Pyxis Tankers, Inc. Q4 FY2022 earnings call

• Russian invasion of Ukraine affected global energy markets, but the product tanker sector remained positively impacted with solid chartering activity. • Q4 2022 showed exceptional financial performance in revenues, operating cost control, and profitability, with consolidated TCE up $10M Y-o-Y and 16% Q-o-Q. • Sold the oldest vessel, Pyxis Malou, for $24.8 million, expecting a noncash gain of $8M in Q1 2023. • Product tanker chartering environment strengthened due to increased mobility, tightened product inventories, and solid refinery activity. • Q1 2023 bookings were 80% of available base at an average estimated TCE of $28,000 per day, with a mixed chartering strategy of time and spot charters. • Market factors included EU building inventories ahead of sanctions, China's reopening boosting fuel demand, and refinery additions in Middle East and Asia. • MR2 order book historically low, with limited new ordering and delays in new-build deliveries; net fleet growth for MRs expected to be less than 2% per year through 2024.

For the fourth quarter ended December 31, 2022, Pyxis Tankers generated consolidated time charter equivalent (TCE) revenues of $13.8 million, an increase of $10 million over the same period in 2021 and a 16% sequential growth. The daily TCE for the 5 eco-MR2’s in Q4 2022 was $33,182, up 14.2% from the prior quarter and 3.8x higher than the same period in 2021. Net income for the period was $6.5 million or $0.61 per share basic EPS. For the year ended December 31, 2022, TCE revenues were $41 million, an increase of over $23.2 million. Net income was $12.5 million, and adjusted EBITDA was $24.3 million. The product tanker segment's performance was positively affected by solid chartering activity and high asset values, with revenue contribution from MR2 vessels being the key segment.

• Q1 2023 bookings: 80% of available base for Q1 booked at avg estimated TCE of $28,000 per day. • Mixed chartering strategy of time and spot charters to diversify by customer and duration. • Expectation of high EU inventories unwinding by Q2 2023. • China's reopening to boost demand for transportation fuels. • Refinery additions in Middle East and Asia to support long-term product tanker demand.

• Winter weather in Northern Hemisphere temporarily moderated spot charter rates. • Ongoing geopolitical events, including EU and G7 sanctions on Russian refined products, adding complexity to the market. • IMO regulations governing CO2 emissions starting 2023 could limit supply due to slow steaming of older vessels. • Delays in new-build deliveries, with slippage around 15% in 2022. • Large number of older vessels (178 vessels or 10.4% of global fleet 20+ years old) could lead to major scrapping over next 5 years, but uncertainties in ship and engine designs, environmental regulations, and fuel selection add complexity.