Pyxis Tankers, Inc. Q2 FY2023 earnings call

• The product tanker sector maintained solid chartering activity and high asset values despite economic and geopolitical uncertainties. - The Pyxis Malou, a 14-year-old vessel, was retired in late March. - The company has a fleet of 4 eco-efficient MRs with an average age 4 years younger than the industry average. - The Board approved a $28.5 million joint venture vessel purchase, with 50% ownership, to be funded by $11.3 million equity and $19 million 5-year debt, expected to close by late August. - The company employs a mix charter strategy of time and spot charters, focusing on customer and region diversification.

In the second quarter ended June 30, 2023, Pyxis Tankers generated consolidated time charter equivalent revenues of $8.6 million, a decrease of $2.7 million compared to the same period in 2022. The daily TCE and margin in Q2 2023 was approximately $25,000, which was slightly lower than the same quarter in 2022 due to reduced export chartering activity. The net income for the most recent period was $2.8 million or $0.25 basic EPS, down from the previous year. Adjusted EBITDA in Q2 2023 stood at $5.2 million. The company operates a fleet of 4 eco-efficient MRs with an average age of 80.6 years, where 3 tankers are under short-term time charters and 1 is in the spot market. As of July 26, 55% of the available capacity in Q3 was filled with an estimated TCE rate of approximately $27,800, representing an 11% sequential increase from Q2 results.

• The company continues to explore economically viable acquisitions and aims to further strengthen its balance sheet through limited common share repurchases. - The joint venture vessel purchase is expected to close by late August, with opportunities for additional strategic activities. - The strong financial position with excess cash and low leverage will be utilized to pursue investment opportunities that maximize shareholder value.

• Geopolitical events such as the Russia-Ukraine conflict have disrupted economic and strategic priorities, impacting trade and inventories. - Moderating economic activity due to restrictive monetary policies has affected chartering activity. - Seasonal refinery maintenance programs and tight inventories of petroleum products below 5-year averages have influenced the market. - Delays in newbuild deliveries and a large number of older vessels (144 vessels or 8.5% of the global fleet) near 20 years old present challenges, with major scrapping anticipated over the next 5 years.