Pyxis Tankers Announces Financial Results for the Three Months and Year Ended December 31, 2021
Pyxis Tankers Inc. reported a net loss of $5.6 million for Q4 2021, up $2.9 million from Q4 2020, primarily due to a $2.4 million non-cash loss on vessels held for sale. Revenues rose to $8.1 million, an increase of 79.6% year-over-year, attributed to higher fleet utilization. However, Time Charter Equivalent (TCE) revenues declined, averaging $7,972 per day. The company expects charter rate volatility amid ongoing geopolitical uncertainties, including the Ukraine conflict, though they anticipate improved market conditions in the near future.
- Revenues increased by 79.6% to $8.1 million in Q4 2021 from $4.5 million in Q4 2020.
- Time charter equivalent revenues increased by 8.7% to $3.9 million compared to the same quarter in 2020.
- The company raised over $36 million in equity capital and secured $75 million in bank loans at lower interest rates.
- Net loss for Q4 2021 increased to $5.6 million, reflecting higher costs.
- Average TCE rate dropped to $7,972 per day, a decline of $2,262 from the previous year.
- Geopolitical events may adversely impact business operations and cash flows.
Pyxis Tankers Announces Financial Results for the Three Months and Year Ended December 31, 2021
Maroussi, Greece, March 18, 2022 – Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS), (the “Company” or “Pyxis Tankers”), a growth-oriented pure play product tanker company, today announced unaudited results for the three months and year ended December 31, 2021.
Summary
For the three months ended December 31, 2021, our Revenues, net were
Valentios Valentis, our Chairman and CEO, commented:
“During the fourth quarter, 2021 we announced the acquisition of the “Pyxis Lamda”, a 2017 built eco-efficient MR, the debt refinancing of the “Pyxis Malou” and the non-core sales of the two small tankers, which finalized our planned operating and financial repositioning of the Company that commenced in January, 2020. During this very challenging chartering period of two years, we managed to raise over
Historically depressed charter rates for the product tanker sector continued into the beginning of the fourth quarter, 2021. However, the traditional seasonal improvement of better activity was cut short by the COVID-19 variant, Omicron, which resulted in many adversities including the re-introduction of travel restrictions worldwide. Personal mobility was reduced which hurt demand for transportation fuels, a major portion of global cargoes. Fortunately, the personal and economic impact from Omicron has been considered mild. However, the delayed return to better chartering conditions now faces the added unpredictability from the effects of the hostilities in the Ukraine. We will do our best to navigate the unchartered waters ahead.
During the three-month period ended December 31, 2021, we reported an average TCE of
While we continue to be optimistic about the long-term fundamentals of the product tanker sector, the uncertainty surrounding demand growth is significant. Global inventories of many refined products are well below the five year averages, which is usually a positive indicator to rebuild stocks in order to meet demand. However, the International Monetary Fund’s forecast for global growth in GDP of
We believe our experienced management team, solid operating platform, disciplined use of capital and stronger financial position should help us weather these uncertain times, and potentially create further opportunities to enhance shareholder value.”
Results for the three months ended December 31, 2020 and 2021
For the three months ended December 31, 2021, we reported a net loss to common shareholders of
Results for the years ended December 31, 2020 and 2021
For the year ended December 31, 2021, we reported a net loss to common shareholders of
| Three months ended December 31, | Year ended December 31, | |||||||
| (Thousands of U.S. dollars, except for daily TCE rates) | 2020 | 2021 | 2020 | 2021 | ||||
| Revenues, net | $ | 4,512 | $ | 8,104 | $ | 21,711 | $ | 25,341 |
| Voyage related costs and commissions 1 | (935) | (4,205) | (4,268) | (9,579) | ||||
| Time charter equivalent revenues 2 | $ | 3,577 | $ | 3,899 | $ | 17,443 | $ | 15,762 |
| Total operating days | 350 | 489 | 1,523 | 1,755 | ||||
| Daily time charter equivalent rate 1, 2 | 10,234 | 7,972 | 11,456 | 8,981 | ||||
1 “Pyxis Karteria”, a 46,652 dwt medium range product tanker built in 2013 at Hyundai Mipo, was acquired on July 15, 2021 and commenced commercial operations at that time. On December 20, 2021, we took delivery from a related party the “Pyxis Lamda”, a 50,145 dwt MR product tanker built in 2017 at SPP Shipbuilding in South Korea. After her first special survey, the “Pyxis Lamda” launched commercial employment in early January, 2022. For 2021, the vessel contributed nil available days and, consequently voyage and related costs of
