C3is posts net profit increase in Q3

By
info info
-
0
937

C3is, a ship-owning company providing dry bulk and tanker seaborne transportation services, announced today its unaudited financial and operating results for the third quarter and nine months ended September 30, 2024.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

  • Our handysize dry bulk carriers are on time charters of short term durations, producing steady cash flows, while our Aframax tanker operates in the spot market, currently achieving voyage charter rates of around $48,000 per day.
  • All our handysize dry bulk carriers and our Aframax tanker are unencumbered.
  • Fleet operational utilization of 90.2% for the three months ended September 30, 2024, mainly due to the commercial idle days of the vessel that operated in the spot market, as our vessels that operated under time charter employment had few commercial idle days.
  • Revenues of $9.3 million for the three months ended September 30, 2024, corresponding to a daily TCE Iof $13,084.
  • 24% increase in daily TCE for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.
  • Net Income of $5.1 million, EBITDA of $7.0 million and Basic EPS of $0.69 for the three months ended September 30, 2024.
  • Net Loss of $2.9 million, EBITDA of $3.0 million and Basic Loss per Share of $1.60 for the nine months ended September 30, 2024.
  • Adjusted net incomei of $0.3 million and $7.7 million for the three and nine months ended September 30, 2024, respectively, a decrease of 91% for the 3 months’ period and an increase of 106%  for the nine months’ period compared to the 2023 equivalent period.
  • Adjusted EBITDAi of $13.5 million for the nine months ended September 30, 2024, an increase of 92% as compared to the nine months ended September 30, 2023.
  • In July 2024, the Company paid off the remaining 90% purchase price on the Aframax oil tanker, amounting to $39.5 million, using cash provided by operations, cash on hand and net proceeds from equity offerings.
  • The Company recorded a non-cash adjustment of $10.4 million as “Loss on Warrants” for the nine months ended September 30, 2024, which mainly arose due to the change in the fair value of warrants as at September 30, 2024 as compared to the fair value as of their issuance date during Q1 2024.

 Third Quarter 2024 Results:

  • Voyage revenues for the three months ended September 30, 2024 amounted to $9.3 million, a decrease of $0.8 million compared to revenues of $10.1 million for the three months ended September 30, 2023, primarily due to the decrease in rates. Total calendar days for our fleet were 368 days for the three months ended September 30, 2024, as compared to 263 days for the same period in 2023. Of the total calendar days in the third quarter of 2024, 245, or 66.6%, were time charter days, as compared to 180 or 68.4% for the same period in 2023. Our fleet utilization was 100.0% and 99.6% for the three months ended September 30, 2024 and 2023 respectively.
  • Voyage expenses and vessels’ operating expenses for the three months ended September 30, 2024 were $4.5 million and $2.2 million, compared to $2.8 million and $1.5 million for the three months ended September 30, 2023. The increase in both voyage expenses and vessels’ operating expenses was attributed to the increase in the average number of our vessels. Voyage expenses for the three months ended September 30, 2024 included bunkers cost and port expenses of $1.8 million and $1.5 million, respectively, corresponding to 40% and 33% of total voyage expenses due to the fact that the vessel Afrapearl II operated in the spot market. Operating expenses for the three months ended September 30, 2024 mainly included crew expenses of $1.2 million, corresponding to 55% of total operating expenses, spares and consumables costs of $0.5 million, corresponding to 23% of total vessel operating expenses, and maintenance expenses of $0.2 million, representing works and repairs on the vessels, corresponding to 9% of total vessel operating expenses.
  • Depreciation for the three months ended September 30, 2024 was $1.6 million, a $0.2 million increase from $1.4 million for the same period of last year, due to the increase in the average number of our vessels.
  • Management fees for the three months ended September 30, 2024 were $0.16 million, a $0.04 million increase from $0.12 million for the same period of last year, due to the increase in the average number of our vessels.
  • General and Administrative costs for each of three months’ periods ended September 30, 2024 and 2023 were $0.4 million and were mainly related to expenses incurred as a result of operating as a separate public company.
  • Interest and finance costs for the three months ended September 30, 2024 were $0.4 million and mainly related to the accrued interest expense – related party, in connection with the $14.4 million, part of the acquisition price of our bulk carrier, the Eco Spitfire, which is payable by April 2025, while for the three months ended September 30, 2023, $0.6 million related to the accrued interest expense – related party in connection with the $38.7 million, part of the acquisition price of our Aframax tanker, the Afrapearl II, which was completely repaid in July 2024.
  • Interest income for the three months ended September 30, 2024 was $0.2 million and related to the interest earned from the time deposits held by the Company.
  • Gain on warrants for the three months ended September 30, 2024 was $4.8 million and mainly related to net fair value gains on our Class B-1 and B-2 Warrants and Class C-1 and C-2 warrants which were issued during the first quarter of 2024 in connection with the two public offerings and have been classified as liabilities.
  • Adjusted net income was $0.3 million corresponding to an Adjusted EPS, basic of $0.02 for the three months ended September 30, 2024 compared to an Adjusted net income of $3.3 million corresponding to an Adjusted EPS, basic, of $43.00 for the same period of last year.
  • Adjusted EBITDA for the three months ended September 30, 2024 and 2023 amounted to $2.2 million and $5.3 million, respectively. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 4.0 vessels were owned by the Company during the three months ended September 30, 2024 compared to 2.9 vessels for the same period in 2023.

