Pyxis Tankers Stock

Pyxis Tankers Inc. operates as an international maritime transportation holding company focused on the product tanker sector. The company is a subsidiary of Maritime Investors Corp.

As of March 31, 2023, the company's fleet included four double hull product tankers, which were employed under a mix of spot and medium-term time charters. As of March 31, 2023, the company's MR fleet had an average age of 8.4 years (excluding the 'Pyxis Malou' sold on March 23, 2023) compared to an industry average of approximately 12 years, with a total cargo carrying capacity of 198,882 dwt. One tanker was acquired from an un-affiliated third party in July 2021. All of the vessels in the fleet are eco-efficient designed MR tankers, except for the 'Pyxis Malou', which has eco-modified design and was sold to a third-party on March 23, 2023. Each of the vessels in the fleet has IMO certifications and is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel and fuel oil, as well as other liquid bulk items, such as vegetable oils and organic chemicals.

The company intends to expand the fleet through selective acquisitions of modern product tankers, primarily MRs, and to employ its vessels through time charters to creditworthy customers and on the spot market. In January and March 2022, the company's two small tankers, Northsea Alpha and Northsea Beta, respectively, were sold to a third party. On March 23, 2023, the MR Pyxis Malou was sold to a third party.

As of March 31, 2023, the company had three tankers contracted under time charter and one in scheduled dry-docking after, which it will enter into a short-term time charter. As of March 31, 2023, 29% of the company's fleet's remaining available days in 2023 were contracted, exclusive of charterers' options.

Charters

Under both time and spot charters on the vessels in the fleet, the company is responsible for the technical management of the vessel and for maintaining the vessel, periodic dry-docking, cleaning, and painting and performing work required by regulations. The company has entered into a contract with Maritime to provide commercial, sale and purchase, and other operations and maintenance services to all of the vessels in its fleet. The company's vessel-owning subsidiaries have contracted with International Tanker Management Ltd. (ITM), a third party technical manager and subsidiary of V. Ships Limited, to provide crewing and technical management to all of the vessels in its fleet.

Strategy

The key elements of the company's strategy are to maintain high quality fleet of modern tankers; grow the fleet opportunistically; utilize portfolio approach for commercial employment; preserve strong safety record and commitment to customer service and support; and support good environmental, social and governance standards.

Management Agreements

Ship Management Agreements with ITM: The company outsources the day-to-day technical management of its vessels to an unaffiliated third party, ITM, which has been certified for ISO 9001:2008 and ISO 14001:2004. Each vessel-owning subsidiary that owns a vessel in the company's fleet under a time or spot charter also typically enters into a separate ship management agreement with ITM. ITM is responsible for all technical management, including crewing, maintenance, repair, dry-dockings and maintaining required vetting approvals. In performing its services, ITM is responsible for operating a management system that complies, and ITM ensures that each vessel and its crew comply, with all applicable health, safety and environmental laws and regulations.

Customers

The company markets its vessels and related services to a broad range of customers, including international commodity trading companies and oil, gas, and large shipping companies.

The company's customers include, among others, Trafigura Maritime Logistics Pte. Ltd., BP, Equinor, Total, Vitol, Shell, PMI (a subsidiary of Pemex), ST Shipping (an affiliate of Glencore), Greenergy Fuels LTD (a subsidiary of Gunvor), Petrobras, Valero, NIDAS, and their respective subsidiaries, as well as Clearlake Shipping Pte. Ltd.

In addition to these companies, the company and its ship manager, Pyxis Maritime Corp. (Maritime), have historical and growing chartering relationships with major integrated oil and international trading companies, including BP, Shell, Equinor, Total, Vitol, ST Shipping (an affiliate of Glencore), Valero, and their respective subsidiaries.

Competition

Several of the company's U.S. publicly listed competitors include Scorpio Tankers Inc., Ardmore Shipping Corporation, and International Seaways, Inc.

Environmental and Other Regulations in the Shipping Industry

A variety of government and private entities subject the company's vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities, such as the U.S. Coast Guard (USCG), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators.

In September of 1997, the IMO adopted Annex VI to MARPOL (International Convention for Prevention of Pollution from Ships) to address air pollution from vessels. Effective May 2005, Annex VI sets limits on sulfur oxide and nitrogen oxide emissions from all commercial vessel exhausts and prohibits 'deliberate emissions' of ozone depleting substances (such as halons and chlorofluorocarbons), emissions of volatile compounds from cargo tanks, and the shipboard incineration of specific substances. Annex VI also includes a global cap on the sulfur content of fuel oil and allows for special areas to be established with more stringent controls on sulfur emissions. All the company's vessels are compliant in all material respects with these regulations.

The company's vessels are in substantial compliance with SOLAS and LLMC (Convention of Limitation of Liability for Maritime Claims) standards.

Under Chapter IX of the SOLAS Convention (IMO International Convention for the Safety of Life at Sea of 1974), or the ISM Code, the company's operations are also subject to environmental standards and requirements. The company relies upon the safety management system that it and its technical management team have developed for compliance with the ISM Code.

The company has obtained applicable documents of compliance for its offices and safety management certificates for all of its vessels for which the certificates are required by the IMO.

All of the company's vessels are in possession of a CLC (International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended by different Protocols in 1976, 1984, and 1992, and amended in 2000) State issued certificate attesting that the required insurance coverage is in force.

The company has obtained Anti-fouling System Certificates for all of its vessels that are subject to the International Convention on the Control of Harmful Anti-fouling Systems on Ships (Anti-fouling Convention).

As of December 31, 2022, each of the company's vessels was ISM Code certified. Both the U.S. Oil Pollution Act of 1990 and the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 impact the company's operations.

The U.S. Environmental Protection Agency and the USCG have also enacted rules relating to ballast water discharge, compliance with which requires the installation of equipment on the company's vessels to treat ballast water before it is discharged or the implementation of other port facility disposal arrangements or procedures at potentially substantial costs, and/or otherwise restrict the company's vessels from entering the U.S. Waters.

The company's vessels are in substantial compliance with and are certified to meet the Maritime Labor Convention 2006.

History

Pyxis Tankers Inc. was founded in 2015. The company was incorporated in the Republic of the Marshall Islands in 2015.