2 Subject to rounding; please see “Non-GAAP Measures and Definitions” below.
Management’s Discussion and Analysis of Financial Results for the Three Months ended December 31, 2020 and 2021
(Amounts are presented in U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted)
Revenues, net: Revenues, net of
Voyage related costs and commissions: Voyage related costs and commissions of
Vessel operating expenses: Vessel operating expenses of
General and administrative expenses: General and administrative expenses of
Management fees: For the three months ended December 31, 2021, management fees paid to our ship manager, Pyxis Maritime Corp. (“Maritime”), an entity affiliated with our Chairman and Chief Executive Officer, Mr. Valentis, and to International Tanker Management Ltd. (“ITM”), our fleet’s technical manager, increased by
Amortization of special survey costs: Amortization of special survey costs of
Depreciation: Depreciation of
Loss on vessels held-for-sale: The non-cash loss of
Loss from debt extinguishment: On the fourth quarter of 2021, we recorded a loss from debt extinguishment of approximately
Interest and finance costs, net: Interest and finance costs, net, for the quarter ended December 31, 2021, was
Management’s Discussion and Analysis of Financial Results for the Years ended December 31, 2020 and 2021 (Amounts are presented in U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted)
Revenues, net: Revenues, net, of
Voyage related costs and commissions: Voyage related costs and commissions of
Vessel operating expenses: Vessel operating expenses of
General and administrative expenses: General and administrative expenses of
Management fees, related parties: Management fees to Maritime of
Management fees, other: Management fees, payable to ITM of
Amortization of special survey costs: Amortization of special survey costs of
Depreciation: Depreciation of
Loss on vessels held-for-sale: The non-cash loss of
Loss from debt extinguishment: During 2021 we recorded a loss from debt extinguishment of
Interest and finance costs, net: Interest and finance costs, net, for the year ended December 31, 2021, was
Unaudited Consolidated Statements of Comprehensive Loss
For the three months ended December 31, 2020 and 2021
(Expressed in thousands of U.S. dollars, except for share and per share data)
| Three months ended December 31, | |||||
| 2020 (Unaudited) | 2021 (Unaudited) | ||||
| Revenues, net | $ 4,512 | $ 8,104 | |||
| Expenses: | |||||
| Voyage related costs and commissions | (935) | (4,215) | |||
| Vessel operating expenses | (2,856) | (3,464) | |||
| General and administrative expenses | (610) | (639) | |||
| Management fees, related parties | (153) | (237) | |||
| Management fees, other | (193) | (238) | |||
| Amortization of special survey costs | (90) | (100) | |||
| Depreciation | (1,116) | (1,370) | |||
| Loss on vessels held for sale | — | (2,389) | |||
| Allowance for credit losses | — | (2) | |||
| Operating loss | (1,441) | (4,550) | |||
| Other expenses: | |||||
| Loss from debt extinguishment | — | (83) | |||
| Gain / (Loss) from financial derivative instrument | (1) | 18 | |||
| Interest and finance costs, net | (1,182) | (800) | |||
| Total other expenses, net | (1,183) | (865) | |||
| Net loss | $ (2,624) | $ (5,415) | |||
| Dividend Series A Convertible Preferred Stock | (82) | (174) | |||
| Net loss attributable to common shareholders | $ (2,706) | $ (5,589) | |||
| Loss per common share, basic | $ (0.12) | $ (0.14) | |||
| Weighted average number of common shares, basic | 21,720,761 | 38,856,724 | |||
Consolidated Statements of Comprehensive Loss
For the years ended December 31, 2020 and 2021
(Expressed in thousands of U.S. dollars, except for share and per share data)
