Pyxis Tankers, Inc. Q1 FY2023 earnings call

• OPEC+'s decision to cut crude oil production and the Russian invasion of Ukraine are influencing global energy markets. The product tanker sector remains positively affected with healthy chartering activities. - Pyxis successfully navigated uncertain times and reported good operating and financial results. The daily TCE for MRs more than doubled from Q1 2022. - They completed the sale of the Pyxis Malou, realizing significant proceeds and a gain. - Q2 2023 booking rates are constructive, with a notable portion of available days already booked. - They own and operate 4 eco-efficient MRs with an average age of 8.6 years, significantly below the industry average. - The product tanker market is influenced by factors like global economic activity impacted by the war, expanding seaborne trade of oil products, and refinery additions supporting long-term demand.

In the first quarter ended March 31, 2023, Pyxis Tankers generated consolidated time charter equivalent (TCE) revenues of $9.2 million, which is a 139% increase compared to the same period in 2022. The daily TCE for their MRs was $23,508 in Q1 '23, more than double the figure from the same period in 2022. They reported a net income to common shareholders of $8.7 million or $0.81 basic EPS for the period, and adjusted EBITDA improved to $4.2 million. They also completed the sale of their oldest tanker, the Pyxis Malou, in late March for $24.8 million, realizing a noncash gain on sale of $8 million and net cash proceeds of almost $19 million. As of May 11, 70% of their available days for the second quarter were booked at an average estimated TCE of $29,160, up sequentially from Q1 results.

• Q2 2023 booking rates are constructive, with 70% of available days for Q2 booked at an average estimated TCE of $29,160, an increase sequentially from Q1 results. - Over the longer term, demand for the product tanker sector is expected to be supported by refinery additions led by the Middle East and Asia.

• Geopolitical events such as the Russian invasion of Ukraine and related sanctions can disrupt trade patterns and market conditions. - Newbuild deliveries face delays, with slippage of around 15% in 2022. - Stricter environmental regulations, escalating shipbuilding costs, and evolving lower carbon fuel selection complicate tanker ordering decisions.