Pyxis Tankers, Inc. Q3 FY2023 earnings call

• Closed a $6.8 million equity investment in a joint venture for the acquisition of the 2016 Japanese-built Ultramax dry bulk carrier (Konkar Ormi) with 60% ownership.
• Agreed to sell the 2015 vessel Pyxis Epsilon for almost $41 million, with the sale closing in December and expected to net approximately $26.4 million in cash after debts and fees.
• Q3 2023 results were a sequential improvement from Q2 2023.
• Product tanker sector maintains solid chartering activity and high asset values despite geopolitical and macroeconomic challenges.
• Refinery throughput expected to pick up in Q4 2023 as seasonal maintenance is completed and global demand for products remains solid.
• Continues to use a mixed chartering strategy of time and spot charters, focusing on diversification by customer and duration.

In the third quarter of 2023, Pyxis Tankers generated consolidated times charter equivalents (TCE) of $9.3 million, a decrease of $2.7 million from the same period in 2022. The daily time charter equivalent for the four eco-efficient MRs in Q3 2023 was approximately $28,000, down 3.6% compared to the same quarter in 2022 due to less spot charting activity. Net income for the most recent period was $3.1 million, or $0.29 basic EPS, which was down from the previous year. The adjusted dividend in Q3 2023 was $5.5 million. Revenue contribution from the product tanker segment is the main focus, with the dry bulk joint venture being a recent strategic addition but not yet contributing significantly to revenues in this period.

• Expect to realize a gain of $17.1 million or $1.62 per current outstanding share or $1.38 per diluted share from the sale of Pyxis Epsilon.
• Upon closing of the sale, expect to have over $57 million in available cash to pursue additional opportunities.
• Potential to double the size of the fleet with available cash and moderate lower cost bank debt under the right circumstances.
• As of November 20th, 84% of the available days in Q4 for MRs were booked at an average estimated TCE rate of approximately $29,600, a 6% sequential increase over Q3 results.

• Geopolitical events such as the Russia-Ukraine war and Middle East turmoil impacting the global energy market and trade.
• Macroeconomic factors like restrictive monetary policies leading to slowing economic activity and China's lagging economic recovery.
• Delays in new build deliveries for MR2s, with slippage over 12% annually in the last five years.
• Evolving environmental regulations and uncertainties around lower carbon fuels, increasing shipbuilding costs.

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