C3is (CISS) Q4 2024 earnings summary

Executive summary

• 2024 revenues reached $42.3 million, up 47% year-over-year, with Aframax tanker Afrapearl II contributing 76% of total revenues.

• Adjusted EBITDA was $16.4 million, up 11% from 2023, while adjusted net income was $8.7 million, down 7% year-over-year.

• Net loss for 2024 was $2.7 million, mainly due to a non-cash $11.1 million loss on warrants.

• Fleet expanded to four vessels (three Handysize dry bulk, one Aframax tanker), increasing capacity to 213,464 dwt, with no bank debt incurred.

• Cash balance at year-end 2024 was $12.6 million, up 39% from 2023, after $41 million in vessel acquisitions.

Financial highlights

• TCE for 2024 was $21,217 per day, down 10% from 2023.

• Voyage expenses were $14.1 million, mainly due to higher bunker and port costs; vessel operating expenses were $8.4 million.

• Depreciation rose 51% to $6.2 million due to fleet growth.

• No outstanding bank debt; financial liability of $16.3 million relates to vessel purchase payables.

• Interest income on bank deposits totaled $1 million for 2024.

Outlook and guidance

• Management expects strong financial performance and growth in 2025, with focus on emerging opportunities and disciplined fleet expansion.

• U.S. tariffs on Chinese-built ships, if enacted, would benefit the fleet as none are Chinese-built.

• Handysize market expected to face slower demand growth in 2025 due to global economic slowdown and lower Chinese imports.

• Aframax spot rates forecast to remain robust in 2025, supported by continued Russian flows and North American market ramp-up.

• Fleet growth for Handysize segment projected to remain flat or slightly negative through 2027.