C3is Inc. Price & Performance (CISS)

Please turn to Slide three, where we summarize and highlight the company's performances, starting with our financial highlights. For the year 2024, we reported revenues of $42,300,000 which is an increase of 47% compared to year 2023. Our Aframax tanker, the Aframax tanker, contributed around 76% to the total revenues. Our net revenues came in at $28,000,000 an increase of 33% from 2023. Our adjusted EBITDA was $16,400,000 an increase of 11% from 2023. Our adjusted net income came in at $8,700,000 a decrease of 7% from 2023. [indiscernible] Our vessels net book value increased by 12% since year end 2023 due to the addition of the EcoSpeed Fire, a Handysize dry bulk carrier that joined our fleet in April 2024. Our cash balance was $12,600,000 by the end of Q4 twenty twenty four, an increase of 39% from year end 2023, despite total CapEx payments of $41000000.39500000.0 dollars for our Aframax tanker, the Aframax 2 and $1,620,000 as 10% down payment on our bulk carrier, the Echo Speedfire. The balance due on our CapEx C3is $14,570,000 in April 2025, which represents 90% of the purchase price of the Handysized Bulk Air Eco Speedfire. Our short term bank deposits yielded 1,000,000 for the year 2024, [indiscernible] Our TCE for the year 2024 was $21,000 a day 10% lower than the rate for the year 2023 when it was 23,400 per day.

Slide four shows the drybulk trade by the end of the fourth quarter of twenty twenty four. Despite global conundrum creations, the market demonstrated resilience particularly in the latter half of the year.

In terms of the overall global fleet, Handysize vessels hold a significant share catering to minor bulk trades, regional markets and routes where larger vessels face operational constraints. Their versatility makes them a vital segment in global dry bulk logistics facilitating trade across a broad range of commodities, including grains for and steel products. [indiscernible] Iron ore and coal trade continue to have the lion's share in the drybulk trade. But the iron ore market is currently navigating a transitional phase with shifting dynamics influenced by economic trends, structural changes and environmental pressures. Despite subdued demand iron ore production remained robust with major miners maintaining or increasing output levels. The seaborne coal market in 2024 has been marked marked by significant shift in market dynamics. Despite high inventory levels throughout the year, the Chinese thermal coal market remained fundamentally loose with declining prices and unusual volatility distinguishing it from the sharp price swings [indiscernible] observed in prior years. Demand dynamics experienced contrasting phases during the year. The first half of twenty twenty four was weaker as strong renewable energy output suppressed coal demand. However, prolonged hot and dry weather in the second half coupled with unexpected growth in the chemical sector, spurred the rebound in coal demand.

Looking ahead to 2025, demand growth in developing countries, particularly India and Southeast Asia, is expected to offset decline in demand in China. Industrial activity and infrastructure projects these regions will play pivotal roles sustaining coal demand. In the longer term, growth opportunities will increasingly concentrate in emerging markets in Asia while advanced economies continue to prioritize renewable energy and decarbonization efforts. The global grain trade in 2025 is expected to exhibit a steady but uneven growth driven by a mix of regional demand patterns, geopolitical factors and weather related challenges. Emerging markets in Asia and Africa will continue to drive grain imports growth due to rising populations, increasing incomes and urbanization. Countries such as Indonesia, Vietnam and Egypt are likely to remain key importers supported by their growing food and feed needs. Slide five shows the drybulk opportunities ahead and the Handysize Rate performance. The drybulk seaborne trade is poised for steady growth with minor bulk trade emerging as critical driver in the medium and long term. While major bogs like iron ore and coal face slowing or declining growth rates, minor bulk are expected to gain prominence supported by stronger C3is in global trade and industrial demand. Minor bulk trade is anticipated to experience the highest growth in the long term, fueled by the increasingly demand for materials tied sustainable development.

Key drivers include the [indiscernible] the rise in adoption of electric vehicles, and the ongoing surge in sustainable building practices. Materials will be central to meeting the needs of these growing industries. In the medium term, the stabilization of iron ore trade and the modest decline in coal shipments reflect the shift towards cleaner energy systems reduced reliance on traditional bad commodities. Evolving environment policies and industry adaptations are likely to moderate potential downturns positioning the sector for gradual but necessary transformation. Initiatives such as lower vessel operating speed, retrofitting for energy saving technologies, increased vessel demolitions, and growing emphasis on sustainability will likely affect supply side conditions. China has realigned its trade partnership towards nations like Russia, India, Southeast Asia, reshaping established trade routes and market dynamics. Slide six shows the Aframax bunker market fundamentals.

In 2024, there was significant difference between the first half of the year and the second. The year started with a strong first half on the tanker market general and the Aframax market in particular. The Houthi attacks in the Red Sea resulted substantial changes to the trading pattern of Aframaxes. The rerouting via the Cape Of Good Hope for clean cargoes gave Alartou's a significant boost in earnings in the first half of the year. [indiscernible] This had a knock on effect in the Aframax market since many dirty but coated vessels cleaned up the tanks and therefore reducing supply on the dirty side. Volities will play an important role in the energy markets in 2025, particularly in The U. S. As the Trump administration is likely to push an agenda aligned with Drill Baby Drill. Trump will improve sentiment towards the oil industry though without put already at record levels, it would be difficult to push levels much higher than in 2025. Geopolitical tensions and volatility are on oil tanker demand 2025 and beyond. Russia is presumed to continue supplying crude and oil products in the market by complying with price cut or replenishing the shadow fleet. U. S. Sanctions during Trump will tighten uranium crude production exports, reducing exports by 400,000 barrels per day in the twenty twenty five-twenty twenty six period.

