COMPANY PRESENTATION March 2017
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, possible, 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 Focus on modern medium range ( MR ) product tankers with eco features Young tanker fleet of six IMO-certified vessels with weighted average age of 5.8 years (dwt) Management may pursue a sale or other strategy relating to the small tankers Reputable Customer Base & Diversified Chartering Strategy Long-standing relationships with reputable, first-class customers worldwide As of March 1, 2017, 18% of remaining available chartering days in 2017 are covered Positioned to capitalize when spot rates improve Competitive Cost Structure & Moderate Capitalization Disciplined, substantially fixed cost structure creates greater earnings power when rates improve Competitive total daily operational costs to peer group Moderate capitalization with low cost, long-lived bank debt 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 MR2 class product tankers of eight years of age or less built in Tier 1 Asian shipyards Focus on the Needs of our Customers Meet charterers preference for modern and eco 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 Utilize Portfolio Approach to Commercial Management Employ vessels primarily through time charters and on the spot market Maintain optionality - substantial spot exposure currently offers upside during periods of market strength Diversify charters by customer and staggered duration Maintain Financial Flexibility Expand fleet by targeting balanced capital structure of debt and equity Maintain commercial banking and expand capital markets relationships 4
FLEET & EMPLOYMENT OVERVIEW POSITIONED FOR UPSIDE OPPORTUNITIES Our mixed chartering strategy provides upside opportunities through spot trading when rates improve and stable, visible cash flows from time charters 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 Dec. 2017 Pyxis Theta SPP / S.Korea MR 51,795 2013 Spot N/A Pyxis Malou SPP / S.Korea MR 50,667 2009 Spot N/A Pyxis Delta Hyundai / S.Korea MR 46,616 2006 Spot N/A Northsea Alpha (2) Kejin / China Small Tanker 8,615 2010 Spot N/A Northsea Beta (2) Kejin / China Small Tanker 8,647 2010 Spot N/A As of March 1, 2017, 18% of anticipated available days for the remainder of 2017 are covered. Fleet Employment Overview Vessel 2017 Pyxis Epsilon Pyxis Theta Pyxis Malou Pyxis Delta Northsea Alpha Northsea Beta $13,350 / Day N/A N/A N/A N/A N/A Fixed Employment Charterers Optional Period Open Days (1) These tables are dated as of March 1, 2017 and show gross rates and do not reflect commissions payable. (2) Management may pursue sale or other long-term strategy for small tankers. 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 16 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; 25+ 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; 19+ 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 Technical Management (2) (1) As an affiliate, provides the commercial management for the fleet and supervises the crewing and technical management performed by ITM for all our vessels (2) 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 CHANGING TRADE ROUTES & REFINERY LANDSCAPE CREATING INCREMENTAL DEMAND Increases in Demand due to Changing Trade Routes & Refining Landscape 1,000 950 900 3.8% CAGR* in million tons of seaborne trade 5.4% CAGR in ton mile demand 3,300 3,100 2,900 850 800 750 2,700 2,500 2,300 2,100 Billion Ton Miles 700 1,900 650 1,700 600 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1,500 Seaborne Product Trade - Mil. Tons Ton Mile Demand - Bil. Ton Miles Source: Drewry, March 2017 * Compound annual growth rate 11
Million Barrels per Day PRODUCT MARKETS OVERVIEW REFINERY CAPACITY INCREASINGLY FURTHER AWAY FROM END USERS Expected Refinery Capacity Additions Driven by Non-OECD Growth & Exports 2.5 2.0 1.5 1.0 0.5 0.0 2017 2018 2019 2020 2021 Source: Drewry, March 2017 12
PRODUCT MARKETS OVERVIEW EVOLVING TRADE LANDSCAPE Increases in Long-Haul Routes Source: Drewry, March 2017 Growth in net refining capacity is expected to further drive the demand for product tankers. Low crude / feedstock prices generate incremental refinery demand. Arbitrage between markets create further opportunities 13
Million Barrels per Day PRODUCT MARKETS OVERVIEW U.S. HAS BECOME MAJOR EXPORTER DUE TO SHALE OIL 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 United States Saudi Arabia India Source: Drewry, March 2017 14
