Pyxis Tankers Inc., an international shipping company, announced today that it has agreed to a new time charter for its 2017-built MR product tanker Pyxis Lamda with CITGO Petroleum Corporation 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. Pyxis Lamda will then undergo its scheduled special survey and drydocking. The new charter is expected to commence immediately after drydocking is completed and is expected to generate approximately $21.8 million 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 $7.7 million in annualized EBITDA and contribute approximately $5.2 million in annualized net income, or $0.51 per common share.
The new charter rate is $8,000 per day higher than the current rate, representing approximately $2.8 million in incremental annualized revenue after commissions and, assuming no change in other related costs, approximately $0.27 in incremental annualized earnings per common share.
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.”