Icon Energy Corp. (“
Icon” or the
“
Company”) (Nasdaq: ICON), an international
shipping company that provides worldwide seaborne transportation
services for dry bulk cargoes via its fleet of oceangoing vessels,
announces its financial results for the nine-month period ended
September 30, 2024, (the “
Reporting Period”) and
declares cash dividend of $0.085 per common share.
Financial Highlights for the Reporting
Period
- Revenue, net of
$3.6 million, up $0.4 million from the first nine months of
2023
- Operating profit
of $0.6 million, compared to $0.7 million during the nine-month
period ended September 30, 2023
- Net income of
$0.6 million, compared to $0.8 million during the nine-month period
ended September 30, 2023
- EBITDA(1) of
$1.5 million, equal to the same period last year
Operational Highlights
- Delivery of our
recently acquired Kamsarmax dry bulk carrier, M/V Bravo, in
September 2024, and commencement of her period employment
- Successful
closing of a $91.5 million term loan facility, of which $16.5
million was drawn and the balance of $75 million is reserved for
future vessel acquisitions
Quarterly Cash Dividend
- Icon’s Board of
Directors approved a cash dividend of $0.085 per common share for
the third quarter of 2024. The cash dividend will be paid on or
around December 27, 2024, to all of its common shareholders of
record as of December 16, 2024
- The previously
declared cash dividend of $0.08 per common share for the second
quarter of 2024 was paid on September 30, 2024
- Icon expects to
pay quarterly cash dividends on its common shares during the
one-year period following its initial public offering, in an
aggregate amount of approximately $500,000 for the year
Ismini Panagiotidi, Chairwoman and Chief
Executive Officer of Icon, commented:
“We are pleased to announce our financial
results for the first nine months of 2024, reflecting the
completion of our initial public offering in July 2024 and the
progress we have made in executing our strategic priorities since
then.
The successful delivery and commencement of
employment of Icon’s second vessel, M/V Bravo, marks our first step
toward realizing our growth ambitions, while the recent $91.5
million term loan facility, with $75 million reserved for future
vessel acquisitions, provides a strong foundation for expansion.
These transactions underscore the strong support we enjoy from
charterers and financiers, positioning us well for further growth
opportunities.
In addition, staying true to our stated dividend
policy and following the $0.08 per common share cash dividend paid
for the second quarter of the year, we are pleased to announce a
cash dividend of $0.085 per common share for the third quarter,
reaffirming our dedication to returning value to our
shareholders.”
Financial Performance
Summary
|
|
|
Nine-month period ended September
30, |
(in thousands of U.S. dollars,except daily figures) |
|
|
2024(unaudited) |
|
|
2023(unaudited) |
Income statement data |
|
|
|
|
|
|
Revenue, net |
|
$ |
3,582 |
|
$ |
3,248 |
Operating profit |
|
|
567 |
|
|
710 |
Net income |
|
|
562 |
|
|
752 |
|
|
|
|
|
|
|
Non-GAAP financial measures (2) |
|
|
|
|
|
|
EBITDA |
|
$ |
1,492 |
|
$ |
1,484 |
Daily TCE |
|
|
13,258 |
|
|
11,462 |
Daily OPEX |
|
|
5,064 |
|
|
5,136 |
|
|
|
|
|
|
|
Throughout the first nine months of 2024 and
2023, Icon’s vessels operated under index-linked time charters,
benefitting from the year-on-year increase in the dry bulk charter
market rates. The resulting increase in revenue, net was partly
offset by the fewer Operating Days during the Reporting Period (see
“Fleet Employment and Operational Data” section below). Overall,
revenue, net increased by 10% to $3.6 million during the Reporting
Period, from $3.2 million in the comparable period. Daily TCE
increased to $13,258 during the Reporting Period, up 16% from the
same period last year.
The increase in revenue, net was primarily
offset by costs associated with positioning the M/V Alfa for her
scheduled drydocking and with the delivery of the M/V Bravo, which
resulted in a $0.2 million increase in voyage expenses.
Additionally, Icon’s incremental obligations as a public company
since July 2024, translated into a $0.1 million increase in general
and administrative expenses, while the costs related to changing
ship management company earlier this year contributed to a $0.1
million increase in management fees. Vessel operating expenses were
maintained at similar levels, with a slight improvement on a daily
basis, as reflected by the decrease in ‘Daily OPEX’ to $5,064
during the Reporting Period, compared to $5,136 during the
corresponding period of 2023.
