OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Following the acquisition of the Aframax tanker, Afrapearl II (ex. Stealth Berana), in
July 2023 the total fleet capacity increased to 179,800 dwt. - Our two handysize dry bulk carriers are currently on short term fixed rate time charters with 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. - Both our handysize dry bulk carriers, and our Aframax tanker are unencumbered.
- Fleet operational utilization of 91.6% for the twelve months ended
December 31, 2023 , as our vessels were mainly under time charter employment. - Voyage revenues of
$28.7 million for the twelve months endedDecember 31, 2023 , corresponding to a daily TCE1 of$23,453 . - 22.1% increase in daily TCE to
$34,060 per day for the three months endedDecember 31, 2023 , as compared to the daily TCE of$27,903 per day for the three months endedSeptember 30, 2023 . - Our Company generated a net income of
$9.3 million for the twelve months endedDecember 31, 2023 , and a net income of$5.6 million for the three months endedDecember 31, 2023 . - 69.7% increase in Net Income to
$5.6 million for the three months endedDecember 31, 2023 , from$3.3 million for the three months endedSeptember 30, 2023 . - 45.3% increase in EBITDA2 to
$7.7 million for the three months endedDecember 31, 2023 , from$5.3 million for the three months endedSeptember 30, 2023 . - 140% increase in Total Assets as of
December 31, 2023 compared toDecember 31, 2022 . - During the first quarter of 2024, we concluded two follow-on equity offerings, generating aggregate gross proceeds of
$13.0 million which increased our current cash balance to approximately$35.6 million . - Based on the current fleet market value, our Company’s net asset value is estimated at
$50.45 million 3, or$0.31 per share, which represents approximately 10.3x our current market capitalization. - Diluted EPS for the fourth quarter of 2023 was
$0.25 , which is 733% higher than the Company’s stock price as ofMarch 22, 2024 . - Our Board of Directors has decided to effect a reverse stock split, with the exact ratio and effective date to be determined and announced in the near term, which is expected to enable our Company to regain compliance with all Nasdaq continuous listing criteria.
Fourth Quarter 2023 Results:
- Voyage revenues for the three months ended
December 31, 2023 amounted to$13.8 million , an increase of$10.7 million compared to revenues of$3.1 million for the three months endedDecember 31, 2022 , primarily due to the increase in the average number of our vessels. Total calendar days for our fleet were 276 days for the three months endedDecember 31, 2023 . Of the total calendar days in the fourth quarter of 2023, 174, or 63.0%, were time charter days. Our fleet operational utilization was 87.0% for this period. - Voyage expenses and vessels’ operating expenses for the three months ended
December 31, 2023 were$4.4 million and$1.5 million respectively, compared to$0.4 million and$0.8 million respectively, for the three months endedDecember 31, 2022 . 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 endedDecember 31, 2023 included commissions to third parties of$0.5 million , corresponding to 11% of total voyage expenses. Operating expenses for the three months endedDecember 31, 2023 mainly included crew expenses of$0.9 million , corresponding to 60% of total operating expenses, spares and consumables costs of$0.3 million , corresponding to 20%, and maintenance expenses of$0.1 million , representing works and repairs on the vessels, corresponding to 7% of total vessel operating expenses. - Depreciation for the three months ended
December 31, 2023 was$1.4 million , a$0.9 million increase from$0.5 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
December 31, 2023 were$0.12 million , a$0.05 million increase from$0.07 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
December 31, 2023 were$0.3 million and mainly related to expenses incurred as a result of operating as a separate public company. General and Administrative costs for the three months endedDecember 31, 2022 were$0.1 million . - Interest and finance costs for the three months ended
December 31, 2023 were$0.7 million and mainly related to the accrued interest expense – related party as ofDecember 31, 2023 in connection with the$38.7 million which is part of the acquisition price of our Aframax tanker Afrapearl II that is payable byJuly 2024 . - As a result of the above, for the three months ended
December 31, 2023 , the Company reported a net income of$5.6 million . - EBITDA for the three months ended
December 31, 2023 amounted to$7.7 million . - An average of 3.0 vessels were owned by the Company during the three months ended
December 31, 2023 .
