Pyxis Tankers Inc (PXS) 2022 Q3 法說會逐字稿

Good day, and welcome to the Pyxis Tankers conference call to discuss the financial results for the third quarter 2022. As a reminder, today's call is being recorded. Additionally, a live webcast of today's conference call and an accompanying presentation is available on Pyxis Tankers website, which is www.pyxistankers.com.

美好的一天，歡迎參加 Pyxis Tankers 電話會議，討論 2022 年第三季度的財務業績。提醒一下，今天的電話會議正在錄音中。此外，Pyxis Tankers 網站 www.pyxistankers.com 上提供今天電話會議的網絡直播和隨附的演示文稿。

Hosting the call is Eddie Valentis, Chairman and Chief Executive Officer of Pyxis Tankers; and Mr. Henry Williams, Chief Financial Officer of the company.

Pyxis Tankers 董事長兼首席執行官 Eddie Valentis 主持了電話會議；公司首席財務官 Henry Williams 先生。

I would like to pass the floor to one of your speakers today, Mr. Eddie Valentis. Thank you. Please go ahead, sir.

今天我想請您的一位發言人發言，Eddie Valentis 先生。謝謝。請繼續，先生。

Good afternoon, everyone, and thank you for joining our call for results of the 3 months ended September 30, 2022. The impact from the Russian invasion of the Ukraine continues to take center stage, affecting global energy markets and resetting personal, economic and strategic priorities as well as global relationships. Many countries are battling high inflation, cost of living increases and the slowdown in economic activity. However, the product tanker sector continues to be positively affected with strong chartering activity and rapidly increasing asset values. At Pyxis, we continue to successfully manage through these unprecedented times.

大家下午好，感謝您加入我們對截至 2022 年 9 月 30 日的 3 個月結果的呼籲。俄羅斯入侵烏克蘭的影響繼續佔據中心位置，影響全球能源市場並重新設定個人、經濟和戰略優先事項以及全球關係。許多國家正在與高通脹、生活成本增加和經濟活動放緩作鬥爭。然而，成品油輪行業繼續受到強勁的租船活動和快速增長的資產價值的積極影響。在 Pyxis，我們繼續成功度過這些前所未有的時代。

Before starting, please let me draw your attention to some important legal notifications on Slide 2 that we recommend you read, including our presentation today, which will include forward-looking statements. Thank you.

在開始之前，請允許我提請您注意我們建議您閱讀的幻燈片 2 上的一些重要法律通知，包括我們今天的演示文稿，其中將包含前瞻性陳述。謝謝。

Turning to Slide 3. Our most recent quarterly results reflected strong financial performance in revenues growth and profitability. In the third quarter ended September 30, 2022, we generated consolidated time charter equivalent revenues, TCE of $12 million, an increase of $8.5 million over the same period in 2021. Charter rates continued to accelerate during the quarter, especially in the spot market. Our daily TCE for Q3 2022 for our 5 Eco-MRs was $29,062, sequentially, up 10.6% over the prior quarter and up a factor of four versus the results in the same period last year. Moreover, we reported net income of $5.3 million or $0.48 basic EPS for the most recent period versus losses in 2021. Our adjusted EBITDA in Q3 '22 climbed to $8 million.

轉到幻燈片 3。我們最近的季度業績反映了收入增長和盈利能力方面的強勁財務表現。在截至 2022 年 9 月 30 日的第三季度，我們產生了 1200 萬美元的合併定期租船當量收入 TCE，比 2021 年同期增加了 850 萬美元。租船費率在本季度繼續加速，尤其是在現貨市場。我們的 5 個 Eco-MR 在 2022 年第三季度的每日 TCE 為 29,062 美元，環比增長 10.6%，比去年同期增長四倍。此外，我們報告最近一期的淨收入為 530 萬美元或 0.48 美元的基本每股收益，而 2021 年為虧損。我們在 2022 年第三季度調整後的 EBITDA 攀升至 800 萬美元。

Over the course of the third quarter, the product tanker chartering environment experienced further strength. This was a function of increased mobility with some amplified demand for transportation fuels despite moderating economic activity. In addition, the ongoing Russian invasion of the Ukraine has resulted in tightening of product inventories, which continue to be below 5-year averages in many parts of the world, changing trade patterns, expansion of ton-mile, dislocation to end markets, creating arbitrage opportunities and higher transportation costs. While high inflation persists, petroleum product prices such as gasoline and diesel have softened to varying levels since the beginning of summer 2022. Accordingly, refinery activity continues to be very strong with healthy crack spreads, reflecting solid global demand.

