Q1 2018 Financial Results May 14, 2018
DISCLAIMER FORWARD-LOOKING STATEMENTS & INFORMATION This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The words “expected'', “estimated”, “scheduled”, “could”, “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. 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, 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, 2017 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. This presentation and any oral statements made in connection with it are for informational purposes only and do not constitute an offer to buy or sell our securities. For more complete information about us, you should read the information in this presentation together with our filings with the SEC, which may be accessed at the SEC’s website (http://www.sec.gov). 2
Q1 2018 HIGHLIGHTS SUMMARY Mixed results ► Time charter equivalent revenues of $4.5 million* ► Net income of $0.6 million, or $0.03 per share, basic and diluted Q1 2018 Financial & ► Adjusted EBITDA of $0.1 million** Operational ► Recorded non-cash impairment charge to the small tankers of ~ $1.5 million in total or $0.07 Highlights / share ► Refinanced $26.9 million existing indebtedness with new 5-year secured bank loan. Recorded gain from debt extinguishment of ~ $4.3 million ► As of May 7 th , all of our MR’s under short-term T/C’s – 66% of Q2 available days booked at ~ $14,900/day, exclusive of options Sector fundamentals are firming ► Charter rates generally trending in positive direction MR2 Product Tanker ► MR2 tanker orderbook at 20-year low Market Update ► Due to declining scheduled deliveries of new builds and increasing demand growth, we expect sustainable improvement in rates to occur in 2H 2018 ► Acquisition of second-hand MR2 tankers remains attractive with vessel prices substantially below 10 year averages * Time charter equivalent (“TCE”) revenues are voyage revenues less voyage related costs and commissions; please see Exhibit II – Non-GAAP Measures and Definitions ** Please see Exhibit II – Non-GAAP Measures and Definitions 3
FLEET & EMPLOYMENT OVERVIEW POSITIONED FOR UPSIDE OPPORTUNITIES Our mixed chartering strategy provides upside opportunities through spot trading when rates improve and stable, visible cash flows from time charters Carrying Vessel Type of Anticipated Vessel Shipyard Capacity Year Built Type Charter Redelivery Date (1) (dwt) Pyxis Epsilon SPP / S.Korea MR 50,295 2015 Time May 2018 Fleet Details Pyxis Theta SPP / S.Korea MR 51,795 2013 Time May 2018 Pyxis Malou SPP / S.Korea MR 50,667 2009 Time Jul. 2018 Pyxis Delta Hyundai / S.Korea MR 46,616 2006 Time May 2018 Northsea Alpha (2) Kejin / China Small Tanker 8,615 2010 Spot N/A Northsea Beta (2) Kejin / China Small Tanker 8,647 2010 Spot N/A Avg. Age Total 216,635 7.2 Years 32% and 9% of the remaining days of Q2 and FY18, respectively, are covered, exclusive of options Fleet Employment Vessel 2018 Overview Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Pyxis Epsilon $16,250 / Day Pyxis Theta $15,000 / Day Pyxis Malou $14,000 / Day Pyxis Delta $14,325 / Day Northsea Alpha N/A Northsea Beta N/A Fixed Charterers Open Optional Period Days Employment (1) These tables are dated as of May 7, 2018 and show gross rates and do not reflect commissions payable. (2) Management may pursue sale or other long-term strategy for small tankers. 4
MARKET UPDATE PRODUCT TANKER INDUSTRY
MR2 PRODUCT TANKER MARKET UPDATE CHARTERING CONDITIONS Overall Chartering Market – Trending Positive While choppy, spot market has improved over last 12 months ► One year time charter rates bounced up in December 2017 / January 2018 ► but recently softened to $13,500/d – still 44% below last 10 year high of $24,300/d and ~ 10% below post-recession average* Major reasons: ► Inventories of refined products worldwide now approximate 5 year • averages new tonnage declining after period of substantial deliveries • but, lack of arbitrage opportunities to drive rates • Directionally Pointing to Better Chartering Environment in Near Future Source: Drewry, March 2018 6
MR2 PRODUCT TANKER MARKET UPDATE - continued LOOKING AHEAD Solid Demand Growth Expected Demand growth estimated at 3%+/yr. led by increasing global consumption of ► refined products and modest ton-mile expansion from changing refinery landscape Moderating Vessel Supply Declining MR2 order book: ► Attractive long- 6.2%* of worldwide fleet (lowest since 2000) with 3.1%* (gross) scheduled • term industry for delivery in 2018 (exclusive of delays and scrapping) fundamentals low new ordering – only 52 MR’s in 2017* • limited capacity additions scheduled beyond 2019 and continued • financial/operating problems at shipyards slippage still a factor in newbuild deliveries • Currently low demolition levels but increased scrapping likely over long-term ► 9%* of MR2 global fleet or 146 tankers are 18 yrs old or more; • new environmental regulations for ballast water treatment upgrade • (starting September 2019) and low-Sulphur fuel (January 2020) should require significant additional capital expenditure per ship Access to cost effective capital continues to be challenging and further limits ► new vessel ordering and acquisitions * Source: Drewry – March 2018, excludes Jones Act vessels 7
MR2 PRODUCT TANKER MARKET UPDATE - continued ATTRACTIVE ENTRY POINT FOR VESSEL ACQUISITION Positive long- 10 Yr. term industry Type Current * Average ** Difference fundamentals & low vessel New Build (delivery Q419) *** $35.5 $36.7 (3.3%) values offer 5 yr. old $25.9 $28.4 (8.8%) attractive entry point * Broker indications ** Source: Drewry – March 2018, excludes Jones Act vessels *** Exclusive of higher specifications, yard supervision costs and spares 8
PYXIS TANKERS FINANCIAL SUMMARY – Q1 2018
UNAUDITED FINANCIAL HIGHLIGHTS THREE MONTHS ENDED MARCH 31, 2017 & 2018 Three Months Ended March 31, 2017 2018 In ‘000 USD except for daily TCE rates Comparative Q/Q Time / spot charter revenue mix 27% / 73% 57% / 43% improvement but Voyage revenues $7,640 $6,590 continued soft spot Voyage related costs & commissions (2,931) (2,057) chartering activity impacted Q118 Time charter equivalent revenues * $4,709 $4,533 operating results 480 425 Total operating days $9,810 $10,667 Daily time charter equivalent rate * Fleet Utilization 88.9% 82.0% * Subject to rounding; Please see Exhibit II – Non-GAAP Measures and Definitions 10
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