Valentios (Eddie) Valentis-led Pyxis Tankers has agreed to a new time charter for one of its MR product tankers with CITGO Petroleum Corporation.
The Nasdaq-listed company has fixed the 2017-built MR product tanker Pyxis Lamda for 24 months, plus or minus 30 days at the charterer’s option, at a gross rate of $31,000 per day.
The vessel’s current charter is expected to expire on or about November 20, 2026. The MR product tanker Pyxis Lamda will then undergo its scheduled special survey and drydocking.
The new charter is expected to commence immediately after drydocking is completed.
Pyxis Tankers said the new deal is expected to generate around $21.8m in net charter revenue after 2.5% commissions over its term, assuming 720 revenue earning days.
Based on the new charter rate and current cost estimates, Pyxis expects Pyxis Lamda to generate approximately $7.7m in annualized EBITDA and contribute approximately $5.2m in annualized net income, or $0.51 per common share.
The new charter rate is $8,000 per day higher than the current rate, Pyxis said, representing approximately $2.8m in incremental annualized revenue after commissions and, assuming no change in other related costs, approximately $0.27 in incremental annualized earnings per common share.
In accordance with Pyxis, these estimates assume 360 revenue earning days per year and approximately 10.24 million common shares outstanding.
Eddie Valentis, chairman and chief executive officer of Pyxis, commented: “This charter allows us to lock in an attractive rate for approximately two years, capturing the benefits of the current strong tanker market while increasing visibility into our future cash flows and earnings. We are pleased to extend our relationship with CITGO and secure employment for Pyxis Lamda immediately following her scheduled special survey.”
Actual revenue and earnings will depend on the vessel’s delivery date, off-hire, the final charter duration, operating costs and other factors.
Pyxis Tankers currently owns a fleet of six mid-sized eco-vessels engaged in the seaborne transportation of refined petroleum products and dry-bulk commodities.
The fleet consists of three MR product tankers, one kamsarmax bulk carrier and controlling interests in two dry-bulk joint ventures that own a sister-ship kamsarmax and an ultramax vessel.