在第三季度，成品油輪租賃環境進一步走強。這是流動性增加的結果，儘管經濟活動放緩，但對運輸燃料的需求有所增加。此外，俄羅斯對烏克蘭的持續入侵導致產品庫存收緊，世界許多地區的庫存繼續低於 5 年平均水平，貿易模式發生變化，噸英里擴大，終端市場混亂，造成套利機會和更高的運輸成本。儘管高通脹持續存在，但自 2022 年夏季初以來，汽油和柴油等石油產品價格已走軟至不同水平。因此，煉油活動繼續非常強勁，裂解價差健康，反映出全球需求強勁。

These developments have translated in robust product tanker charter rates in the spot market and greater time charter activity. Our booking rates for Q4 2022 continues to show upward momentum. As of November 10, 82% of our available days for the fourth quarter were booked at an average estimated TCE of $36,800. We are continuing to maintain our mixed chartering strategy of time and spot charters with a focus on diversification by customer and duration.

這些發展已轉化為現貨市場強勁的成品油輪租賃費率和更活躍的期租活動。我們 2022 年第四季度的預訂率繼續呈現上升勢頭。截至 11 月 10 日，我們第四季度 82% 的可用天數被預訂，平均估計 TCE 為 36,800 美元。我們將繼續保持我們的定期和即期租船的混合租船策略，重點是客戶和期限的多樣化。

Please turn to Slide 4 for information on our existing fleet and employment activities. As you can see, 2 of our vessels are currently in the spot market and the remaining 3 MRs are contracted under short-term TCEs that run up to next fall. For the Q4 bookings, the average estimated spot charter rate is $47,700 and an average time charter of $32,600. We believe our chartering strategy provides a reasonable balance of risk and return, especially for a small company like ours.

請轉到幻燈片 4，了解有關我們現有機隊和就業活動的信息。如您所見，我們的 2 艘船目前處於現貨市場，其餘 3 艘 MR 根據短期 TCE 簽訂合同，有效期至明年秋季。對於第四季度的預訂，平均預計即期租船費為 47,700 美元，平均定期租船費為 32,600 美元。我們相信我們的包機策略提供了風險和回報的合理平衡，特別是對於像我們這樣的小公司。

Next, please turn to Slide 6 for a further update on the product tanker market. In addition to my prior comments about the market, recent economic activity for most of the world has been affected by the war and other geopolitical events. Initial sanctions on exports on petroleum products have had limited financial impact on Russia, which has benefited from market dislocation and low inventories in many parts of the world, especially Europe. But the EU ban on Russian refined products starting in early February 2023 should only compound complexities of the market. And according to one analyst, an incremental 8% growth in product tanker demand. As previously highlighted, tight supplies of gasoline and diesel are changing trade routes and adding ton miles to voyages by increasing exports from the refineries located in the Middle East, U.S. and certain parts of Asia.

接下來，請轉到幻燈片 6，了解成品油輪市場的進一步更新。除了我之前對市場的評論外，世界大部分地區最近的經濟活動都受到戰爭和其他地緣政治事件的影響。對石油產品出口的初步製裁對俄羅斯的財務影響有限，俄羅斯受益於世界許多地區（尤其是歐洲）的市場混亂和低庫存。但歐盟從 2023 年 2 月初開始對俄羅斯精煉產品實施禁令只會加劇市場的複雜性。據一位分析師稱，成品油輪需求增長了 8%。正如之前強調的那樣，汽油和柴油供應緊張正在改變貿易路線，並通過增加位於中東、美國和亞洲某些地區的煉油廠的出口來增加航程。

Increasing demand for transportation fuels, more recently for air travel, only exacerbates the difficulties in replenishing diesel and jet fuel inventories. Unanticipated events such as Russia's complete shutdown of Europe's major operating natural gas pipeline Nord Stream 1 and subsequent bombing only create chaos through the energy value chain and force some European utilities to consider switching to alternatives, such as fuel oil for power generation. Reliable, secure energy sources will continue to be a major priority.

對運輸燃料的需求增加，最近對航空旅行的需求增加，只會加劇補充柴油和噴氣燃料庫存的困難。俄羅斯完全關閉歐洲主要運營的天然氣管道 Nord Stream 1 以及隨後的爆炸事件等意外事件只會在能源價值鏈中造成混亂，並迫使一些歐洲公用事業公司考慮轉向替代品，例如用於發電的燃料油。可靠、安全的能源將繼續成為重中之重。

Please turn to Slide 7 to review macroeconomic considerations. Historically, seaborne trade of refined products has been relatively correlated to global GDP growth. While the IMF maintained its GDP growth estimate to 3.2% for this year, it slightly reduced its outlook for 2023 to 2.7% in the October update. The IEA recently reduced its oil consumption to an average of 99.6 million barrels per day for 2022, a 2% increase and slightly lower growth estimates in 2023 to 1.7%. Due to moderating economic activity and lower crude prices, OPEC+ recently cut production by an estimated net effect of 1 million barrels per day through 2023.

請轉到幻燈片 7 查看宏觀經濟考慮因素。從歷史上看，成品油的海運貿易與全球 GDP 增長相對相關。儘管國際貨幣基金組織將今年的 GDP 增長預期維持在 3.2%，但在 10 月的更新中將 2023 年的預期略微下調至 2.7%。國際能源署最近將 2022 年的石油消費量平均減少至每天 9960 萬桶，增長 2%，並略微下調 2023 年的增長預測至 1.7%。由於經濟活動放緩和原油價格下跌，歐佩克+最近減產，預計到 2023 年每天淨減產 100 萬桶。

Orchestrate the releases of crude from the strategic petroleum reserves of certain countries such as the U.S., are winding down by the end of the year. Annual increases of 6% of U.S. oil production will add supply over time. However, given geopolitical and macroeconomic factors, a leading research firm recently estimated demand growth for refined products at 6% for 2023.

協調美國等某些國家戰略石油儲備的原油釋放量將在年底前逐漸減少。隨著時間的推移，美國石油產量每年增加 6% 將增加供應。然而，考慮到地緣政治和宏觀經濟因素，一家領先的研究公司最近估計，2023 年成品油的需求增長率為 6%。

Moving to Slide 8. U.S. refineries are currently achieving high seasonal utilization at healthy crack spreads in order to meet solid product demand from the U.S., Europe and Latin America. Zero COVID policies continue to delay the economic rebound in China and have resulted in recent government approvals for the export of approximately 120 million barrels of gasoline, diesel and jet fuel through early next year. In fact, many of these cargoes should be carried on MRs within the Asian region. Over the longer term, we expect demand for the product tanker sector to be supported by refinery additions led by the Middle East and Asia. Jury estimated that over 4.9 million barrels per day of new refining capacity is scheduled to come online by 2026, virtually all of which is outside the OECD. Planned shutdowns are likely to slow, but over the long run, maybe further contribute to the importing of refined products into mature large OECD markets and provide additional ton-mile expansion.

轉到幻燈片 8。美國煉油廠目前正以健康的裂解價差實現高季節性利用率，以滿足來自美國、歐洲和拉丁美洲的穩定產品需求。零 COVID 政策繼續延遲中國的經濟反彈，並導致政府最近批准在明年初出口約 1.2 億桶汽油、柴油和噴氣燃料。事實上，這些貨物中有許多應該在亞洲地區的 MR 上運載。從長遠來看，我們預計成品油輪行業的需求將受到以中東和亞洲為首的煉油廠增產的支撐。陪審團估計，到 2026 年，每天將有超過 490 萬桶的新煉油能力上線，幾乎所有這些都在經合組織之外。計劃中的停產可能會放緩，但從長遠來看，可能會進一步促進精煉產品進口到成熟的大型經合組織市場，並提供額外的噸英里擴展。

Let's move on to Slide 9. The product tanker supply picture is much clearer as the outlook for MR2s continues to look very promising. The order book continues to drift lower with subdued new ordering for the product tankers. Due to the surge in ordering of new container ships, gas carriers and dry bulk vessels, many Asian yards don't have available construction slots with deliveries at the end of 2024 or later.

讓我們繼續看幻燈片 9。隨著 MR2 的前景繼續看好，成品油輪供應情況更加清晰。由於成品油輪的新訂單減少，訂單繼續走低。由於新集裝箱船、天然氣運輸船和乾散貨船的訂單激增，許多亞洲船廠沒有可用的建造槽位，可以在 2024 年底或更晚交付。

Over the 5-year period ending 2021, delays in delivery of new builds averaged almost 18 MRs per year. Known decision-making process for tanker new ordering are further complicated -- is further complicated by ongoing developments in ship and engine designs, stricter environmental regulations, rapidly escalating ship-building costs as well as an evolving and still unclear selection and availability of lower carbon fuels.