Twelve months 2023 Results:
- Voyage revenues for the twelve months ended
December 31, 2023 amounted to$28.7 million , an increase of$25.4 million compared to revenues of$3.3 million for the period fromJuly 25, 2022 (inception ofC3is Inc. ) toDecember 31, 2022 , primarily due to the increase in the average number of our vessels. Total calendar days for our fleet were 901 days for the twelve months endedDecember 31, 2023 . Of the total calendar days in 2023, 680, or 75.5%, were time charter days. Our fleet operational utilization was 91.6% for this period. - Voyage expenses and vessels’ operating expenses for the twelve months ended
December 31, 2023 were$7.6 million and$4.8 million respectively, compared to$0.5 million and$0.9 million for the period endedDecember 31, 2022 . The increase in both voyage expenses and vessels’ operating expenses is attributed to the increase in the average number of our vessels and the addition of our Aframax tanker. Voyage expenses for the twelve months endedDecember 31, 2023 mainly included bunker costs of$3.4 million , corresponding to 45% of total voyage expenses, and commissions to third parties of$1.2 million , corresponding to 16% of total voyage expenses. Operating expenses for the twelve months endedDecember 31, 2023 mainly included crew expenses of$2.8 million , corresponding to 58% of total operating expenses, spares and consumables costs of$1.0 million , corresponding to 21%, and maintenance expenses of$0.4 million , representing works and repairs on the vessels, corresponding to 8% of total vessel operating expenses.
- Depreciation for the twelve months ended
December 31, 2023 was$4.1 million , a$3.5 million increase from$0.6 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
December 31, 2023 were$0.4 million , a$0.3 million increase from$0.1 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 twelve months ended
December 31, 2023 were$1.2 million and mainly related to the portion of general and administrative expenses incurred by Imperial Petroleum, the former Parent ofC3is Inc. , prior to our separation from Imperial Petroleum that were allocated toC3is Inc. , as well as to expenses incurred as a result of operating as a separate public company. General and Administrative costs for the period endedDecember 31, 2022 were$0.1 million .
- Interest and finance costs for the twelve months ended
December 31, 2023 were$1.4 million and mainly related to the accrued interest expense – related party, as ofDecember 31, 2023 in connection with the$38.7 million which is part of the acquisition price of our Aframax tanker Afrapearl II that is payable byJuly 2024 . - As a result of the above, for the twelve months ended
December 31, 2023 , the Company reported a net income of$9.3 million . - EBITDA for the twelve months ended
December 31, 2023 amounted to$14.7 million . - An average of 2.5 vessels were owned by the Company during the twelve months ended
December 31, 2023 .
CEO Dr.
Since our Company’s listing in late
The revenue generation of
We believe that our capital structure comprising of no bank debt and a strong cash balance, currently standing at
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ABOUT
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, including our intention to effect a reverse stock split, the exact ratio and timing of such reverse stock split and our ability to regain compliance with Nasdaq continued listing requirements, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although
Company Contact:
Chief Financial Officer
00-30-210-6250-001
E-mail: info@c3is.pro
Fleet Data:
The following key indicators highlight the Company’s operating performance during the periods ended
FLEET DATA | Q4 2022 | Q4 2023 | 12M 2023 | |
Average number of vessels (1) | 1.79 | 3.00 | 1.09 | 2.47 |
Period end number of owned vessels in fleet | 2 | 3 | 2 | 3 |
Total calendar days for fleet (2) | 165 | 276 | 174 | 901 |
Total voyage days for fleet (3) | 127 | 276 | 136 | 900 |
Fleet utilization (4) | 77.0% | 100.0% | 78.2% | 99.9% |
Total charter days for fleet (5) | 122 | 174 | 131 | 680 |
Total spot market days for fleet (6) | 5 | 102 | 5 | 220 |
Fleet operational utilization (7) | 73.9% | 87.0% | 75.3% | 91.6% |
1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with repairs, drydockings or special or intermediate surveys.
3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with repairs, drydockings or special or intermediate surveys.
4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.
6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.
7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.
Reconciliation of EBITDA:
EBITDA represents net income before interest and finance costs, interest income and depreciation. EBITDA is not a recognized measurement under
EBITDA is included herein because it is a basis, upon which we and our investors assess our financial performance. It allows us to present our performance from period to period on a comparable basis and provides investors with a means of better evaluating and understanding our operating performance.
