C3is (CISS) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached $32.9 million, up 120% year-over-year, with adjusted EBITDA of $13.5 million, a 92% increase, and adjusted net income of $7.7 million, up 106% from the prior year.

• Fleet expanded to four vessels (three Handysize drybulk carriers, one Aframax tanker), increasing total capacity to 213,464 dwt, a 234% rise since inception, with all vessels unencumbered and no bank debt.

• Q3 2024 revenues were $9.3 million and net income was $5.1 million, but a nine-month net loss of $2.9 million was recorded due to non-cash warrant fair value changes.

• Major vessel payments, including $39.5 million for Aframax tanker and $14.57 million due for Eco Spitfire, were completed using operational cash, cash on hand, and equity proceeds.

• Raised $16.4 million in net proceeds from three public offerings, including $12 million in Q1 2024.

Financial highlights

• Net revenues for January–September 2024 were $22.5 million, up 92% year-over-year; daily TCE for nine months was $23,327, a 24% increase.

• Adjusted EBITDA for nine months was $13.5 million, up from $7.1 million last year; adjusted net income was $7.7 million, up from $3.7 million.

• Q3 2024 daily TCE was $13,084, down from $27,903 in Q3 2023; Q3 2024 adjusted EBITDA was $2.2 million, down from $5.3 million.

• Cash and cash equivalents at September 30, 2024 were $8 million, up from $0.7 million at year-end 2023.

• Q3 2024 basic EPS was $0.69; nine-month basic loss per share was $1.60.

Outlook and guidance

• Management targets disciplined, sustainable growth through selective vessel acquisitions and focus on short to medium-term charters and spot voyages.

• Industry outlook remains positive, with robust tanker demand, healthy dry bulk market, and support from geopolitical factors and trade route changes.

• Fleet utilization remains high at 90.6% for nine months; no special surveys scheduled until H2 2025.