在截至 2021 年的 5 年期間，新建築的交付延遲平均每年近 18 次 MR。已知的油輪新訂單決策過程更加複雜——由於船舶和發動機設計的不斷發展、更嚴格的環境法規、快速上升的造船成本以及不斷發展且仍不清楚的低碳選擇和可用性，這些過程變得更加複雜燃料。

New IMO regulations governing CO2 emissions, including data collections and ratings under EEXI and CII starting 2023, and could limit available supply due to slow stemming by older vessels. Despite the strong chartering market and reasonable scrap prices, 17 MR2s have been demolished since the beginning of 2022. Given that about 7% of the worldwide fleet of MRs is 20 years of age or older, demolition activity should pick up. Consequently, we continue to estimate that annual net fleet growth for MRs should be around 2% throughout 2023.

管理二氧化碳排放的新 IMO 法規，包括從 2023 年開始的 EEXI 和 CII 下的數據收集和評級，並且可能會由於老舊船舶的緩慢停泊而限制可用供應。儘管租船市場強勁且廢鋼價格合理，但自 2022 年初以來仍有 17 艘 MR2 被拆解。鑑於全球約 7% 的 MR 機隊機齡在 20 年或以上，拆解活動應該會有所回升。因此，我們繼續估計，到 2023 年，MR 的年度淨機隊增長率應該在 2% 左右。

Turning to Slide 10. Robust charter conditions have led to steep increases in asset prices across the board. Newbuilding prices are now over 43 million with early delivery in about 2 years. Values for young eco-efficient MRs are near historical highs and acquisition opportunities are rare. However, higher asset prices have increased our fleet value and NAV. This, combined with rising earnings power should lead to higher equity values and hopefully, share prices.

轉到幻燈片 10。穩健的租船條件導致資產價格全面大幅上漲。新造船的價格現在超過 4300 萬美元，並在大約 2 年內提前交付。年輕的生態高效 MR 的價值接近歷史高位，收購機會很少。然而，較高的資產價格增加了我們的機隊價值和資產淨值。這一點，再加上盈利能力的提高，應該會導致更高的股票價值，並有望帶來更高的股價。

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.

在這一點上，我想把電話轉給我們的首席財務官亨利威廉姆斯，他將更詳細地討論我們的財務業績。

Thanks, Eddie. On Slide 12, let's review our unaudited results for the 3 months ended September 30, 2022. Our time charter equivalent revenues for Q3 of '22, which we define as revenues net minus voyage-related costs and commissions accelerated to $12 million, an increase of $8.5 million from the same period in 2021 due to higher charter rates, especially in the spot market, where we incur voyage-related costs and commissions as well as the impact from changes in our fleet.

謝謝，艾迪。在幻燈片 12 上，讓我們回顧一下截至 2022 年 9 月 30 日的 3 個月未經審計的結果。我們將 22 年第三季度的期租等效收入定義為淨收入減去航程相關成本和佣金後加速至 1200 萬美元，增加由於更高的租船費率，特別是在現貨市場，我們在現貨市場產生了與航程相關的成本和佣金，以及船隊變化的影響，因此與 2021 年同期相比增加了 850 萬美元。

Since summer of last year, we have added 2 MRs and sold 2 small tankers. In the third quarter of '22, the TCE rate for our MRs was $29,062 per day, a dramatic increase from the comparable 2021 period.

從去年夏天開始，我們增加了 2 艘 MR 並出售了 2 艘小型油輪。在 22 年第三季度，我們 MR 的 TCE 費率為每天 29,062 美元，與 2021 年同期相比大幅增加。

Moving to Slide 13. We generated net income to common shareholders of $5.1 million for the 3 months ended September 30, 2022, or $0.48 basic and $0.42 diluted EPS compared to a net loss of $3.7 million or $0.37 basic and diluted loss per share in the same period in 2021. For accounting purposes, the fully diluted earnings calculation in 2022 assumes the potential conversion of all outstanding Series A convertible preferred stock into common shares and the elimination of the associated dividend. In Q3 '22, a substantial portion of the increase in TCE revenues dropped to the bottom line. Adjusted EBITDA rose to $8 million, an improvement of $9.2 million from the third quarter of last year.

轉到幻燈片 13。截至 2022 年 9 月 30 日的三個月，我們為普通股股東帶來的淨收入為 510 萬美元，即基本每股收益 0.48 美元和稀釋後每股收益 0.42 美元，相比之下，淨虧損為 370 萬美元，即基本每股收益和稀釋每股收益 0.37 美元。 2021 年同期。出於會計目的，2022 年的完全攤薄收益計算假設所有已發行 A 系列可轉換優先股可能轉換為普通股，並消除相關股息。在 22 年第三季度，TCE 收入增長的很大一部分下降到了底線。調整後的 EBITDA 增至 800 萬美元，比去年第三季度增加 920 萬美元。

Please turn to Slide 14, which reviews our recent MR fleet data as we operate 1 eco-modified vessel and 4 eco-efficient tankers. Given the size of our fleet, changes in these metrics related to a single vessel in one reporting period can have a disproportionate effect on the total fleet operating results. Beyond the significant improvement in TCE for 2022, the key takeaway here remains the relative stability in operating expenses despite rising cost pressures such as crewing, insurance and lubes.

