Pyxis Tankers Weathers the Product Tanker Market Downturn
Pyxis Tankers Inc., an international pure play product tanker company, announced its unaudited results for the three and six month periods ended June 30, 2021.
Summary
For the three months ended June 30, 2021, our Revenues, net were $5.0 million. For the same period, our time charter equivalent (“TCE”) revenues were $4.1 million, represented a decrease of approximately $0.4 million or 8.8% over the comparable period in 2020. Our net loss attributable to common shareholders for the three months ended June 30, 2021 was $1.5 million, representing an increase of $0.3 million from the comparable period of 2020. For the second quarter of 2021, the loss per share (basic and diluted) was $0.04 compared to $0.06 for the same period in 2020. Our Adjusted EBITDA was $0.4 million, which represented a decrease of $0.8 million over the comparable period in 2020. Please see “Non-GAAP Measures and Definitions” below.
Valentios Valentis, our Chairman and CEO commented:
“The chartering environment for product tankers in the second quarter of 2021 continued to be depressed, especially the spot market in the Eastern hemisphere. The period market, albeit more stable than the spot market, did encounter a decline in activity during the quarter to levels below the prior 10 year averages. The employment strategy for our Medium Range tankers (“MRs”) of shorter-term, staggered time charters has benefited the Company in a tough market. In the second quarter of 2021, the average TCE for our MR’s was approximately $12,700/day which unfortunately was about $2,165 per day lower than the same period in 2020. As of August 4, 2021, we had booked 47% of available days for the third quarter of 2021 at an average TCE rate of approximately $10,920 for our MRs.
Greater demand for refined petroleum products, especially from OECD economies emerging from COVID-19 lockdowns, have helped reduce global inventories to levels consistent with the prior 5-year averages. Going forward higher refinery utilization and increasing transportation activities are positive signs. However, we have seen a movement of a fair number of long-range tankers switching from the severely depressed dirty/crude trades into clean products, thus adding capacity and hurting charter rates. We expect this migration to be temporary as global oil demand is forecasted by the IEA to increase by 4.6 million barrels/day in the second half of 2021 and a further 3 million barrels in 2022. Also, OPEC+ is scheduled in increase crude production by 2 Mb/d starting this month. Nevertheless, we expect the product tanker sector to continue to experience challenging conditions until later this year with the impact of new variants of COVID-19 and the path towards effective distribution of vaccinations creating further uncertainty to the global recovery.
Overall, we maintain a positive outlook about the long-term prospects of the product tanker sector. Improving global GDP growth and expanding personal and commercial mobility should increase demand for seaborne transportation of a broad range of petroleum products. The IMF just re-affirmed its global growth forecast of 6% this year with a higher increase in 2022 to 4.9%. In the meantime, the supply picture looks better due to the aging global fleet, continued low ordering of new tankers and a substantial increase in vessel demolition. For example, a leading industry source stated that 22 MR2 tankers had been scrapped in first half of 2021 and with 99 vessels at 20 years of age or more as of June 30, 2021, the record pace may continue.
During this challenging period, we have maintained our focus on the efficiencies of our operating platform, as fleet-wide daily operating expenses were approximately $5,900 per vessel for the first half of 2021. We have continued to strengthen our balance sheet and enhance our financial position for upside opportunities. Recent equity offerings and bank loans have resulted in lower leverage, better liquidity, interest rate savings, longer debt maturities and capital for selective growth. In July, we expanded our fleet with the acquisition of a 2013 built eco-efficient MR which has been named the “Pyxis Karteria”. The follow-on offering of additional Series A Convertible Preferred Stock during July 2021 should provide us further flexibility and capability to enhance shareholder value.”
Results for the three months ended June 30, 2020 and 2021
For the three months ended June 30, 2021, we reported a net loss of $1.5 million, or $0.04 basic and diluted loss per share, compared to a net loss of $1.2 million, or $0.06 basic and diluted loss per share, for the comparable period in 2020. The weighted average share count had increased by 15.9 million shares from the second quarter, 2020 to approximately 37.4 million common shares in the second quarter of 2021. The daily TCE of $10,905 during the second quarter of 2021 was 7.3% lower than the relevant period in 2020. The decrease was mainly due to lower revenues, net of $0.5 million during the three months ended June 30, 2021 from $5.5 million in the same period of 2020. The decrease was mostly attributed to lower charter rates for our MRs and lower fleet utilization. Vessel operating expenses increased by $0.3 million or 13.4% for the three months ended June 30, 2021 compared to the second quarter of 2020. However, lower interest and finance costs of approximately $0.6 million, primarily as a result of the refinancing of the previous $24 million loan facility secured by the “Pyxis Epsilon” (the “Eighthone Loan”) with a $17 million loan at a substantial lower interest rate, mitigated the loss for the three months ended June 30, 2021. Our Adjusted EBITDA of $0.4 million, represented a decrease of $0.8 million from $1.1 million for the same period in 2020.
