Pyxis Tankers Announces Closing of Ultramax JV Investment & Company Update

Rhea-AI Summary

Pyxis Tankers Inc. closed on its newly formed drybulk joint venture, investing $6.8 million for a 60% ownership interest in a 63,250 dwt Ultramax carrier. The company has approximately $31.9 million in total cash after the investment. The product tanker chartering environment remains constructive with 92.4% of available days in Q3 2023 booked at an estimated average TCE of $26,200 per vessel. The company plans to enhance shareholder value through additional vessel acquisitions and share repurchases.

Maroussi, Greece, September 18, 2023 – Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS), (the “Company”), an international shipping company, today reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture with an entity related to our Chairman and Chief Executive Officer, to acquire, own and operate a 2016 Japanese built 63,250 dwt Ultramax carrier. The Company invested approximately $6.8 million in cash for a 60% ownership interest in the joint venture. It is expected that the scrubber-fitted, eco-efficient vessel, which has been re-named the “Konkar Ormi”, will be initially chartered in the spot market.

In addition, Valentios Valentis, our Chairman and CEO, provided the following brief update:

“The product tanker chartering environment continues to be constructive. As of September 18, 2023, 92.4% of the available days in the third quarter of 2023 for our MR’s were booked at an estimated average TCE of $26,200 per vessel. Currently, two vessels are under time charter, one vessel is employed in the spot market and one vessel is undergoing her second special survey. After funding our joint venture investment, the Company had approximately $31.9 million in total cash. This acquisition is a meaningful enhancement to our growing investment platform. Moving forward, our liquidity and low leverage should increase our operating and financial flexibility. Subject to market conditions and other factors, the Company expects to further enhance shareholder value by pursuing additional vessel acquisitions with cash on hand, and, as appropriate, utilizing bank financing. In the meantime, the Company plans continue to optimize our fleet, amortize our debt and re-purchase common shares under our authorized $2.0 million program. As of September 15, 2023, the Company had spent $0.53 million to acquire a total of 147,907 shares at an average price of approximately $3.59, including commissions. As of that date, 10,725,336 PXS shares were outstanding.”

About Pyxis Tankers Inc.

The Company currently owns a modern fleet of four product tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids as well as a controlling interest in a single ship drybulk joint venture. The Company is positioned to opportunistically expand and maximize our fleet due to significant capital resources, competitive cost structure, strong customer relationships and an experienced management team whose interests are aligned with those of its shareholders. For more information, visit: http://www.pyxistankers.com. The information on the Company’s website is not incorporated into and does not form a part of this release.

Forward Looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 in order to encourage companies to provide prospective information about their business. These statements include statements about our plans, strategies, goals financial performance, prospects or future events or performance and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expects,” “seeks,” “predict,” “schedule,” “projects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “targets,” “continue,” “contemplate,” “possible,” “likely,” “might,” “will,” “should,” “would,” “potential,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. All statements that are not statements of either historical or current facts, including among other things, our expected financial performance, expectations or objectives regarding future and market charter rate expectations and, in particular, the effects of COVID-19 and the war in the Ukraine, on our financial condition and operations and the product tanker industry, in general, are forward-looking statements. Such forward-looking statements are necessarily based upon estimates and assumptions. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs, or projections. The Company’s actual results may differ, possibly materially, from those anticipated in these forward-looking statements as a result of certain factors, including changes in the Company’s financial resources and operational capabilities and as a result of certain other factors listed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. In addition, the Company is not obligated under the terms of its share repurchase program to purchase any of its common shares and the program may be terminated, suspended, or reinstated at any time on the Company’s discretion and without notice. For more information about risks and uncertainties associated with our business, please refer to our filings with the U.S. Securities and Exchange Commission, including without limitation, under the caption “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any information in this press release, including forward-looking statements, to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws.

Company

Pyxis Tankers Inc.
59 K. Karamanli Street
Maroussi 15125 Greece
info@pyxistankers.com

Visit our website at www.pyxistankers.com

Company Contact

Henry Williams
Chief Financial Officer
Tel: +30 (210) 638 0200 / +1 (516) 455-0106
Email: hwilliams@pyxistankers.com

Source: Pyxis Tankers Inc.