associated dividend. In Q2, 2024, a majority of the increased in TCE revenues of $3.6 million flowed through to adjusted EBITDA, which increased $2.8 million to $8 million for the period.

Henry Williams: Most of the excess cash is invested in short-term money market investments, which currently earn 5.5%. Lastly, given the recent common share buybacks, the partial redemption of the convertible preferred stock, offset by the issuance of restricted shares for the conqueror venture acquisition, we have approximately 10.7 million common shares outstanding as of August 9th, and 12 million shares on a fully deluded basis.

Eddie Valentis: With that, I'd like to flip the presentation back over to Eddie to wrap up. Thanks Henry. The outlook for both the product anchor and dry bulk sectors remain positive in the near term, supported by healthy charting environments. While the other books for our class of vessels have grown significantly since the beginning of 2023, we find solas in the large number of older vessels which are less competitive operationally and face demolition soon.

Eddie Valentis: The 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 ton miles. Scheduled developments for the refinery landscape only enhance the long-term outlook for the product anchor sector. Further, global GDP growth over the near term supports demand for a broad list of dry commodities and benefits are class of bulk carriers.

Eddie Valentis: We expect to utilize our solid financial position and excessive industry relationships to develop additional investment opportunities that maximize shareholder value including selective fleet expansion. We also look to continue our common share repurchase program and of course repays scheduled debt.

Eddie Valentis: Enhancing our balance sheet remains a key priority. We appreciate your interest and thank you for joining our call today. We look forward to reporting on future progress at Pixies Tankers.

Operator: This concludes today's conference. You may now disconnect your lines. Thank you for your participation.

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