C3is, a ship-owning company providing dry bulk and tanker seaborne transportation services, announced today its unaudited financial and operating results for the first quarter ended March 31, 2025.
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 $46,000 per day.
- All of our vessels are unencumbered.
- Fleet operational utilization of 91.7% for the three months ended March 31, 2025, mainly due to the commercial idle days of the Aframax tanker operating in the spot market. Vessels operating under time charter employment had minimal idle days.
- Revenues of $8.7 million for the three months ended March 31, 2025, corresponding to a daily TCE I of $16,202, as compared to revenues of $12.8 million for the three months ended March 31, 2024, corresponding to a daily TCE of $36,480.
- Cash balance of $15.7 million at the end of Q1 2025.
- For the first quarter of 2025, daily TCE decreased by 56% as compared to the same period in 2024.
- Net Income of $7.9 million, EBITDAi of $9.7 million and Earnings per Share, Basic, of $14.89 for the three months ended March 31, 2025.
- Adjusted net incomei of $1.2 million for the three months ended March 31, 2025, a decrease of 73% compared to $4.5 million for the three months ended March 31, 2024.
- Adjusted EBITDAi of $3.0 million for the three months ended March 31, 2025, a decrease of 53% compared to $6.4 million for the three months ended March 31, 2024.
- In April 2025, the Company paid $14.6 million to the sellers of the bulk carrier Eco Spitfire, thus concluding the final balance due, representing 90% of the purchase price of the vessel. The funds used were provided by operations, cash on hand and net proceeds from equity offerings.
- The Company has met all of its Capex obligations, totaling $59.2million, without resorting to any bank loans.
- The Company recorded a non-cash adjustment of $6.9 million as “Gain on Warrants” for the three months ended March 31, 2025, mainly due to the change in the fair value of warrants between December 31, 2024 and March 31, 2025.
First Quarter 2025 Results:
- Voyage revenues for the three months ended March 31, 2025 amounted to $8.7 million, a decrease of $4.1 million compared to revenues of $12.8 million for the three months ended March 31, 2024, primarily due to the decrease in charter rates. Total calendar days for our fleet were 360 days for the three months ended March 31, 2025, as compared to 273 days for the same period in 2024. Of the total calendar days in the first quarter of 2025, 247, or 68.6%, were time charter days, as compared to 164 or 60.1% for the same period in 2024. Our fleet utilization was 100.0% for both periods of three months ended March 31, 2025 and 2024.
- Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2025 were $2.8 million and $2.2 million, compared to $2.8 million and $1.8 million for the three months ended March 31, 2024. The increase in vessels’ operating expenses was attributed to the increase in the average number of our vessels. Voyage expenses for the three months ended March 31, 2025 included bunkers cost and port expenses of $1.5 million and $0.9 million respectively, corresponding to 54% and 32% of total voyage expenses, since the vessel Afrapearl II operated in the spot market. Operating expenses for the three months ended March 31, 2025 mainly included crew expenses of $1.1 million, corresponding to 50% of total operating expenses, spares and consumable costs of $0.4 million, corresponding to 18% of total vessel operating expenses, and maintenance expenses of $0.3 million, representing works and repairs on the vessels, corresponding to 14% of total vessel operating expenses.
- Depreciation for the three months ended March 31, 2025 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 March 31, 2025 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 the three-month periods ended March 31, 2025 and 2024 were $0.7 million and $1.5 million respectively. The decrease is mainly related to the decrease in expenses allocated to warrants issued as part of the two public offerings that occurred in the three-month period ended March 31, 2024 and classified as liabilities.
- Interest and finance costs for the three months ended March 31, 2025 were $0.3 million and mainly related to the accrued interest expense – related party, in connection with the $14.6 million payable, representing 90% of the acquisition price of our bulk carrier, the Eco Spitfire; this balance was completely settled in April 2025. For the three months ended March 31, 2024, we reported $0.7 million as accrued interest expense – related party, in connection with $38.7 million payable, representing 90% of the acquisition price of our Aframax tanker, the Afrapearl II; this balance was completely settled in July 2024.
- For accounting purposes, the outstanding balances payable on the two vessels were required to be allocated between principal and imputed interest, despite the fact that no interest was contractually charged by the sellers. The total amounts ultimately paid remained consistent with the originally agreed purchase prices.
- Interest income for the three months ended March 31, 2025 and 2024 was $0.1 million and $0.2 million respectively. The decrease is mainly attributed to a lower amount of funds placed under time deposits.
- Gain on warrants for the three months ended March 31, 2025 was $6.9 million and mainly related to net fair value gains on our Class B-1, Class B-2, Class C-1 and Class C-2 warrants which were issued during the first quarter of 2024 in connection with the two public offerings and were classified as liabilities.
- Adjusted net income was $1.2 million, corresponding to an Adjusted EPS, basic, of $1.05 for the three months ended March 31, 2025 compared to an Adjusted net income of $4.5 million corresponding to an Adjusted EPS, basic, of $32.28 for the same period of last year.
- Adjusted EBITDA for the three months ended March 31, 2025 and 2024 amounted to $3.0 million and $6.4 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 March 31, 2025, compared to 3.0 vessels for the same period in 2024.
CEO Dr. Diamantis Andriotis commented:
“For the first quarter of 2025, we reported a Net Income of $7.9 million, an increase of 109% from Q1 2024, but our Revenues decreased by 32%, due to the drop in TCE rates.
“By April 2025, we had successfully fulfilled all of our capital expenditure commitments without resorting to any bank loans. We have therefore more than trebled the deadweight tonnage of our fleet, which is exclusively non-Chinese built, without incurring any bank debts.
“The global economic environment is poised for a year of mixed signals in 2025, with risks and opportunities influencing the shipping sector.
“Economic shocks, financial market responses, and evolving policy measures are expected to shape the outlook, contributing to a cautious, yet dynamic landscape.
“Whilst global growth may be moderate, and inflationary pressures persist, these challenges also create room for market adjustments and new trade patterns.
“C3is will adapt to these evolving dynamics by focusing on diversification and aligning with the growing emphasis on sustainable practices, which are poised to reshape trade in the coming years.
“With careful navigation and adaptability, the Company is well-positioned to leverage regional growth drivers and evolving economic dynamics to maintain resilience in the year ahead.
“We would like to thank you for joining us today and look forward to having you with us again at our next call for the results of the 2nd quarter of 2025.”