C3is Inc. Q2 2024 Financial Results Overview
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C3is Inc. Reports Strong Second Quarter Financial Results
C3is Inc. (Nasdaq: CISS), a leading ship-owning company specialized in dry bulk and tanker transportation services, has unveiled its unaudited financial and operational results for the second quarter and first half of 2024, revealing promising growth trajectories.
Operational and Financial Highlights
The Company reported robust developments across various operational metrics:
- The handysize dry bulk carriers maintained steady revenues through time charters while the Aframax tanker generated revenue via the spot market, with current voyage charter rates around $27,000 daily.
- All handysize dry bulk carriers and the Aframax tanker are currently unencumbered.
- Fleet operational utilization reached 87.7% during the three months ended June 30, 2024, with minimal idle days noted for vessels on time charter.
- Generated revenues amounted to $10.8 million for the quarter, translating to a daily Time Charter Equivalent (TCE) rate of $23,938.
- There was a remarkable year-on-year TCE rate increase of 185% relative to Q2 2023.
- Net losses totaled $11.8 million, with an EBITDA loss of $9.7 million and a loss per share of $2.84.
- Adjusted net income stood at $2.9 million, reflecting an impressive 885% growth compared to the same quarter in the previous year.
- Adjusted EBITDA surged by 1,499% year-over-year for the June 2024 quarter.
- The Company saw a noteworthy 44% rise in total assets as of June 30, 2024, compared to December 31, 2023.
- Adjusted EPS was reported at $0.63.
- A reverse stock split of 1-for-100 was enacted in April 2024 to satisfy Nasdaq listing requirements.
- In April, C3is entered an agreement to acquire a Japanese handysize dry bulk carrier, enhancing fleet capacity to 213,468 deadweight tons following recent deliveries.
- In July, the Company utilized operational cash to settle the $38.7 million remaining purchase price of its Aframax oil tanker.
- A non-cash adjustment of $14.5 million was recorded as a loss on warrants due to fluctuations in associated fair values.
Second Quarter 2024 Results Specifics
Voyage revenues for Q2 2024 totaled $10.8 million, reflecting a substantial $9.1 million increase from $1.7 million in Q2 2023, primarily driven by a higher average number of vessels in operation. The Company recorded a total of 325 operational calendar days during the period.
The expenses incurred during the same period were also significant, showcasing an increase in both voyage expenses ($3.1 million) and vessel operating expenses ($2.0 million) due to the enhanced fleet size. For instance, the Company paid $1.3 million for bunkers and had port expenses of $1.2 million, indicating a shift in operational dynamics as some vessels operated under spot market conditions rather than time charters.
- Operating expenses were primarily driven by crew costs of $1.1 million, reflected as 55% of total operating expenses.
- Depreciation for the second quarter increased to $1.5 million, aligning with the growing fleet size.
- General and administrative costs reached $0.6 million, part of the expenses related to the Company's operations as a public entity.
Six-Month 2024 Overview
In the first half of 2024, total voyage revenues reached $23.6 million, significantly up from $4.9 million in the same period of 2023. This leap reflects extensive operational enhancements, including a rise in average vessel counts.
- The Company recorded total operational calendar days of 598 for the first half of 2024 versus 362 days in the prior year.
- Although voyage expenses escalated to $6.0 million, this was a direct result of accommodating additional vessels which intensified operational commitments.
- Management fees and general administrative costs also saw increases, aligned with the Company’s expansion and increased regulatory requirements.
CEO Insights on Company Progress
CEO Dr. Diamantis Andriotis commented on the Company’s operational strategy, highlighting the adaptability in response to changing market dynamics, including shifts in global demand for various bulk cargos and the importance of establishing a fleet without substantial bank debt. The leadership remains committed to enhancing shareholder value through strategic fleet growth plans moving forward.
Conference Call Announcement
The management will host a conference call to discuss these results and outlook on operations. It is encouraged for stakeholders and interested parties to register in advance.
About C3IS Inc.
C3is Inc. continues to establish itself as a key player in the shipping and transportation sector, operating a fleet comprising four vessels including handysize dry bulk carriers and an Aframax oil tanker, collectively significant in capacity.
Frequently Asked Questions
What were C3is Inc.'s Q2 2024 revenues?
The revenues for Q2 2024 were reported at $10.8 million, reflecting a significant growth compared to the same quarter in the previous year.
How has the fleet size changed for C3is Inc.?
C3is Inc. has increased its fleet capacity by expanding to four vessels, marking a total fleet capacity of 213,468 dwt.
What was the operational utilization rate for Q2 2024?
The operational utilization rate of the fleet was reported at 87.7% for the second quarter of 2024.
What is the significance of the reverse stock split?
The reverse stock split of 1-for-100 allowed C3is Inc. to meet Nasdaq listing requirements, streamlining share values for trading.
What are the future growth plans for C3is Inc.?
C3is Inc. aims to focus on fleet expansion and adaptability to market changes while ensuring profitability and shareholder returns.
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