C3is Inc. reports Revenue of $12.8 million, Net Income of $3.8 million, and financial and operating results for the quarter ended March 31, 2024
May 28, 2024 09:20 ET| Source: C3is Inc.Follow
ATHENS, Greece, May 28, 2024 (GLOBE NEWSWIRE) -- C3is Inc. (Nasdaq: CISS) (the “Company”), a ship-owning company providing drybulk seaborne transportation services, and from the third quarter of 2023, tanker transportation services, announced today its unaudited financial and operating results for the first quarter ended March 31, 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 in excess of $40,000 per day.
All our handysize dry bulk carriers, and our Aframax tanker are unencumbered.
Fleet operational utilization of 93.4% for the three months ended March 31, 2024, as our vessels that operated under time charter employment had few commercial idle days.
Revenues of $12.8 million for the three months ended March 31, 2024, corresponding to a daily TCE1 of $36,480.
129% increase in daily TCE for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023.
Our Company generated a Net Income of $3.8 million for the three months ended March 31, 2024.
404% increase in Net Income for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023.
Our Company generated an EBITDA2 of $5.7 million for the three months ended March 31, 2024.
302% increase in EBITDA for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023.
19% increase in Total Assets as of March 31, 2024 compared to December 31, 2023.
Basic and Diluted EPS for the first quarter of 2024 was $1.11.
Our Basic and Diluted EPS for the quarter annualized and compared to our current share price represent a price to earnings ratio of approximately 0.36.
During the first quarter of 2024, we concluded two follow-on equity offerings, generating aggregate net proceeds of $11.4 million which increased our cash balance, including time deposits, to $34.9 million.
In April 2024, our 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% due in April 2025.
First Quarter 2024 Results:
Voyage revenues for the three months ended March 31, 2024 amounted to $12.8 million, an increase of $9.6 million compared to revenues of $3.2 million for the three months ended March 31, 2023, primarily due to the revenues generated by our Aframax tanker acquired in July 2023. Total calendar days for our fleet were 273 and 180 days for the three months ended March 31, 2024 and 2023 respectively. Of the total calendar days in the first quarters of 2024 and 2023, 164, or 60.1% and 163 or 90.6%, were time charter days. Our fleet operational utilization was 93.4% and 90.6% for the three months ended March 31, 2024 and 2023.
Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2024 were $2.8 million and $1.8 million respectively, compared to $0.3 million and $1.0 million respectively, for the three months ended March 31, 2023. The increases in both voyage expenses and vessels’ operating expenses are attributed to the increase in the average number of our vessels following the acquisition of our Aframax tanker in July 2023 which operates in the spot market. Voyage expenses for the three months ended March 31, 2024 and 2023 included bunkers cost of $1.8 million and $0.1 million, corresponding to 64.3% and 33.3% of total voyage expenses. Operating expenses for the three months ended March 31, 2024 and 2023 mainly included crew expenses of $0.9 million and $0.6 million, corresponding to 50.0% and 60.0% of total vessel operating expenses, spares and consumables costs of $0.4 million and $0.3 million, corresponding to 22.2% and 30.0% of total vessel operating expenses, and maintenance expenses of $0.2 million and $0.1 million, representing works and repairs on the vessels, corresponding to 11.1% and 10.0%, of total vessel operating expenses.
Depreciation for the three months ended March 31, 2024 was $1.4 million, a $0.7 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 March 31, 2024 were $0.12 million, a $0.04 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 March 31, 2024 were $1.5 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 three months ended March 31, 2023 were $0.2 million.
Interest and finance costs for the three months ended March 31, 2024 were $0.8 million and mainly related to the accrued interest expense – related party as of March 31, 2024 in connection with the $38.7 million which is part of the acquisition price of our Aframax tanker Afrapearl II that is payable by July 2024.
Unrealized loss on warrants for the three months ended March 31, 2024 was $0.6 million and related to net fair value losses of 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.
As a result of the above, for the three months ended March 31, 2024, the Company reported a net income of $3.8 million.
EBITDA for the three months ended March 31, 2024 amounted to $5.7 million.
An average of 3.00 vessels were owned by the Company during the three months ended March 31, 2024.
CEO Dr. Diamantis Andriotis commented:
2024 started with an affluence of vigorous activities for C3is Inc. that will enable us to take advantage of acquisition opportunities as they arise.
Our remarkable financial results during the first quarter of 2024 highlight our ability to capitalize on the solid freight rate environment. Indicatively, we managed to achieve a fleetwide time charter equivalent rate of $36,480 per day. As a result, we reported an EBITDA of $5.7 million and a Net Income of $3.8 million, representing increases of 302% and 404% compared to the equivalent period of 2023.
During the first quarter of the year, our cash balance increased by 286% since 2023-year end levels. Our strong cash flow generation from our profitable vessel operations as well as the completion of two follow-on equity offerings, generating aggregate net proceeds of $11.4 million, enabled our Company to further expand its fleet.
Specifically, in May, we took delivery of our recently acquired 2012 Japanese built dry bulk carrier, the Eco Spitfire. Following our latest fleet addition, our total fleet capacity has increased by 234% since the Company’s inception less than a year ago.
Looking ahead, we believe that earnings momentum will remain generally favorable, prompting our continued focus on our fleet growth strategy.
We believe that our capital structure comprising of no bank debt and a strong cash balance, currently at over $40 million, will further enhance our Company’s ability to fund selective vessel acquisitions following payments of the remaining purchase prices for our Aframax tanker and our handysize dry bulk carrier.
We also aim at diversifying our fleet so as to have more impact on long-term profits via re-weighting of exposure to different segments, thus allowing stronger segments to bolster weaker ones, and smoothing returns over time.
Conference Call details:
On May 28, 2024, at 11:00 am ET, the company’s management will host a conference call to present the results and the company’s operations and outlook.
Slides and audio webcast:
There will also be a live and then archived webcast of the conference call, through C3is Inc. website (www.c3is.pro). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
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