|
August 23, 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 where voyage charter rates for Aframax tankers are currently around $27,000 per day. • All our handysize dry bulk carriers and our Aframax tanker are unencumbered. • Fleet operational utilization of 87.7% for the three months ended June 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 $10.8 million for the three months ended June 30, 2024, corresponding to a daily TCE Iof $23,938. • 185% increase in daily TCE for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023. • Net Loss, EBITDA[1] and loss per share, basic, of $11.8 million, loss of $9.7 million and $2.84 respectively, for the three months ended June 30, 2024. • Adjusted net incomei of $2.9 million for the three months ended June 30, 2024, an increase of 885% compared to the three months ended June 30, 2023. • 1,499% increase in Adjusted EBITDAi for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023. • 44% increase in Total Assets as of June 30, 2024 compared to December 31, 2023. • Adjusted EPS of $0.63 for the second quarter of 2024. • In April 2024, the Company effected a reverse stock split of 1 for 100 of its common shares, aimed at meeting the minimum bid price requirement for maintaining listing on Nasdaq Capital Market, thus all share amounts have been retrospectively restated. • In April 2024, our Company announced an agreement to acquire a 2012-built Japanese handysize drybulk carrier from an affiliated company. Following this vessel acquisition and the delivery of the 33,664 DWT handysize drybulk carrier to our Company in May 2024, the total fleet capacity increased to 213,468 dwt. 10% of the purchase price was paid on delivery, with the remaining 90% ($16.2 million) due in April 2025. • In July 2024, the Company paid off the remaining 90% purchase price on the Aframax oil tanker, amounting to $38.7 million, using cash provided by operations, cash on hand and net proceeds from equity offerings. • The Company recorded a non-cash adjustment of $14.5 million as "Loss on Warrants", which mainly arose due to the change in the fair value of warrants as at June 30, 2024 as compared to the fair value as of their issuance date during Q1 2024. [1] TCE, EBITDA, Adjusted EBITDA and Adjusted Net Income are non-GAAP measure. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release. Second Quarter 2024 Results: • Voyage revenues for the three months ended June 30, 2024 amounted to $10.8 million, an increase of $9.1 million compared to revenues of $1.7 million for the three months ended June 30, 2023, primarily due to the increase in the average number of our vessels. Total calendar days for our fleet were 325 days for the three months ended June 30, 2024, as compared to 182 days for the same period in 2023. Of the total calendar days in the second quarter of 2024, 203, or 62.5%, were time charter days, as compared to 163 or 89.6% for the same period in 2023. Our fleet operational utilization was 87.7% and 89.6% for the three months ended June 30, 2024 and 2023. • Voyage expenses and vessels' operating expenses for the three months ended June 30, 2024 were $3.1 million and $2.0 million, compared to $0.2 million and $0.8 million for the three months ended June 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 three months ended June 30, 2024 included bunkers cost and port expenses of $1.3 million and $1.2 million respectively, corresponding to 42% and 39% of total voyage expenses due to the fact that the vessel Afrapearl II operated in the spot market as compared to the same period last year, when the vessels operated under time charter employment. Operating expenses for the three months ended June 30, 2024 mainly included crew expenses of $1.1 million, corresponding to 55% of total operating expenses, spares and consumables costs of $0.3 million, corresponding to 15% of total vessel operating expenses, and maintenance expenses of $0.3 million, representing works and repairs on the vessels, corresponding to 15% of total vessel operating expenses. • Depreciation for the three months ended June 30, 2024 was $1.5 million, a $0.8 million increase from $0.7 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 June 30, 2024 were $0.14 million, a $0.06 million increase from $0.08 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 months ended June 30, 2024 were $0.6 million and were mainly related to expenses incurred as a result of operating as a separate public company. For the same period of 2023, the balance was $0.3 million. • Interest and finance costs for the three months ended June 30, 2024 were $0.9 million and 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 repaid in July 2024 - and our bulk carrier Eco Spitfire, which is payable by April 2025. • Interest income for the three months ended June 30, 2024 was $0.4 million and related to the interest earned from the time deposits held by the Company. • Loss on warrants for the three months ended June 30, 2024 was $14.5 million and mainly related to 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 $2.9 million corresponding to an Adjusted EPS, basic of $0.63 for the three months ended June 30, 2024 compared to an Adjusted net loss of $0.4 million corresponding to an Adjusted loss per share, basic, of $12.07 for the same period last year. • Adjusted EBITDA for the three months ended June 30, 2024 and 2023 amounted to $4.9 million and $0.3 million, respectively. