Pyxis Tankers Inc. · NASDAQ:PXS
Pyxis Tankers — IPO Roadshow (August 2020)
34 slides from Pyxis Tankers's IPO roadshow presentation, Aug 28, 2020
Slide 1: Investor Presentation August 2020
INVESTOR PRESENTATION August 2020
Slide 2: Disclaimer and Forward-looking Statements
Disclaimer and Forward-looking Statements Matters discussed in this Presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the current views of the Company with resp
Slide 3: Summary of Proposed Terms
SUMMARY OF PROPOSED TERMS Securities Offered: Units, each Unit consisting of one 8.25% Series A Cumulative Redeemable Perpetual Preferred Share (“Series A Preferred Shares”) and eight common stock purchase warrants (“Warrants”) Offering Size: 280,000 Units, with a 15% over-allotment option Public Of
Slide 4: Growth Oriented - Pure Play Product Tanker Company
COMPANY GROWTH ORIENTED - PURE PLAY PRODUCT TANKER COMPANY Focus on modern medium range (“MR”) product tankers with “eco” featuresModern tanker fleet of five IMO-certified vessels - weighted average age of ~8.3 yearsManagement pursuing possible sale or other long-term strategy for small tankers Grow
Slide 5: Fleet & Employment Overview Positioned for Upside Opportunities
FLEET & EMPLOYMENT OVERVIEW POSITIONED FOR UPSIDE OPPORTUNITIES Fleet Details Fleet Employment Overview Our mixed chartering strategy provides upside opportunities through spot trading when rates improve and stable, visible cash flows from time charters 29% of the remaining days of 2020, are covered
Slide 6: Strong Relationships: Customers, Senior Lenders, Shipyards
STRONG RELATIONSHIPS QUALITY VESSELS & OPERATIONS BLUE CHIP CUSTOMERS COMPETITIVE LENDING TERMS CUSTOMERS SENIOR LENDERS SHIPYARDS
Slide 7: Senior Management
SENIOR MANAGEMENT Joined Pyxis affiliates in 2008; 25+ years of experience in the shipping industryCo-founder of Navbulk Shipping S.A., a start-up dry bulk company5 years as Financial Director of Neptune Lines, a car carrier company16 years in various financial and operational positions for other sh
Slide 8: Pyxis Organizational Structure
PYXIS ORGANIZATIONAL STRUCTURE LEAN, EFFICIENT, SCALABLE ORGANIZATIONAL STRUCTURE Administrative, Commercial & Ship Management Services (1) Administrative, Commercial & Ship Management Fees As an affiliate, provides the commercial management for the fleet and supervises the crewing and technical man
Slide 9: Company Strategy: Quality, Growth, Service & Financial Flexibility
Expand fleet by targeting balanced capital structure of debt and equityMaintain commercial lending and expand capital markets relationshipsAddress Environmental, Social and Governance (ESG) standards throughout the organization Meet charterers’ preference for modern and eco tankers, which offer more
Slide 10: Support Good Environmental, Social & Governance Standards
SUPPORT GOOD ENVIRONMENTAL, SOCIAL & GOVERNANCE STANDARDS Focus on eco-efficient, modern MR tankers, resulting in improved fuel consumption and lower greenhouse gas emissionsClear strategy to comply with new and existing IMO regulations, including:Retrofitting MR fleet with Ballast Water Treatment S
Slide 11: First Six Months Ended June 30, 2020 Summary
