Q3 2024 C3is Inc Earnings Call
Good day and thank you for standing by. Welcome to the C3IS 3rd Quarter 2024 Earnings Conference Call.
At this time all participants are in listen-only mode. Please be advised that this conference has been recorded.
Speaker Change: I would now like to hand the conference over to our speaker today, Dr. Diamantis Andriotis, COO. Please go ahead.
Speaker Change: Good morning, everyone, and welcome to our C3IS Third Quarter Earnings Conference Call and Webcast.
This is Dr. Diamantis Andriotis, CEO of the company.
Speaker Change: Joining me on the call today is our CFO Nina Pindia.
Speaker Change: Before we commence our presentation, I would like to remind you that we will be discussing forward-looking statements, which reflect current views with respect to future events and financial performance, and are based on current expectations and assumptions, which by nature are inherently uncertain and outside of the company's control.
Speaker Change: At this stage, if you could all take a moment to read our disclaimer on slide 2 of this presentation.
Speaker Change: I would also like to point out that all amounts quoted, unless otherwise clarified, are implicitly stated in US dollars.
Speaker Change: Today we released our earnings results for the 3rd quarter of 2024. So let's proceed to discuss these results and update you on the company strategy and the market in general.
Speaker Change: Please turn to slide 3 where we summarize and highlight the company's performances starting with our financial highlights.
Speaker Change: For the first 9 months of 2024 we reported revenues of 32.9 million, which is an increase of 120% compared to the same period of 2023.
Speaker Change: Our AfroNax tanker, the Afrapel 2, contributed around 77% to the total revenues. Our adjusted debita was $13.5 million, a 92% increase from the first 9 months of 2023.
Speaker Change: Our adjusted net income came in at 7.7 million, an increase of 106% from 2023.
Speaker Change: Our vessel's net book value increased by 14% since year-end 2023, due to the addition of the Echo Spitfire, handy-sized rival carrier that joined our fleet in April 2024.
Speaker Change: Our cash balance was $8,000,000 by the end of Q3 2024 after paying $39,500,000 for the remaining 90% purchase price of our RF tanker in Q3 2024.
Speaker Change: and 1.62 million, which was 10% of the purchase price of the handy-sized dry bulk carrier EcoSpeedfire in Q2 2024.
Speaker Change: Our short-term bank deposits yielded $800,000 for the first nine months of 2024.
Speaker Change: Our TCE for the 9 months 2024 was 23,000 per day, 24% higher than the rate for 9 months 2023 when it was 18,800 per day.
Speaker Change: The balance due on our CAPEX is 14.57 million in April 2025, which represents 90% of the purchase price of the handy-sized dry bulb carrier EcoSpeedfire.
Speaker Change: Slide 4 shows the dried bulk trade by the end of the third quarter of 2024.
Speaker Change: Iron ore and coal trade continue to have a lion's share in the dry bulk trade. Iron ore is the number one dry bulk trade with commodity.
Speaker Change: Trade is restricted on very few routes, such as Brazil-China and Australia-China, with the Pacific Basin being predominant. Major importers are China, Japan, South Korea, Western Europe and the Middle East. Major exporters are Australia, Brazil, Canada and South Africa.
Speaker Change: Favorably, weather conditions have supported record Brazilian iron ore shipments so far, while bauxite exports are expected to rise as rain in season comes to an end.
Speaker Change: Iron ore prices have fallen to the lowest levels since 2022, leading to the high imports in 2024.
Speaker Change: Coal is the second most traded rival commodity. Global coal trade continues to grow with higher imports from China, India, and the New Zealand, compensating for the declining demand from Europe and Japan.
Exports are mainly from Australia, Russia, and U.S. Canada.
Speaker Change: In January-September 2024, global exports of soybeans reached 114.1 million tons according to AXS marine vessel tracking data.
Speaker Change: 17% of exports were shipped from Brazil, 14% from USA, 4% from Argentina, 2% from Uruguay.
Speaker Change: In slide 5 we see that the dry bulk market is enjoying healthy earnings due to major support from red sea diversions, uncertainty in the Russia-Ukraine war, the Middle East, a potential escalation in the US-China trade war, and OPEC's oil market gains.
Speaker Change: Geopolitical conflicts and restrictions on the Panama Canal transits have been impacting shipping demand since 2023, leading to longer voyages through the Cape of Good Hope and aiding shipping demand.
