C3is Inc., a ship-owning company providing drybulk and tanker seaborne transportation services, announced today its unaudited financial and operating results for the second quarter and six months ended June 30, 2023.These financial results were based on the accounts of C3is Inc. and its wholly owned subsidiaries, which were prepared using the historical carrying costs of the assets and the liabilities of the subsidiaries from their dates of incorporation.
Our two handysize dry bulk carriers are currently on time charters of short term durations, producing steady cash flows. Both handysize dry vessels are unencumbered. Fleet operational utilisation of 90.1% for the six months period ended June 30, 2023, as our vessels were mainly under time charter employment.
Voyage revenues of US$4.9 million for the six months period ended June 30, 2023 corresponding to daily TCE1 of US$12 145. Our Company generated net income of US$0.4 million for the six months period ended June 30, 2023, and net loss of US$0.4 million for the three months ended June 30, 2023.
Acquisition of the Stealth Berana in July 2023, an Aframax oil tanker, with a capacity of 115 800 DWT, bringing the total fleet capacity to 179 800 DWT.
On July 5th, 2023 we concluded with the offering of 4 765 000 common shares, generating gross proceeds of approximately US$5.0 million.
Second Quarter 2023 Results:- Voyage revenues for the three months ended June 30, 2023 amounted to US$1.7 million as market rates for our vessels prevailed at low levels. Total calendar days for our fleet were 182 days for the three months ended June 30, 2023. Of the total calendar days in the second quarter of 2023, 163, or 89.6%, were time charter days. Our fleet operational utilisation was 89.6% for this period.
- Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2023 were US$0.2 million and US$0.8 million, respectively. Voyage expenses included commissions to third parties of US$0.1 million, corresponding to 50% of total voyage expenses.
- Operating expenses mainly included crew expenses of US$0.5 million, corresponding to 63% of total operating expenses, spares and consumables costs of US$0.2 million, corresponding to 25%, and maintenance expenses of US$0.07 million, representing works and repairs on
- General and Administrative costs for the three months ended June 30, 2023 were US$0.3 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 Inc.
- As a result of the above, for the three months ended June 30, 2023, the Company reported a net loss of US$0.4 million.
- EBITDA2 for the three months ended June 30, 2023 amounted to US$0.3 million.
- An average of 2.0 vessels were owned by the Company during the three months ended June 30, 2023.
- Voyage revenues for the six months ended June 30, 2023 amounted to US$4.9 million. Total calendar days for our fleet were 362 days for the six months ended June 30, 2023. Of the total calendar days in the first six months of 2023, 326 or 90.1%, were time charter days. Our fleet operational utilisation was 90.1% for this period.
- Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2023 were US$0.5 million and US$1.9 million respectively. Voyage expenses mainly included bunker costs of US$0.1 million corresponding to 20% of total voyage expenses, and commissions to third parties of US$0.2 million corresponding to 40% of total voyage expenses. Operating expenses mainly included crew expenses of US$1.1 million corresponding to 58% of total operating expenses, spares and consumables costs of US$0.5 million, corresponding to 26%, and maintenance expenses of US$0.2 million, representing works and repairs on the vessels, corresponding to 11% of total vessel operating expenses.
- General and Administrative costs for the six months ended June 30, 2023 were US$0.5 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 Inc.
- As a result of the above, for the six months ended June 30, 2023, the Company reported a net income of US$0.4 million.
- EBITDA2 for the six months ended June 30, 2023 amounted to US$1.7 million.
- An average of 2.0 vessels were owned by the Company during the six months ended June 30, 2023.
"The dry shipping market is a volatile one, and this is reflected on Q2 results. However, the supply side of the dry bulk remained favourable, as in conjunction with an ageing global fleet, the new vessel order book has been at a historically low value.
"As effective fleet supply growth for the next few years looks marginal, demand will be the main determinant of spot freight rates with China returning back to the driver’s seat as the dominant force of bulk imports and thus shipping demand.
"As of today, the Company’s management estimated C3is Inc’s Net Asset Value (“NAV”) to be US$24.13 million, which represents approximately a 600% premium over its current market capitalisation.
"C3is Inc. aims at versatility in harvesting on the changing world fundamentals of shipping, and in order to maintain a competitive fleet, the company adopted a strategy of diversification in Q2 by acquiring at terms very favourable to C3is Inc. an Aframax oil tanker built in 2010, the Stealth Berana for US$43 million from Imperial Petroleum, an affiliated company, that was delivered to our fleet in July for which we are pleased.
"We are open to opportunities across all sectors, provided that such deals would be beneficial to the company’s shareholders while keeping a good balance with investing for future growth."