Operating profit during the nine-month period
ended September 30, 2024, was $0.6 million, down from $0.7 million
in the comparable period, due to the non-cash write-off of the
unamortized balance of previously deferred drydocking costs, upon
arrival of the M/V Alfa at the shipyard for her scheduled
drydocking. Lastly, the decrease in operating profit, coupled with
the interest and finance costs associated with Icon’s new term loan
facility, resulted to a $0.2 million decrease in net income, from
$0.8 million during the first nine months of 2023, to $0.6 million
during the Reporting Period.
EBITDA remained consistent between the two
periods at $1.5 million.
Fleet Employment and Operational
Data
|
|
|
Nine-month period ended September
30, |
|
|
|
2024 |
|
|
2023 |
Fleet operational data (3) |
|
|
|
|
|
|
Ownership Days |
|
|
281.8 |
|
|
273.0 |
Available Days |
|
|
250.8 |
|
|
273.0 |
Operating Days |
|
|
250.8 |
|
|
273.0 |
Vessel Utilization |
|
|
100.0% |
|
|
100.0% |
Average Number of Vessels |
|
|
1.0 |
|
|
1.0 |
|
|
|
|
|
|
|
Ownership days for the nine-month period ended
September 30, 2024, increased to 281.8 from 273.0 the previous
year, due to the addition of Icon’s second vessel, the Kamsarmax
dry bulk carrier M/V Bravo, delivered on September 23, 2024.
Available days decreased from 273.0 to 250.8, primarily because the
M/V Alfa was temporarily taken out of service for her scheduled
drydocking. Utilization remained consistent at 100%.
Vessel name |
|
Type |
|
Built |
|
Employment |
|
Earliest charterexpiration |
Alfa |
|
Panamax |
|
Japan, 2006 |
|
Index-linked time charter |
|
October 2025 |
Bravo |
|
Kamsarmax |
|
Japan, 2007 |
|
Index-linked time charter |
|
August 2025 |
|
|
|
|
|
|
|
|
|
As of September 30, 2024, Icon owned two
vessels, both time-chartered by an international commodity trading
conglomerate and earning floating daily hire rates linked to the
Baltic Panamax Index. The minimum contracted revenue(4) expected,
as of September 30, 2024, to be generated by these contracts
between September 30, 2024, and their respective earliest
expiration dates is $8.8 million.
Key Developments
Initial public offering. On
July 15, 2024, Icon successfully closed the initial public offering
of 1,250,000 of its common shares, at an offering price of $4.00
per share, for gross proceeds of approximately $5,000,000, before
deducting underwriting discounts and offering expenses. Icon’s
common shares began trading on the Nasdaq Capital Market on July
12, 2024, under the symbol “ICON.”
Vessel Acquisition. On August
2, 2024, Icon entered into an agreement with an unaffiliated
third-party to acquire a Kamsarmax dry bulk carrier for a purchase
price of $17.57 million. The vessel was successfully delivered to
Icon on September 23, 2024, and was renamed M/V Bravo. The
acquisition was financed with a combination of cash on hand and
borrowings under Icon’s new term loan facility discussed below.
Vessel Charter. On August 29,
2024, Icon entered into an agreement with an international
commodity trading conglomerate to time charter the M/V Bravo for a
period of 11 to 14 months, at a floating daily hire rate linked to
the Baltic Panamax Index. The charter commenced shortly after the
vessel’s delivery to Icon.
Vessel Drydocking. On September
2, 2024, the M/V Alfa completed her scheduled drydocking,
undergoing routine repairs and maintenance to ensure continued
operational efficiency, safety, and compliance with class
requirements.
Financing. On September 19,
2024, we borrowed an amount of $16.5 million under a new term loan
facility with a leading international financial institution to
finance a portion of the purchase price of the M/V Bravo and to
leverage the M/V Alfa. The term loan facility contains securities
and financial and other covenants customary for transactions of
this type. It has a four-year term and outstanding amounts
thereunder bear interest at 3.95% over SOFR.
An additional amount of up to $75 million may be
made available to us under the same term loan facility, in whole or
in parts, to finance future vessel acquisitions. This additional
amount remains uncommitted, free of interest or other fees, and we
are not obliged to borrow it, or any part thereof. The terms of
borrowing the balance amount, or any part thereof, will be
determined at the time it is requested.
