C3is Inc. (Nasdaq: CISS) (the “Company”), a ship-owning company
providing dry bulk seaborne transportation services, and from Q3
2023, tanker transportation services, announced today its unaudited
financial and operating results for the third quarter and nine
months ended September 30, 2023. These financial results were based
on the accounts of C3is Inc. and its wholly owned subsidiaries,
which were prepared as if the subsidiaries owning dry bulk vessels
were consolidated subsidiaries of C3is for the entire periods
presented, since the date the vessels were acquired by these
subsidiaries, and using the historical carrying costs of the assets
and the liabilities of these subsidiaries.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Our two handysize dry bulk carriers
currently operate under short-term time charter contracts, earning
gross charter rates ranging from $20,000 to $26,000 per day.
- Our Aframax oil tanker operates in
the spot market, where voyage charter rates for Aframax tankers
currently are in excess of $65,000 per day. Fleet operational
utilization of 98.5% for the three months ended September 30, 2023,
as our vessels were mainly under time charter employment.
- Voyage revenues of $10.1 million
for the three months ended September 30, 2023, corresponding to a
daily TCEi of $27,903.
- 378% increase in Net Revenues and
1,637% increase in EBITDA from the second quarter of 2023.
- Net Income of $3.3 million for the
three months ended September 30, 2023.
- 1,018% increase in Net Income from
the second quarter of 2023.
- Earnings per share, basic and
diluted, for the third quarter of 2023 were $0.43 and $0.15,
respectively.
- Cash & cash equivalents of $8.9
million as of the end of the third quarter of 2023, reflecting $5.4
million and $3.7 million of net cash provided by operating
activities during the nine months and the three months ended
September 30, 2023, respectively. Both handysize dry bulk carriers
and our newly acquired Aframax oil tanker are currently
unencumbered.
- Financial liability of $38.7
million related to the acquisition of our Aframax tanker and due in
July 2024, expected to be financed with cash on hand, net cash from
operations and proceeds from equity offerings.
Third Quarter 2023
Results:
- Voyage revenues for the three months
ended September 30, 2023 amounted to $10.1 million, an increase of
$9.9 million compared to revenues of $0.2 million for the period
from July 25, 2022 (inception of C3is Inc.) to September 30, 2022,
primarily due to the increase in the average number of our vessels.
Total calendar days for our fleet were 263 days for the three
months ended September 30, 2023. Of the total calendar days in the
third quarter of 2023, 180, or 68.4%, were time charter days. Our
fleet operational utilization was 98.5% for this period.
- Voyage expenses and vessels’ operating
expenses for the three months ended September 30, 2023 were $2.8
million and $1.5 million respectively, compared to $0.06 million
and $0.08 million respectively, for the period ended September 30,
2022. The increases in both voyage expenses and vessels’ operating
expenses are attributed to the increase in the average number of
our vessels. Voyage expenses for the three months ended September
30, 2023 included commissions to third parties of $0.4 million,
corresponding to 14% of total voyage expenses. Operating expenses
for the three months ended September 30, 2023 mainly included crew
expenses of $0.8 million, corresponding to 53% of total operating
expenses, spares and consumables costs of $0.3 million,
corresponding to 20%, and maintenance expenses of $0.13 million,
representing works and repairs on the vessels, corresponding to 9%
of total vessel operating expenses.
- Depreciation for the three months
ended September 30, 2023 was $1.4 million, a $1.37 million increase
from $0.03 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 September 30, 2023 were $0.4 million and
mainly related to expenses incurred as a result of operating as a
separate public company.
- Interest and finance
costs for the three months ended September 30, 2023 was $0.6
million and related to the accrued interest expense – related party
as of September 30, 2023 in connection with the $38.7 million, part
of the acquisition price of our Aframax tanker Afrapearl II which
is payable by July 2024.
- As a result of the above, for the
three months ended September 30, 2023, the Company reported a net
income of $3.3 million.
- EBITDAii for the three months
ended September 30, 2023 amounted to $5.3 million.
- An average of 2.9 vessels were owned
by the Company during the three months ended September 30,
2023.
