Greek Pyxis Tankers, a shipowner of product tankers, reported the closing of ultramax joint venture investment.

The deal was sealed on September 14 and now the owner will have a controlling interest in a single ship drybulk joint venture.

In August the Greek shipowner entered the dry bulk sector by approving a $6.8 million equity investment in a newly formed company. The company agreed to acquire a 2016 Japanese built 63,520 metric tons dwt ultramax bulk carrier, from an un-affiliated third party.

Pyxis Tankers will own 60% of this joint venture and the remaining 40% will be owned by a company related to the Chairman and chief executive officer of Pyxis Tankers, Mr. Valentios Valentis.

The company invested approximately $6.8 million in cash for a 60% ownership interest in the joint venture. It is expected that the scrubber-fitted, eco-efficient vessel, which has been re-named the “Konkar Ormi”, will be initially chartered in the spot market.

Valentios Valentis, chairman and chief executive, provided the following brief update: “The product tanker chartering environment continues to be constructive. As of September 18, 2023, 92.4% of the available days in the third quarter of 2023 for our MR’s were booked at an estimated average TCE of $26,200 per vessel. Currently, two vessels are under time charter, one vessel is employed in the spot market and one vessel is undergoing her second special survey.”

After funding the joint venture investment, Pyxis Tankers had approximately $31.9 million in total cash.

The top management believes that this acquisition is a meaningful enhancement to its growing investment platform.

“Our liquidity and low leverage should increase our operating and financial flexibility,” said the chairman of Pyxis Tankers.

Depending on the market conditions, the owner will pursue additional vessel acquisitions with cash on hand, and, as appropriate, utilizing bank financing.

Additionally, the company plans continue to optimize its fleet, amortize its debt and re-purchase common shares under its authorized $2.0 million program.