First Six Months Ended June 30, 2020 Summary Improving performanceTime charter equivalent revenues of $9.5 million*, down 7.4% from 1H ‘19Lower net loss of $2.4 million, or $0.11 loss per share, basic and dilutedAdjusted EBITDA of $2.4 million**, up 31.7% from 1H ‘19Lower revenue, total operational
Slide 12: Pyxis Tankers Financial Highlights
PYXIS TANKERS FINANCIAL HIGHLIGHTS
Slide 13: Unaudited Financial Highlights Six Months Ended June 30
UNAUDITED FINANCIAL HIGHLIGHTS SIX MONTHS ENDED JUNE 30, 2019 & 2020 Sale of One MR in 1H 2020 Outweighed Better Charter Rates, Reducing Revenues Six Months EndedJune 30, 2019 2020 In ‘000 USD except for daily TCE rates Time / spot charter revenue mix 67% / 33% 63% / 37% Revenues, net $13,180 $12,12
Slide 14: Unaudited Income Statement Six Months Ended June 30, 2019 & 2020
Six Months EndedJune 30, 2019 2020 In ‘000 USD except per share data Revenues, net $13,180 $12,124 Expenses: Voyage related costs and commissions (2,926) (2,629) Vessel operating expenses (6,402) (5,228) General and administrative expenses (1,187) (1,113) Management fees, related parties (359) (332)
Slide 15: Recent Daily Fleet Data Six Months Ended June 30
(amounts in $) Six Months EndedJune 30, 2019 2020 Eco-Efficient MR2: (2 of our vessels) Average TCE * 13,673 15,060 Opex * 5,771 5,966 Utilization % 100.0% 98.0% Eco-Modified MR2: (1 of our vessels) TCE 12,809 15,286 Opex ** 7,228 6,078 Utilization % 98.0% 100.0% Standard MR2: (1 of our vessels) ***
Slide 16: Total Daily Cash Operational Costs Eco-Efficient Vessels
TOTAL DAILY CASH OPERATIONAL COSTS ECO-EFFICIENT VESSELS - SIX MONTHS ENDED JUNE 30, 2020 Our Eco Efficient MR2 tankers’ Average Total Daily OperationalCosts Continue to be Stable & Competitive Six Months EndedJune 30, 2020 (amounts in $/day) Opex $5,966 Technical & commercial management fees 757 G&
Slide 17: Moderate Leveraged Capitalization as of June 30, 2020
MODERATE LEVERAGED CAPITALIZATION as of JUNE 30, 2020 * As Further Adjusted reflects (a) refinancing of Pyxis Theta with the Alpha Bank Facility, (b) issuance of 68,410 common shares on July 1, 2020, under the Amended and Restated Promissory Note and (c) net proceeds from the Offering of $6.22 M, bu
Slide 18: Management Incentivized to Achieve Prudent Growth
MANAGEMENT INCENTIVIZED TO ACHIEVE PRUDENT GROWTH - FOUNDER/CEO’S SUBSTANTIAL SHAREHOLDINGS Common shares listed on NASDAQ Capital Market under trading symbol “PXS”The shareholder base as of August 24, 2020:Maritime Investors Corp. (“MIC”) 17,409,694 (80.8% of outstanding)Public Float 3,891,263 (18.
Slide 19: Investment Highlights: Pure Play Product Tanker Company
INVESTMENT HIGHLIGHTS PURE PLAY PRODUCT TANKER COMPANY
Slide 20: Market Update: Product Tanker Industry
MARKET UPDATE PRODUCT TANKER INDUSTRY
Slide 21: Refined Products Overview
REFINED PRODUCTS OVERVIEW Crude OilPetroleum ProductsBitumen Fuel Oil Cycle Oils Diesel/Gasoil Kerosene Gasolines Clean Condensates NaphthasOther Bulk LiquidsVegetable Oils & Chemicals (Organic & Inorganic) DirtyProducts Clean Products Crude Most products tankers can switch between clean and dirty p
Slide 22: Changing Trade Routes & Petroleum Refinery Landscape Creating Incremental Demand
CHANGING TRADE ROUTES & PETROLEUM REFINERY LANDSCAPE CREATING INCREMENTAL DEMAND Source: Drewry, August 2020* Compound annual growth rate Increases in Demand due to Changing Trade Routes & Refining Landscape 2.8% CAGR* in million tons of seaborne trade2.9% CAGR in ton mile demand
