COMPANY PRESENTATION August 2016
DISCLAIMER FORWARD-LOOKING STATEMENTS & INFORMATION This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words expected'', budget, scheduled, anticipated, outlook, is estimated, forecasts, potential, continues, may, will, positioned, should, believe, intends and variations of these terms and similar expressions, or the negative of these terms or similar expressions, are intended to identify forward-looking, information or statements. Forward-looking information is based on the opinions, expectations and estimates of management of Pyxis Tankers Inc. ( we or our ) at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Although we believe that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, you should not place undue reliance on the forward-looking statements and information because we cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties and actual results and future events could differ materially from those anticipated in such information. Factors that might cause or contribute to such discrepancy include, but are not limited to, the risk factors described in our Annual Report on Form 20-F for the year ended December 31, 2105 and other filings with the Securities and Exchange Commission (the SEC ). The forward-looking statements and information contained in this presentation are made as of the date hereof. We do not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except in accordance with U.S. federal securities laws and other applicable securities laws. This presentation and any oral statements made in connection with it are for informational purposes only and do not constitute an offer to buy or sell our securities. For more complete information about us, you should read the information in this presentation together with our filings with the SEC, which may be accessed at the SEC s website (http://www.sec.gov). 2
COMPANY HIGHLIGHTS EMERGING GROWTH - PURE PLAY PRODUCT TANKER COMPANY Attractive, Modern Fleet Reputable Customer Base & Diversified Chartering Strategy Focus on modern medium range ( MR ) product tankers with eco features Young tanker fleet of 6 IMO-certified vessels with weighted average age of 5.4 years (dwt) Potential for an additional MR to be acquired Long-standing relationships with reputable, first-class customers worldwide Time charter and spot market exposure with 48% of remaining available chartering days in 2016 covered, excluding options, as of June 30, 2016 Positioned to capitalize when spot rates improve Competitive Cost Structure & Solid Balance Sheet Comparable total daily operational costs to peer group Moderate capitalization with low cost, long-lived bank debt Excess balance sheet capacity to grow tonnage through acquisitions Experienced, Incentivized Management & Board Strong management team with 100+ years of combined industry and capital markets experience Founder/CEO has proven track record and is a substantial shareholder Board Members consist of prominent industry figures and/or with significant experience 3
COMPANY STRATEGY QUALITY, GROWTH, SERVICE & FLEXIBILITY Grow the Fleet Opportunistically Focus on acquisition of IMO II and III class product tankers of eight years of age or less built in Tier 1 Asian shipyards Potential acquisition opportunity of one MR tankers owned / controlled by affiliates of our CEO Utilize Portfolio Approach to Commercial Management Employ vessels primarily through time charters (with and without profit share) and on the spot market Diversify charters by customer and staggered duration Position employment to capture upside during periods of market strength Maintain Financial Flexibility Expand fleet by targeting balanced capital structure of debt and equity Maintain commercial banking and expand capital markets relationships Focus on the Needs of our Customers Meet charterers preference for modern tankers, which offer more operating reliability and efficiency Maintain high standards to ensure high level of safety, customer service and support, while continuing ship level financial discipline 4
