Pyxis Tankers Pushes One-Third of Debt Repayment to 2022

Greece-based Pyxis Tankers has reached a preliminary agreement with one its lenders to extend the maturity of the loans related to two of the company’s vessels.

Under the agreement, the company will extend USD 25 million of its outstanding debt, which amounts to USD 68.4 million, for an additional four years until September 2022.

“Once this amendment is in place, the first scheduled balloon payment with respect to our bank debt will be due in the second quarter of 2020, which enhances our financial flexibility,” Valentios Valentis, Pyxis Tankers’ Chairman and CEO, said.

The announcement comes on the back of the company’s financial results for the first quarter of this year which show that Pyxis Tankers recorded a net loss of USD 1.7 million, compared to a profit of USD 1.1 million seen in the same period a year earlier.

The decrease in net income was primarily due to a USD 2.9 million decrease in time charter equivalent (TCE) revenues from USD 7.6 million in 1Q 2016 to USD 4.7 million in 1Q 2017.

During the quarter, daily TCE rate stood at USD 9,810, significantly lower from USD 14,339 in 1Q 2016.

“Our results for the first quarter of 2017 reflected a continuation of a challenging chartering environment. Spot and period charter rates were volatile during the quarter but improved slightly overall, especially for modern eco-efficient tankers. However, we expect chartering activity to continue to be choppy for most of 2017, but believe in a longer term improvement starting in late 2017 due to attractive market fundamentals,”  Valentis commented.

“Consequently, we intend to continue to maintain our mixed chartering strategy. As of May 15, 2017, we had two vessels on time charter and the balance of our fleet on spot charters, which positions us to take advantage of improving rates when they occur,” Valentis further said.

According to Valentis, the company will continue to focus on acquisition opportunities as part of its strategic plan.

As of May 15, 2017, Pyxis Tankers’ fleet comprised six vessels.