| Year ended December 31, | |||||
| 2020 | 2021 (Unaudited) | ||||
| Revenues, net | $ | 21,711 | $ | 25,341 | |
| Expenses: | |||||
| Voyage related costs and commissions | (4,268) | (9,589) | |||
| Vessel operating expenses | (10,880) | (12,454) | |||
| General and administrative expenses | (2,378) | (2,538) | |||
| Management fees, related parties | (637) | (716) | |||
| Management fees, other | (819) | (852) | |||
| Amortization of special survey costs | (253) | (406) | |||
| Depreciation | (4,418) | (4,898) | |||
| Loss on vessels held for sale | — | (2,389) | |||
| Gain from the sale of vessel, net | 7 | — | |||
| Allowance for credit losses | — | (11) | |||
| Operating loss | $ | (1,935) | $ | (8,512) | |
| Other expenses: | |||||
| Loss from debt extinguishment | — | (541) | |||
| Loss from financial derivative instrument | (1) | — | |||
| Interest and finance costs, net | (4,964) | (3,285) | |||
| Total other expenses, net | $ | (4,965) | $ | (3,826) | |
| Net loss | $ | (6,900) | $ | (12,338) | |
| Dividend Series A Convertible Preferred Stock | (82) | (555) | |||
| Net loss attributable to common shareholders | $ | (6,982) | $ | (12,893) | |
| Loss per common share, basic | $ | (0.32) | $ | (0.36) | |
| Weighted average number of shares, basic | 21,548,126 | 35,979,071 | |||
Consolidated Balance Sheets
As of December 31, 2020 and 2021
(Expressed in thousands of U.S. dollars, except for share and per share data)
| December 31, | December 31, | ||||||
| 2020 | 2021 (Unaudited) | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 1,620 | $ | 6,180 | |||
| Restricted cash, current portion | — | 944 | |||||
| Inventories | 681 | 1,567 | |||||
| Trade accounts receivable | 672 | 1,736 | |||||
| Less: Allowance for credit losses | (9) | (20) | |||||
| Trade accounts receivable, net | 663 | 1,716 | |||||
| Due from related parties | 2,308 | — | |||||
| Vessel held-for-sale | — | 8,509 | |||||
| Prepayments and other current assets | 133 | 186 | |||||
| Total current assets | 5,405 | 19,102 | |||||
| FIXED ASSETS, NET: | |||||||
| Vessels, net | 83,774 | 119,724 | |||||
| Total fixed assets, net | 83,774 | 119,724 | |||||
| OTHER NON-CURRENT ASSETS: | |||||||
| Restricted cash, net of current portion | 2,417 | 2,750 | |||||
| Financial derivative instrument | — | 74 | |||||
| Deferred dry dock and special survey costs, net | 1,594 | 912 | |||||
| Total other non-current assets | 4,011 | 3,736 | |||||
| Total assets | $ | 93,190 | $ | 142,562 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Current portion of long-term debt, net of deferred financing costs | $ | 3,255 | $ | 11,695 | |||
| Trade accounts payable | 3,642 | 3,084 | |||||
| Due to related parties | — | 6,962 | |||||
| Hire collected in advance | 726 | — | |||||
| Accrued and other liabilities | 677 | 1,089 | |||||
| Total current liabilities | 8,300 | 22,830 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Long-term debt, net of current portion and deferred financing costs | 50,331 | 64,880 | |||||
| Promissory note | 5,000 | 6,000 | |||||
| Total non-current liabilities | 55,331 | 70,880 | |||||
| COMMITMENTS AND CONTINGENCIES | — | — | |||||
| STOCKHOLDERS' EQUITY: | |||||||
| Preferred stock ( | — | — | |||||
| Common stock ( | 22 | 42 | |||||
| Additional paid-in capital | 79,692 | 111,840 | |||||
| Accumulated deficit | (50,155) | (63,030) | |||||
| Total stockholders' equity | 29,559 | 48,852 | |||||
| Total liabilities and stockholders' equity | $ | 93,190 | $ | 142,562 |
Consolidated Statements of Cash Flows
For the years ended December 31, 2020 and 2021
(Expressed in thousands of U.S. dollars)
| Year ended December 31, | ||||||||||