FLEET & EMPLOYMENT OVERVIEW STABLE, VISIBLE CASH FLOWS WITH UPSIDE OPPORTUNITY Chartering strategy provides stable, visible cash flows from time charters and upside opportunity through spot trading when rates improve Fleet Details Vessel Shipyard Vessel Type Size (dwt) Year Built Type of Charter Anticipated Redelivery Date (1) Pyxis Epsilon SPP / S.Korea MR 50,295 2015 Time Jan. 2017 Pyxis Theta SPP / S.Korea MR 51,795 2013 Time Sept. 2016 Pyxis Malou SPP / S.Korea MR 50,667 2009 Spot Aug. 2016 Pyxis Delta Hyundai / S.Korea MR 46,616 2006 Time Sept. 2016 Northsea Alpha Kejin / China Small Tanker 8,615 2010 Time Oct. 2016 Northsea Beta Kejin / China Small Tanker 8,647 2010 Time Oct. 2016 As of June 30, 2016, 48% of anticipated available days for the remainder of 2016 are under charter coverage (64% with options). At June 30, 2016, our fleet s average remaining T/C duration was 3 months (6 months with options). Fleet Employment Overview Vessel 2016 2017 2018 Pyxis Epsilon Pyxis Theta Pyxis Malou Pyxis Delta Northsea Alpha Northsea Beta $16,575 / Day $15,600 / Day N/A $18,000 / Day $9,650 / Day $8,750 / Day Fixed Employment Charterers Optional Period Open Days (1) Pyxis Epsilon s charterer has an option to extend the charter for one year for $18,050/day. Northsea Beta s charterer has an option to extend the charter for two months at same rate. These tables are dated as of August 9, 2016 and show gross rates and do not reflect commissions payable. 5
STRONG RELATIONSHIPS QUALITY VESSELS & OPERATIONS ATTRACTIVE LENDING TERMS BLUE CHIP CUSTOMERS SHIPYARDS CUSTOMERS BANKS 6
SENIOR MANAGEMENT EXPERIENCED TEAM WITH DECADES OF EXPERIENCE Valentios Eddie Valentis Chairman & CEO 25+ years of experience in owning, operating and managing within various shipping sectors, including product, dry bulk, chemical, as well as salvage and towage Founder of Pyxis Tankers in 2015 and Pyxis Maritime Corp. in 2007 For the last 15 years, Managing Director & Principal of KONKAR SHIPPING AGENCIES S.A., an Athensbased dry bulk owner-operator established in 1968 Henry Williams CFO & Treasurer Joined Pyxis affiliates in 2015; 35 years of commercial, investment and merchant banking experience Previous investment banking positions include Nordea Markets (Oslo & NY) Global Sector Head- Shipping, and Oppenheimer (NY) Head of Energy & Transportation Konstantinos Kostas Lytras Chief Operating Officer Joined Pyxis affiliates in 2008; 24+ years of experience in the shipping industry Co-founder of Navbulk Shipping S.A., a start-up dry bulk company 5 years as Financial Director of Neptune Lines, a car carrier company 16 years in various financial and operational positions for other ship owning and services companies Antonios Tony Backos SVP for Corporate Development, General Counsel & Secretary Joined Pyxis affiliates in 2013; 18+ years experience in strategic corporate shipping transactions Previous 5 years securities and M&A partner at Watson Farley & Williams with particular focus in shipping industry Advised on complex international corporate shipping transactions in New York offices of Orrick, Herrington & Sutcliffe LLP and Healy & Baillie, LLP and in New York and London offices of Weil, Gotshal & Manges LLP since 1997 Former member of Board of Governors & Vice President of the Connecticut Maritime Association 7
PYXIS ORGANIZATIONAL STRUCTURE LEAN, EFFICIENT ORGANIZATIONAL STRUCTURE Quality, Cost Effective Ship Management Streamlined structure minimizes costs and allows management to focus on creating long term shareholder value Very competitive ship management fees @ $750/day/vessel provide safe and efficient operating results compared to peers Administrative, Commercial & Ship Management Services (1) Administrative & Ship Management Fees Northsea Alpha Management (2) Technical Management (3) (1) As an affiliate, provides the commercial management for the Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta and the Northsea Beta and supervises the crewing and technical management performed by ITM for all our vessels and the chartering of the Northsea Alpha, which is performed by NST (2) Provides commercial management for the Northsea Alpha, scheduled until October 2016 (3) Provides technical management for all our vessels 8
