Pyxis Tankers Announces Completion of Common Share Repurchase Program & Update on Chartering Activity

Rhea-AI Summary

Pyxis Tankers (NASDAQ: PXS) has completed its $3.0 million common share repurchase program, acquiring 730,683 shares at an average cost of $4.03 per share. The company also redeemed all outstanding 7.75% Series A Cumulative Convertible Preferred Stock, preventing potential dilution of 1,799,871 common shares. In total, PXS spent $13.1 million on equity re-purchases, avoiding 19.4% dilution of common shares.

As of January 29, 2025, the company has booked 72% of Q1 2025 available days for its three eco-MR product tankers at an average daily TCE of $24,750, and 68% of Q1 2025 available days for its three dry-bulk vessels at an average daily TCE of $15,400. The current fleet consists of three tankers (148,592 dwt total) and three dry-bulk vessels (227,632 dwt total).

Positive

• Completed $3.0M share repurchase program at $4.03 per share average
• Eliminated potential 19.4% shareholder dilution through $13.1M in equity re-purchases
• Strong Q1 2025 booking rates for tankers at $24,750/day TCE
• Secured long-term charters for Pyxis Theta ($22,000/day until Dec 2025) and Pyxis Karteria ($24,500/day until Sep 2025)

Negative

• Lower rates for dry-bulk vessels compared to tankers ($15,400/day TCE)
• Significant capital expenditure of $13.1M for share repurchases

Insights

Financial Analyst

Pyxis Tankers has executed a comprehensive capital return strategy that significantly strengthens shareholder value through multiple channels. The completion of the $3.0 million share repurchase program at an average cost of $4.03 per share, combined with the redemption of all outstanding 7.75% Series A Preferred Stock, represents a strategic move that prevents 19.4% potential dilution - a substantial protection of shareholder value.

The total investment of $13.1 million in equity repurchases demonstrates strong capital allocation discipline and confidence in the company's intrinsic value. With the public float reduced to approximately 4.37 million shares, this could potentially improve stock liquidity metrics and trading dynamics.

The chartering activity shows robust commercial performance. The 72% booking rate for Q1 2025 for MR tankers at $24,750 TCE indicates strong market positioning in the product tanker segment. The dry-bulk fleet's 68% booking at $15,400 TCE suggests decent rate optimization in a challenging bulk market. The mix of spot and time-charter contracts across the fleet provides a balanced approach to revenue stability and market exposure.

The strategic timing of the share repurchase program, combined with the elimination of preferred stock obligations, positions the company for improved financial flexibility and potential EPS accretion. This comprehensive approach to capital management and fleet deployment indicates a well-executed strategy to enhance shareholder returns while maintaining operational efficiency.

Maroussi, Greece – January 30, 2025 – Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS), (“we”, “our”, “us”, the “Company” or “Pyxis Tankers”), an international shipping company, announced today key shareholder and chartering updates.

1. The Company has completed its authorized expanded $3.0 million common share repurchase program. Since summer 2023, we have acquired 730,683 common shares in the open market at an average cost of $4.03 per share, excluding commissions. As of January 29, 2025, there were 10,485,865 common shares of the Company outstanding, with a public float of approximately 4.37 million PXS shares.

2. In 2024, the Company also redeemed all of its outstanding 7.75% Series A Cumulative Convertible Preferred Stock, which eliminated potential shareholder dilution of 1,799,871 common shares. Thus, the Company has spent approximately $13.1 million, in total, for equity re-purchases in order to save potential shareholder dilution of 2.53 million common shares in aggregate or 19.4% of diluted common shares.

3. As of January 29, 2025, 72% of available days in the first quarter, 2025 for our three eco-MR product tankers were booked at an average estimated daily time charter equivalent rate (“TCE”) of $24,750 per vessel. As of the same date, 68% of available days in the first quarter of 2025, for our three dry-bulk vessels were booked at an average estimated daily TCE of $15,400. 

Pyxis Tankers Fleet (as of January 29, 2025)

Vessel Name	Shipyard	Vessel type	Carrying Capacity (dwt)	Year Built	Type of charter	Charter(1) Rate ($ per day)	Anticipated Earliest Redelivery Date
Tanker fleet
Pyxis Lamda	SPP / S. Korea	MR2	50,145	2017	Spot	n/a	n/a
Pyxis Theta (2)	SPP / S. Korea	MR2	51,795	2013	Time	$ 22,000	Dec 2025
Pyxis Karteria (3)	Hyundai / S. Korea	MR2	46,652	2013	Time	24,500	Sep 2025
			148,592
Dry-bulk fleet
Konkar Ormi (4)	SKD / Japan	Ultramax	63,520	2016	Time	13,650	Mar 2025
Konkar Asteri (5)	JNYS / China	Kamsarmax	82,013	2015	Time	12,850	Mar 2025
Konkar Venture (6)	JNYS / China	Kamsarmax	82,099	2015	Time	10,000	Feb 2025
			227,632

1. 
   

1. These tables present gross rates in U.S.$ and do not reflect any commissions payable.
2. “Pyxis Theta” is fixed on a time charter for 12 months +/- 30 days, at $22,000 per day.
3. “Pyxis Karteria” is fixed on a time charter for 12 months +/- 30 days, at $24,500 per day.
4. “Konkar Ormi” is fixed on a time charter for 60 – 70 days, at $13,650 per day, plus a $365,000 ballast bonus, plus an estimated scrubber compensation of $69,000
5. “Konkar Asteri” is fixed on a time charter for 60 – 70 days, at $12,850 per day, plus a $285,000 ballast bonus, plus an estimated scrubber compensation of $93,000.
6. “Konkar Venture” was fixed on time charter for min 120 and max 130 days, at $10,000 per day.

About Pyxis Tankers Inc.

The Company currently owns a modern fleet of six mid-sized eco-vessels, which are engaged in the seaborne transportation of a broad range of refined petroleum products and dry bulk commodities and consists of three MR product tankers, one Kamsarmax bulk carrier and controlling interests in two dry bulk joint ventures of a sister-ship Kamsarmax and an Ultramax. The Company is positioned to opportunistically expand and maximize its fleet of eco-efficient vessels 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 or accessible through 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 the war in the Ukraine and the Red Sea conflict, on our financial condition and operations as well as the nature of the product tanker and dry-bulk industries, 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. The Company is reliant on certain independent and affiliated managers for its operations, including most recently an affiliated private company, Konkar Shipping Agencies, S.A., for the management of its dry-bulk vessels. 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, 2023. 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.

FAQ

How many shares did Pyxis Tankers (PXS) repurchase in its latest program?

Pyxis Tankers repurchased 730,683 common shares at an average cost of $4.03 per share, completing its $3.0 million share repurchase program.

What is the Q1 2025 booking rate for Pyxis Tankers' MR tankers?

Pyxis Tankers has booked 72% of Q1 2025 available days for its three eco-MR product tankers at an average daily TCE rate of $24,750.

How much shareholder dilution did PXS prevent through its recent actions?

PXS prevented 19.4% potential dilution of common shares (2.53 million shares) through $13.1 million in equity re-purchases and preferred stock redemption.

What are the current charter rates for PXS's dry-bulk vessels in Q1 2025?

PXS has booked 68% of Q1 2025 available days for its three dry-bulk vessels at an average daily TCE rate of $15,400.

How many vessels does Pyxis Tankers currently operate?

Pyxis Tankers operates a fleet of 6 vessels: three tankers with 148,592 dwt total capacity and three dry-bulk vessels with 227,632 dwt total capacity.