Results for the six months ended June 30, 2020 and 2021
For the six months ended June 30, 2021, we reported a net loss of $3.6 million, or $0.11 basic and diluted loss per share, compared to a loss of $2.4 million, with the same loss per share for the comparable period in 2020. The weighted average share count had increased by 11.9 million shares to approximately 33.3 million common shares for the most recent six month period. Lower daily TCE of $10,885 and lower utilization of 85.5% during the six-month period ended June 30, 2021 were the primary factors that contributed to an operating loss of $1.2 million during the first half of 2021. For the comparable period in 2020, the daily TCE was $11,844 and utilization was 89.3%, respectively, with operating income of $0.1 million. In 2021, lower revenues, net of $1.9 million or 15.6%, compared to 2020 were partially offset by a decrease of $0.8 million in voyage related costs and commissions and an aggregate decrease of approximately $0.8 million in management fees and interest and finance costs, net. These differences were counterbalanced by increased vessel operating expenses, general and administrative expenses and amortization of special survey costs aggregating $0.3 million. These additional costs, along with the recognition of a $0.5 million loss from debt extinguishment associated with the Eighthone Loan refinancing and dividend payments of approximately $0.2 million for the Series A Convertible Preferred Stock, resulted in a $1.2 million increased net loss for the six months ended June 30, 2021.
Management’s Discussion and Analysis of Financial Results for the Three Months ended June 30, 2020 and 2021 (Amounts are presented in million U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted)
Revenues, net: Revenues, net of $5.0 million for the three months ended June 30, 2021, represented a decrease of $0.5 million, or 9.2%, from $5.5 million in the comparable period in 2020, substantially a result of lower charter rates for our MRs and decrease in utilization level in the second quarter of 2021.
Voyage related costs and commissions: Voyage related costs and commissions of $0.8 million for the three months ended June 30, 2021 decreased by $0.1 million over the comparable period in 2020 as a result of slightly lower spot charter activity. Under spot charters, all voyage expenses are typically borne by us rather than the charterer and a decrease in spot chartering results in a decrease in voyage related costs and commissions.
Vessel operating expenses: Vessel operating expenses of $2.8 million for the three months ended June 30, 2021, represented an increase of $0.3 million, or 13.4%, from $2.5 million in the comparable period in 2020. This increase was due primarily to timing differences of certain vessel costs.
General and administrative expenses: General and administrative expenses of $0.6 million for the three months ended June 30, 2021, remained relatively stable from the comparable period in 2020.
Management fees: For the three months ended June 30, 2021, management fees paid to our ship manager, Pyxis Maritime Corp. (“Maritime”), an entity affiliated with our Chairman and Chief Executive Officer, Mr. Valentis,and to International Tanker Management Ltd. (“ITM”), our fleet’s technical manager, in the aggregate of $0.3 million remained flat as compared to the 2020 period.
Amortization of special survey costs: Amortization of special survey costs of $0.1 million for the three months ended June 30, 2021, represented an increase of less than $0.1 million over the same period in 2020. This increase was primarily due to three vessel drydockings that were completed in the second half of 2020.
Depreciation: Depreciation of $1.1 million for the three months ended June 30, 2021, remained flat compared to the same period in 2020.
Interest and finance costs, net: Interest and finance costs, net, of $0.6 million for the three months ended June 30, 2021, represented a decrease of $0.6 million, or 49.2%, from $1.2 million in the comparable period in 2020. This decrease was primarily attributable to the refinancing of the Eighthone Loan, which has helped to reduce our overall debt outstanding and average interest rate, as well as lower LIBOR rates paid on floating rate bank debt compared to the same period in 2020.
Management’s Discussion and Analysis of Financial Results for the Six Months ended June 30, 2020 and 2021 (Amounts are presented in million U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted)
Revenues, net: Revenues, net of $10.2 million for the six months ended June 30, 2021, represented a decrease of $1.9 million, or 15.6%, from $12.1 million in the comparable period in 2020. The decrease in revenues, net during the six-month period ended June 30, 2021 was mostly attributed to the lower charter rates for our MRs compared to the first half of 2020 and lower fleet utilization.