Nine months 2023
Results:
- Voyage revenues for the nine months
ended September 30, 2023 amounted to $15.0 million, an increase of
$14.8 million compared to revenues of $0.2 million for the period
from July 25, 2022 to September 30, 2022, primarily due to the
increase in the average number of our vessels. Total calendar days
for our fleet were 625 days for the nine months ended September 30,
2023. Of the total calendar days in the first nine months of 2023,
506 or 81.0%, were time charter days. Our fleet operational
utilization was 93.6% for this period.
- Voyage expenses and vessels’ operating
expenses for the nine months ended September 30, 2023 were $3.3
million and $3.3 million respectively, compared to $0.06 million
and $0.08 million respectively, for the period ended September 30,
2022. The increases in both voyage expenses and vessels’ operating
expenses are attributed to the increase in the average number of
our vessels. Voyage expenses for the nine months ended September
30, 2023 mainly included bunker costs of $1.3 million,
corresponding to 39% of total voyage expenses, and commissions to
third parties of $0.7 million, corresponding to 21% of total voyage
expenses. Operating expenses for the nine months ended September
30, 2023 mainly included crew expenses of $1.9 million,
corresponding to 58% of total operating expenses, spares and
consumables costs of $0.7 million, corresponding to 21%, and
maintenance expenses of $0.3 million, representing works and
repairs on the vessels, corresponding to 9% of total vessel
operating expenses.
- Depreciation for the
nine months ended September 30, 2023 was $2.7 million, a $2.67
million increase from $0.03 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 nine months ended September 30, 2023 were $0.9 million and
mainly related to the portion of general and administrative
expenses incurred by Imperial Petroleum, the former Parent of C3is
Inc., that were allocated to C3is Inc., as well as to expenses
incurred as a result of operating as a separate public
company.
- Interest and finance
costs for the nine months ended September 30, 2023 was $0.6 million
and related to the accrued interest expense – related party, as of
September 30, 2023 in connection with the $38.7 million, part of
the acquisition price of our Aframax tanker Afrapearl II which is
payable by July 2024.
- As a result of the above, for the nine
months ended September 30, 2023, the Company reported a net income
of $3.7 million.
- EBITDA for the nine months ended
September 30, 2023 amounted to $7.1 million.
- An average of 2.3 vessels were owned
by the Company during the nine months ended September 30,
2023.
CEO Dr. Diamantis Andriotis
commented:
"We are very pleased to announce that, even
though we have been operating as a newly listed entity for a short
period of approximately 4 months following our spin-off from
Imperial Petroleum Inc. in late June 2023, we have managed to grow
our fleet and achieved a remarkable financial performance.
Specifically, during the third quarter of 2023, we generated record
revenues of $10.1 million and a record net income of $3.3 million,
representing increases of 493% and 1,018% respectively, from the
previous quarter.
Going forward, we strongly believe that the new
acquisition of our Aframax oil tanker, which was delivered to us in
July 2023, will well position us to capture the firm prevailing
tanker market conditions and generate significant cash flow with
the efficient operations of our expanded and diversified fleet.
Specifically, our two handysize dry bulk carriers currently operate
under short-term time charter contracts, earning gross charter
rates ranging from $20,000 to $26,000 per day and resulting in a
fixed revenue backlog of approximately $2.9 million until December
2023. Our already secured revenues are supplemented by the
operation of our Aframax oil tanker in the spot market, where
voyage charter rates for Aframax tankers currently stand at very
high levels, in excess of $65,000 per day. This employment strategy
will enhance our ability to finance our outstanding liability of
$38.7 million, related to the acquisition of our tanker and due in
July 2024, partially with cash on hand, cash from operating
activities and proceeds from equity offerings.
With our Company’s impressive performance, we
will continue to pursue growth strategies focused on timely and
selective acquisitions of high-quality vessels which we may
consider to be in the best interests of our Company and our
shareholders."
Conference Call details:
On November 3, 2023, 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 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 dry bulk and crude oil seaborne transportation
services. The Company owns three vessels, two handysize dry bulk
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 dwt. C3is Inc.’s shares of common stock are listed on the
Nasdaq Capital Market and trade under the symbol “CISS”.
Forward-Looking StatementsMatters 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, or impact or duration of the COVID-19
pandemic 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 impact of the COVID-19 pandemic and efforts
throughout the world to contain its spread, 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
dry-dockings, shipyard performance, changes in C3IS INC’s operating
expenses, including bunker prices, dry-docking 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, potential disruption of
shipping routes due to accidents and political events or acts by
terrorists.