MARKET OVERVIEW PRODUCT TANKER INDUSTRY
PRODUCT MARKETS OVERVIEW REFINED PRODUCTS OVERVIEW Crude Dirty Products Clean Products Refined Products Bitumen Fuel Oil Cycle Oils Diesel/Gasoil Kerosene Gasolines Clean Condensates Naphthas Crude tankers carry only crude oil and fuel oils Most products tankers can switch between clean and dirty products when the tanks are carefully cleaned. Gasoil is a good clean up cargo when switching from dirty to clean products More sophisticated product tankers work at this end of the market, some with the ability to carry products and certain chemicals Veg Oils/Chemicals Source: Drewry 10 Non-oil substances now covered by revised IBC Code. To carry chemicals, an IMO Certificate of Fitness is required
Million Tons PRODUCT MARKETS OVERVIEW DEMAND GROWTH LED BY INCREASES IN TON MILES DUE TO CHANGING TRADE ROUTES & REFINING LANDSCAPE 950 3,100 900 850 3.9% CAGR* in million tons of seaborne trade 5.5% CAGR in ton mile demand 2,900 2,700 800 750 2,500 2,300 2,100 Billion Ton Miles 700 1,900 650 1,700 600 1,500 Seaborne Product Trade - Mill Tons Ton Mile Demand - Bill Ton Miles Source: Drewry, July 31, 2016 * Compound annual growth rate 11
000 Barrels / Day PRODUCT MARKETS OVERVIEW REFINERY CAPACITY INCREASINGLY FURTHER AWAY FROM END USERS Expected Refinery Capacity Additions Driven by Non-OECD Growth & Exports 2,500 2,000 1,500 1,000 500 0 North America South America Middle East Indian Sub Continent 2016 2017 2018 2019 2020 Asia Source: Drewry, July 31, 2016 12
PRODUCT MARKETS OVERVIEW EVOLVING TRADE LANDSCAPE Increases in long-haul routes Source: Drewry, July 31, 2016 13 Growth in net refining capacity is expected to drive the demand for product tankers. Low crude / feedstock prices generate incremental refinery demand. Arbitrage between markets create further opportunities
PRODUCT MARKETS OVERVIEW U.S. HAS BECOME MAJOR SUPPLIER IN THE ATLANTIC BASIC Typical Atlantic Basin triangulated route Emerging markets in South America and Africa have little to no refining capacity. U.S. exports to South America have grown at a CAGR of ~23% since 2005. Source: Drewry, July 31, 2016 14
PRODUCT MARKETS OVERVIEW PRODUCT TANKER VESSEL OVERVIEW Class of Tanker Cargo Capacity (Dwt) Typical Use Long Range 2 (LR2) 80,000 + Long Range 1 (LR1) 55,000-79,999 Medium Range 2 (MR2) 37,000-54,999 Medium Range 1 (MR1) 25,000-36,999 Small 1,000-24,999 Short- to medium-haul refined petroleum products transportations from the North Sea or West Africa to Europe or the East Coast of the United States, from the Middle East Gulf to the Pacific Rim. Short- to medium-haul crude oil and refined petroleum products transportations worldwide, mostly on regional trade routes. Flexible vessels involved in medium-haul petroleum products trades both in the Atlantic Basin and the growing intra- Asian/Middle East/ISC trades. MRs are the work horses of the product trades. Short-haul of mostly refined petroleum products worldwide, usually on local or regional trade routes. Sources: * Drewry 15
No. of Vessels PRODUCT MARKETS OVERVIEW ORDERBOOK (SUPPLY) AT MANAGEABLE LEVELS Product Tanker Delivery Schedule 50 40 30 20 10 0 LR2 LR1 MR2 MR1 Handy Remainder 2016 2017 2018 2019+ Total MR vessel orderbook has fallen from high of ~58% in 2008 of then existing fleet to 8.5% of current worldwide fleet of 1,745 MR s. Worldwide MR fleet expected to grow at 3.4% per annum thru 2017 without giving effect to scrapping older vessels and slippage of deliveries. Limited capacity additions scheduled beyond 2017 due to low availability of financing and would-be buyers exposure to weaker shipping segments. Financial challenges in certain shipyards continue to negatively impact newbuilding deliveries. Source: Drewry, July 31, 2016 16
PRODUCT MARKETS OVERVIEW SCRAPPING IS INEVITABLE Global Fleet Age Distribution by % 60% 50% 40% 30% 25% of the MR1 fleet and 6% of the MR2 fleet is greater than 20 years of age. A significant portion of the fleet is approaching the end of its useful life. 20% 10% 0% < 5 Yrs 5-10 Yrs 10-15 Yrs 15-20 Yrs 20-25 Yrs 25+ Yrs LR2 LR1 MR2 MR1 Handy Source: Drewry, July 31, 2016 17
