Pyxis Tankers announces closing of modern Dry Bulk Vessel acquisition & commercial update

February 19, 2024

Valentios Valentis, Pyxis Tankers, Chairman and CEO

Pyxis Tankers, an international shipping company, announced today that it has completed the acquisition of an 82,013 dwt dry bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. The $26.625 million purchase of the eco-efficient Kamsarmax, fitted with a ballast water treatment system and scrubber, was funded by a combination of secured bank debt of $14.5 million and cash on hand. The five year amortizing bank loan is priced at Term SOFR +2.35% and is secured by, among other things, the vessel. The vessel has been named the “Konkar Asteri” and is expected to commence commercial operations shortly. As of December 31, 2023, on a pro-forma basis for the acquisition of the vessel, including payment of transaction fees and expenses and application of vessel working capital, consolidated total cash would have been $45.6 million, inclusive of restricted cash of $2.15 million, and total funded debt would have been $76.0 million.

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

“As previously disclosed, we completed the sale of our 2015 built product tanker, the “Pyxis Epsilon” , in Mid-December, 2023 and at year-end, the Company was operating three medium range product tankers (each an “MR”). For the fourth quarter of 2023, we expect to report a preliminary daily average time charter equivalent charter rate (“TCE”) * ¹of approximately $30,500 per MR. The product tanker chartering environment continues to be constructive, especially given recent geo-political events. As of February 15, 2024, 75% of the available days in the first quarter of 2024 for our MR’s were booked at an estimated average TCE of $29,200 per vessel. Two of our MRs continue to operate under time charters (“T/C”) and one MR in the spot market.

The acquisition of the “Konkar Asteri” provides the opportunity to expand our commercial footprint with a fleet of eco-efficient, scrubber-fitted mid-sized dry bulk carriers. The Company has a controlling interest in a 2015-built Ultramax, the “Konkar Ormi” . Shortly after the acquisition,“Konkar Ormi” commenced commercial operations in October 2023 under a short-term T/C. For the fourth quarter of 2023, we expect to report an estimated daily TCE of $16,900 for this vessel. So far in 2024, we have not experienced the usual seasonal slowdown in the dry bulk sector. Global demand for many dry bulk commodities has been supported by solid GDP growth and certain atypical events, such as transit restrictions through the Panama Canal due to extreme drought conditions. As of February 15, 2024, 75% of available days in the first quarter of 2024 were booked for the Ultramax at an average TCE of $20,900. We expect to employ our dry bulk vessels under a mix of T/C’s and spot voyages.”

Vessel Name	Shipyard	Vessel type	Carrying Capacity(dwt)	Year Built	Type of charter	Charter ⁽¹⁾Rate (per day)	Anticipated Earliest Redelivery Date


Product Tanker F leet
Pyxis Lamda	SPP / S. Korea	MR2 Tanker	50,145	2017	Spot	n/a	n/a
Pyxis Theta ⁽²⁾	SPP / S. Korea	MR2 Tanker	51,795	2013	Time	29,000	Aug 2024
Pyxis Karteria ⁽³⁾	Hyundai / S. Korea	MR2 Tanker	46,652	2013	Time	30,000	Mar 2024
			148,592
Dry-bulk F leet
Konkar Ormi ⁽⁴⁾	SKD / Japan	Ultramax	63,520	2016	Time	23,750	Mar 2024
Konkar Asteri	JNYS / China	Kamsarmax	82,013	2015	TBD	n/a	n/a
			145,533

1) These tables are as of February 15, 2024 and present gross rates in U.S.$ and do not reflect any commissions payable.
2) “Pyxis Theta” is fixed on a time charter for min 11 max 15 months, at $29,000 per day.
3) “Pyxis Karteria” was fixed on a time charter for min 150 max 240 days, at $30,000 per day.
4) “Konkar Ormi” was fixed on a time charter for 60 – 70 days, at $23,750 per day.

* [1] Daily TCE rate is a standard shipping industry performance measure of the average daily revenue performance of a vessel on a per voyage basis. TCE is not calculated in accordance with U.S. GAAP. We utilize 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 TCE to assist them in making decisions regarding the employment of the vessels. We believe that our method of calculating TCE is consistent with industry standards and is calculated by dividing voyage revenues after deducting voyage expenses, including commissions, by operating days for the relevant period. Voyage expenses primarily consist of brokerage commissions, port, canal and bunker costs that are unique to a particular voyage, which would otherwise be paid by the charter under a time charter contract.