Good day, and welcome to the Pyxus Tankers conference call to discuss the financial results for the third quarter of 2024. I must advise you that this conference call is being recorded. Additionally, a live webcast of today's conference call and an accompanying presentation is available on the Pyxus Tankers website, which is www.pyxistankers.com. Hosting the call are Mr. Eddie Valentis, Chairman and Chief Executive Officer of Pyxus Tankers, and Mr. Henry Williams, Chief Financial Officer of the company. I would like to pass the floor to one of your speakers today, Mr. Eddie Valentis. Please go ahead, sir.

Hello, everyone, and thank you for joining our call. For the results of the three months ended September 30, 2024, the disruption in global seaborne trade from the Russia-Ukraine war and the expanding conflict in the Middle East continues. Global economic activity remains resilient despite the restrictive monetary policies by many central banks. Encouragingly, inflationary pressures are easing, and we anticipate further interest rate cuts in the near term, which should support broader economic growth. The fundamental outlook for our core sectors, product tankers and dry bulk carriers, remains supportive with relatively firm asset values despite the recent softening of the chartering environment. Market conditions remain highly dynamic and can be significantly influenced by macroeconomic and geopolitical events, which are beyond our control. Before commenting on our operating and financial results for the most recent period, please let me draw your attention to some important legal notifications on slide two that we recommend you read, including our presentation today, which will include forward-looking statements. Thank you. Turning to slide three, our most recent quarterly results reflected solid financial performance with strong revenues and profitability driven by supportive market conditions and our successful expansion into the dry bulk sector. Following the acquisition of the 2015-built Camtamax in late June, we entered the third quarter with a fleet of six modern midsized Eco vessels consisting of three MR2 product tankers, one Ultamax, and two larger Casamax Pan carriers. In the quarter ended September 30, 2024, we generated consolidated time charter equivalent revenues (TCE) of $11.7 million, marking an increase of over 25% from the same period in 2023. Our daily TCE for our fleet in Q3 2024 was approximately $22,000, with the MRs averaging almost $30,000, while our midsized bulkers earned slightly less than $14,000 per day. For the most recent period,…

Thanks, Eddie. On slide fourteen, let's review our unaudited results for the three months ended September 30, 2024. Our time charter equivalent revenues for Q3 2024, which we define as revenues net of voyage-related costs and commissions, rose to $11.7 million, an increase of almost 24% as we benefited from high demurrage income from spot charters, favorable market conditions, and an increase in operating days due to the addition of the dry bulk vessels to our fleet. Solid chartering rates were reflected in our MRs, which achieved a 6% improvement in daily TCE, reaching $29,826 for Q3 2024. Our dry bulk carriers reported an average daily TCE of $13,841 for the same period. However, the third quarter was sequentially lower than Q2 in both segments due to softer charter rates and seasonal factors. During the most recent quarter, the overall fleet generated a respectable average TCE of $22,060 per vessel through a mix of short-term time and spot charters. Moving to slide fifteen, we generated net income to common shareholders of $3.6 million for the three months ended September 30, 2024, or $0.34 basic and $0.31 diluted EPS, compared to a net income of $3.1 million or $0.29 basic and $0.26 diluted income per share for the same period in 2023. Please note that for accounting purposes, the fully diluted earnings calculation assumes the potential conversion of all the outstanding Series A 7.75% convertible preferred stock into common shares and the elimination of the associated dividend. In Q3 2024, the increase in TCE revenues of $2.2 million was partially offset by a $1.1 million increase in operating expenses, leading to a $1.2 million improvement in adjusted EBITDA to $6.7 million. Now flip to slide sixteen to review our capitalization as of September 30, 2024. At quarter close, our consolidated leverage ratio of net funded debt stood at 22% of total capitalization. Our weighted average interest rate was approximately 7.8% for the most recent quarter, and our next bank loan maturity is in about two years. I should point out that at the end of September 2024, our total cash position aggregated $43.7 million. Most of our excess cash is invested in short-term money market investments, which currently earn 4.85%. As previously disclosed, with the payment of approximately $7.6 million in late October, we had redeemed all remaining outstanding Series A convertible preferred stock. Since the start of our common share buyback program in June 2023, we have acquired 578,000 Pyxus shares in the open market for a cost of about $2.4 million. The redemption of the preferred stock in full has eliminated potential dilution of 1.8 million shares. In aggregate, we have avoided dilution of almost 2.4 million shares, further enhancing earnings and net asset value per share. Currently, we have approximately 10.6 million common shares outstanding, of which 4.5 million shares are broadly held in the public float. With that, I'd like to turn the call back over to Eddie to conclude our presentation.

Thanks, Henry. We are guardedly optimistic about the challenging environment for product tankers and dry bulk carriers for the near term. Most global demand growth for seaborne cargoes across the board, the range of refined petroleum products and dry bulk commodities is expected to continue with the expected order book remaining relatively manageable. Longer-term supply and demand fundamentals remain constructive, especially given the fleet age profiles of both sectors. Even though inflation is decelerating with the possibility of further interest rate cuts and continued moderate global economic growth, the uncertainty surrounding macroeconomic conditions and unfolding global events necessitate continued prudent risk management. Beyond the expected uptick in demand for the winter season, the product tanker sector may benefit from the prospect of greater restrictions against certain sanctioned countries, which may help offset the effects of the possible de-escalation of armed conflict. However, the potential expansion of tariffs amongst major trading partners is likely to lead to further market dislocation and volatility. Looking ahead, we expect to utilize our solid financial position and extensive industry relationships to selectively pursue additional investment opportunities that maximize shareholder value, including potential vessel acquisitions. Also, we aim to continue our common share repurchase program and repay debt as scheduled, all while maintaining the strength of our balance sheet. We appreciate your interest and thank you for joining our call. We look forward to reporting on future progress at Pyxus Tankers.

Ladies and gentlemen, that does conclude today's teleconference. You may disconnect your lines at this time. Have a great rest of the day.