Pyxis Tankers Sees Acquisition Opportunities As Asset Values Remain Elevated - Pyxis Tankers (NASDAQ:PXS)

Company Overview - Pyxis Tankers Inc. presented its corporate overview, focusing on fleet composition and eco-efficient vessels, alongside financial performance and market outlook [1] - The company operates a fleet of six mid-sized vessels, including three MR product tankers and three dry bulk carriers, with a net funded debt to total capitalization under 20% as of September 30, 2025 [1] Financial Performance - For the nine months ending September 30, 2025, TCE revenues declined by approximately $8 million year-over-year, primarily due to lower charter rates [2] - Average daily TCE across the fleet fell from $25,870 in 2024 to $17,730 in 2025, driven by a $10,000 per day decline in MR product tanker charter rates and a reduction of just over $3,000 per day in dry bulk rates [2] - The decrease in TCE revenues, combined with a $3 million increase in G&A expenses, resulted in a net income decrease to nil, with adjusted EBITDA of $8.9 million for the most recent period [2] Debt Management - Recent loan amendments reduced the consolidated weighted average interest margin to just under 2% over SOFR, translating to approximately 5.65%, which is about a full percentage point lower than the 6.67% rate incurred during the first nine months of 2025 [3] - The company's next loan maturity is not until February 2029 [3] Capital Allocation - Approximately 115,000 shares have been repurchased for just over $300,000, leaving $2.7 million available under the current authorization, with no financial covenant constraints on share repurchases [4] Product Tanker Market Outlook - Seaborne trade for product tankers is moderately correlated to GDP growth, with the IMF forecasting approximately 3.25% annual growth through 2027 [5] - OPEC+ plans to maintain its 2.2 million barrels per day of voluntary crude production cuts, which began in April 2025 [5] - Global oil consumption is projected to increase by nearly 1% in 2026, with refinery throughput also expected to rise by approximately 1% [5] Supply Dynamics - The MR2 order book currently stands at 268 vessels, representing approximately 14% of the global fleet, with newbuilding deliveries set to accelerate [6] - 138 MRs are expected in 2026 and an additional 92 in 2027, with over 19% of the global MR2 fleet being 20+ years old, likely leading to significant demolitions over the long term [6] Dry Bulk Demand - China remains the primary demand driver for iron ore and coal, with its economy forecast to grow approximately 4.5% in 2026 [7] - Structural challenges persist within China's real estate market and banking system, while India is emerging as a source of demand, supported by IMF projections of approximately 6.4% annual GDP growth through 2027 [7]