(Expressed in except number of shares) | ||||
Q4 2022 | Q4 2023 | 12M 2023 | ||
Net income - EBITDA | ||||
Net income | 523,091 | 5,572,743 | 551,586 | 9,291,912 |
Plus interest and finance costs | 116 | 746,820 | 116 | 1,367,831 |
Less interest income | -- | (36,107) | -- | (36,107) |
Plus depreciation | 524,595 | 1,382,295 | 557,974 | 4,104,720 |
EBITDA | 1,047,802 | 7,665,751 | 1,109,676 | 14,728,356 |
Reconciliation of TCE:
Time Charter Equivalent rate or “TCE” rate is determined by dividing voyage revenue net of voyage expenses by voyage days for the relevant time period. TCE is a non-GAAP measure which provides additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure to Time charter equivalent revenues assisting the Company’s management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot charters or time charters, but not bareboat charters) under which the vessels may be employed between the periods.
(Expressed in thousands of | ||||
Q4 2022 | Q4 2023 | 12M 2023 | ||
Voyage Revenues | 3,075,935 | 13,776,777 | 3,287,101 | 28,738,982 |
Voyage expenses | 434,262 | 4,376,135 | 497,672 | 7,631,395 |
Time charter equivalent revenues | 2,641,673 | 9,400,642 | 2,789,429 | 21,107,587 |
Total voyage days for fleet | 127 | 276 | 136 | 900 |
Time charter equivalent rate | 20,801 | 34,060 | 20,511 | 23,453 |
Unaudited Consolidated Statements of Income
(Expressed in
July 25, 2022 - | |||||
Q4 2022 | Q4 2023 | 2022 | 12M 2023 | ||
Revenues | |||||
Revenues | 3,075,935 | 13,776,777 | 3,287,101 | 28,738,982 | |
Total revenues | 3,075,935 | 13,776,777 | 3,287,101 | 28,738,982 | |
Expenses | |||||
Voyage expenses | 396,069 | 4,205,883 | 456,839 | 7,291,129 | |
Voyage expenses – related party | 38,193 | 170,252 | 40,833 | 340,266 | |
Vessels’ operating expenses | 812,368 | 1,435,276 | 889,272 | 4,716,536 | |
Vessels’ operating expenses – related party | 7,000 | 27,500 | 7,000 | 79,250 | |
Drydocking costs | 584,355 | (1,297) | 584,355 | 183,090 | |
Management fees | 73,040 | 121,440 | 77,440 | 396,000 | |
General and administrative expenses | -- | 232,438 | -- | 679,156 | |
General and administrative expenses – related parties | 116,749 | 111,572 | 121,327 | 520,874 | |
Depreciation | 524,595 | 1,382,295 | 557,974 | 4,104,720 | |
Total expenses | 2,552,369 | 7,685,359 | 2,735,040 | 18,311,021 | |
Income from operations | 523,566 | 6,091,418 | 552,061 | 10,427,961 | |
Other (expenses)/income | |||||
Interest and finance costs | (116) | (3,180) | (116) | (4,471) | |
Interest and finance costs – related party | -- | (743,640) | -- | (1,363,360) | |
Interest income | -- | 36,107 | -- | 36,107 | |
Foreign exchange (loss)/gain | (359) | 192,038 | (359) | 195,675 | |
Other expenses, net | (475) | (518,675) | (475) | (1,136,049) | |
Net Income | 523,091 | 5,572,743 | 551,586 | 9,291,912 | |
Earnings per share4* | |||||
- Basic | 0.16 | 0.64 | 0.17 | 1.57 | |
- Diluted | 0.07 | 0.25 | 0.07 | 0.63 | |
Weighted average number of shares | |||||
- Basic | 3,182,681 | 7,947,681 | 3,182,681 | 5,421,821 | |
- Diluted | 7,468,395 | 22,233,395 | 7,468,395 | 14,611,645 |
Unaudited Consolidated Balance Sheets
(Expressed in
2022 | 2023 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | -- | 695,288 | |||||
Time deposits | -- | 8,368,417 | |||||
Due from related parties | 146,708 | -- | |||||
Trade and other receivables | 674,827 | 10,443,497 | |||||
Other current assets | -- | 33,846 | |||||
Inventories | 165,645 | 689,269 | |||||
Advances and prepayments | 36,340 | 80,267 | |||||
Total current assets | 1,023,520 | 20,310,584 | |||||
Non current assets | |||||||
Vessels, net | 38,836,151 | 75,161,431 | |||||
Total non current assets | 38,836,151 | 75,161,431 | |||||