| 2020 | 2021 (Unaudited) | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net loss | $ | (6,900) | $ | (12,338) | ||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
| Depreciation | 4,418 | 4,898 | ||||||||
| Amortization and write-off of special survey costs | 253 | 406 | ||||||||
| Allowance for credit losses | — | 11 | ||||||||
| Amortization and write-off of financing costs | 328 | 247 | ||||||||
| Loss from debt extinguishment | — | 541 | ||||||||
| Loss / (gain) from financial derivative instrument | 1 | — | ||||||||
| Loss on vessels held for sale | — | 2,389 | ||||||||
| Gain on sale of vessel, net | (7) | — | ||||||||
| Issuance of common stock under the promissory note | 169 | 55 | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Inventories | (180) | (886) | ||||||||
| Due from/to related parties | (9,157) | 6,276 | ||||||||
| Trade accounts receivable, net | 571 | (1,064) | ||||||||
| Prepayments and other assets | 239 | (53) | ||||||||
| Special survey cost | (1,068) | — | ||||||||
| Trade accounts payable | (939) | (618) | ||||||||
| Hire collected in advance | (689) | (726) | ||||||||
| Accrued and other liabilities | (69) | (34) | ||||||||
| Net cash used in operating activities | $ | (13,030) | $ | (896) | ||||||
| Cash flow from investing activities: | ||||||||||
| Proceeds from the sale of vessel, net | 13,197 | — | ||||||||
| Vessel acquisition | — | (43,005) | ||||||||
| Vessel additions | (25) | (14) | ||||||||
| Ballast water treatment system installation | (542) | (175) | ||||||||
| Net cash (used in) / provided by investing activities | $ | 12,630 | $ | (43,194) | ||||||
| Cash flows from financing activities: | ||||||||||
| Proceeds from long-term debt | 15,250 | 59,500 | ||||||||
| Repayment of long-term debt | (19,909) | (35,980) | ||||||||
| Gross proceeds from issuance of common stock | — | 25,000 | ||||||||
| Common stock offering costs | (57) | (1,899) | ||||||||
| Gross proceeds from the issuance of Series A Convertible Preferred units | 4,571 | 6,170 | ||||||||
| Preferred shares offering costs | (260) | (548) | ||||||||
| Proceeds from conversion of warrants into common shares | — | 202 | ||||||||
| Repayment of promissory note | — | (1,000) | ||||||||
| Financial derivative instrument | — | (74) | ||||||||
| Payment of financing costs | (265) | (907) | ||||||||
| Preferred stock dividends paid | (69) | (537) | ||||||||
| Net cash provided by / (used in) financing activities | $ | (739) | $ | 49,927 | ||||||
| Net increase / (decrease) in cash and cash equivalents and restricted cash | (1,139) | 5,837 | ||||||||
| Cash and cash equivalents and restricted cash at the beginning of the period | 5,176 | 4,037 | ||||||||
| Cash and cash equivalents and restricted cash at the end of the period | $ | 4,037 | $ | 9,874 | ||||||
Liquidity, Debt and Capital Structure
Pursuant to our loan agreements, as of December 31, 2021, we were required to maintain total restricted cash of
Total funded debt (in thousands of U.S. dollars), net of deferred financing costs:
| December 31, 2020 | December 31, 2021 | ||||
| Funded debt, net of deferred financing costs | $ | 53,586 | $ | 76,575 | |
| Promissory Note - related party | 5,000 | 6,000 | |||
| Total funded debt | $ | 58,586 | $ | 82,575 |
Our weighted average interest rate on our total funded debt for the year ended December 31, 2021 was
On January 4, 2021 and April 2, 2021, following the second amendment to the Amended & Restated Promissory Note dated May 14, 2019, we issued to Maritime Investors Corp. (“MIC”), an affiliate, 64,446 and 47,827, respectively, of our common shares at the volume weighted average closing share price for the 10-day period immediately prior to the quarter end to settle interest payable under this obligation.
