Eddie Valentis backed Pyxis Tankers chalked up a second quarter loss in a difficult freight market.
The product tanker specialist booked a $1.6m loss in the three months to the end of June, a little deeper than the $1.3m red number seen a year earlier.
Valentis, chief executive of Pyxis, said in a statement the company has expected the chartering environment for product tankers to be choppy in the second and third quarters of 2019.
“In fact, the spot market for MR’s has been challenging primarily due to softer demand for refined petroleum products associated with slowing global economic conditions and seasonal trends, a significant number of new build deliveries, longer maintenance programs at certain refineries, and to a lesser extent, intrusion of larger vessels, including crude carriers taking clean cargoes on their maiden voyages,” he said.
He said the strategy of having shorter term staggered charters had proven beneficial with an average TCE rate from its MRs of $13,600 per day in the second quarter.
At the same time almost 50% of the company's remaining 2019 MR days are covered at $15,100 per day.
“Two MR’s will be re-delivered in the fourth quarter, historically a stronger seasonal period,” he said.
“Moreover, at that time we expect to see the start of a sustainable improvement in vessel earnings based on the positive fundamentals of supply and demand growth, plus incremental demand for MR’s given the global impact of upcoming IMO 2020 regulations.
“However, we are concerned about the effects of rising trade tensions and recent geo-political events which could undermine global economic growth.”