Voyage related costs and commissions: Voyage related costs and commissions of $1.8 million for the six months ended June 30, 2021, represented a decrease of $0.8 million, or 31.4%, from $2.6 million in the comparable period in 2020. For the six months ended June 30, 2021, our MRs were on spot charters for 4 days in total, compared to 29 days for the respective period in 2020. This lower spot chartering activity for our MRs contribute primarily to the less voyage costs as under spot charters, all voyage expenses are typically borne by us rather than the charterer. Furthermore, the decrease in revenues, net during the six-months ended June 30, 2021, resulted in reduced charter commissions compared to the same period in 2020, contributing further to the decrease in voyage related costs and commissions.Vessel operating expenses: Vessel operating expenses of $5.3 million for the six months ended June 30, 2021, represented a slight $0.1 million increase compared to the six months ended June 30, 2020.
General and administrative expenses: General and administrative expenses of $1.2 million for the six months ended June 30, 2021, represented a slight increase of $0.1 million, or 10.2%, from the comparable period in 2020, due to timing of certain incurred costs.
Management fees: For the six months ended June 30, 2021, management fees payable to Maritime and ITM of $0.7 million in the aggregate, represented a decrease of less than $0.1 million compared to the six months ended June 30, 2020, as a result of the sale of Pyxis Delta that was completed in January 2020.
Amortization of special survey costs: Amortization of special survey costs of $0.2 million for the six months ended June 30, 2021, represented an increase of $0.1 million, compared to the same period in 2020 due to three vessel drydockings that were completed in the second half of 2020.
Depreciation: Depreciation of $2.2 million for the six months ended June 30, 2021, remained flat compared to the same period in 2020.
Interest and finance costs, net: Interest and finance costs, net, of $1.8 million for the six months ended June 30, 2021, represented a decrease of $0.8 million, or 30.4%, from $2.5 million in the comparable period in 2020. The decrease was primarily attributable to the refinancing of the Eighthone Loan, which reduced our overall debt outstanding and average interest rate, as well as lower LIBOR rates paid on floating rate bank debt compared to the same period in 2020. This reduction to interest and finance costs is partially off-set from the loss from debt extinguishment of $0.5 million which primarily reflected a prepayment fee and the write-off of remaining unamortized balance of deferred financing costs, both of which were associated with the aforementioned loan refinancing.
Our weighted average interest rates on our total funded debt for the three and six month periods ended June 30, 2021 were 4.6% and 5.9%, respectively.
Upon repayment of the previous loan facility of the Pyxis Epsilon, the maturity date for the Amended & Restated Promissory Note became March 30, 2022. Given the Company improved cash position, on June 17, 2021, the existing Amended and Restated Promissory Note was amended on the following basis: a) repayment of $1 million in principal plus accrued interest, b) conversion of $1 million of principal into 1,091,062 restricted common shares of the Company computed on the volume weighted average closing share price for the 10 day period commencing one day after its public distribution of first quarter, 2021, financial results press release (i.e. the period from June 3 to June 16, 2021 at $0.9165) and c) remaining balance of $3 million in principal will be due on April 1, 2023, and interest shall accrue at an annual rate of 7.5%, payable quarterly in cash.
On July 15, 2021, we took delivery of the Pyxis Karteria, a medium range product tanker of 46,652 dwt built in 2013 at Hyundai Mipo shipyard in South Korea. The purchase was funded by a combination of cash and a $13.5 million bank loan that is secured by the vessel and amortizes over seven years.
On July 16, 2021, we announced the closing of underwritten follow-on public offering (the “Offering”) of 308,487 shares of 7.75% Series A Cumulative Convertible Preferred Shares (the “Preferred Shares” and each a “Preferred Share”) which trade on the Nasdaq Capital Market under the symbol “PXSAP,” at a purchase price of $20.00 per Preferred Share. The Company received gross proceeds of approximately $6.17 million from the Offering, prior to deducting underwriting discounts and estimated offering expenses. The Company intends to use the net proceeds from the Offering of $5.56 million for general corporate purposes, including working capital and potential vessel acquisitions. Each Preferred Share is convertible into the Company’s common shares at a conversion price of $1.40 per common share, or 17.86 common shares, at any time at the option of the holder, subject to certain customary adjustments. If the trading price of Pyxis Tankers’ common stock equals or exceeds $2.38 per share for at least 20 days in any 30 consecutive trading day period ending 5 days prior to notice, the Company can call for mandatory conversion of the Preferred Shares. Dividends on the Preferred Stock shall be cumulative and paid monthly in arrears starting August 20, 2021, to the extent declared by the board of directors of the Company. The Preferred Shares will not be redeemable until after October 13, 2023, except upon change of control.