Speaker Change: Handysize demand remains healthy, but it heavily depends on steel-related exports, making it vulnerable to a potential slowdown in China's steel sector. Robust demand from the shipbuilding, automotive, manufacturing and renewables sectors will drive the global growth.
Speaker Change: The current pace of exports is sustainable, but in the long run, external demand and the threat of tariffs will determine China's ability to continue flooding the seaborne market with excess steel.
Speaker Change: So far, the market has been overwhelmingly positive, and industrial metals, not just iron ore, are on a synchronized rise.
Speaker Change: Slide 6 shows that crude oil is the single most seaborne traded bulk commodity in the world, 2 billion meters per year.
Speaker Change: Traded volumes have not increased significantly over the last decade. Trade patterns, however, have changed dramatically. The USA is emerging as a significant exporter of crude, while China remains the top source of demand growth.
Speaker Change: In January-September 2024, global imports of crude oil reached 1,659.2 million tons, excluding cabotage, according to Refinitiv Vessel Tracking.
This was a 1.3% increase year-on-year.
Speaker Change: 23% of imports were shipped to China, 22% to EU, 12% to the ASEAN, 11% to India.
Speaker Change: Despite the ongoing crude oil production cuts enforced by OPEC members, industry participants believe that the tanker market environment will remain healthy through 2025.
Speaker Change: Tanker demand outlook remains robust, supported by growth in crude oil trade volumes, as well as by trade pattern shifts arising from red sea diversions, benefiting long haul routes, thus boosting tonne mile demand.
Speaker Change: Seaboard crude oil trade has been supported by increasing demand from China and rising exports from suppliers in the Americas.
Slide 7 shows the handy size, flip page and growth.
Speaker Change: The handy-sized bulk fleet includes many old vessels with plenty of demolition potential. New environmental regulations likely to accelerate demolition.
Speaker Change: 17% of the trading fleet is over 20 years, 13% is 15-19 years, 39% is 10-14 years, 17% is 5-9 years, while 14% has less than 5 years.
Speaker Change: The order book to trade in ratio is 10.4% in deadweight terms. In 2023 net flip growth for handy size bulkers was 3.5% year on year.
Speaker Change: Netflix growth is expected to continue at around 4.8% in 2024 and then at around 4.4% in 2025.
Speaker Change: Flip growth forecast for 2024-2026 is based on the current order book after assuming slip-as-unexpected demolition.
Speaker Change: Compliance with new environmental regulations, like EXI, CII, coupled with an overage fleet might induce scrapping, thus reducing available fleet supply.
Speaker Change: Slow streaming and retrofit time, as part of complying with new environmental regulations, are also factors that are expected to reduce available fleet supply the years to come.
Speaker Change: Slide 8 shows the Afromax tankers fleet age, growth and order book. The global Afromax LR2 fleet now stands at 1150 vessels. Of these 201 vessels are over 20 years of age accounting for 17.48% of the total number of vessels.
Speaker Change: With a starting tally of 1,134 vessels, the current fleet represents a change of 1.41% in vessel numbers over the years so far.
Speaker Change: Deliveries are holding at levels above the total number of removals from the fleet, creating a net gain in the fleet equivalent to 1.41%. This increase is higher than the change noted in the prior month, while compared to last year, there was a decrease in the trend noted.
Speaker Change: The order book now stands at 198 vessels and represents 17% of the current fleet. Demolition activities expect to remain strong going forward. Significantly more vessels were built in the early 2000s compared to the 90s.
Speaker Change: Slide 9 shows the current fleet of C3IS. By the end of Q3 2024, C3IS owned and operated the fleet of three heavy-sized dry bulk carriers and one Afromax oil tanker.
Speaker Change: In May 2024, the company took delivery of a 33,000 deadweight dry bulk carrier, the EcoSpeed Fire, bringing the total fleet capacity to 213,000 deadweight with an average age of 13.77 years.
Speaker Change: All vessels have had the Ballast Water Management System solidly installed and furthermore there are no needed capital commitments for special surveys as the next one due is in Q3 2025.
Speaker Change: All vessels are unencumbered and kindly employed on short to medium term period charters and spot voyages.
Speaker Change: Slide 10 shows a sample of the international charters with whom the management company has developed strategic relationships and has experienced repeat business.
Speaker Change: 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 these companies are high standards of safety and reliability of service. I will now turn over the call to NINAP India for our financial performance.
Thank you, Diamantis, and good morning to everyone.
Speaker Change: Please turn to slide 11, and I will go through our financial performance.