USD USD SOLID OUTLOOK CURRENT MR2 CHARTER RATES REFLECT SOFTNESS - POTENTIAL UPSIDE? Daily MR2 Time Charter Equivalent Spot Rates (Caribs-USAC) 30,000 25,000 20,000 15,000 10,000 5,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 2015 2016YTD 5Yr Avg. 1 Year MR2 Time Charter Rates 20,000 17,500 15,000 12,500 10,000 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Source: Drewry, July 31, 2016 MR2 5Yr Avg. 18
USD Millions USD Millions ASSET VALUES CURRENT LOW ASSET PRICES ATTRACTIVE ENTRY POINT MR2 Asset Prices 65 55 45 35 25 15 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 NB Price NB Price Average 05-15 SH Price SH Price Average 05-15 MR1 Asset Prices 65 55 45 35 25 15 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 NB Price NB Price Average 05-15 SH Price SH Price Average 05-15 Source: Drewry, July 31, 2016 19
PYXIS TANKERS FINANCIAL SUMMARY
UNAUDITED FINANCIAL HIGHLIGHTS THREE MONTHS ENDED JUNE 30, 2015 & 2016 In 000 USD except for daily TCE rates Three Months ended June 30, 2015 June 30, 2016 Time / Spot Charter Revenue Mix 89% / 11% 82% / 18% Voyage revenues $7,168 $7,893 Voyage related costs and commissions (630) (875) Time charter equivalent revenues* $ 6,538 $ 7,018 Total operating days 501 519 Daily time charter equivalent rate* $ 13,042 $ 13,529 Fleet Utilization 99.1% 95.0% * Subject to rounding; Please see Exhibit I Non-GAAP Measures and Definitions 21
UNAUDITED INCOME STATEMENT THREE MONTHS ENDED JUNE 30, 2015 & 2016 Three Months ended June 30, 2015 June 30, 2016 In 000 USD except per share data Voyage revenues $7,168 $7,893 Continued Profitability Expenses: Voyage related costs and commissions (630) (875) Vessel operating expenses (3,270) (3,260) General & administrative expenses (489) (740) Management fees, related parties (147) (146) Management fees, other (262) (264) Amortization of special survey costs (32) (62) Depreciation (1,436) (1,434) Operating income 902 1,112 Other expenses: Interest and finance costs, net (632) (705) Total other expenses, net (632) (705) Net income $270 $407 EPS (basic and diluted) $0.01 $0.02 EBITDA* $2,370 $2,608 * Please see Exhibit I Non-GAAP Measures and Definitions 22
RECENT DAILY FLEET DATA THREE & SIX MONTHS ENDED JUNE 30, 2015 and 2016 Low Opex; High MR Utilization (amounts in $) Eco-Efficient MR2: (2 units) Three Months Ended June 30, Six Months Ended June 30, 2015 2016 2015 2016 Average TCE * 15,672 15,783 15,557 15,734 Opex * 5,164 5,437 6,963 5,885 Eco-Modified MR2: (1 unit) Standard MR2: (1 unit) Utilization % 100.0% 100.0% 98.8% 99.8% TCE 15,064 13,882 19,720 15,818 Opex 6,315 6,703 6,672 6,628 Utilization % 100.0% 94.8% 98.3% 97.4% TCE 15,817 17,690 15,233 18,213 Opex 5,642 7,509 5,977 6,977 Utilization % 100.0% 98.8% 100.0% 99.4% Small Tankers: (2 units) Average TCE 6,380 8,456 7,256 8,618 Opex 6,829 5.364 5,720 5,341 Utilization % 96.8% 88.2% 98.6% 90.8% Fleet: (6 units) TCE 13,042 13,529 13,645 13,939 Opex 5,991 5,969 6,328 6,010 Utilization % 99.1% 95.0% 98.8% 96.3% * Please see Exhibit I Non-GAAP Measures and Definitions 23
TOTAL DAILY OPERATIONAL COSTS/ECO-VESSELS THREE MONTHS ENDED JUNE 30, 2016 Three Months ended June 30, 2016 Eco-Modified Eco-Efficient (amounts in $/day) Our Eco MR2 Total Daily Operational Costs are Competitive Opex* $6,703 $5,437 Technical & Commercial Management Fees 745 745 G&A Expenses 1,354 1,354 Total Daily Operational Costs per vessel $8,802 $7,536 * Please see Exhibit I - Non-GAAP Measures and Definitions 24
CAPITALIZATION AT JUNE 30, 2016 In 000 USD At June 30, 2016 Cash and cash equivalents, including restricted cash $ 8,230 Moderate Leverage at Low Interest Costs Bank debt 77,004 Promissory Note 2,500 Total Debt $ 79,504 Stockholders' equity 56,048 Total Capitalization $ 135,552 Net Debt $ 71,274 Total Debt / Total Capitalization 58.7% Net Debt / Total Capitalization 52.6% No balloon payments until 2018 Weighted average interest rate, including the Promissory Note, for the six months ended June 30, 2016 was 3.21% 25
