Monday, May 03, 2021
Pyxis Tankers Inc. (PXS)
Acquisition Funded by Recent Offering
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.
Buying power pays off with $20 million acquisition of 2013-built MR. A MR (medium range) product tanker will be acquired for $20 million, The 2013-built MR was constructed at Hyundai Mipo shipyard in South Korea. The MR will complement the three MRs in the fleet once it is delivered in 3Q2021. Assuming a TCE rate in the $16k/day range, the MR should generate EBITDA of $3.7 million per year, and it lifts our 2021 EBITDA to $5.5 million from $4.3 million.
Financing moves created financial flexibility. Also, equity offering materially improved public market float. A term loan of $17 million on the Epsilon and existing cash refinanced existing debt recently and a well-timed equity offering improved financial flexibility to shift to growth. The equity offering, in addition to preferred stock conversions, expanded the public market float to more than …
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.
