C3is Inc. (Nasdaq: CISS) (the “Company”), a ship-owning company
providing drybulk and tanker seaborne transportation services,
announced today its unaudited financial and operating results for
the second quarter and six months ended June 30, 2023. These
financial results were based on the accounts of C3is Inc. and its
wholly owned subsidiaries, which were prepared using the historical
carrying costs of the assets and the liabilities of the
subsidiaries from their dates of incorporation.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Our two handysize dry bulk carriers are currently on time
charters of short term durations, producing steady cash flows.
- Both handysize dry vessels are unencumbered.
- Fleet operational utilization of 90.1% for the six months
period ended June 30, 2023, as our vessels were mainly under time
charter employment.
- Voyage revenues of $4.9 million for the six months period ended
June 30, 2023 corresponding to daily TCE1 of $12,145.
- Our Company generated net income of $0.4 million for the six
months period ended June 30, 2023, and net loss of $0.4 million for
the three months ended June 30, 2023.
- Acquisition of the Stealth Berana in July 2023, an Aframax oil
tanker, with a capacity of 115,800 dwt, bringing the total fleet
capacity to 179,800 dwt.
- On July 5th, 2023 we concluded with
the offering of 4,765,000 common shares, generating gross proceeds
of approximately $5.0 million.
Second Quarter 2023
Results:
- Voyage revenues for the three months
ended June 30, 2023 amounted to $1.7 million as market rates for
our vessels prevailed at low levels. Total calendar days for our
fleet were 182 days for the three months ended June 30, 2023. Of
the total calendar days in the second quarter of 2023, 163, or
89.6%, were time charter days. Our fleet operational utilization
was 89.6% for this period.
- Voyage expenses and vessels’ operating
expenses for the three months ended June 30, 2023 were $0.2 million
and $0.8 million, respectively. Voyage expenses included
commissions to third parties of $0.1 million, corresponding to 50%
of total voyage expenses. Operating expenses mainly included crew
expenses of $0.5 million, corresponding to 63% of total operating
expenses, spares and consumables costs of $0.2 million,
corresponding to 25%, and maintenance expenses of $0.07 million,
representing works and repairs on the vessels, corresponding to 9%
of total vessel operating expenses.
- General and Administrative costs for
the three months ended June 30, 2023 were $0.3 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 a result of the above, for the
three months ended June 30, 2023, the Company reported a net loss
of $0.4 million.
- EBITDA2 for the three months ended
June 30, 2023 amounted to $0.3 million.
- An average of 2.0 vessels were owned
by the Company during the three months ended June 30, 2023.
Six months 2023
Results:
- Voyage revenues for the six months
ended June 30, 2023 amounted to $4.9 million. Total calendar days
for our fleet were 362 days for the six months ended June 30, 2023.
Of the total calendar days in the first six months of 2023, 326 or
90.1%, were time charter days. Our fleet operational utilization
was 90.1% for this period.
- Voyage expenses and vessels’ operating
expenses for the six months ended June 30, 2023 were $0.5 million
and $1.9 million respectively. Voyage expenses mainly included
bunker costs of $0.1 million corresponding to 20% of total voyage
expenses, and commissions to third parties of $0.2 million
corresponding to 40% of total voyage expenses. Operating expenses
mainly included crew expenses of $1.1 million corresponding to 58%
of total operating expenses, spares and consumables costs of $0.5
million, corresponding to 26%, and maintenance expenses of $0.2
million, representing works and repairs on the vessels,
corresponding to 11% of total vessel operating expenses.
- General and Administrative costs for
the six months ended June 30, 2023 were $0.5 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 a result of the above, for the six
months ended June 30, 2023, the Company reported a net income of
$0.4 million.
- EBITDA2 for the six months ended June
30, 2023 amounted to $1.7 million.
- An average of 2.0 vessels were owned
by the Company during the six months ended June 30, 2023.
CEO Andriotis Diamantis
Commented:
"The dry shipping market is a volatile one, and
this is reflected on Q2 results. However, the supply side of the
dry bulk remained favourable, as in conjunction with an ageing
global fleet, the new vessel order book has been at a historically
low value.
"As effective fleet supply growth for the next
few years looks marginal, demand will be the main determinant of
spot freight rates with China returning back to the driver’s seat
as the dominant force of bulk imports and thus shipping demand.