Company Contact:
Nina PyndiahChief Financial Officer
C3is INC.00-30-210-6250-001E-mail: info@c3is.pro
Fleet Data: The following key
indicators highlight the Company’s operating performance during the
periods ended September 30, 2022 and September 30, 2023.
FLEET DATA |
July 25, 2022- September 30, 2022 |
Q3 2023 |
9M 2023 |
Average number
of vessels (1) |
0.13 |
2.9 |
2.3 |
Period end
number of owned vessels in fleet |
1 |
3 |
3 |
Total calendar
days for fleet (2) |
9 |
263 |
625 |
Total voyage
days for fleet (3) |
9 |
262 |
624 |
Fleet
utilization (4) |
100.0% |
99.6% |
99.8% |
Total charter
days for fleet (5) |
9 |
180 |
506 |
Total spot
market days for fleet (6) |
0 |
82 |
118 |
Fleet
operational utilization (7) |
100.0% |
98.5% |
93.6% |
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 major
repairs, dry-dockings 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 major repairs, dry-dockings 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) |
|
|
|
July 25, 2022- September
30, 2022 |
Q3 2023 |
9M 2023 |
Net income -
EBITDA |
|
|
|
Net
income |
28,495 |
3,331,044 |
3,719,169 |
Plus interest and finance
costs |
-- |
620,282 |
621,011 |
Plus depreciation |
33,379 |
1,382,297 |
2,722,425 |
EBITDA |
61,874 |
5,333,623 |
7,062,605 |
|
|
|
|
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) |
|
|
July 25, 2022- September
30, 2022 |
Q3 2023 |
9M 2023 |
Voyage Revenues |
211,166 |
10,107,108 |
14,962,205 |
Voyage expenses |
63,410 |
2,796,633 |
3,255,260 |
Time charter
equivalent revenues |
147,756 |
7,310,475 |
11,706,945 |
Total voyage days for
fleet |
9 |
262 |
624 |
Time charter
equivalent rate |
16,417 |
27,903 |
18,761 |
C3is Inc.Unaudited Consolidated
Statements of Income(Expressed in United States
Dollars, except for number of shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 25, 2022- September
30, 2022 |
|
Q3 2023 |
|
|
9M 2023 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
211,166 |
|
10,107,108 |
|
|
14,962,205 |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
60,770 |
|
2,685,556 |
|
|
3,085,246 |
|
Voyage expenses - related party |
|
2,640 |
|
111,077 |
|
|
170,014 |
|
Vessels' operating expenses |
|
76,904 |
|
1,441,088 |
|
|
3,281,260 |
|
Vessels' operating expenses - related party |
-- |
|
21,750 |
|
|
51,750 |
|
Dry-docking costs |
|
|
-- |
|
10,238 |
|
|
184,387 |
|
Management fees - related party |
|
4,400 |
|
115,280 |
|
|
274,560 |
|
General and administrative expenses |
|
4,578 |
|
390,753 |
|
|
856,020 |
|
Depreciation |
|
|
33,379 |
|
1,382,297 |
|
|
2,722,425 |
Total expenses |
|
|
182,671 |
|
6,158,039 |
|
|
10,625,662 |
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
28,495 |
|
3,949,069 |
|
|
4,336,543 |
|
|
|
|
|
|
|
|
|
|
|
Other (expenses)/income |
|
|
|
|
|
|
|
|
|
Interest and finance costs |
|
-- |
|
(562) |
|
|
(1,291) |
|
Interest and finance costs – related party |
|
|
|
(619,720) |
|
|
(619,720) |
|
Foreign exchange gain |
|
|
-- |
|
2,257 |
|
|
3,637 |
Other expenses, net |
|
|
-- |
|
(618,025) |
|
|
(617,374) |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
28,495 |
|
3,331,044 |
|
|
3,719,169 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per shareiii |
|
|
|
|
|
|
|
|
-
Basic |
|
|
0.01 |
|
0.43 |
|
|
0.77 |
-
Diluted |
|
|
0.00 |
|
0.15 |
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
-
Basic |
|
|
3,182,932 |
|
7,301,475 |
|
|
4,570,866 |
-
Diluted |
|
|
17,468,646 |
|
21,587,190 |
|
|
18,856,580 |
C3is Inc.Unaudited Consolidated Balance
Sheets(Expressed in United States
Dollars)
|
|
|
|
|
December 31, |
|
September 30, |
|
|
|
|
|
2022 |
|
2023 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash
