Pyxis Tankers Announces Completion of Sale of Two Small Tankers & Chartering Update

Rhea-AI Summary

Pyxis Tankers Inc. (NASDAQ: PXS) announced the completion of the sale of two 2010-built product tankers, Northsea Alpha and Northsea Beta, for $8.9 million. After repaying bank debt and transaction costs, the company received net cash proceeds of approximately $3.1 million, improving liquidity and reducing outstanding loans. The chartering environment remains flat, with MR tankers booked at over $14,300/day for 75% of Q1 2022. A minor accident with the Pyxis Epsilon will incur around $0.5 million in cash costs, but no injuries or pollution were reported.

Positive

• Received $3.1 million in net cash proceeds from tanker sales, enhancing liquidity.
• Improved financial structure with reduced outstanding loans.
• MR tankers booked at over $14,300/day for 75% of Q1, indicating stable revenue potential.

Negative

• Minor accident with Pyxis Epsilon may lead to $0.5 million in cash costs and 45 days of vessel downtime.
• Flat chartering environment amid rising demand for refined petroleum products creates uncertainty.

Maroussi, Greece, March 2, 2022 – Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS), (the “Company”), an international pure play product tanker company, today announced that it has completed the sales of the Northsea Alpha and Northsea Beta, two 2010 built 8,600 dwt product tankers, for the aggregate sale price of $8.9 million.  After repayment of bank debt and related transaction costs, Company received aggregate net cash proceeds of approximately $3.1 million. The sale of these non-core assets will improve our liquidity and reduce outstanding loans.

Valentios Valentis, our Chairman & CEO, provided the following brief chartering update:

“Since the start of the year, the chartering environment has remained relatively flat despite increasing demand for refined petroleum products as low inventories have limited cargo flows to some extent. Hopefully, increasing crude oil production as the year progresses combined with strong refinery throughput and ton-mile demand should lead to greater global trading activity and better charter rates. However, the impact from last week’s events in eastern Europe have further increased uncertainty in many ways.  As of March 2, 2022, our MR’s were booked at over $14,300 /day for 75% of Q1, 2022 available days. In February, the Pyxis Epsilon experienced a minor accident at her discharge port and will consequently incur approximately 45 days of off-hire, including vessel repairs. There were no injuries nor pollution. After insurance claims, we estimate total cash costs to the Company of approximately $0.5 million during this period. The 2015 built tanker should be back in commercial service later this month.”

Vessel Name	Shipyard	Vessel type	Carrying Capacity (dwt)	Year Built	Type of charter	Charter(1) Rate (per day)	Anticipated Earliest Redelivery Date
Pyxis Lamda	SPP / S. Korea	MR	50,296	2017	Time	$  15,250	Mar 2022
Pyxis Epsilon	SPP / S. Korea	MR	50,295	2015	n/a	n/a	n/a
Pyxis Theta	SPP / S. Korea	MR	51,795	2013	Spot	n/a	Mar 2022
Pyxis Karteria	Hyundai / S. Korea	MR	46,652	2013	Time	14,000	May 2022
Pyxis Malou	SPP / S. Korea	MR	50,667	2009	Spot	n/a	n/a
			249,705

1) Charter rates are gross and do not reflect any commissions payable

About Pyxis Tankers Inc.

We currently own a modern fleet of five tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids. We are focused on growing our fleet of medium range product tankers, which provide operational flexibility and enhanced earnings potential due to their “eco” features and modifications. We are positioned to opportunistically expand and maximize our fleet due to 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.

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 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. 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, 2020. 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

What was the sale price for the Northsea Alpha and Northsea Beta tankers by Pyxis Tankers (PXS)?

Pyxis Tankers sold the Northsea Alpha and Northsea Beta for an aggregate sale price of $8.9 million.

How much net cash did Pyxis Tankers receive after the sale of its tankers?

After repayments and transaction costs, Pyxis Tankers received approximately $3.1 million in net cash.

What are the charter rates for MR tankers booked by Pyxis Tankers (PXS) in Q1 2022?

Pyxis Tankers' MR tankers were booked at over $14,300 per day for 75% of Q1 2022 available days.

What financial impact did the minor accident involving the Pyxis Epsilon have?

The accident is expected to result in approximately $0.5 million in cash costs and 45 days of off-hire.