"As of today, the Company’s management estimated
C3is Inc’s Net Asset Value (“NAV”) to be $24.13 million, which
represents approximately a 600% premium over its current market
capitalization.
"C3is Inc. aims at versatility in harvesting on
the changing world fundamentals of shipping, and in order to
maintain a competitive fleet, the company adopted a strategy of
diversification in Q2 by acquiring at terms very favourable to C3is
Inc. an Aframax oil tanker built in 2010, the Stealth Berana for
$43 million from Imperial Petroleum, an affiliated company, that
was delivered to our fleet in July for which we are pleased.
"We are open to opportunities across all
sectors, provided that such deals would be beneficial to the
company’s shareholders while keeping a good balance with investing
for future growth."
Conference Call details:
On September 1st, 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.
Conference Call details:
Conference call participants should pre-register
using the below link to receive the dial-in numbers and a personal
PIN, which are required to access the conference call.
Online Registration:
https://register.vevent.com/register/BI1b6d5f4920ea41cd988c86b9922669cd
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 seaborne transportation services, including major
national and private industrial users, commodity producers and
traders. The Company owns two Handysize drybulk carriers with a
total capacity of 64,000 deadweight tons (dwt). C3is Inc.’s shares
of common stock are listed on the Nasdaq Capital Market and trade
under the symbols “CISS.” In July 2023, the Company announced the
acquisition of an Aframax oil tanker, the Stealth Berana, with a
cargo carrying capacity of approximately 115,800 dwt, resulting
with a fleet total capacity of 179,800.
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, 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 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,
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
period ended June 30, 2023.
|
|
|
FLEET DATA |
Q2 2023 |
6M 2023 |
Average number of vessels (1) |
2.00 |
2.00 |
Period end number of owned
vessels in fleet |
2 |
2 |
Total calendar days for fleet
(2) |
182 |
362 |
Total voyage days for fleet
(3) |
182 |
362 |
Fleet utilization (4) |
100.0% |
100.0% |
Total charter days for fleet
(5) |
163 |
326 |
Total spot market days for
fleet (6) |
19 |
36 |
Fleet operational utilization
(7) |
89.6% |
90.1% |
|
|
|
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, 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 major 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 and the days that
vessels were commercially idle.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 other 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) |
|
|
|
For the Second Quarter Ended June
30th 2023 |
For the Six Months Period Ended June
30th 2023 |
Net (loss)/income -
EBITDA |
|
|
Net
(loss)/income |
(363,230) |
388,125 |
Plus interest and finance
costs |
424 |
729 |
Plus depreciation |
670,064 |
1,340,128 |
EBITDA |
307,258 |
1,728,982 |
|
|
|
Reconciliation of TCE:Time
Charter Equivalent rate or “TCE” rate is a non-GAAP measure and is
determined by dividing voyage revenue net of voyage expenses by
voyage days for the relevant time period. TCE is not a measure of
financial performance under U.S. GAAP and should not be considered
as an alternative to any measure of financial performance presented
in accordance with U.S. GAAP. Management believes that TCE provides
meaningful information to our investors since it compares daily net
earnings generated by our vessels irrespective of the mix charter
types under which our vessels are employed between the periods
while it further assists the Company’s management in making
decisions regarding the deployment and use of its vessels and in
evaluating their financial performance
|
|
|
|
(Expressed in thousands of U.S. Dollars except for
available days and Time charter equivalent rate) |
|
Quarter Ended June 30, 2023 |
For the Six Months Period Ended June 30, 2023 |
|
|
|
|
|
|
|
Voyage Revenues |
1,703,252 |
4,855,097 |
Voyage expenses |
173,607 |
458,627 |
Time charter
equivalent revenues |
1,529,645 |
4,396,470 |
Total voyage days for
fleet |
182 |
362 |
Time charter
equivalent rate |
8,405 |
12,145 |
|
|
|
C3is Inc.Unaudited Consolidated
Statements of Operations(Expressed in United