Speaker Change: for the third quarter and first nine months of 2024. VOEJ revenues for the nine months ending September 30, 2024 amounted to $32.9 million, an increase of 120 percent compared to the first nine months of 2023.
Speaker Change: Seventy-seven percent of our total revenues were contributed by our AfriMax tanker, the AfriPol II.
Speaker Change: Our net revenues for the period generated September 24 were $22.5 million, an increase of 92% compared to the same period of last year.
Our daily TCE was up 24% from Q3, 2023.
Speaker Change: Our fleet operational utilization was 90.6% for the nine months ending September 3024, compared to 93.6% for the same period of 2023.
Speaker Change: Voyage expenses and vessels operating expenses for the 9 months of 2024 were $10.4 million and $6 million. The increases in both voyage expenses and vessels operating expenses were attributed to the increase in the average number of vessels.
Speaker Change: Voyage expenses for the 9 months of 2024 mainly included banker costs of $4.9 million and port expenses of $3.4 million, corresponding to 85% of total voyage expenses.
Speaker Change: Operating expenses for the nine months ending September 30, 2024, mainly included crew expenses of $3.2 million, corresponding to 53% of total operating expenses.
Speaker Change: Spares and consumable costs of $1.3 million, corresponding to 22%, and maintenance expenses of $600,000, representing works and repairs on board the vessels, corresponding to 10% of total vessel operating expenses.
Speaker Change: Management fees increased by 55% from Q3'23 due to the increase in the average number of vessels.
Speaker Change: General and administrative costs were $2.5 million and mainly related to the expenses incurred from the two public offerings and the reverse stock split.
Speaker Change: Depreciation recorded for the first nine months of 2024 was 4.6 million, a 67% increase from Q3 of last year due to the increase in the average number of vessels.
Speaker Change: Related party interest and finance costs for the period was $2.1 million and related to the accrued interest expenses as of September 30, 2024
Speaker Change: in connection with $53.3 million payable, which was the 90% balance payable on the acquisition prices of our AfraMax tanker, AfraPo2, and our bulk carrier, the Echo Spitfire.
Speaker Change: The FRP2 was completely paid off in July 2014 and the balance due on the Ecospec fire is payable in April 2015.
Speaker Change: Interest income of $800,000 for the first nine months of 2024 were recorded and relate to the interest received on our bank deposits.
Speaker Change: As a result of the above, for the 9 months ended September 30, 2024,
The company reported an adjusted net income of $7.7 million.
Speaker Change: compared to an adjusted net income of $3.7 million for the same period of last year, an increase of 106%.
Speaker Change: Adjusted EBITDA for the nine months ended September 24 amounted to $13.5 million compared to an adjusted EBITDA of $7 million for the same period of last year, an increase of 92%.
a non-cash item of $15.18 million loss.
was recorded in Q2-24.
and 4.8 million gain in Q3-24.
Speaker Change: resulting in a net loss of $10.35 million for the 9 months of 2024. These represent the unrealized gain or loss on the fair value of non-exercised warrants.
Thank you.
Speaker Change: Turning to slide 12 for the balance sheet, our cash balance was $8 million by the end of Q3-24, after paying $39.5 million for the remaining 90% purchase price.
Speaker Change: of our AfraMax tanker AfraPole II in Q3-24 and $1.62 million, which was 10% of the purchase price of the handy-sized dry barrel carrier EcoSpeed Tiger in Q2-24.
Speaker Change: The fleet book value, as at the end of September 24, was $85.8 million, an increase of 16% from year-end 23 due to the addition of the bulk carrier vehicle Spitfire.
The company has no outstanding bank debt.
Speaker Change: The financial liability of $11.9 million relates to the following. 90% of the purchase price of Ecospeed Fire, which was $14.7 million,
Speaker Change: less receivable of 2.7 million freight income from the management company which was collected in Q4-24.
Speaker Change: The warrant liability of $9.7 million relates partly to the next fair value losses on non-exercised warrants at HF124.
Speaker Change: 690,000 from the total fair value losses has been recorded to equity.
Speaker Change: Concluding the presentation on slide 13, we outlined the key variables that will assist us progress with our company's growth.
Speaker Change: Owning a high-quality fleet reduces operating costs, improves safety, and provides a competitive advantage in securing favorable charters.
Speaker Change: We maintain the quality of the vessels by carrying out regular inspections both while in port and at sea, and adopting a comprehensive maintenance program for each vessel.