MANAGEMENT INCENTIVIZED TO ACHIEVE GROWTH FOUNDER/CEO S SUBSTANTIAL SHAREHOLDINGS The shareholder base as of August 1, 2016 was: Maritime Investors (affiliate of our CEO) 17,002,445 (93.0% of outstanding) Public 1,275,448 (7.0%) Total Shares Outstanding 18,277,893 (100%) Our common shares are listed on NASDAQ Capital Markets under trading symbol PXS Our Founder/CEO has substantial shareholdings and his interests are aligned with our other shareholders 26
COMPANY HIGHLIGHTS EMERGING GROWTH - PURE PLAY PRODUCT TANKER COMPANY Attractive, Modern Fleet Including Eco Vessels Reputable Customer Base & Diversified Chartering Strategy Competitive Cost Structure & Solid Balance Sheet Experienced, Incentivized Management & Board Industry Fundamentals Continue to Look Favorable 27
NON-GAAP MEASURES AND DEFINITIONS EXHIBIT I
EXHIBIT I NON-GAAP MEASURES AND DEFINITIONS (in thousands of U.S. Dollars) Reconciliation of Net income to EBITDA Three months ended June 30, 2015 2016 Net income $ 270 $ 407 Depreciation 1,436 1,434 Amortization of special survey costs 32 62 Interest and finance costs, net 632 705 EBITDA $ 2,370 $ 2,608 29
EXHIBIT I NON-GAAP MEASURES AND DEFINITIONS Continued EBITDA represents the sum of net income, interest and finance costs, depreciation and amortization, and, if any, interest taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP. EBITDA is presented as we believe that it provides investors with a means of evaluating and understanding how our management evaluates operating performance. This non- GAAP measure should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. In addition, this non-gaap measure does not have a standardized meaning, and is therefore, unlikely to be comparable to similar measures presented by other companies. Daily time charter equivalent ( TCE ) is a standard shipping industry performance measure of the average daily revenue performance of a vessel on a per voyage basis. TCE is not calculated in accordance with U.S. GAAP. We utilize TCE because we believe it is a meaningful measure to compare period-to-period changes in our performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which our vessels may be employed between the periods. Our management also utilizes TCE to assist them in making decisions regarding employment of the vessels. We believe that our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues after deducting voyage expenses, including commissions by operating days for the relevant period. Voyage expenses primarily consist of brokerage commissions, port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract. Vessel operating expenses per day ( Opex ) are our vessel operating expenses for a vessel, which consist primarily of crew wages and related costs, insurance, lube oils, communications, spares and consumables, tonnage taxes as well as repairs and maintenance, divided by the ownership days in the applicable period. We calculate fleet utilization by dividing the number of operating days during a period by the number of available days during the same period. The shipping industry uses fleet utilization to measure a company s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys and intermediate dry-dockings or vessel positioning. Operating days are the number of available days in a period, less the aggregate number of days that our vessels were offhire or out of service due to any reason, including technical breakdowns and unforeseen circumstances. Available days are the number of ownership days in a period, less the aggregate number of days that our vessels were off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and intermediate dry-dockings and the aggregate number of days that we spent positioning our vessels during the respective period for such repairs, upgrades and surveys. Ownership days are the total number of days in a period during which we owned each of the vessels in our fleet. 30
CONTACT Pyxis Tankers Inc. K.Karamanli 59 Maroussi 15125, Greece Email: info@pyxistankers.com www.pyxistankers.com Henry Williams CFO & Treasurer Phone: +1 516 455 0106/ +30 210 638 0200 Email: hwilliams@pyxistankers.com Antonios Tony Backos SVP for Corporate Development, General Counsel and Secretary Phone: +30 210 638 0180 Email: abackos@pyxistankers.com 31