Nine months 2024 Results:

  • Voyage revenues for the nine months ended September 30, 2024 amounted to $32.9 million, an increase of $17.9 million compared to revenues of $15.0 million for the nine months ended September 30, 2023, primarily due to the increase in the average number of our vessels. Total calendar days for our fleet were 966 days for the nine months ended September 30, 2024, as compared to 625 days for the same period in 2023. Of the total calendar days in the first nine months of 2024, 612 or 63.4%, were time charter days, as compared to 506 or 81.0% for the same period in 2023. Our fleet utilization for the nine months ended September 30, 2024 and 2023 was 99.6% and 99.8%, respectively.
  • Voyage expenses and vessels’ operating expenses for the nine months ended September 30, 2024, were $10.4 million and $6.0 million respectively, compared to $3.3 million and $3.3 million for the nine months ended September 30, 2023. The increase in both voyage expenses and vessels’ operating expenses is attributed to the increase in the average number of our vessels. Voyage expenses for the nine months ended September 30, 2024 mainly included bunker costs of $4.9 million, corresponding to 47% of total voyage expenses, and port expenses of $3.4 million, corresponding to 33% of total voyage expenses due to the fact that the vessel Afrapearl II operated in the spot market. Operating expenses for the nine months ended September 30, 2024 mainly included crew expenses of $3.1 million, corresponding to 52% of total operating expenses, spares and consumables costs of $1.3 million, corresponding to 22%, and maintenance expenses of $0.6 million, representing works and repairs on the vessels, corresponding to 10% of total vessel operating expenses.
  • Depreciation for the nine months ended September 30, 2024 was $4.6 million, a $1.9 million increase from $2.7 million for the same period of last year, due to the increase in the average number of our vessels.
  • Management fees for the nine months ended September 30, 2024 were $0.4 million, a $0.1 million increase from $0.3 million for the same period of last year, due to the increase in the calendar days of our fleet during the current period.
  • General and Administrative costs for the nine months ended September 30, 2024 were $2.5 million and mainly related to expenses incurred relating to the two public offerings and the reverse stock split and expenses incurred as a result of operating as a separate public company. General and Administrative costs for the nine months ended September 30, 2023 were $0.9 million.
  • Interest and finance costs for the nine months ended September 30, 2024 were $2.1 million and mainly related to the accrued interest expense – related party in connection with the $53.3 million, part of the acquisition prices of our Aframax tanker Afrapearl II, which was completely paid off in July 2024, and of our bulk carrier Eco Spitfire, which is payable by April 2025, while for the nine months ended September 30, 2023 interest and finance costs were $0.6 million related to the accrued interest expense – related party in connection with the $38.7 million, part of the acquisition price of our Aframax tanker Afrapearl II.
  • Interest income for the nine months ended September 30, 2024 was $0.8 million and related to the interest earned from the time deposits held by the Company.
  • Loss on warrants for the nine months ended September 30, 2024 was $10.4 million and mainly related to the net fair value losses on our Class B-1 and B-2 Warrants and Class C-1 and C-2 warrants which were issued during the first quarter of 2024 in connection with the two public offerings and have been classified as liabilities.
  • Adjusted Net Income was $7.7 million corresponding to an Adjusted EPS, basic of $1.06 for the nine months ended September 30, 2024 compared to adjusted net income of $3.7 million, corresponding to an Adjusted EPS, basic of $76.72 for the same period in the last year.
  • Adjusted EBITDA for the nine months ended September 30, 2024 and 2023 amounted to $13.5 million and $7.1 million, respectively. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 3.5 vessels were owned by the Company during the nine months ended September 30, 2024 compared to 2.3 vessels for the same period of 2023.

CEO Dr. Diamantis Andriotis commented:

“Following the completion of the first 9 months of operations of 2024, C3is has reported Voyage Revenues of $32.9 million – an increase of 119% from 2023, an Adjusted Net Income of $7.7 million – 108% higher than 2023, and an adjusted EBITDA of $13.5 million – 92% higher than 2023. We have taken delivery of our fourth vessel this year, bringing our total fleet capacity to 213,464 DWT, an increase of 234% from the Company’s inception over a year ago.  In April 2024 we paid off $1.62 million, representing the 10% balance due on the Eco Spitfire, and during the third quarter of 2024, we paid off the remaining balance of $39.5 million due on our Aframax tanker. We have more than trebled our fleet capacity without incurring any bank debt. Our strategy of expansion has continuously been bearing fruits, as proven by the results of every single quarter since the Company’s inception. We will continue to aim at achieving sustainable growth despite the current challenges of macro and micro conditions. The results of the US elections will have significant implications on the global shipping industry. The proposed policies of 10% tariff on all U.S. imports and 60% tariff on Chinese products are poised to re-shape trade dynamics, thus affecting shipping.The industry also faces added uncertainty around the current geopolitical situation, with two major conflicts having a significant impact on shipping markets, combined with the outcome of environmental regulations. We will closely monitor these evolving situations and maintain an agile and effective control of our business, focusing on maximizing our results. We will continue to address industry challenges, and will maintain our strategy to provide safe global transportation services in parallel with producing excellent financial performance, attractive returns and growth prospects for our shareholders”.