Total assets | 39,859,671 | 95,472,015 | |||||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Trade accounts payable | 792,142 | 547,017 | |||||
Payable to related parties | -- | 38,531,016 | |||||
Accrued and other liabilities | 173,324 | 634,297 | |||||
Deferred income | -- | 215,836 | |||||
Total current liabilities | 965,466 | 39,928,166 | |||||
Total liabilities | 965,466 | 39,928,166 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | |||||||
Former Parent Company investment | 38,894,205 | -- | |||||
Capital stock | -- | 87,424 | |||||
Preferred stock, Series A | -- | 6,000 | |||||
Additional paid-in capital | -- | 47,104,506 | |||||
Retained earnings | -- | 8,345,919 | |||||
Total stockholders' equity | 38,894,205 | 55,543,849 | |||||
Total liabilities and stockholders' equity | 39,859,671 | 95,472,015 |
Unaudited Consolidated Statements of Cash Flows
(Expressed in
12M 2023 | |||||||||
Cash flows from operating activities | |||||||||
Net income for the period/year | 551,586 | 9,291,912 | |||||||
Adjustments to reconcile net income to net cash | |||||||||
provided by operating activities: | |||||||||
Depreciation | 557,974 | 4,104,720 | |||||||
Share based compensation | -- | 37,638 | |||||||
Unrealized foreign exchange gain on time deposits | -- | (241,967) | |||||||
Changes in operating assets and liabilities: | |||||||||
(Increase)/decrease in | |||||||||
Trade and other receivables | (674,827) | (9,768,670) | |||||||
Due from related party | (146,708) | 146,708 | |||||||
Other current assets | -- | (33,846) | |||||||
Inventories | (165,645) | (523,624) | |||||||
Advances and prepayments | (36,340) | (43,927) | |||||||
Increase/(decrease) in | |||||||||
Trade accounts payable | 792,142 | (245,125) | |||||||
Payable to related parties | -- | 2,238,516 | |||||||
Accrued liabilities | 173,324 | 460,973 | |||||||
Deferred income | -- | 215,836 | |||||||
Net cash provided by operating activities | 1,051,506 | 5,639,144 | |||||||
Cash flows from investing activities | |||||||||
Acquisition and improvement of vessels | (39,394,125) | (4,300,000) | |||||||
Purchase of bank time deposits | -- | (8,126,450) | |||||||
Net cash used in investing activities | (39,394,125) | (12,426,450) | |||||||
Cash flows from financing activities | |||||||||
Net transfers from former Parent Company | 38,342,619 | 3,305,083 | |||||||
Proceeds from follow-on offering | -- | 5,003,250 | |||||||
Stock issuance costs | -- | (584,072) | |||||||
Dividends paid on preferred shares | -- | (241,667) | |||||||
Net cash provided by financing activities | 38,342,619 | 7,482,594 | |||||||
Net increase in cash and cash equivalents | -- | 695,288 | |||||||
Cash and cash equivalents at beginning of period/year | -- | -- | |||||||
Cash and cash equivalents at end of period/year | -- | 695,288 | |||||||
Supplemental Cash Flow Information
Non-cash Investing and Financing Activities
Vessel acquisition included in payable to related parties | -- | 36,130,000 | ||||
Dividends on preferred shares Series A included in payable to related parties | -- | 162,500 |
1 TCE is a non-GAAP measure. Refer to the reconciliation of this measure to the most directly comparable financial measure in accordance with GAAP set forth later in this release.
2 EBITDA is a non-GAAP measure. Refer to the reconciliation of this measure to the most directly comparable financial measure in accordance with GAAP set forth later in this release.
3 Net asset value (or NAV) is based on estimates of the market value of the vessels in the fleet of
4 The computation of earnings per share gives retroactive effect to the shares issued in connection with the spin-off of our company from Imperial Petroleum Inc. in
Source:
2024 GlobeNewswire, Inc., source