Slide 23: Evolving Trade Routes with Ton Miles Increasing
EVOLVING TRADE ROUTES WITH TON MILES INCREASING Source: Drewry, August 2020 Growth in net refining capacity expected to further drive demand for product tankersLower crude / feedstock prices could help generate incremental refinery demand and consumptionArbitrage between markets could create further
Slide 24: U.S. Has Become Major Refined Products Exporter
U.S. HAS BECOME MAJOR REFINED PRODUCTS EXPORTER Million Barrels per Day Increasing refined product exports due to proliferation of shale oil production, until Covid-19until Covid-19 Source: Drewry, August 2020 U.S. Exports Increased at 10.6% CAGR over Last 10 years to 2019
Slide 25: Refinery Capacity Additions Further Away From End Users
REFINERY CAPACITY ADDITIONS FURTHER AWAY FROM END USERS BOOSTING TON-MILE DEMAND Expected Petroleum Refinery Capacity Additions Driven by Non-OECD Growth & Exports Million Barrels per Day Source: Drewry, August 2020
Slide 26: Declining MR2 Order Book
DECLINING MR2* ORDER BOOK Total MR2 vessel orderbook has fallen from ~25% high in 2009 of the then existing fleet to 6.1% (108 vessels) of the worldwide fleet as of June 30, 2020Extremely low ordering – only 1 MR2 in 1H 2020Limited capacity additions - only 12 MR2s scheduled beyond 2021 due to conti
Slide 27: MR2 Scrapping Expected to Increase
Average age of MR2 fleet is 11 years110 MR2 vessels (6.2% of worldwide fleet) are 20 years old or more4 MR2 (0.2% of the MR2 fleet) scrapped in H1 2020 Sizeable portion of the fleet is approaching end of its useful life - future supply will affect replacement abilityNew environmental regulations sho
Slide 28: MR2 Charter Rates Potentially Positioned for Improvement
Jan.10-Jun.20 MR2 Avg. Rate Average $14,230 Low $11,000 High $19,500 Jun. 2020 $15,000 Jan.10-Jun.20 MR2 Avg. Rate Average $10,490 Low $1,100 High $38,370 Jun. 2020 $9,050 MR2 CHARTER RATES POTENTIALLY POSITIONED FOR IMPROVEMENT MR2 Time Charter Equivalent* Daily Spot Rates 1 Year MR2 Time Charter E
Slide 29: Reasonable MR2 Asset Values Create Attractive Entry Point
Type ($ million) Current * 2010-June 2020Average ** Difference New Build (delivery Early ’22) *** $34.5 $35.0 (1)% 5 yr. old 26.4 26.4 0% 10 yr. old 17.8 17.6 1% REASONABLE MR2 ASSET VALUES CREATE ATTRACTIVE ENTRY POINT MR2 Asset Prices USD Million *Avg. Shipbroker indications ** Source: Drewry, Aug
Slide 30: Exhibit I: Definitions
PXS PYXIS TANKERS. DEFINITIONS EXHIBIT |
Slide 31: Exhibit I | Definitions
EXHIBIT I | 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-opera
Slide 32: Exhibit II Non-GAAP Measures
EXHIBIT II NON-GAAP MEASURES
Slide 33: Exhibit II | Non-GAAP Measures
EXHIBIT II | NON-GAAP MEASURES (in thousands of U.S. Dollars) Six Months EndedJune 30, 2019 2020 Reconciliation of Net loss to Adjusted EBITDA Net loss $ (3,937) $ (2,403) Depreciation 2,705 2,189 Amortization of special survey costs 117 97 Interest and finance costs, net 2,905 2,516 EBITDA $ 1,790
Slide 34: Contact
CONTACT Pyxis Tankers Inc.K. Karamanli 59 Maroussi 15125, GreeceEmail: info@pyxistankers.comwww.pyxistankers.com Henry WilliamsCFO & TreasurerPhone: +1 516 455 0106/ +30 210 638 0200Email: hwilliams@pyxistankers.com