Adjusted EBITDA loss of $0.7 million below expectations. Lower TCE revenue of $3.9 million, lower TCE rates of $8.0k/day and higher opex of $6.2k/day drove the negative EBITDA variance and adjusted 4Q2021 EBITDA losses of $0.7 million were below our estimate. The shift to spot market work dampened operating results, with MR weakness more than offsetting a slight improvement in small tankers.Recovery expected and our 2022 EBITDA estimate is $8.6 million. Our 2022 TCE rate estimate is $13.4k/day and recent charters are setting a more positive tone heading into the rest of the year. In addition, the two acquisitions should more than offset the sale of the two small tankers. Forward cover visibility into 1Q2022 is solid at 83% of available days booked at TCE rates in the $14.8k/day range, and the Lamda and Karteria are currently working on time charters through at the least the end of 1Q2022. The remainder of the year for the entire fleet has less forward cover at this point and the Epsilon, Theta and Malou are likely to work on a spot basis unless time charters are secured/extended.MR acquisition and small tanker sales closed. Fleet now focused on modern MR tankers. The $32 million acquisition of the Lamda, a 2017-built MR tanker, closed in 4Q2021. The acquisition was funded with existing cash of ~$5 million, an unsecured note of ~$3 million, new debt of $21 million and equity issuance of ~$3 million, or 4.14 million shares. The sale of two small tankers also recently closed and net of secured debt, the sale should boost liquidity by $2.8 million and lower pro forma debt. The sales also complemented the two MR acquisitions and increased the MR tanker market focus.Maintain Market Perform rating due to uncertain near term outlook. We have a positive view on intermediate fundamentals for the refined product tanker market, based on a limited order book, low inventories and budding demand recovery, and believe that the recent moves to improve the asset base are positive, but the near-term outlook still appears uncertain. While the stock fell back from the early 2021 highs and was down 42% last year, including drops of 14% in 2Q2021, 12% in 3Q2021 and 37% in 4Q2021, it is up 35% in 1Q2022. Nonetheless, we continue to wait for stronger signs that the refined product tanker market has turned upward. Read More >>