Adjusted EBITDA loss of $1.3 million below expectations. Lower TCE revenue of $3.4 million and $7.0k/day and higher opex of $6.8k/day drove the negative variance. Adjusted 3Q2021 EBITDA losses of $1.3 million were below our estimate due to lower TCE revenue and higher opex and G&A expenses. The shift to spot market work dampened operating results, with MR weakness more than offsetting a slight improvement in small tankers.Adjusting 2021 EBITDA estimate. To reflect weaker 3Q2021 operating results and time charters at lower TCE rates, our new 2021 EBITDA estimate drops to $1.0 million from $3.2 million. Our TCE rate estimate is $9.6k/day (down from $10.8k/day), and recent charters are in the $13.3/day range for Theta and newly acquired Karteria, but visibility is low for the rest of the fleet, and only 49% of 4Q2021 available MR days booked at an average TCE rate of ~$10.9k/day.Recovery expected next year and our 2022 EBITDA estimate is $8.7 million. Our 2022 TCE rate estimate is $12.1k/day and recent charters are in the $13.3/day range for Theta and newly acquired Karteria set a more positive tone heading into next year. In addition, the newer 2013-built Karteria and 2017-built Lamda MRs should have an impact for the full year.MR acquisition closed. Additional MR acquisition announced. The $20 million acquisition of the Karteria, a 2013-built MR tanker closed in July. The $32 million acquisition of the Lamda, a 2017-built MR tanker, was announced from an affiliated company owned by Eddie Valentis. Closing is expected in December. Specific numbers were not in the press release, but we estimate that the acquisition will be funded with existing cash of ~$5 million, an unsecured note of ~$3 million, new debt of $21 million and equity issuance of ~$3 million. Maintain Market Perform rating due to challenging near term outlook. We have a positive view on intermediate fundamentals for the refined product tanker market , based on a limited order book and likely demand recovery, and believe that the recent acquisitions are positive, but the near-term outlook remains challenging. While the stock has fallen back from the early 2021 highs and is down 10% this year, including drops of 14% in 2Q2021, 12% in 3Q2021 and 2% in 4Q2021, we continue to wait for stronger signs of a turn in the refined product tanker market. Read More >>