On June 17, 2021, following the exchange of
On December 20, 2021, as part of the purchase consideration for our acquisition of the “Pyxis Lamda”, we issued to MIC 4,139,003 common shares, which was equivalent to
At December 31, 2021, we had a total of 42,455,857 common shares issued and outstanding of which Mr. Valentis beneficially owned
The recent outbreak of conflict between Russia and the Ukraine has disrupted supply chains and caused instability in the global economy, while the United States and the European Union, among other countries, announced sanctions against Russia. For example, on March 8, 2022, President Biden issued an executive order prohibiting the import of certain Russian energy products into the United States, including crude oil, petroleum, petroleum fuels, oils, liquefied natural gas and coal. Additionally, the executive order prohibits any investments in the Russian energy sector by US persons, among other restrictions. The ongoing conflict could result in the imposition of further economic sanctions against Russia, and the Company’s business may be adversely impacted. Currently, the Company’s charter contracts and operations have not been negatively affected by the events in Russia and Ukraine. However, it is possible that in the future third parties with whom the Company has or will have charter contracts may be impacted by such events. While in general much uncertainty remains regarding the global impact of the conflict in Ukraine, it is possible that such tensions could adversely affect the Company’s business, financial condition, results of operation and cash flows.
Impact of COVID-19 on the Company’s Business
In response to the outbreak of COVID-19 in late 2019, governments and governmental agencies around the world took numerous actions, including travel bans, quarantines, and other emergency public health measures, and a number of countries implemented lockdown measures, which resulted in a significant reduction in global economic activity and extreme volatility in the global financial markets. By 2021, however many of these measures were relaxed. Nonetheless, we cannot predict whether and to what degree emergency public health and other measures will be reinstituted in the event of any resurgence in the COVID-19 virus or any variants thereof. If the COVID-19 pandemic continues on a prolonged basis or becomes more severe, the adverse impact on the global economy and the charter rate environment for product tankers may deteriorate further and our operations and cash flows may be negatively impacted. Relatively weak global economic conditions during periods of volatility have and may continue to have a number of adverse consequences for product tankers and other shipping sectors, as we experienced in most of 2020 and 2021 and we may experience in the future, including, among other things:
• low charter rates, particularly for vessels employed on short-term time charters or in the spot market;
• decreases in the market value of product tankers and limited second-hand market for the sale of vessels;
• limited financing for vessels;
• loan covenant defaults; and
• declaration of bankruptcy by certain vessel operators, vessel owners, shipyards and charterers.
The COVID-19 pandemic and measures to contain its spread have negatively impacted regional and global economies and trade patterns in markets in which we operate, the way we operate our business, and the businesses of our charterers and suppliers. These negative impacts could continue or worsen, even after the pandemic itself diminishes or ends. Companies, including us, have also taken precautions, such as requiring employees to work remotely and imposing travel restrictions, while some other businesses have been required to close entirely. Moreover, we face significant risks to our personnel and operations due to the COVID-19 pandemic. The crews on our vessels face risk of exposure to COVID-19 as a result of travel to ports in which cases of COVID-19 have been reported. Our shore-based personnel likewise face risk of such exposure, as we maintain offices in areas that have been impacted by the spread of COVID-19.
Measures against COVID-19 in a number of countries have restricted crew rotations on our vessels, which may continue or become more severe. As a result, in 2021, we experienced and may continue to experience disruptions to our normal vessel operations caused by increased deviation time associated with positioning our vessels to countries in which we can undertake a crew rotation in compliance with such measures. We have had and expect to continue to have increased expenses due to incremental fuel consumption and days in which our vessels are unable to earn revenue in order to deviate to certain ports on which we would ordinarily not call during a typical voyage. We may also incur additional expenses associated with testing, personal protective equipment, quarantines, and travel expenses such as airfare costs in order to perform crew rotations in the current environment. In 2021, delays in crew rotations have also caused us to incur additional costs related to crew bonuses paid to retain the existing crew members on board and may continue to do so.