Dividends. On September 30,
2024, we paid a cash dividend of $0.08 per common share for the
second quarter of the year. For the third quarter, Icon declared a
cash dividend of $0.085 per common share, payable on or around
December 27, 2024, to all of its common shareholders of record as
of December 16, 2024.
About Icon
Icon is an international shipping company that
provides worldwide seaborne transportation services for dry bulk
cargoes via its fleet of oceangoing vessels. Icon maintains its
principal executive office in Athens, Greece, and its common shares
trade on the Nasdaq Capital Market under the symbol “ICON.”
Forward Looking Statements
This communication contains “forward-looking
statements.” Statements that are predictive in nature, that depend
upon or refer to future events or conditions, or that include words
such as “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “might,” “plan,” “possible,”
“potential,” “predict,” “project,” “should,” “would” and similar
expressions that are other than statements of historical fact are
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. These forward-looking
statements 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 the Company believes that these assumptions
were reasonable when made, because these assumptions are inherently
subject to significant risks, uncertainties and contingencies which
are difficult or impossible to predict and are beyond our control,
the Company cannot provide assurance that it will achieve or
accomplish these expectations, beliefs or projections. The
Company’s actual results could differ materially from those
anticipated in forward-looking statements for many reasons,
including as described in the Company’s filings with the U.S.
Securities and Exchange Commission (the “SEC”). As
a result, you are cautioned not to unduly rely on any
forward-looking statements, which speak only as of the date of this
communication.
Factors that could cause actual results to
differ materially from those discussed in the forward-looking
statements include, among other things: the Company’s future
operating or financial results; the Company’s liquidity, including
its ability to service any indebtedness; changes in shipping
industry trends, including charter rates, vessel values and factors
affecting vessel supply and demand; future, pending or recent
acquisitions and dispositions, business strategy, areas of possible
expansion or contraction, and expected capital spending or
operating expenses; risks associated with operations; broader
market impacts arising from war (or threatened war) or
international hostilities; risks associated with pandemics
(including COVID-19); and other factors listed from time to time in
the Company’s filings with the SEC. Except to the extent required
by law, the Company expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company’s expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based. You should, however, review the factors and risks the
Company describes in the reports it files and furnishes from time
to time with the SEC, which can be obtained free of charge on the
SEC’s website at www.sec.gov.
Contact Information
Icon Energy Corp.Dennis PsachosChief Financial Officer+30 211 88
81 300ir@icon-nrg.comwww.icon-nrg.com
(Please refer to Exhibit I, attached, for
supplementary information)
Exhibit I
Interim Consolidated Statements of Income
|
|
|
Nine-month period ended September
30, |
(in thousands of U.S. dollars,except for share data and earnings
per share) |
|
|
2024(unaudited) |
|
|
2023(unaudited) |
Revenue, net |
|
$ |
3,582 |
|
$ |
3,248 |
Voyage expenses, net |
|
|
(257) |
|
|
(119) |
Vessel operating expenses |
|
|
(1,427) |
|
|
(1,402) |
Management fees |
|
|
(293) |
|
|
(205) |
General and administrative expenses |
|
|
(111) |
|
|
(37) |
Depreciation expense |
|
|
