C3is Inc. reports Revenue of $13.8 million, Net Income of $5.6 million and $0.25 earnings per diluted share for the fourth quarter of 2023, and financial and operating results for the quarter and twelve months ended December 31, 2023
- Fleet capacity increased to 179,800 dwt after acquiring the Aframax tanker, Afrapearl II.
- Voyage revenues of $28.7 million for the twelve months ended December 31, 2023, with a daily TCE of $23,453.22.
- Net income of $9.3 million for the twelve months ended December 31, 2023, and $5.6 million for the three months ended December 31, 2023.
- 45.3% increase in EBITDA to $7.7 million for the three months ended December 31, 2023.
- 140% increase in Total Assets as of December 31, 2023 compared to December 31, 2022.
- Concluded two follow-on equity offerings, generating gross proceeds of $13.0 million in Q1 2024.
- Net asset value estimated at $50.45 million, or $0.31 per share.
- Diluted EPS for Q4 2023 was $0.25, 733% higher than the stock price as of March 22, 2024.
- Board of Directors to effect a reverse stock split to regain Nasdaq compliance.
- Conference call scheduled on March 26, 2024, at 11:00 am ET to discuss results and outlook.
- None.
Insights
The considerable increase in voyage revenues and net income reported by C3is Inc. reflects robust growth and operational efficiency, particularly following the expansion of their fleet. The reported 140% increase in total assets is a testament to aggressive capital investment, which could signal a strategic positioning for future market opportunities. However, the decision to conduct a reverse stock split suggests a need to address potential NASDAQ non-compliance, which could be indicative of broader market concerns regarding the company's stock performance. The increased cash balance from equity offerings provides liquidity that may support further acquisitions or debt servicing, but it also dilutes shareholder value, an aspect that must be weighed carefully by investors.
The operational utilization rate of 91.6% is a strong indicator of fleet efficiency and the shift towards more time charter days provides revenue stability for C3is Inc. The diversification into tanker transportation, specifically the Aframax tanker, allows the company to capitalize on current high spot market rates, which is a strategic move given the volatility in the dry bulk market. However, the reliance on the spot market also exposes the company to market fluctuations, which could affect future earnings. The increase in operating expenses is consistent with fleet expansion but should be monitored to ensure cost control as the fleet grows.
The reported earnings per share (EPS) significantly exceeding the current stock price could indicate that the market has not yet fully recognized the company's growth and profitability, presenting a potential opportunity for investors. However, the planned reverse stock split could be viewed unfavorably by the market, as it often is associated with companies facing stock price challenges. The estimated net asset value being substantially higher than the market capitalization may attract investors looking for undervalued opportunities. Monitoring the industry's response to these financial maneuvers will be key in assessing market sentiment and future stock performance.
ATHENS, Greece, March 26, 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 fourth quarter and twelve months ended December 31, 2023.
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 ended December 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 ended December 31, 2023, as compared to the daily TCE of$27,903 per day for the three months ended September 30, 2023.- Our Company generated a net income of
$9.3 million for the twelve months ended December 31, 2023, and a net income of$5.6 million for the three months ended December 31, 2023. 69.7% increase in Net Income to$5.6 million for the three months ended December 31, 2023, from$3.3 million for the three months ended September 30, 2023.45.3% increase in EBITDA2 to$7.7 million for the three months ended December 31, 2023, from$5.3 million for the three months ended September 30, 2023.140% increase in Total Assets as of December 31, 2023 compared to December 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 is733% higher than the Company’s stock price as of March 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 ended December 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 ended December 31, 2023. Of the total calendar days in the fourth quarter of 2023, 174, or63.0% , were time charter days. Our fleet operational utilization was87.0% 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 ended December 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 ended December 31, 2023 included commissions to third parties of$0.5 million , corresponding to11% of total voyage expenses. Operating expenses for the three months ended December 31, 2023 mainly included crew expenses of$0.9 million , corresponding to60% of total operating expenses, spares and consumables costs of$0.3 million , corresponding to20% , and maintenance expenses of$0.1 million , representing works and repairs on the vessels, corresponding to7% 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 ended December 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 of December 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 by July 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 from July 25, 2022 (inception of C3is Inc.) to December 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 ended December 31, 2023. Of the total calendar days in 2023, 680, or75.5% , were time charter days. Our fleet operational utilization was91.6% 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 ended December 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 ended December 31, 2023 mainly included bunker costs of$3.4 million , corresponding to45% of total voyage expenses, and commissions to third parties of$1.2 million , corresponding to16% of total voyage expenses. Operating expenses for the twelve months ended December 31, 2023 mainly included crew expenses of$2.8 million , corresponding to58% of total operating expenses, spares and consumables costs of$1.0 million , corresponding to21% , and maintenance expenses of$0.4 million , representing works and repairs on the vessels, corresponding to8% 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 of C3is Inc., prior to our separation from Imperial Petroleum that were allocated to C3is Inc., as well as to expenses incurred as a result of operating as a separate public company. General and Administrative costs for the period ended December 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 of December 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 by July 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. Diamantis Andriotis commented:
Since our Company’s listing in late June 2023 and following the acquisition of our Aframax, the first step of our growth strategy, our expanded and diversified fleet has enabled our Company to enjoy solid financial performance. Indicatively, during the fourth quarter of 2023, we achieved a fleetwide time charter equivalent rate of
The revenue generation of
We believe that our capital structure comprising of no bank debt and a strong cash balance, currently standing at
Conference Call details:
On March 26, 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.
ABOUT C3IS INC.
C3is Inc. is a ship-owning company providing drybulk and crude oil seaborne transportation services. The Company owns three vessels, two Handysize drybulk carriers with a total capacity of 64,000 deadweight tons (dwt) and an Aframax oil tanker with a cargo carrying capacity of approximately 115,800 dwt, resulting with a fleet total capacity of 179,800. C3is Inc.’s shares of common stock are listed on the Nasdaq Capital Market and trade under the symbols “CISS”.
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 C3IS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, C3IS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include risks discussed in our filings with the SEC and the following: , the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in C3IS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflict in Israel and Gaza, potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or accidents and political events or acts by terrorists.
Company Contact:
Nina Pyndiah
Chief Financial Officer
C3is INC.
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 December 31, 2022 and December 31, 2023.
| FLEET DATA | Q4 2022 | Q4 2023 | July 25, 2022-December 31, 2022 | 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) | ||||
| 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) |
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 U.S. GAAP. Our calculation of EBITDA may not be comparable to that reported by other companies in the shipping or other industries.
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 United States Dollars, except number of shares) | ||||
Q4 2022 | Q4 2023 | July 25, 2022-December 31, 2022 | 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 U.S. Dollars except for available days and Time charter equivalent rate) | ||||
| Q4 2022 | Q4 2023 | July 25, 2022-December 31, 2022 | 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 |
C3is Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except for number of shares)
| July 25, 2022 - December 31, | |||||
| 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 | |
C3is Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
| December 31, | December 31, | ||||||
| 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 | |||||
C3is Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
| July 25, 2022 - December 31, 2022 | 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 June 2023.
FAQ
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