States Dollars, except for number of shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June 30, 2023 |
|
Six Months Period Ended June 30, 2023 |
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Revenues |
|
|
1,703,252 |
|
4,855,097 |
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Voyage
expenses |
|
|
148,714 |
|
399,690 |
|
Voyage expenses -
related party |
|
24,893 |
|
58,937 |
|
Vessels' operating
expenses |
|
826,614 |
|
1,840,172 |
|
Vessels' operating
expenses - related party |
15,000 |
|
30,000 |
|
Drydocking
costs |
|
|
30,437 |
|
174,149 |
|
Management fees –
related party |
|
|
80,080 |
|
159,280 |
|
General and
administrative expenses |
271,412 |
|
465,267 |
|
Depreciation |
|
|
670,064 |
|
1,340,128 |
Total expenses |
|
|
2,067,214 |
|
4,467,623 |
|
|
|
|
|
|
|
|
(Loss)/Income from operations |
|
(363,962) |
|
387,474 |
|
|
|
|
|
|
|
|
Other
(expenses)/income |
|
|
|
|
|
Interest and
finance costs |
|
(424) |
|
(729) |
|
Foreign exchange
gain |
|
1,156 |
|
1,380 |
Other income, net |
|
|
732 |
|
651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) / Income |
|
|
(363,230) |
|
388,125 |
|
|
|
|
|
|
|
|
(Losses)/Earnings per share3 |
|
|
|
|
|
- Basic |
|
|
(0.11) |
|
0.12 |
- Diluted |
|
|
(0.11) |
|
0.02 |
|
|
|
|
|
|
|
|
Weighted
average number of shares3 |
|
|
|
- Basic |
|
|
3,182,932 |
|
3,182,932 |
- Diluted |
|
|
3,182,932 |
|
17,468,646 |
|
|
|
|
|
|
C3is Inc.Unaudited Consolidated Balance
Sheets(Expressed in United States
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
|
|
|
2022 |
|
2023 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash
equivalents |
|
-- |
|
5,000,000 |
|
Receivables from
related parties |
|
146,708 |
|
162,917 |
|
Trade and other
receivables |
|
674,827 |
|
928,857 |
|
Inventories |
|
|
165,645 |
|
153,919 |
|
Advances and
prepayments |
|
36,340 |
|
163,864 |
Total current assets |
|
|
1,023,520 |
|
6,409,557 |
|
|
|
|
|
|
|
|
Non
current assets |
|
|
|
|
|
|
Vessels, net |
|
|
38,836,151 |
|
37,496,023 |
Total non current assets |
|
38,836,151 |
|
37,496,023 |
Total assets |
|
|
39,859,671 |
|
43,905,580 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Trade accounts
payable |
|
792,142 |
|
670,889 |
|
Payable to related
party |
|
-- |
|
386,066 |
|
Accrued
liabilities |
|
|
173,324 |
|
282,045 |
Total current liabilities |
|
|
965,466 |
|
1,339,000 |
Total liabilities |
|
|
965,466 |
|
1,339,000 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Former Parent
Company investment |
|
38,894,205 |
|
-- |
|
Capital stock |
|
|
-- |
|
31,829 |
|
Preferred stock
Series A |
|
|
-- |
|
6,000 |
|
Additional paid-in
capital |
|
-- |
|
42,531,317 |
|
Accumulated
deficit |
|
|
-- |
|
(2,566) |
Total stockholders' equity |
|
38,894,205 |
|
42,566,580 |
Total liabilities and stockholders' equity |
39,859,671 |
|
43,905,580 |
|
|
|
|
C3is Inc.Unaudited Consolidated
Statements of Cash Flows(Expressed in United
States Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Month Periods Ended June 30, 2023 |
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
Net income for the
period |
|
|
|
|
|
388,125 |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net
cash |
|
|
|
|
provided
by operating activities: |
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
1,340,128 |
|
|
|
|
|
|
|
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
(Increase)/decrease in |
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
|
(254,030) |
|
Inventories |
|
|
|
|
|
11,726 |
|
Advances and
prepayments |
|
|
|
|
(127,524) |
|
Increase/(decrease) in |
|
|
|
|
|
|
|
Trade accounts
payable |
|
|
|
|
(121,253) |
|
Balances with
related parties |
|
|
|
|
349,024 |
|
Accrued
liabilities |
|
|
|
|
|
108,721 |
Net cash provided by operating activities |
|
|
|
|
1,694,917 |
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
Net transfers from
former Parent Company |
|
|
|
3,305,083 |
Net cash provided by financing activities |
|
|
|
|
3,305,083 |
|
|
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents |
|
|
|
5,000,000 |
Cash
and cash equivalents at beginning of year |
|
|
|
- |
Cash and cash equivalents at the end of
period |
|
|
|
5,000,000 |
|
|
|
|
|
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 The computation of
(losses)/earnings per share gives retroactive effect to the shares
issued in connection with the spin-off.
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