(547) |
|
|
(508) |
Amortization of deferred drydocking costs |
|
|
(380) |
|
|
(267) |
Operating Profit |
|
$ |
567 |
|
$ |
710 |
Interest and finance costs |
|
|
(61) |
|
|
(2) |
Interest income |
|
|
58 |
|
|
45 |
Other costs, net |
|
|
(2) |
|
|
(1) |
Net Income |
|
$ |
562 |
|
$ |
752 |
|
|
|
|
|
|
|
Accrued dividends on Series A Preferred Shares |
|
|
(526) |
|
|
- |
Net income attributable to common
shareholders |
|
$ |
36 |
|
$ |
752 |
Earnings per common share, basic and diluted |
|
$ |
0.06 |
|
$ |
3.76 |
Weighted average number of shares, basic and diluted |
|
|
555,839 |
|
|
200,000 |
|
|
|
|
|
|
|
Condensed Interim Consolidated Balance Sheet
Data
(in thousands of U.S. dollars) |
|
|
September 30,
2024(unaudited) |
|
|
December 31, 2023(5) |
Assets |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
$ |
1,823 |
|
$ |
2,702 |
Other current assets |
|
|
1,202 |
|
|
320 |
Vessels, net |
|
|
26,662 |
|
|
9,181 |
Other non-current assets |
|
|
864 |
|
|
679 |
Total assets |
|
$ |
30,551 |
|
$ |
12,882 |
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
Total long-term debt, net of deferred financing costs |
|
$ |
16,206 |
|
$ |
- |
Other liabilities |
|
|
1,704 |
|
|
3,713 |
Total shareholders’ equity |
|
|
12,641 |
|
|
9,169 |
Total liabilities and shareholders’ equity |
|
$ |
30,551 |
|
$ |
12,882 |
|
|
|
|
|
|
|
Summarized Cash Flow Data
|
|
|
Nine-month period ended September
30, |
(in thousands of U.S. dollars) |
|
|
2024(unaudited) |
|
|
2023(unaudited) |
Cash provided by operating activities |
|
$ |
588 |
|
$ |
1,533 |
Cash used in investing activities |
|
|
(18,006) |
|
|
- |
Cash provided by/(used in) financing activities |
|
|
16,539 |
|
|
(3,307) |
Net decrease in cash, cash equivalents and restricted
cash |
|
$ |
(879) |
|
$ |
(1,774) |
Cash, cash equivalents and restricted cash at the beginning of the
period |
|
|
2,702 |
|
|
3,551 |
Cash, cash equivalents and restricted cash at the end of
the period |
|
$ |
1,823 |
|
$ |
1,777 |
|
|
|
|
|
|
|
Significant Accounting Policies and Recent Accounting
Pronouncements
A discussion of the Company’s significant
accounting policies and recent accounting pronouncements can be
found in Note 2 of the Company’s Consolidated Financial Statements
for the years ended December 31, 2023 and 2022, included in the
Company’s most recent registration statement, filed with the SEC on
Form F-1 which can be obtained free of charge on the SEC’s website
at www.sec.gov. There have been no material changes to these
policies in the Reporting Period.
Non-GAAP Financial Measures Definitions and
Reconciliation to GAAP
To supplement our financial information
presented in accordance with the United States generally accepted
accounting principles (“U.S. GAAP”), we may use
certain “non-GAAP financial measures” as such term is defined in
Regulation G promulgated by the SEC. Generally, a non-GAAP
financial measure is a numerical measure of a company’s operating
performance, financial position or cash flows that excludes or
includes amounts that are included in, or excluded from, the most
directly comparable measure calculated and presented in accordance
with U.S. GAAP. We believe non-GAAP financial measures provide
investors with greater transparency and supplemental data relating
to our financial condition and results of operations and,
therefore, a more complete understanding of our business and
financial performance than the comparable U.S. GAAP measures alone.
However, non-GAAP financial measures should only be used in
addition to, and not as substitutes for, the financial results
presented in accordance with U.S. GAAP. Although we believe the
following definitions and calculation methods are consistent with
industry standards, our non-GAAP financial measures may not be
directly comparable to similarly titled measures of other
companies.