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 ~21.8% since 2006. Source: Drewry, March 2017 15
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. Source: Drewry 16
Number of Vessels PRODUCT MARKETS OVERVIEW DECLINING ORDERBOOK (SUPPLY) Product Tanker Delivery Schedule 60 40 20 0 LR1 MR2 MR1 2017 2018 2019 2020 Total MR vessel orderbook has fallen from a high of ~58% in 2008 of the then existing fleet to 5.3% of the current worldwide fleet, lowest since 2000. Record low ordering less than 20 MR s since 1/1/16. Limited capacity additions scheduled beyond 2018 due to shipyard financial problems/closures, limited availability of capital and would-be buyers exposure to weaker shipping segments. Worldwide MR fleet is expected to grow at an average of 2.2% per annum in 2017 and 2018 without giving effect to scrapping of older vessels and slippage of deliveries. Source: Drewry, March 2017 17
PRODUCT MARKETS OVERVIEW SCRAPPING IS INEVITABLE Global Fleet Age Distribution by % 50% 45% Average age of MR2 fleet is 9.5 years. 13.4% of MR2 fleet is greater than 20 years of age. Significant portion of the fleet is approaching the end of its useful life. 40% 35% 30% 25% 20% 15% 10% 5% 0% < 5 Yrs 5-10 Yrs 10-15 Yrs 15-20 Yrs 20-25 Yrs 25+ Yrs MR1 MR2 LR1 Source: Drewry, March 2017 18
PRODUCT MARKETS OVERVIEW NEW ENVIRONMENTAL REGULATIONS TO DRIVE MORE SCRAPPING Environmental regulations should lead to increased scrapping Besides aging of MR fleet, new IMO environmental regulations should force owners to either scrap earlier or make significant vessel capital expenditures Ballast Water Treatment System ( BWTS ) Ballast sea water is used to stabilize vessels and ensure structural integrity; Pumped before/after cargo is loaded/unloaded Starting September 2017 at next vessel s special survey, owners will have to install approved BWTS, which removes inactive organisms from ballast water prior to discharge Retrofits in older tankers can be challenging from a design/installation standpoint and cost Depending on vessel, fully loaded installation costs are expected to be between $0.50 million to $0.75 million for a MR tanker New stricter regulations on sulfur emissions starting 2020 Limits reduced from 3.5% to 0.5% Owners either i) install expensive scrubber ($3.0 million +) to burn current grade of fuel, or ii) pay sizeable premium (currently ~ $200 per ton) to burn marine gas oil (MGO) fuel and run vessel at slower speed 19
USD per Day USD per Day PRODUCT MARKETS OVERVIEW MR2 CHARTER RATES POSITIONED FOR REBOUND 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 2014 2015 2016 2017YTD 5 Year Average 1 Year MR2 Time Charter Equivalent Rates * 20,000 17,500 15,000 12,500 10,000 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Source: Drewry, March 2017 * Please see Exhibit I - Non-GAAP Measures and Definitions MR2 20 5 Year Average
MR2 PRODUCT TANKER MARKET UPDATE POSITIVE NEAR-TERM OUTLOOK Positive industry fundamentals Current spot charter rates are depressed One year time charter rates bounced up in December 2016 but recently softened $750/d to $12,500/d still 50% of last 10 year high of $25,000/d and 19% below post- recession average* Major reasons: higher inventories of refined products worldwide lack of arbitrage opportunities resulted in less trading new tonnage deliveries Near-term demand growth estimated at 2.5-3%/yr. led by increasing global consumption of refined products, modest ton-mile expansion from changing refinery landscape and increasing U.S. exports Net supply growth after new built deliveries, delays/cancellations and increasing scrapping should result in a balanced supply/demand curve leading to a better market by Q4 2017, and possible negative net fleet growth thereafter * Source: Drewry March 2017, excludes Jones Act vessels 21
USD Million PRODUCT MARKETS OVERVIEW HISTORICAL LOW MR2 ASSET VALUES CREATE ATTRACTIVE ENTRY POINT MR2 Asset Prices 65 55 45 35 25 15 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 06-16 SH Price SH Price Average 06-16 Type Current * Avg. 2006-16 * New Build Construction (del. 2H 18) $32.0 ** $39.4 ** 5 yr. old $22.0 $32.900 * Source: Drewry, March 2017 ** Exclusive of higher design specifications, yard supervision costs and spares 22
PYXIS TANKERS FINANCIAL SUMMARY