Speaker Change: The company's strategy is to follow a disciplined growth with in-depth technical and condition assessment review.
Speaker Change: Management is continuously seeking a timely and selective acquisitions of quality vessels with current focus on short to medium term charters and sport voyages.
Speaker Change: We always charter to high-quality charters such as commodity traders, industrial companies, and oil producers and refineries.
Speaker Change: The company maintains an adequate level of cash flow and liquidity that will enable us to act instantly as the windows of growth and opportunities open.
Speaker Change: Despite being in operation for just over a year, and having increased our fleet by 234 percent since inception, the company has no bank debts.
Speaker Change: No interest was charged by the affiliated sellers for the subsequent 90% payments due on the Afropo2 and the Ecospeed fire.
Speaker Change: At this stage, our CEO, Dr. Diamantis Andreatis, will summarize the concluding remarks for the period examined.
Speaker Change: Following the completion of the first 9 months of operations of 2024, C3IS has reported VOYA's revenues of $32.9 million.
an increase of 120% from 2023.
Speaker Change: an Adjusted Net Income of $7.7 million, 106% higher than 2023, and an Adjusted EBITDA of $13.5 million, 92% higher than 2023.
Speaker Change: We have taken delivery of our fourth vessel this year, bringing our total fleet capacity to 213,000 dead weight, an increase of 234% from the company's inception over a year ago.
Speaker Change: In April 2024 we paid off 1.62 million, representing the 10% balance due on the Echo Spitfire and in July 2024 we paid off the remaining balance of 13.5 million due on our Afronax Tanker.
Speaker Change: We have more than tripled our fleet capacity without incurring any bank debts.
Speaker Change: Our strategy of expansions has continuously been bearing fruits, as proven by the results of every single quarter since the company's inception.
Speaker Change: We will continue to aim at achieving sustainable growth despite the current challenges of macro and micro conditions.
Speaker Change: The results of the US elections will have significant implications on the global shipping industry.
Speaker Change: The proposed policies of 10% tariff on all U.S. imports and 60% tariff on Chinese products are poised to reshape trade dynamics, thus affecting shipping.
Speaker Change: The industry also faces added uncertainties around the current geopolitical situation, with the two major conflicts having a significant impact on shipping markets, combined with the outcome of environmental regulations.
Speaker Change: We will closely monitor these evolving situations and maintain an agile and effective control of our business, focusing on maximizing our results.
Speaker Change: We will continue to address industry challenges and will maintain our strategy to provide safe global transportation services in parallel with producing excellent financial performance, attractive returns and growth prospects for our shareholders.
Speaker Change: We would like to thank you for joining us today and look forward to having you with us again at our next call for the fourth quarter of 2024 results.
Thank you.
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Speaker Change: Good morning, everyone, and welcome to our C3IS Third Quarter Earnings Conference Call and Webcast.
This is Dr. Diamantis Andriotis, CEO of the company.
Speaker Change: Joining me on the call today is our CFO Nina Pindia.
Speaker Change: Before we commence our presentation, I would like to remind you that we will be discussing four weekly statements, which reflect current views with respect to future events and financial performance and are based on current expectations and assumptions, which by nature are inherently uncertain and outside of the company's control.
Speaker Change: At this stage, if you could all take a moment to read our disclaimer on slide 2 of this presentation.
Speaker Change: I would also like to point out that all amounts quoted, unless otherwise clarified, are implicitly stated in US dollars.
Speaker Change: Today we released our earnings results for the third quarter of 2024. So let's proceed to discuss these results and update you on the company strategy and the market in general.
Speaker Change: Please turn to slide 3, where we summarize and highlight the company's performances, starting with our financial highlights.
Speaker Change: For the first 9 months of 2024 we reported revenues of 32.9 million, which is an increase of 120% compared to the same period of 2023.
Speaker Change: Our Afronax tanker, the Arthropel II, contributed around 77% to the total revenues.
Speaker Change: Our adjusted EBITDA was $13.5 million, a 92% increase from the first 9 months of 2023.
Speaker Change: Our adjusted debt income came in at 7.7 million, an increase of 106% from 2023.
Speaker Change: Our vessel's net book value increased by 14% since year-end 2023 due to the addition of the Ecospeedfire hand-designed dry ball carrier that joined our fleet in April 2024.
Speaker Change: Our cash balance was $8,000,000 by the end of Q3 2024, after paying $39,500,000 for the remaining 90% purchase price of our RF ROCS tanker in Q3 2024, and $1,062,000 which was 10% of the purchase price of the handy-sized dry bulk carrier Echo Spitfire in Q2 2024.