Monthly Series A Preferred Stock Dividend: During the months of January through July 2021, we paid cash dividends of $0.1615 per Series A Preferred Share, which aggregated $0.15 million for the six month period ended June 30, 2021.
Update on Shares Issued and Outstanding: As of August 4, 2021, we had 38,316,854 issued and outstanding common shares, 449,673 Series A Preferred Shares and 1,590,540 warrants, with exercise prices of $1.40 per common share (exclusive of non-tradeable underwriter’s 444,571 common stock purchase warrants, which have a weighted average exercise price of $2.16 per common share, and 4,683 Series A Preferred Stock purchase warrants, which have a weighted average exercise price of $24.97 per Series A Preferred share). As of that date, Mr. Valentis beneficially owned 18,688,919 or approximately 48.8% of our outstanding shares.
Pyxis Tankers Warns That Lockdowns Are Bound to Hit the Product Tanker Market
Pyxis Tankers Inc., a growth-oriented pure play product tanker company, today announced unaudited results for the three and nine months ended September 30, 2020.
Summary
For the three months ended September 30, 2020, our Revenues, net were $5.1 million. For the same period, our time charter equivalent (“TCE”) revenues were $4.4 million, a decrease of approximately $1.8 million or 29.3% over the comparable period in 2019 primarily due to fewer operating days of our fleet reflecting the sale of our oldest MR in early 2020, the lower utilization of the small tankers and the Pyxis Epsilon’s first special survey. Our net loss increased by $1.1 million to $1.9 million, from $0.8 million in the comparable period in 2019. For the third quarter 2020, loss per share (basic and diluted) was $0.09 and our Adjusted EBITDA was $0.6 million, which represented a decrease of $1.5 million over the comparable period in 2019. Please see “Non-GAAP Measures and Definitions” below.
Valentios Valentis, our Chairman and CEO commented:
“The chartering environment for product tankers in the third quarter of 2020 continued to be very challenging, reflecting the normal seasonal softness which was further compounded by the negative impact of COVID-19 on the demand for refined petroleum products. Through our short-term time charters, we were able to achieve an average TCE of $14,565/day for our MRs during the quarter, which approximates 10 year industry averages.
The short-term demand outlook for our sector continues to be cloudy. Despite this summer’s start of a gradual but uneven economic recovery worldwide from the pandemic, a drawdown of high product inventories has resulted in lower vessel demand. In November, we typically start to experience a seasonal boost in demand due to the movement of home heating oil cargoes and weather delays. However, recent announcements of lockdowns, especially in Europe, and other governmental restrictions due to the resurgence of the virus have created further uncertainty. Consequently, we expect the product tanker sector to continue to experience significant volatility due to the unpredictable recovery from the COVID-19 pandemic. We have continued to focus on our employment strategy for our MRs on shorter-term, staggered time charters which have benefited the Company. As of November 11, 2020, we had booked 68% of available days for the fourth quarter of 2020, exclusive of charterers’ options, at an average rate of $14,680 for our MRs.
During these challenging times, we have concluded some important operating and financial objectives. We recently completed scheduled special surveys on three of our vessels – on time and on budget. We spent $1.6 million in aggregate for these drydockings, including the installation of a Ballast Water Treatment System (“BWTS”) on our 2015 built Pyxis Epsilon. Fortunately, we have no major drydockings until 2023 when the Pyxis Theta undergoes her second special survey. Equally important to the Company were recent long-term debt and equity financings. In July, we refinanced the Pyxis Theta with a new 5 year secured loan with Alpha Bank, a new lender to the Company. The new loan provided us approximately $3.7 million of incremental working capital, after existing debt repayment, on more attractive terms, including pricing at LIBOR + a margin of 3.35%. In October, we completed a $5 million offering of units consisting of our new 7.75% cumulative convertible preferred shares and detachable warrants to purchase common stock over a five year period. Both of these securities have a strike price of $1.40 per share. The net proceeds of $4.3 million from this public offering are targeted for general corporate purposes, including working capital and further debt repayment. Overall, we raised long-term capital at a reasonable cost and lengthened our debt maturities while improving balance sheet flexibility and liquidity.