and cash equivalents |
|
-- |
|
8,949,353 |
|
Due
from related parties |
|
146,708 |
|
-- |
|
Trade
and other receivables |
|
674,827 |
|
3,140,918 |
|
Other current assets |
|
|
-- |
|
112,776 |
|
Inventories |
|
|
165,645 |
|
2,061,825 |
|
Advances and prepayments |
|
36,340 |
|
18,397 |
Total current assets |
|
|
1,023,520 |
|
14,283,269 |
|
|
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
|
Vessels, net |
|
|
38,836,151 |
|
76,543,726 |
Total non current assets |
|
|
38,836,151 |
|
76,543,726 |
Total assets |
|
|
|
39,859,671 |
|
90,826,995 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade
accounts payable |
|
792,142 |
|
932,528 |
|
Payable to related parties |
|
-- |
|
39,096,635 |
|
Accrued and other liabilities |
|
173,324 |
|
544,472 |
Total current liabilities |
|
|
965,466 |
|
40,573,635 |
Total liabilities |
|
|
965,466 |
|
40,573,635 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Former Parent Company investment |
|
38,894,205 |
|
-- |
|
Capital stock |
|
|
-- |
|
79,479 |
|
Preferred stock, Series A |
|
-- |
|
6,000 |
|
Additional paid-in capital |
|
-- |
|
47,031,071 |
|
Retained earnings |
|
|
-- |
|
3,136,810 |
Total stockholders' equity |
|
|
38,894,205 |
|
50,253,360 |
Total liabilities and stockholders' equity |
|
39,859,671 |
|
90,826,995 |
C3is Inc.Unaudited Consolidated
Statements of Cash Flows(Expressed in United
States Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 25,
2022-September
30,2022 |
|
9M 2023 |
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net
income for the period |
|
|
|
28,495 |
|
3,719,169 |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net
cash |
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
33,379 |
|
2,722,425 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
(Increase)/decrease in |
|
|
|
|
|
|
|
|
Trade
and other receivables |
|
|
|
(461,331) |
|
(2,466,091) |
|
Other current assets |
|
|
|
|
-- |
|
(112,776) |
|
Inventories |
|
|
|
|
(66,402) |
|
(1,896,180) |
|
Advances and prepayments |
|
|
|
(28,049) |
|
17,943 |
|
Increase/(decrease) in |
|
|
|
|
|
|
|
|
Trade
accounts payable |
|
|
|
49,596 |
|
140,386 |
|
Balances with related parties |
|
|
|
252,805 |
|
2,900,843 |
|
Accrued liabilities |
|
|
|
|
11,798 |
|
371,148 |
|
Deferred income |
|
|
|
|
388,834 |
|
- |
Net cash provided by operating activities |
|
|
|
209,125 |
|
5,396,867 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisition and improvement of vessels |
|
|
(20,709,125) |
|
(4,300,000) |
Net cash used in investing activities |
|
|
|
(20,709,125) |
|
(4,300,000) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Net
transfers from former Parent Company |
|
|
20,500,000 |
|
3,305,083 |
|
Proceeds from follow-on offering |
|
|
|
-- |
|
5,003,250 |
|
Stock issuance costs |
|
|
|
|
-- |
|
(455,847) |
Net cash provided by financing activities |
|
|
|
20,500,000 |
|
7,852,486 |
|
|
|
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents |
|
|
-- |
|
8,949,353 |
Cash and cash equivalents at end of period |
|
|
-- |
|
8,949,353 |
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
InformationNon-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 |
|
|
|
-- |
|
212,500 |
i 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.ii 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.iii The computation of
earnings per share gives retroactive effect to the shares issued in
connection with the spin-off.
C3is (NASDAQ:CISS)
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De May 2024 a Jun 2024
C3is (NASDAQ:CISS)
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De Jun 2023 a Jun 2024