Adjusted EBITDA of $0.4 million was below expectations. Lower TCE revenue of $4.1 million and flat rates of $10.9k/day and higher opex of $6.2k/day drove the negative variance. Versus our estimate, TCE revenue of $4.14 million was $0.38 million lower, opex of $2.83 million was $0.26 million higher, but G&A expense of $0.58 million was slightly lower than expected by $0.07 million. TCE rates were $379 off our estimate and operating days were 20 days below.Adjusting 2021 EBITDA estimate. To reflect weaker 2Q2021 operating results and time charters at lower TCE rates, our new 2021 EBITDA estimate drops to $3.2 million (down from $5.4 million). Forward cover remains low as of August 4th with only 47% of 3Q2021 available MR days booked at at an average TCE rate of ~$10.9k/day. Forward cover visibility into 4Q2021 is limited to the Theta.Acquisition closed. The $20 million acquisition of the Karteria, a 2013-built MR tanker, that was announced in April closed in July. A seven year term loan of $13.5 million at Libor plus 480 basis points and cash from the 1Q2021 equity offering financed the acquisition. Debt restructured and follow on convertible preferred offering raises $6.2 million. In July, about 308k shares of 7.75% Series A convertible preferred shares were priced at $20/share and gross proceeds were ~$6.2 million. In 2Q2021, the conversion of debt boosted Eddie Valentis' owner interest to 18.69 million shares, or ~49%. Excluding unamortized financing costs, total debt was $47.8 million, down slightly from $48.7 million in 1Q2021, and cash was $12.6 million so net debt was $35.2 million. Incorporating the recent transactions, we estimate that total debt will approximate $60.1 million, preferred stock will be ~$11.2 million and cash will be $13.9 million in 3Q2021.Maintain Market Perform rating due to challenging near term outlook. We have a positive view on refined product tanker intermediate term fundamentals, based on a limited order book and potential demand recovery, and believe that the upcoming acquisition is a positive move, but the near-term outlook remains challenging. While the stock has fallen back from the early 2021 highs and is down 14% this year, including drops of 14% in 2Q2021 and 17% in 3Q2021, we continue wait for stronger signs of a turn in the refined product tanker market. Read More >>