We still maintain a positive outlook about the long-term prospects for the product tanker sector. Solid global GDP growth is expected to return with rising demand for seaborne transportation of a broad range of petroleum products. In the meantime, the supply picture continues to look better due to the aging global fleet, continued low ordering of new tankers and delays in newbuild deliveries. Also, lower charter rates should result in more vessel scrapping as the number of MR2 vessels aged 20 years or more is roughly equal to the orderbook.
Lastly, we continue to appreciate the crews on board our vessels and onshore personnel for their professionalism during the pandemic. We were encouraged by the announcement earlier this week about the positive late stage, large scale clinical trial results of a highly effective vaccine. Good availability soon of approved vaccines and antibody treatments should be a blessing for all.”
Results for the three months ended September 30, 2019 and 2020
For the three months ended September 30, 2020, we reported a net loss of $1.9 million, or $0.09 basic and diluted loss per share, compared to a net loss of $0.8 million, or $0.04 basic and diluted loss per share, for the same period in 2019. The daily TCE of $11,783 during the third quarter of 2020 was 4.7% lower than the relevant period in 2019, due to fewer operating days, from 500 days during the three months ended September 30, 2019, to 371 days in the comparable period in 2020. The increase in our net loss was mainly the result of lower operating results, from $0.7 million operating income during the three-month period ended September 30, 2019, to $0.6 million operating loss for the same period in 2020. Lower revenues, net, by $2.2 million, primarily attributable to fewer available days (i.e. from 552 days during the three months ended September 30, 2019 to 444 in the comparable period in 2020), following the sale of the 2006 built MR, Pyxis Delta, in the first quarter of 2020 and the first special survey of Pyxis Epsilon that took place in the third quarter of 2020. The decline in our revenues, net, was partially counterbalanced by an approximate $0.7 million aggregate decrease in costs principally associated with that vessel sale including vessel operating expenses, general and administrative expenses, management fees and depreciation along with lower interest and finance costs, net, compared to the same figures in 2019. The decline in our revenues, net was also partially offset by $0.4 million decrease in voyage related costs and commissions, as a result of the fewer operating days of our small tankers which were employed under spot charter arrangements. Our Adjusted EBITDA was $0.6 million, represented a decrease of $1.5 million from $2.1 million for the same period in 2019.
Results for the nine months ended September 30, 2019 and 2020
For the nine months ended September 30, 2020, we reported a net loss of $4.3 million, or $0.20 basic and diluted loss per share, compared to a loss of $4.7 million over the comparable period in 2019. Despite 251 fewer operating days during the nine-month period in 2020 compared to the same period in 2019, higher daily TCE during most of the 2020 period, $11,825 versus $11,540 for the same period in 2019, mitigated the net loss. A reduction of 16.1% in Revenues, net, or $3.3 million for the nine months ended September 30, 2020, was primarily offset by a decrease of $3 million in vessel operating expenses, management fees, depreciation and interest and finance costs, primarily reflecting the impact from the sale of Pyxis Delta and the repayment of its associated loan. Our Adjusted EBITDA was $3.0 million, a decrease of $0.9 million from $3.9 million for the same period in 2019.
Management’s Discussion and Analysis of Financial Results for the Three Months ended September 30, 2019 and 2020 (Amounts are presented in U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted)
Revenues, net: Revenues, net of $5.1 million for the three months ended September 30, 2020, represented a decrease of $2.2 million, or 30.6%, from $7.3 million in the comparable period in 2019, as a result of fewer available days and related revenue contribution for the 2020 period versus 2019. This decline was mainly attributed to the sale of our oldest MR in the first quarter of 2020 and the first special survey of Pyxis Epsilon in the third quarter of 2020.
Voyage related costs and commissions: Voyage related costs and commissions of $0.7 million for the three months ended September 30, 2020, represented a decrease of $0.4 million over the comparable period in 2019. The decrease was primarily attributable to lower operating days of our small tankers during the three month period ended September 30, 2020 compared to the same period in 2019. Our small tankers were employed under spot charter arrangements where all voyage expenses are typically borne by us rather than the charterer and as a result a decrease in spot chartering activity caused a decrease in voyage related costs and commissions.
Vessel operating expenses: Vessel operating expenses of $2.8 million for the three months ended September 30, 2020 represented a decrease of $0.3 million, or 8.7%, from $3.1 million in the comparable period in 2019, mainly attributable to the vessel sale in the first quarter of 2020.