Moreover, COVID-19 and governmental and other measures related to it have led to a highly difficult environment in which to acquire and dispose of vessels given difficulty to physically inspect vessels. The impact of COVID-19 has also resulted in reduced industrial activity globally, and more specifically, in China with temporary closures of factories and other facilities, labor shortages and restrictions on travel. In addition, the effects of COVID-19 has resulted in changes to vessel drydocking locations and higher related costs.
This and future epidemics may affect personnel operating payment systems through which we receive revenues from the chartering of our vessels or pay for our expenses, resulting in delays in payments. We continue to focus on our employees' well-being, while making sure that our operations continue undisrupted and at the same time, adapting to the new ways of operating. As such employees are encouraged and in certain cases required to operate remotely which significantly increases the risk of cyber security attacks.
The occurrence or continued occurrence of any of the foregoing events or other epidemics or an increase in the severity or duration of the COVID-19 or other epidemics could have a material adverse effect on our business, results of operations, cash flows, financial condition, value of our vessels and ability to pay dividends on our Series A Convertible Preferred Stock.
Non-GAAP Measures and Definitions
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) represents the sum of net income / (loss), interest and finance costs, depreciation and amortization and, if any, income taxes during a period. Adjusted EBITDA represents EBITDA before certain non-operating or non-recurring charges, such as loss on vessel held for sale, loss from debt extinguishment, loss or gain from financial derivative instrument and gain from sale of vessel. EBITDA and Adjusted EBITDA are not recognized measurements under U.S. GAAP.
EBITDA and Adjusted EBITDA are presented in this press release as we believe that they provide investors with means of evaluating and understanding how our management evaluates operating performance. These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation from, as a substitute for, or superior to financial measures prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA do not reflect:
- our cash expenditures, or future requirements for capital expenditures or contractual commitments;
- changes in, or cash requirements for, our working capital needs; and
- cash requirements necessary to service interest and principal payments on our funded debt.
In addition, these non-GAAP measures do not have standardized meanings and are therefore unlikely to be comparable to similar measures presented by other companies. The following table reconciles net loss, as reflected in the Unaudited Consolidated Statements of Comprehensive Loss to EBITDA and Adjusted EBITDA:
| Three months ended December 31, | Year ended December 31, | |||||||
| (In thousands of U.S. dollars) | 2020 | 2021 | 2020 | 2021 | ||||
| Reconciliation of Net loss to Adjusted EBITDA | ||||||||
| Net loss | $ | (2,624) | $ | (5,415) | $ | (6,900) | $ | (12,338) |
| Depreciation | 1,116 | 1,370 | 4,418 | 4,898 | ||||
| Amortization of special survey costs | 90 | 100 | 253 | 406 | ||||
| Interest and finance costs, net | 1,182 | 800 | 4,964 | 3,285 | ||||
| EBITDA | $ | (236) | $ | (3,145) | $ | 2,735 | $ | (3,749) |
| Loss on vessels held for sale | — | 2,389 | — | 2,389 | ||||
| Loss from debt extinguishment | — | 83 | — | 541 | ||||
| Loss / (Gain) from financial derivative instrument | 1 | (18) | 1 | — | ||||
| Gain from the sale of vessel, net | — | — | (7) | — | ||||
| Adjusted EBITDA | $ | (235) | $ | (691) | $ | 2,729 | $ | (819) |
Daily TCE is a shipping industry performance measure of the average daily revenue performance of a vessel on a per voyage basis. Daily TCE is not calculated in accordance with U.S. GAAP. We utilize daily TCE because we believe it is a meaningful measure to compare period-to-period changes in our performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which our vessels may be employed between the periods. Our management also utilizes daily TCE to assist them in making decisions regarding employment of the vessels. We calculate daily TCE by dividing Revenues, net after deducting Voyage related costs and commissions, by operating days for the relevant period. Voyage related costs and commissions primarily consist of brokerage commissions, port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract.
Vessel operating expenses (“Opex”) per day are our vessel operating expenses for a vessel, which primarily consist of crew wages and related costs, insurance, lube oils, communications, spares and consumables, tonnage taxes as well as repairs and maintenance, divided by the ownership days in the applicable period.