Earnings before Interest, Tax,
Depreciation and Amortization (“EBITDA”). EBITDA is a
financial measure we calculate by deducting interest and finance
costs, interest income, taxes, depreciation and amortization, from
net income. EBITDA assists our management by carving out the
effects that non-operating expenses and non-cash items have on our
financial results. We believe this also enhances the comparability
of our operating performance between periods and against companies
that may have varying capital structures, other depreciation and
amortization policies, or that may be subject to different tax
regulations. The following table reconciles EBITDA to the most
directly comparable U.S. GAAP financial measure:
|
|
|
Nine-month period ended September
30, |
(in thousands of U.S. dollars) |
|
|
2024(unaudited) |
|
|
2023(unaudited) |
Net income |
|
$ |
562 |
|
$ |
752 |
Plus: Depreciation expense |
|
|
547 |
|
|
508 |
Plus: Amortization of deferred drydocking costs |
|
|
380 |
|
|
267 |
Plus: Interest and finance costs |
|
|
61 |
|
|
2 |
Less: Interest income |
|
|
(58) |
|
|
(45) |
EBITDA |
|
$ |
1,492 |
|
$ |
1,484 |
|
|
|
|
|
|
|
Time Charter Equivalent
(“TCE”). TCE is a measure of revenue generated over a
period that accounts for the effect of the different charter types
under which our vessels may be employed. TCE is calculated by
deducting voyage expenses from revenue and making any other
adjustments that may be required to approximate the revenue that
would have been generated, had the vessels been employed under time
charters. TCE is typically expressed on a daily basis
(“Daily TCE”) by dividing it by Operating Days, to
eliminate the effect of changes in fleet composition between
periods. The following table reconciles TCE and Daily TCE to the
most directly comparable U.S. GAAP financial measure:
|
|
|
Nine-month period ended September
30, |
(in thousands of U.S. dollars,except fleet operational data and
daily figures) |
|
|
2024(unaudited) |
|
|
2023(unaudited) |
Revenue, net |
|
$ |
3,582 |
|
$ |
3,248 |
Less: Voyage expenses |
|
|
(257) |
|
|
(119) |
TCE |
|
$ |
3,325 |
|
$ |
3,129 |
Divided by: Operating Days |
|
|
250.8 |
|
|
273.0 |
Daily TCE |
|
$ |
13,258 |
|
$ |
11,462 |
|
|
|
|
|
|
|
Daily Vessel Operating Expenses (“Daily
OPEX”). Daily OPEX, is a measure of the vessel operating
expenses incurred over a period divided by Ownership Days, to
eliminate the effect of changes in fleet composition between
periods. The following table reconciles Daily OPEX to vessel
operating expenses:
|
|
|
Nine-month period ended September
30, |
(in thousands of U.S. dollars,except fleet operational data and
daily figures) |
|
|
2024(unaudited) |
|
|
2023(unaudited) |
Vessel operating expenses |
|
$ |
1,427 |
|
$ |
1,402 |
Divided by: Ownership Days |
|
|
281.8 |
|
|
273.0 |
Daily OPEX |
|
$ |
5,064 |
|
$ |
5,136 |
|
|
|
|
|
|
|
Other Definitions and Methodologies
This press release refers to the terms and
methodologies described below. Although we believe the following
definitions and calculation methods are consistent with industry
standards, these measures may not be directly comparable to
similarly titled measures of other companies.
Ownership Days. Ownership Days
are the total days we owned our vessels during the relevant period.
We use this to measure the size of our fleet over a period.
Available Days. Available Days
are the Ownership Days, less any days during which our vessels were
unable to be used for their intended purpose as a result of
scheduled maintenance, upgrades, modifications, drydockings,
special or intermediate surveys, or due to change of ownership
logistics, including positioning for and repositioning from such
events. We use this to measure the number of days in a period
during which our vessels should be capable of generating
revenues.
Operating Days. Operating Days
are the Available Days, less any days during which our vessels were
unable to be used for their intended purpose as a result of
unforeseen events and circumstances. We use this to measure the
number of days in a period during which our vessels actually
generated revenues.
Vessel Utilization. Vessel
Utilization is the ratio of Operating Days to Available Days.
Average Number of Vessels.
Average Number of Vessels is the ratio of Ownership Days to
calendar days in a period.
Minimum contracted revenue. The
amount of minimum contracted revenue is estimated by reference to
the contracted period and hire rate, net of charterers’ commissions
but before reduction for brokerage commissions and assuming no
unforeseen off-hire days. For index-linked contracts, minimum
contracted revenue is estimated by reference to the average of the
relevant index during the 15 days preceding the calculation
date.
1 EBITDA is a non-GAAP financial measure. For
the definitions of non-GAAP financial measures and their
reconciliation to the most directly comparable financial measures
calculated and presented in accordance with the United States
generally accepted accounting principles, please refer to “Exhibit
I—Non-GAAP Financial Measures Definitions and
Reconciliation to GAAP.”2 EBITDA, Daily TCE, and Daily OPEX, are
non-GAAP financial measures. For the definitions of non-GAAP
financial measures and their reconciliation to the most directly
comparable financial measures calculated and presented in
accordance with the United States generally accepted accounting
principles, please refer to “Exhibit I—Non-GAAP
Financial Measures Definitions and Reconciliation to GAAP.”3 For
the definitions of fleet operational measures please refer to
“Exhibit I—Other Definitions and Methodologies.”4
For the contracted revenue calculation methodology please refer to
“Exhibit I—Other Definitions and Methodologies.”5 Balance sheet
data derives from the audited consolidated financial statements as
of that date
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