Red Sea will gradually reopen as the Houthis lose financial support from Iran in addition to Israel, Hamas tensions are currently easing. Reduced daily tranches through the Panama Canal due to low rainfall is not expected to emerge again in the near future.

Tanker demand is projected to gain structural support over the next five years. This growth will be driven by Middle East expanding its crude balance by 2,000,000 barrels per day. With consistent Russian oil flow, mid sized tankers will continue to benefit which could be further supported when the Red Sea choke point reopens and allows easier Russian oil flows to India, China and Congress in The Middle East. The North American West Coast market continues to garner a large amount of attention regarding the ramp up of Canada's Trans Mountain Pipeline expansion, TMX project. The pipeline is a more efficient way of sending Canadian barrels to Asia, The TMX will bring an additional 590,000 barrels per day of Canadian crude at full capacity to the Port Of Vancouver. Canadian crude flow sheet Vancouver expected to range between The U. S. West Coast Asia and likely West Coast Panama. Since the project was completed in first half twenty twenty four, a total of 155 Aframax cargoes have been recorded at Vancouver. Slide seven shows the Handysize fleet age and growth. The Handysize bulk fleet includes many old vessels with plenty of demolition potential. There are hardly any units on order at the moment. 32% of the trading fleet is over 20 years old, 33% is 15 to 19 years old, 27% is 10 to 14 years old, [indiscernible] 2% is five to nine years old, while 5% has less than five years.

The order book to trading ratio is 1.6% in debt with terms. In 2024, net fleet growth for small handy bulkers of 20,000 to 34,000 deadweight was minus 0.3% year on year. Net fleet growth is expected to continue at around 0% in 2025 and then at around minus 0.5% twenty five-twenty twenty seven is based on the current order book after assuming slippage and expected demolition. Slide eight shows the Aframax tankers fleet age growth in order book. The global Aframax LR2 fleet currently stands at eleven fifty four vessels.

Of these, two sixty two vessels are over 20 years of age, accounting for 22.7% of the total number of vessels. With a starting tally of eleven thirty four vessels, current fleet represented a change of 1.76% in vessel numbers over the year so far. The order book now stands at two thirteen vessels, and presents 18% of the current fleet. Demolition activity is expected to remain strong going forward. Significantly more vessels were built in the early 2000s compared to the 90s. Aframax vessels dominated twenty twenty four tanker sector with total newbuilding investments reaching $11,400,000,000 claiming the top position for the year amongst their largest counterparts. Newbuilding prices remain at their highest level year to date although they appear to have stabilized over the latter part of the year. Slide nine shows the current fleet of C3is. [indiscernible] By the end of twenty twenty four, CPIS owned and operated a fleet of 300 size dry bulk carriers and one Aframax oil tanker. In May 2024, the company took delivery of the third 3,000 deadweight drybulk hydro Dego Speedfire bringing the total fleet capacity to 213,000 deadweight we have average age of 14 years. All vessels have had their ballast weather system solidly installed.

Our capital commitment during 2025 is a special survey of the tanker Afrapal II scheduled in Q3 twenty twenty five. All the vessels are unencumbered and currently employed on short to medium term charters and spread voyages. Slide 10 shows a sample of has experienced repeat business. [indiscernible] Repeat business highlights the confidence our customers have for our operations and the satisfaction of the services we provide. The key to maintaining our relationships with this company are high standards of safety and reliability of service. I will now turn over the call to Napindya for our financial performance.

Thank you, Diamantes, and good morning to everyone.

Please turn to Slide 11 and I will go through our financial performance for the fourth quarter and twelve months of 2024. Voyage revenues for the year 2024 amounted to $42,300,000 dollars an increase of 47% compared to 2376% of our total revenues were contributed by our Aframax tanker, the Atropel II. Our net revenues for the period generated December 24, were $28,200,000 an increase of 33% compared to the same period of last year. [indiscernible] Our daily time charter equivalent was down by 10% from Q4 'twenty three. Our fleet operational utilization was 90.3% for the twelve months period ending December 3124, compared to 91.6% for the same period in 2023. Voyage expenses and vessels operating expenses for the year 2024 were $14,100,000 and $8,400,000 The increase in voyage expenses was related to increases in bunker cost and port expenses and the vessels operating expenses increased was attributed to the increase in the average number of vessels. Voyage expenses for 2024 mainly included bunker costs of $6,900,000 and port expenses of $4,700,000 corresponding to 82% of total voyage expenses. This was due to the fact that our tanker, the Afro Pearl two, was operating in the spot market. Operating expenses for 2024 mainly included credit expenses of 4,400,000.0 corresponding to 52% of total operating expenses spares and consumable costs of $1,800,000 corresponding to 21% and maintenance expenses of $900,000 representing works and repairs on board the vessel corresponding to 11% of total vessel operating expenses.

