Adjusted EBITDA of $0.8 million was better than expected. Higher TCE revenue of $4.3 million and higher rates of $12.7k/day drove the positive variance.Increasing 2021 EBITDA estimate to $6.5 million from $5.5 million to reflect the positive quarterly variance and timing of the pending acquisition. TCE revenue of $21.7 million is positively impacted by higher TCE rates of $12.3k/day and more ownership days of 1,976.Acquisition set to close in early 3Q2021. The acquisition of a MR tanker for $20.0 million was announced about a month ago, and the transaction is on track to close in early 3Q2021. Existing cash and a new seven year term loan of $13.5 million will finance the acquisition.Refinancing completed and liquidity remains good. Following an equity offering in February, debt secured by the Epsilon was refinanced with a new term loan of $17.0 million and cash of $7.3 million. As a result, total debt dropped to $50.9 million from $58.6 million and cash was $19.1 million. Next quarter, debt of $13.5 million will be added for the acquisition and related party debt of $2.0 million will be paid off with cash and equity this quarter. Pro forma for the transactions, we estimate that total debt will increase to $60 million and cash will drop to $14 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 pending acquisition is a positive move, but the near-term outlook remains challenging. While the stock has fallen back recently and is down 11% in 2Q2021, we continue wait for stronger signs of a turn in the refined product tanker market. Read More >>