General and administrative expenses: General and administrative expenses of $0.7 million for the three months ended September 30, 2020, represented an increase of less than $0.1 million, or 10.8%, from the comparable period in 2019 due to timing of certain incurred costs.
Management fees: For the three months ended September 30, 2020, management fees paid to our ship manager, Pyxis Maritime Corp. (“Maritime”), an entity affiliated with our Chairman and Chief Executive Officer, Mr. Valentis, and to International Tanker Management Ltd. (“ITM”), our fleet’s technical manager, also decreased as a result of one less vessel, by $0.1 million from $0.4 million in the comparable period of 2019.
Amortization of special survey costs: Amortization of special survey costs was less than $0.1 million for the three months ended September 30, 2020 and remained stable compared to the three months ended September 30, 2019. This was due to the sale of Pyxis Delta that caused its remaining unamortized balance to be written-off, but on the other hand, the recognition of a new amortization schedule from the Pyxis Epsilon’s first special survey that was completed in the third quarter of 2020.
Depreciation: Depreciation of $1.1 million for the three months ended September 30, 2020, represented a decrease of $0.3 million or 19.4% compared to the three months ended September 30, 2019, due to a five vessel fleet during the third quarter of 2020, compared to a six vessel fleet during the comparable period in 2019.
Interest and finance costs, net: Interest and finance costs, net, of $1.3 million for the three months ended September 30, 2020, represented a decrease of $0.2 million, or 13.8%, from $1.5 million in the comparable period in 2019. The decrease was mainly attributed to the prepayment of the debt following the sale of Pyxis Delta and to the lower LIBOR rates paid on floating rate bank debt compared to the same period of 2019.
Management’s Discussion and Analysis of Financial Results for the Nine Months ended September 30, 2019 and 2020 (Amounts are presented in U.S. dollars, rounded to the nearest one hundred thousand, except as otherwise noted)
Revenues, net: Revenues, net of $17.2 million for the nine months ended September 30, 2020, represented a decrease of $3.3 million, or 16.1%, from $20.5 million in the comparable period in 2019. The decrease in revenues, net during the nine-month period ended September 30, 2020, was mostly attributable to the vessel sale which resulted in the decrease of our total available days from 1,610 days during the nine months ended September 30, 2019, to 1,342 days during the same period in 2020.
Voyage related costs and commissions: Voyage related costs and commissions of $3.3 million for the nine months ended September 30, 2020, represented a decrease of $0.7 million, or 17.9%, from $4.1 million in the comparable period in 2019. For the nine months ended September 30, 2020, our MRs were on spot charters for 29 days in total, compared to 48 days for the respective period in 2019. Furthermore, the decrease was also attributable to fewer operating days of our small tankers during the most recent quarter. The lower spot chartering activity contribute to less voyage costs as under spot charters, all voyage expenses are typically borne by us rather than the charterer.
Vessel operating expenses: Vessel operating expenses of $8.0 million for the nine months ended September 30, 2020 represented a significant decrease of $1.4 million, or 15.2%, from $9.5 million in the comparable period in 2019. This was mainly attributed to the sale of Pyxis Delta.
General and administrative expenses: General and administrative expenses of $1.8 million for the nine months ended September 30, 2020, were flat compared to the comparable period in 2019.
Management fees: For the nine months ended September 30, 2020, management fees payable to Maritime and ITM of $1.1 million in the aggregate, represented a decrease of $0.1 million compared to the nine months ended September 30, 2019, as a result of the vessel sale in the first quarter of 2020.
Amortization of special survey costs: Amortization of special survey costs for the nine months ended September 30, 2020 represented a decrease of 13.3%, compared to the same period in 2019 primarily due to the write-off of the amortization of special survey costs for Pyxis Delta, after vessel sale.
Depreciation: Depreciation of $3.3 million for the nine months ended September 30, 2020 represented a decrease of $0.8 million, or 19.2%, compared to the same period in 2019, due to a five vessel fleet in 2020 as compared to a six vessel fleet for the same period in 2019.
Interest and finance costs, net: Interest and finance costs, net, of $3.8 million for the nine months ended September 30, 2020, represented a decrease of $0.6 million, or 13.5%, from $4.4 million in the comparable period in 2019. The decrease was attributable to lower LIBOR rates paid on floating rate bank debt compared to the same period in 2019 and the prepayment of the associated outstanding loan of Pyxis Delta upon its sale. The total borrowings outstanding (exclusive of promissory note and deferred financing costs) decreased to $55.1 million at September 30, 2020 from $60.1 million a year earlier.