Management fees increased by 48% from '24 due to the increase in the average number of vessels.

G and A costs were $3,000,000 and mainly related to the expenses incurred from the two public offerings and the reverse stock split. Depreciation recorded for 2024 was $6,200,000 a 51% increase from last year. Due to the increase in the average number of vessels. Related party interest and finance costs for the period was $2,500,000 and related to the accrued interest expenses as of 12/31/2024, in connection with the balance payable on the acquisition prices [indiscernible] our bulk carrier the acoustic fryer.

For accounting purposes, the balance payable on the two vessels had to be recorded as capital due and interest cost. Although no interest was charged by the sellers. The final balances paid remain the same as the originally agreed purchase prices. The Afra Pulte was completely paid off in July 24 and ninety percent of the balance due on the ECHO Spectraer is payable on in April twenty five. Interest income of $1,000,000 for 2024 was recorded and relate to the interest received on our bank deposits. As a result of the above, for the twelve month ended December 3124, the company reported an adjusted net income of $8,700,000 compared to an adjusted net income of $9,300,000 for the same period of last year. A decrease of 7%. Adjusted EBITDA for the twelve month ended thirty one December twenty four amounted to $16,400,000 compared to an adjusted EBITDA of 14,700,000.0 for the same period of last year, an increase of 11%. A non cash item of $11,130,000 loss was recorded at year end '24 and resulting in a net loss of $2,700,000 for the year 'twenty four. This non cash item represents the unrealized loss on the fair value of non exercised warrants.

Discounting this non cash item would have resulted in a net profit of $8,400,000 for 2024. Turning to Slide 12 for the balance sheet.

Our cash balance was $12,600,000 by the end of Q4 twenty twenty four, after paying $39,500,000 for the remaining 90% purchase price of our Framax Tankers, Rafael II, in Q3 twenty twenty four and one point six two million was 10% of the purchase price of the Handysize dry bulk carrier EcoStriar in Q2 twenty twenty four. The fleet book value as at the December 2024 was $84,000,000 an increase of 12% from year end twenty three due to the addition of the bulk carrier Echo stick fire. The company has no outstanding bank debt. The financial liability of $616,300,000.0 relates to the following, 90% of the purchase price of the Ecospekaya of $14,710,000 C3is payables of $1,590,000 due to the management company and subsequently paid in January 2025. The warrant liability of $10,400,000 relates to partly to the net fair value losses on non exercise warrants at year end 'twenty four. $690,000 from the total fair value losses has been recorded to equity. Concluding the presentation on Slide 13, we outlined the key variables that will assess us progress with our company's growth. Owning a high quality fleet reduces operating costs improves safety and provides a competitive advantage in securing favorable charters.

We maintain the quality of the vessels by carrying out regular inspect both while in port and at sea and adopting a comprehensive maintenance program for each vessel.

None of our vessels were built from Chinese shipyards. Hence, the proposed U. S. Tariff on all Chinese built ships would be a significant positive shift for our fleet.

The company's strategy is to follow a disciplined growth with in-depth technical and condition assessment review. Management is continuously seeking a timely and selective to medium term charters and spot voyages. We always charter to high quality charters such as commodity traders, industrial companies, and oil producers and refineries. The company maintains another adequate level of cash flow and liquidity that will enable us to act instantly as the windows of growth opportunities open.

Despite being in operation for less than two years, and having increased our fleet by 234%, since inception, the company has no bank debts. No interest were charged by the affiliated 90% payments due on the Afropol two and the Echo Spitfire. [indiscernible] At this stage, our CEO, Doctor. Diamantes Andriautis, who summarize the concluding remarks for the period examined.

For the year 2024, we reported voyage revenues of $42,300,000 increase of 47% from 2023. Net revenues of $28,000,000 an increase of 33% from 2023 and adjusted EBITDA of $16,400,000 11% higher than 2023. We have taken delivery of our fourth vessel this year, [indiscernible] bringing our total fleet capacity to 213,000 deadweight an increase of 234% from the company's inception over a year ago. We have more than tripled our fleet capacity without incurring any bank debt. Our cash balance at year end 2024 was $12,600,000 after CapEx payments of $41,000,000 during the year. Shipping is currently navigating the transitional phase with shipping dynamics influenced by geopolitical factors, environmental regulations, demand patterns and weather related challenges. While navigating these most volatile waters, we are closely monitoring the evolving situations and are focused on identifying those components that would maximize our future profits. Politics will play an important role in shipping in 2025, particularly in The U. S. The Trump administration is likely to push an agenda aligned with drill baby drill. This combined with the threat of tariffs on all Chinese built vessels of which we have none, two important factors that if they materialize could have a significant positive impact on profitability of our company.

With a clear focus on emerging opportunities, we remain confident that 2025 will be a year that will produce strong financial performance and potential growth prospects. We would like to thank you for joining us today and look forward to having you with us again at our next call for our first quarter of twenty twenty five results. [indiscernible] [indiscernible]