C3is Inc.

C3is Inc.

$0.85
0.01 (1.08%)
NASDAQ Capital Market
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Marine Shipping

C3is Inc. (CISS) Q3 2023 Earnings Call Transcript

Published at 2023-11-03 17:10:05
Nina Pyndiah
Thank you, Diamantis, and good morning to everyone. Please turn to Slide 8, and I will go through our financial performance for the third quarter and nine months of 2023. Voyage revenues for the three months ended September 30, 2023, amounted to $10.1 million and $14.96 million for the nine months ended September 30, 2023. Compared to Q2 '23, our revenues increased by 4.78%, primarily due to the increase in the average number of vessels. Our fleet operational utilization was 98.5% for the three months period and 93.6% for the nine months period. For the three months of Q3, the daily TCE was $27,903. And for the nine months of the year, the value was $18,761. Voyage expenses and vessels operating expenses for the three months ended September 30th were 2.8 million and 1.5 million, respectively. For the nine months period, the figures were 3.25 million and 3.3 million, respectively. The increases in both voyage expenses and vessels operating expenses are attributed to the increase in the average number of vessels. Voyage expenses for the nine months ended September 30, 2023, mainly included bunker costs of 1.3 million corresponding to 48% of total voyage expenses and commissions to third parties of 0.7 million corresponding to 26% of total voyage expenses. Operating expenses for the nine months ended September 30th mainly included core 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. Total calendar days for our fleet were 263 days for the three months ended September 30th and 625 days for the nine months. Of the total calendar days in the third quarter of '23, 180 or 68.4% were time charter days, and for the nine months 506 or 81% were time charter days. General and administrative costs for the nine months ended September 30th was $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. Depreciation costs 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. Interest and finance costs for the nine months ended September 30th was $0.6 million and related to the accrued interest expense related party as of September 30th in connection with the $38.7 million financial liability, part of the acquisition price of our Aframax tanker, Afrapearl II which is payable by July 24th. EBITDA for the nine months ended September 30, 2023, amounted to $7.1 million. As a result of the above, for the nine months ended September 30, 2023, the Company reported a net income of $3.7 million. Turning to Slide 9 for the balance sheet, the fleet book value as at the end of September 23 was $76.5 million. Other current assets include trade receivables of $3.2 million, inventories of $2.1 million and advance and prepayments of $18,000. Trade account payables are mainly payments due to suppliers. Concluding the presentation in Slide 10, we outline the key variables that will assist us progress with our company's growth. Owning a high quality fleet reduces operating costs, improved safety and provides a competitive advantage in securing favorable charters. Maintaining the quality of vessels by carrying out regular inspections, both while in port and at sea and adopting a comprehensive maintenance program for each vessel. Disciplined growth with in-depth technical and condition assessment review. Timely and selective acquisitions of quality vessels. Current focus on short- to medium-term charters and spot voyagers. Chartering to high quality charters such as commodities traders, industrial companies and oil producers and refineries. Maintaining adequate level of cash flow and liquidity. No outstanding bank debt. At this stage, our CEO, Dr. Diamantis Andriotis, will summarize the concluding remarks for the period examined. Dr. Diamantis Andriotis: We are very pleased to announce that even though we have been operating as a newly listed entity for a short period of approximately four months following our spin off from Imperial Petroleum in late June 2023, we have managed to grow our fleet and achieve the 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 represent increases of 478% and 917%, respectively, from the previous quarter. Going forward, we strongly believe that the new acquisition of Araframax oil tanker, which was delivered to us in July 2023 well position us to capture the firm prevailing tanker market conditions and generate significant cash flow with the efficient operations of our expanded diversified fleet. Specifically, our 2 handysize dry bulk carriers currently operate under short-term time charters 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 operations 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 site liability by 38.7 million related to the acquisition of our tanker and due in July 2024, partially with cash on hand and cash on operating activities. With our company's impressive performance, we will continue to pursue growth strategy, focus on timely and select acquisitions of high quality vessels, which we may consider to be in the best interest of our company and our shareholders. We would like to thank you for joining us today and look forward to having you with us again at our next call on our fourth quarter 2023 results in February 2024. End of Q&A: