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 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.