Speaker Change: Our short-term bank deposits yielded $800,000 for the first nine months of 2024.
Speaker Change: Our TCE for the 9 months 2024 was 23,000 per day, 24% higher than the rate for 9 months 2023 when it was 18,800 per day.
Speaker Change: The balance due on our CAPEX is 14.57 million in April 2025, which represents 90% of the purchase price of the handy-sized dry bulb carrier EcoSpeedfire.
Speaker Change: Slide 4 shows the dried bulk trade by the end of the third quarter of 2024.
Speaker Change: Iron ore and coal trade continue to have a lion's share in the dry bulk trade.
Iron ore is the number one dry bulk traded commodity.
Speaker Change: Trade is restricted on very few routes, such as Brazil-China and Australia-China, with the Pacific Basin being predominant.
Speaker Change: Major importers are China, Japan, South Korea, Western Europe and the Middle East.
Major exporters are Australia, Brazil, Canada, and South Africa.
Speaker Change: Favourable weather conditions have supported record Brazilian iron ore shipments so far, while bauxite exports are expected to rise as the rainy season comes to an end.
Speaker Change: Iron ore prices have fallen to the lowest levels since 2022, leading to the high imports in 2024.
Coal is the second most traded dry bulk commodity.
Speaker Change: Global coal trade continues to grow with higher imports from China, India and Tunisia, compensating for the declining demand from Europe and Japan.
Exports are mainly from Australia, Russia, and U.S. Canada.
Speaker Change: In January-September 2024, global exports of soybeans reached 114.1 million tons according to AXS marine vessel tracking data.
Speaker Change: 17% of exports were shipped from Brazil, 14% from USA, 4% from Argentina, 2% from Uruguay.
Speaker Change: In slide 5 we see that the dry bulk market is enjoying healthy earnings due to major support from red sea diversions, uncertainty in the Russia-Ukraine war, the Middle East, a potential escalation in the US-China trade war, and OPEC's oil market gains.
Speaker Change: Geopolitical conflicts and restrictions on the Panama Canal transits have been impacting shipping demand since 2023, leading to longer voyages through the Cape of Good Hope and aiding shipping demand.
Speaker Change: Handysize demand remains healthy, but it heavily depends on steel-related exports, making it vulnerable to a potential slowdown in China's steel sector.
Speaker Change: The robust demand from the shipbuilding, automotive, manufacturing and renewable sectors will drive the global growth.
Speaker Change: The current pace of exports is sustainable, but in the long run, external demand and the threat of tariffs will determine China's ability to continue flooding the seaborne market with excess steel.
Speaker Change: So far, the market has been overwhelmingly positive, and industrial metals, not just iron ore, are on a synchronized rise.
Speaker Change: Slide 6 shows that crude oil is the single most seaborne traded bulk commodity in the world, 2 billion meters per year.
Speaker Change: In January-September 2024, global imports of crude oil reached 1,659.2 million tons, excluding cabotage, according to Refinitiv Vessel Tracking.
This was a 1.3% increase year on year.
Speaker Change: 23% of imports were shipped to China, 22% to EU, 12% to the ASEAN, 11% to India.
Speaker Change: Despite the ongoing crude oil production cuts enforced by OPEC members, industry participants believe that the tanker market environment will remain healthy through 2025.
Speaker Change: Tanker demand outlook remains robust, supported by growth in crude oil trade volumes, as well as by trade pattern shifts arising from red sea diversions, benefiting long haul routes, thus boosting tonne mile demand.
Speaker Change: Seaboard crude oil trade has been supported by increasing demand from China and rising exports from suppliers in the Americas.
Slide 7 shows the handy size, flip page and growth.
Speaker Change: The handy-sized bulk fleet includes many old vessels with plenty of demolition potential.
New environmental regulations are likely to accelerate demolition.
Speaker Change: 17% of the trading fleet is over 20 years, 13% is 15-19 years, 39% is 10-14 years, 17% is 5-9 years, while 14% has less than 5 years.
Speaker Change: The order book to trade in ratio is 10.4% in deadweight terms.
Speaker Change: In 2023, net flip growth for handy-sized bulkers was 3.5% year-on-year.
Speaker Change: Netflix's growth is expected to continue at around 4.8% in 2024 and then at around 4.4% in 2025.