We calculate utilization (“Utilization”) by dividing the number of operating days during a period by the number of available days during the same period. We use fleet utilization to measure our efficiency in finding suitable employment for our vessels and minimizing the amount of days that our vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys and intermediate dry-dockings or vessel positioning. Ownership days are the total number of days in a period during which we owned each of the vessels in our fleet. Available days are the number of ownership days in a period, less the aggregate number of days that our vessels were off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and intermediate dry-dockings and the aggregate number of days that we spent positioning our vessels during the respective period for such repairs, upgrades and surveys. Operating days are the number of available days in a period, less the aggregate number of days that our vessels were off-hire or out of service due to any reason, including technical breakdowns and unforeseen circumstances.
EBITDA, Adjusted EBITDA, Opex and daily TCE are not recognized measures under U.S. GAAP and should not be regarded as substitutes for Revenues, net and Net income. Our presentation of EBITDA, Adjusted EBITDA, Opex and daily TCE does not imply, and should not be construed as an inference, that our future results will be unaffected by unusual or non-recurring items and should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with U.S. GAAP.
| (Amounts in U.S. Dollars per day) | Three months ended December 31, | Year ended December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | ||||||
| Eco-Efficient MR2: (2021: 3 of our vessels*) | |||||||||
| (2020: 2 of our vessels) | TCE : | ||||||||
| Opex : | 6,232 | 6,785 | 6,107 | 6,993 | |||||
| Utilization % : | |||||||||
| Eco-Modified MR2: (1 of our vessels) | |||||||||
| TCE : | 10,611 | 927 | 14,130 | 8,486 | |||||
| Opex : | 7,714 | 6,613 | 6,612 | 6,724 | |||||
| Utilization % : | |||||||||
| Small Tankers: (2 of our vessels) | |||||||||
| TCE : | 4,722 | 6,744 | 5,331 | 6,612 | |||||
| Opex : | 5,476 | 4,828 | 5,204 | 4,956 | |||||
| Utilization % : | |||||||||
| Fleet: (2021: 6 vessels*) | |||||||||
| (2020: 5 vessels) | TCE : | 10,234 | 7,972 | 11,456 | 8,981 | ||||
| Opex : | 6,226 | 6,104 | 5,847 | 6,198 | |||||
| Utilization % : | |||||||||
As at December 31, 2021 our fleet consisted of four eco-efficient MR2 tankers, “Pyxis Lamda”, “Pyxis Theta”, “Pyxis Karteria” and “Pyxis Epsilon”, one eco-modified MR2, “Pyxis Malou”, and two handysize tankers, “Northsea Alpha” and “Northsea Beta”. During 2020 and 2021, the vessels in our fleet were employed under time and spot charters.
* a) On December 20, 2021, we took delivery from a related party the “Pyxis Lamda”, a 50,145 dwt medium range product tanker built in 2017 at SPP Shipbuilding in South Korea. After her first special survey, the “Pyxis Lamda” launched commercial employment in early January, 2022. For 2021, the vessel contributed nil available days, and, consequently voyage and related costs of
b) “Pyxis Karteria” was acquired on July 15, 2021 and commenced commercial activities at that time.
2022 Annual Shareholder Meeting Date and Deadline for Submitting Shareholder Proposals
We will host our annual shareholder meeting (the “ASM”) for 2022 in London, United Kingdom on May 11, 2022. The board of directors of the Company (the “Board”) has set a record date for the 2022 ASM of April 14, 2020. Shareholders of record will be asked to vote on the following proposals, which will be described in more detail in the proxy materials for the 2022 ASM that are expected to be available on or around April 21, 2022: a) to re-elect Mr. Aristides Pittas, as a Class II director, to serve until the 2025 ASM; b) to approve one or more amendments to the Company’s articles of incorporation (the “Articles”) to effect one or more reverse stock splits of the Company’s issued common shares at any time and from time to time until the 2023 ASM at a ratio of not less than 1 for 4 and not more than 1 for 10 and in the aggregate of not more than 1 for 10, inclusive, with the exact ratio to be set at a whole number within this range determined by the Board, or any duly constituted committee thereof, in its discretion, and to authorize the Board to implement any such reverse stock split by filing any such amendment to the Articles with the Registrar of Corporations of the Republic of the Marshall Islands at any time following such approval and prior to the 2023 ASM, provided that fractional share interests are expected to settled in cash; and c) to transact such other business that may properly come before the 2022 ASM or any adjournment thereof.
