Pyxis Tankers Reports Key Updates on Preferred Stock and Fleet
Important Developments at Pyxis Tankers Inc.
Recently, Pyxis Tankers Inc. (NASDAQ: PXS), a recognized player in the international shipping industry, shared significant updates regarding its shareholder activities and chartering operations. The company continues to make strides in improving shareholder value amid a competitive market landscape.
Redemption of Series A Preferred Stock
On September 6, 2024, the Board of Directors approved the redemption of the remaining 303,631 shares of the 7.75% Series A Cumulative Convertible Preferred Stock (NASDAQ: PXSAP). Set for redemption on October 20, 2024, shareholders of these Preferred Shares will receive a value of $25.00 per share, along with accrued dividends up until the redemption date. This move not only signifies the company’s commitment to returning value to its shareholders but also aims to curb any potential dilution in earnings and net asset value per share.
Cessation of Cash Dividends
Upon finalizing the redemption of these preferred shares, Pyxis will eliminate cash dividends associated with them, enhancing its financial landscape. This strategic decision is anticipated to foster better liquidity and strengthen the company’s overall financial position.
Share Repurchase Initiatives
As part of its ongoing efforts to enhance shareholder value, Pyxis Tankers has actively engaged in a share repurchase program. As of September 10, 2024, the company bought back 65,793 common shares, totaling an expenditure of $0.3 million. Cumulatively, since the program's inception in May 2023, a total of 481,164 shares have been repurchased at an average price of $4.06 each.
Future Plans and Authorizations
With remaining authorization of $1.0 million for share repurchases under the $3.0 million plan effective until May 2025, Pyxis retains the flexibility to adjust its purchasing strategy as market conditions evolve. As mentioned, the total outstanding common shares stood at 10,660,831 at the recent reporting date.
Current Chartering Activity
In terms of chartering, as of September 10, 2024, a noteworthy 91% of the available days in Q3 dedicated to MR product tankers have already been booked. The average estimated daily time charter equivalent (TCE) rate achieved was approximately $31,545 per vessel. Moreover, for bulkers during the same quarter, 87% of available days were booked, yielding a respectable TCE of $17,641, indicating robust market demand across sectors.
Fleet Overview
At this moment, Pyxis Tankers boasts a modern fleet comprising six mid-sized eco-vessels curated for transporting refined petroleum products and dry bulk commodities. This diverse structure includes a combination of MR product tankers and Kamsarmax bulk carriers, along with meaningful stakes in two joint ventures focused on dry bulk shipping.
Management Insights
Mr. Eddie Valentis, the Chairman and CEO of Pyxis Tankers, emphasized the company's success over the past 15 months in its share repurchase program, highlighting the acquisition of 481,164 common shares as a measure of the company's dedication to maximizing shareholder returns. He pointed out that with the pending redemption of the Preferred Shares, the expected number of diluted common shares post-redemption will also reflect positively on shareholder value.
Promising Market Conditions
Despite facing seasonal fluctuations, market conditions for product tankers and dry bulk shipping appear strong. Pyxis continues to leverage a diverse chartering strategy, including positioning modern vessels under short-term time charters and utilizing the spot market effectively.
About Pyxis Tankers Inc.
Pyxis Tankers is firmly established as an operational hub within the shipping industry, focusing on the eco-efficient transportation of various essential goods. The company enhances its operational competency through a solid capital foundation, productive customer relationships, and a skilled management team, all working in alignment with shareholder interests.
Frequently Asked Questions
What is the recent change in Pyxis Tankers' preferred stock?
The company has announced the redemption of its remaining Series A Preferred Stock, which will take effect on October 20, 2024.
How many common shares has Pyxis Tankers repurchased?
As of September 10, 2024, Pyxis has repurchased a total of 481,164 common shares since the initiation of their buyback program in May 2023.
What is the anticipated impact of the preferred stock redemption?
Redemption will stop cash dividends on preferred shares and potentially reduce shareholder dilution, thereby enhancing share liquidity.
What chartering performance does Pyxis Tankers expect?
Currently, healthy demand has allowed Pyxis to secure significant bookings at favorable rates for their vessel charters.
Who leads Pyxis Tankers Inc.?
The company is led by Mr. Eddie Valentis, who serves as Chairman and Chief Executive Officer.
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