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. • An average of 3.6 vessels were owned by the Company during the three months ended June 30, 2024 compared to 2.0 vessels for the same period in 2023. Six months 2024 Results: • Voyage revenues for the six months ended June 30, 2024 amounted to $23.6 million, an increase of $18.7 million compared to revenues of $4.9 million for the six months ended June 30, 2023, primarily due to the increase in the average number of our vessels. Total calendar days for our fleet were 598 days for the six months ended June 30, 2024, as compared to 362 days for the same period in 2023. Of the total calendar days in the first six months of 2024, 367 or 61.4%, were time charter days, as compared to 326 or 90.0% for the same period in 2023. Our fleet operational utilization was 90.3% and 90.1% for the six months ended June 30, 2024 and 2023. • Voyage expenses and vessels' operating expenses for the six months ended June 30, 2024 were $6.0 million and $3.8 million compared to $0.5 million and $1.9 million for the six months ended June 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 six months ended June 30, 2024 mainly included bunker costs of $3.1 million, corresponding to 52% of total voyage expenses, and port expenses of $1.9 million, corresponding to 32% of total voyage expenses due to the fact that the vessel Afrapearl II operated in the spot market as compared to the same period last year, when the vessels operated under time charter employment. Operating expenses for the six months ended June 30, 2024 mainly included crew expenses of $2.0 million, corresponding to 53% of total operating expenses, spares and consumables costs of $0.8 million, corresponding to 21%, and maintenance expenses of $0.4 million, representing works and repairs on the vessels, corresponding to 11% of total vessel operating expenses. • Depreciation for the six months ended June 30, 2024 was $2.9 million, a $1.6 million increase from $1.3 million for the same period of last year, due to the increase in the average number of our vessels. • Management fees for the six months ended June 30, 2024 were $0.3 million, a $0.1 million increase from $0.2 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 six months ended June 30, 2024 were $2.1 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 six months ended June 30, 2023 were $0.5 million. • Interest and finance costs for the six months ended June 30, 2024 were $1.7 million and related to the accrued interest expense - related party, as of June 30, 2024 in connection with the $53.3 million, part of the acquisition prices of our Aframax tanker Afrapearl II - which was subsequently completely paid off in July 2024 - and our bulk carrier Eco Spitfire, which is payable by April 2025. • Interest income for the six months ended June 30, 2024 was $0.6 million and related to the interest earned from the time deposits held by the Company. • Loss on warrants for the six months ended June 30, 2024 was $15.2 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 $7.3 million corresponding to an Adjusted EPS, basic of $1.68 for the six months ended June 30, 2024 compared to adjusted net income of $0.4 million, corresponding to an Adjusted EPS, basic of $11.54 for the same period in the last year. • Adjusted EBITDA for the six months ended June 30, 2024 and 2023 amounted to $11.3 million and $1.7 million respectively. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. • An average of 3.3 vessels were owned by the Company during the six months ended June 30, 2024 compared to 2.0 vessels for the same period of 2023. CEO Dr. Diamantis Andriotis commented: "Following the completion of the first six months of operations for 2024, C3is has reported an Adjusted Net Income of $7.3 million, an adjusted EBITDA of $11.3 million, and an adjusted EPS of $1.68. 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, a little over a year ago. We have more than doubled our fleet without the need for any bank debt. In July 2024 we paid off the remaining balance of $38.7 million due on our Aframax tanker, without resorting to bank financings. Shipping business is at a major turning point with a plethora of risks and opportunities, which are poised to shape market dynamics. These are mainly the decline in global demand for bulk cargo such as iron ore and coal, the increase in transportation of grain and minor bulk cargo, the de-carbonization of customer value chains, the impact of market fluctuations and geopolitical risks. We are confident that we have established foundations that are adaptable to this changing environment, thereby enhancing our fundamental ability to both further develop existing core businesses, and explore new growth businesses. Looking ahead, we believe that earnings momentum will remain generally favorable, prompting our continued focus on our fleet growth strategy. We will continue to strive to produce both improved financial performance, attractive returns and growth prospects for our shareholders" Full report About C3IS Inc. C3is Inc. is a ship-owning company providing drybulk and crude oil seaborne transportation services. The Company owns four vessels, three Handysize drybulk carriers with a total capacity of 97,664 deadweight tons (dwt) and an Aframax oil tanker with a cargo carrying capacity of approximately 115,800 dwt, resulting in a fleet total capacity of 213,464 dwt. C3is Inc.'s shares of common stock are listed on the Nasdaq Capital Market and trade under the symbol "CISS". C3is - press release 
|