Since the 2022 ASM is expected to occur more than 30 days prior to the anniversary of the Company’s 2021 ASM, the Board has set a new deadline for the receipt of shareholder proposals a reasonable time before the Company will begin to print and send its proxy materials. For business to be properly brought before the 2022 ASM by any shareholder, and for nomination of directors to be made by a shareholder, notice must be received by the Company in proper written form, in accordance with the Company Amended and Restated Bylaws, no later than 5:00 p.m. (Athens local time) on April 14, 2022.
Conference Call and Webcast
We will host a conference call to discuss our results at 4:30 p.m., Eastern Time, on Friday, March 18, 2022.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Pyxis Tankers".
A telephonic replay of the conference and accompanying slides will be available following the completion of the call and will remain available until Friday, March 25, 2022. To listen to the archived audio file, visit our website http://www.pyxistankers.com and click on Events& Presentations under our Investor Relations page.
Webcast:
A webcast of the conference call will be available through our website (http://www.pyxistankers.com) under our Events & Presentations page.
Webcast participants of the live conference call should register on the website approximately 10 minutes prior to the start of the webcast and can also access it through the following link:
https://events.q4inc.com/attendee/201614083
An archived version of the webcast will be available on the website within approximately two hours of the completion of the call.
The information discussed on the conference call, or that can be accessed through, Pyxis Tankers Inc.’s website is not incorporated into, and does not constitute part of this report.
About Pyxis Tankers Inc.
We 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. Pyxis Tankers Inc. is positioned to opportunistically expand and maximize the value of its 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. The information discussed contained in, or that can be accessed through, Pyxis Tankers Inc.’s website, is not incorporated into, and does not constitute part of this report.
Pyxis Tankers Fleet (as of March 18, 2022)
| Vessel Name | Shipyard | Vessel type | Carrying Capacity (dwt) | Year Built | Type of charter | Charter(1) Rate (per day) | Anticipated Earliest Redelivery Date | |
| Pyxis Lamda (2) | SPP / S. Korea | MR | 50,145 | 2017 | Time | 15,250 | Mar 2022 | |
| Pyxis Epsilon | SPP / S. Korea | MR | 50,295 | 2015 | Spot | n/a | n/a | |
| Pyxis Theta | SPP / S. Korea | MR | 51,795 | 2013 | Spot | n/a | n/a | |
| 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 | |
| 249,554 |
- Charter rates are gross and do not reflect any commissions payable.
- “Pyxis Lamda” is fixed on a time charter for 70 days, +/- 15 days at
$15,250 per day with charterer’s option of additional min 70 max 180 days +/- 15 days at$15,700 per day.
Forward Looking Statements
This press release contains forward-looking statements and forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995 applicable securities laws. The words “expected'', “estimated”, “scheduled”, “could”, “should”, “anticipated”, “long-term”, “opportunities”, “potential”, “continue”, “likely”, “may”, “will”, “positioned”, “possible”, “believe”, “expand” and variations of these terms and similar expressions, or the negative of these terms or similar expressions, are intended to identify forward-looking information or statements. But the absence of such words does not mean that a statement is not forward-looking. 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. Forward-looking information is based on the opinions, expectations and estimates of management of Pyxis Tankers Inc. (“we”, “our” or “Pyxis”) at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Although we believe that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, those are not guarantees of our future performance and you should not place undue reliance on the forward-looking statements and information because we cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties and actual results and future events could differ materially from those anticipated or implied in such information. Factors that might cause or contribute to such discrepancy include, but are not limited to, the risk factors described in our Annual Report on Form 20-F for the year ended December 31, 2020 and our other filings with the Securities and Exchange Commission (the “SEC”). The forward-looking statements and information contained in this presentation are made as of the date hereof. We do not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except in accordance with U.S. federal securities laws and other applicable securities 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.
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