UNAUDITED FINANCIAL HIGHLIGHTS YEAR ENDED DECEMBER 31, 2016 Year ended December 31, 2016 In 000 USD except for daily TCE rates Time / spot charter revenue mix 69% / 31% Voyage revenues $30,710 Remaining time charters mitigated poor spot environment in 2H 2016 Voyage related costs and commissions (6,611) Time charter equivalent revenues * $24,099 Net loss ($5,813) Loss per share (basic & diluted) ($ 0.32) Adjusted EBITDA* $6,999 Total operating days 1,986 Daily time charter equivalent rate * $12,134 Fleet Utilization 91.3% * Subject to rounding; Please see Exhibit I Non-GAAP Measures and Definitions 24
DAILY FLEET DATA YEAR ENDED DECEMBER 31, 2015 & 2016 Consistent & relatively low vessel opex (amounts in $) Eco-Efficient MR2: (2 units) Year Ended December 31, 2015 2016 Average TCE * 15,631 15,015 Opex * 6,430 5,754 Eco-Modified MR2: (1 unit) Standard MR2: (1 unit) Utilization % 99.4% 97.0% TCE 17,480 10,705 Opex 6,461 6,255 Utilization % 91.3% 92.9% TCE 17,237 15,504 Opex 6,325 6,772 Utilization % 100.0% 90.5% Small Tankers: (2 units) Average TCE 7,622 7,939 Opex 5,358 5,315 Utilization % 98.6% 85.1% Fleet: (6 units) TCE 13,597 12,134 Opex 6,058 5,861 Utilization % 97.9% 91.3% * Please see Exhibit I Non-GAAP Measures and Definitions 25
TOTAL DAILY OPERATIONAL COSTS/ECO-VESSELS YEAR ENDED DECEMBER 31, 2016 Three Months ended December 31, 2016 Modified Efficient (amounts in $/day) Eco Our Eco MR2 tankers total daily operational costs are very competitive Opex * $6,255 $5,754 Technical & commercial management fees 748 748 G&A expenses 1,172 1,172 Total daily operational costs per vessel $8,175 $7,674 * Please see Exhibit I - Non-GAAP Measures and Definitions 26
CAPITALIZATION AT YEAR ENDED DECEMBER 31, 2016 In 000 USD At December 31, 2016 Moderate leverage at low interest costs No balloon payments until Q3 2018 Cash and cash equivalents, including restricted cash $ 5,783 Bank debt, net of deferred financing fees 73,430 Promissory note 2,500 Total funded debt $ 75,930 Stockholders' equity 48,753 Total capitalization $ 124,683 Net funded debt $ 70,147 Total funded debt / total capitalization 60.9% Net funded debt / total capitalization 56.3% Weighted average interest rate of total debt for the year ended December 31, 2016 was 3.27% 27
MANAGEMENT INCENTIVIZED TO ACHIEVE GROWTH FOUNDER/CEO S SUBSTANTIAL SHAREHOLDINGS The shareholder base as of March 1, 2017 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 28
COMPANY HIGHLIGHTS EMERGING GROWTH - PURE PLAY PRODUCT TANKER COMPANY Attractive, Modern Fleet Including Eco Vessels Reputable Customer Base & Diversified Chartering Strategy - Currently Positioned for Upside Competitive Cost Structure & Moderate Capitalization Experienced, Incentivized Management & Board Industry Fundamentals Look Favorable 29
NON-GAAP MEASURES AND DEFINITIONS EXHIBIT I
EXHIBIT I NON-GAAP MEASURES AND DEFINITIONS (in thousands of U.S. Dollars) Reconciliation of Net income / (loss) to Adjusted EBITDA Year ended December 31, 2016 Net income / (loss) $ (5,813) Depreciation 5,768 Amortization of special survey costs 236 Interest and finance costs, net 2,810 EBITDA $ 3,001 Vessel impairment charge 3,998 Adjusted EBITDA $ 6,999 31
EXHIBIT I NON-GAAP MEASURES AND DEFINITIONS Continued 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 vessel impairment charge and stock compensation. EBITDA and Adjusted EBITDA are not recognized measurements under U.S. GAAP. EBITDA and Adjusted EBITDA are presented as we believe that they provide investors with means of evaluating and understanding how our management evaluates operating performance. These non-gaap measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. In addition, these non- GAAP measures do not have standardized meanings, and are 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 related costs and commissions by operating days for the relevant period. Voyage related costs and commissions 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 ( Opex ) per day are our vessel operating expenses for a vessel, which primarily consist 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. Ownership days are the total number of days in a period during which we owned each of the vessels in our fleet. 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. Operating days are the number of available days in a period, less the aggregate number of days that our vessels were off-hire or out of service due to any reason, including technical breakdowns and unforeseen circumstances. 32
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 33