請轉到幻燈片 14，它回顧了我們最近的 MR 船隊數據，因為我們運營著 1 艘生態改裝船和 4 艘生態高效油輪。鑑於我們船隊的規模，在一個報告期內與單艘船相關的這些指標的變化可能會對整個船隊的運營結果產生不成比例的影響。除了 2022 年 TCE 的顯著改善之外，儘管船員、保險和潤滑油等成本壓力不斷上升，但這裡的關鍵要點仍然是運營費用的相對穩定。

Turning to Slide 15. As you may recall, we believe it is important to periodically review total daily operational cost to run and manage a public tanker company, including [overhead]. These costs vary by fleet composition, vessel delivery removal, company operating structure and management. We define total daily operational costs as the sum of vessel operating expenses, technical and commercial management costs plus G&A expenses. Based upon recent results, the total daily operational cost of our modern eco-efficient MR2s continue to be very competitive compared to the U.S. listed pure-play product tanker peers despite our small size.

轉到幻燈片 15。您可能還記得，我們認為定期審查運營和管理一家公共油輪公司的日常運營總成本（包括 [間接費用]）非常重要。這些成本因船隊組成、船舶交付移除、公司運營結構和管理而異。我們將每日總運營成本定義為船舶運營費用、技術和商業管理成本加上 G&A 費用的總和。根據最近的結果，儘管我們的規模較小，但與美國上市的純產品油輪同行相比，我們現代生態高效 MR2 的總日常運營成本仍然非常具有競爭力。

Now flip to Slide 16 to review our capitalization at September 30, 2022. At quarter close, our consolidated leverage ratio to net funded debt stood at approximately 51% of total capitalization. We continue to be in full compliance of our loan agreements. Our weighted average interest rate was 5.9% for the most recent quarter, and the next bank loan maturity is July of 2025. Over 21% of our debt has interest rate protection or fixed coupon, mitigating further increases in interest costs. I should point out that during the quarter, working capital improved $5.1 million to $2 million.

現在翻到幻燈片 16，回顧我們在 2022 年 9 月 30 日的資本化情況。在季度結束時，我們的綜合槓桿率與淨融資債務的比率約為總資本化的 51%。我們繼續完全遵守我們的貸款協議。我們最近一個季度的加權平均利率為 5.9%，下一個銀行貸款到期日是 2025 年 7 月。我們超過 21% 的債務有利率保護或固定息票，從而減輕了利息成本的進一步增加。我應該指出，在本季度，營運資金增加了 510 萬美元至 200 萬美元。

With that, I would like to turn the call back over to Eddie to conclude our presentation.

有了這個，我想把電話轉回給埃迪來結束我們的演講。

Thanks, Henry. The combination of solid demand, recent geopolitical events, including the war, low refined product inventories in many parts of the world has been particularly beneficial to our sector. Despite slowing economic activity, we are optimistic about the prospects of the chartering environment. Over the long term, we find further support in the positive supply and demand fundamentals of the product tanker sector. Given the various uncertainties, we will stay on course with our mixed chartering strategy of spot employment complemented by time charters in order to prudently optimize revenues and provide cash flow visibility. Unless we find an attractive accretive acquisition, we expect to use excess cash flow to further improve our financial position.

謝謝，亨利。強勁的需求、最近的地緣政治事件（包括戰爭）、世界許多地區的低精煉產品庫存對我們的行業特別有利。儘管經濟活動放緩，但我們對租船環境的前景持樂觀態度。從長遠來看，我們發現成品油輪行業積極的供需基本面進一步支撐。鑑於各種不確定性，我們將繼續採用即期租船和定期租船相輔相成的混合租船策略，以審慎地優化收入並提供現金流可見性。除非我們找到有吸引力的增值收購，否則我們預計將使用多餘的現金流來進一步改善我們的財務狀況。

We appreciate your interest, and thank you for joining our call today. We look forward to reporting on future progress at Pyxis Tankers. Be safe, be well.

感謝您的關注，感謝您今天加入我們的電話會議。我們期待報告 Pyxis Tankers 的未來進展。要安全，要好。

This will conclude the conference call for today. You may all disconnect. Have a nice day.

這將結束今天的電話會議。你們都可以斷開連接。祝你今天過得愉快。