Wednesday, January 05, 2022
Pyxis Tankers (PXS)
Solid Strategic Move to Sell Small Tankers
Pyxis Tankers Inc is a United States-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of double hull product tankers employed under a mix of short- and medium-term time charters and spot charters. The fleet owned by the company includes Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta, Northsea Alpha, and Northsea Beta. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel, fuel oil, and other liquid bulk items, such as vegetable oils and organic chemicals.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Sale of two small tankers is a positive move. Net of debt secured by the small tankers, the sale of the small tankers should boost liquidity by $2.8 million and increase 2022 EBITDA slightly to $9.0 million based on TCE rates of $13.4k/day.
Asset sale lowers pro forma debt. After refinancing Malou debt of $7.3 million and adding new Lamda debt of $21.7 million, total debt approximated $84 million, including related party notes of $6.0 million. Pro forma for the sale of the small tankers, total debt should drop into the $78 million range, with preferred stock of ~$11 million and cash of $5 million …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
