Pyxis Tankers, an owner of five MR tankers, reported on Monday its highest profit since listing on the Nasdaq seven years ago.

Net income at the Valentios Valentis-led company reached $4.6m in the second quarter of the year compared with a $1.5m loss in the same period of 2021.

Net revenue more than tripled to $16.1m from $5m last year, on improved market conditions that saw the company’s MRs earn $26,720 per day on average — up 107% year on year.

Chief executive officer Valentis promised to be careful with the company’s resurgent cash. Barring any opportunities for value-accretive “strategic transactions”, free cash flow would be used to bolster the company’s balance sheet, he said in a press release.

Pyxis is already reducing its debt, which had increased after the company purchased two MRs last year — before tanker prices soared in the secondhand market.

“Tanker values have risen significantly, increasing the value of our vessels, but also making potential acquisitions more expensive,” Valentis said.

“It has become very challenging to develop opportunities for fleet expansion, especially for the purchase of modern eco-efficient MRs,” he added.

Maximising value

“Consequently, we will continue to be very disciplined in allocating capital for any strategic transaction in order to maximise shareholder value,” said Valentis.

Valentis’ conservative approach is underpinned by his guardedly optimistic outlook on shipping markets and the economy.

“While we continue to have a positive outlook based on the current environment and longer-term sector fundamentals, we do have concerns about the impact of rising global inflation, higher interest rates, a possible recession and, of course, the ongoing war,” he said.