Speaker Change: Flip growth forecast for 2024-2026 is based on the current order book, after assuming slip as unexpected demolition.
Speaker Change: Compliance with new environmental regulations, like EXI, CII, coupled with an overage fleet might induce scrapping, thus reducing available fleet supply.
Speaker Change: Slow steaming and retrofit time, as part of complying with new environmental regulations, are also factors that are expected to reduce available fleet supply the years to come.
Thank you.
Speaker Change: Slide 8 shows the Afromax tankers fleet age, growth and order book. The global Afromax LR2 fleet now stands at 1150 vessels. Of these 201 vessels are over 20 years of age accounting for 17.48% of the total number of vessels.
Speaker Change: With a starting tally of 1,134 vessels, the current fleet represents a change of 1.41% in vessel numbers over the year so far.
Speaker Change: Deliveries are holding at levels above the total number of removals from the fleet, creating a net gain in the fleet equivalent to 1.41%.
Speaker Change: This increase is higher than the change noted in the prior month while compared to last year there was a decrease in the trend noted.
Speaker Change: The order book now stands at 198 vessels and represents 17% of the current fleet.
Speaker Change: Demolition activities expect to remain strong going forward. Significantly more vessels were built in the early 2000s compared to the 90s.
Speaker Change: Slide 9 shows the current fleet of C3IS. By the end of Q3 2024, C3IS owned and operated the fleet of three hand-sized dry bulk carriers and one Afrovax oil tanker.
Speaker Change: In May 2024, the company took delivery of a 33,000 dead weight dry bulk carrier, the EcoSpeed Fire, bringing the total fleet capacity
Speaker Change: to 213,000 dead weight with an average age of 13.77 years.
Speaker Change: All vessels have had the Ballast Water Management System solidly installed and furthermore there are no immediate capital commitments for special surveys as the next one due is in Q3 2025.
Speaker Change: All vessels are unencumbered and kindly employed on short to medium term period charters and spot voyages.
Speaker Change: Slide 10 shows a sample of the international charters with whom the management company has developed strategic relationships and has experienced repeat business.
Speaker Change: 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 these companies are high standards of safety and reliability of service. I will now turn over the call to Neenap India for our financial performance.
Thank you, Diamantis, and good morning to everyone.
Neenap India: Please turn to slide 11, and I will go through our financial performance.
Neenap India: for the third quarter and first nine months of 2024. VOEJ revenues for the nine months ending September 30, 2024 amounted to $32.9 million, an increase of 120 percent compared to the first nine months of 2023.
Neenap India: Seventy-seven percent of our total revenues were contributed by our AFROMAX tanker, the AFRAPOL 2.
Neenap India: Our net revenues for the period January to September 24 were $22.5 million, an increase of 92% compared to the same period of last year.
Our daily TCE was up 24% from Q3, 2023.
Neenap India: Our fleet operational utilization was 90.6% for the nine months ending September 3024, compared to 93.6% for the same period of 2023.
Neenap India: Voyage expenses and vessels operating expenses for the nine months of 2024 were $10.4 million and $6 million.
Neenap India: The increases in both voyage expenses and vessels operating expenses were attributed to the increase in the average number of vessels.
Neenap India: Voyage expenses for the 9 months of 2024 mainly included banker costs of $4.9 million and port expenses of $3.4 million, corresponding to 85% of total voyage expenses.
Neenap India: Operating expenses for the nine months ending September 30, 2024, mainly included crew expenses of $3.2 million, corresponding to 53% of total operating expenses.
Neenap India: Spares and consumable costs of $1.3 million, corresponding to 22%, and maintenance expenses of $600,000, representing works and repairs on board the vessels, corresponding to 10% of total vessel operating expenses.
Neenap India: Management fees increased by 55% from Q3'23 due to the increase in the average number of vessels.
Neenap India: General and administrative costs were $2.5 million and mainly related to the expenses incurred from the two public offerings and the reverse stock split.
Neenap India: Depreciation recorded for the first nine months of 2024 was 4.6 million, a 67% increase from Q3 of last year due to the increase in the average number of vessels.
Neenap India: Related party interest and finance costs for the period was $2.1 million.
Neenap India: and related to the accrued interest expenses as of September 30, 2024 in connection with a $53.3 million payable, which was the 90% balance payable on the acquisition prices of our AfraMax tanker, AfraPO2, and our bulk carrier, the Echo Spitfire.
Neenap India: The Afra party was completely paid off in July 24, and the balance due on the Ayakos pet fire is payable in April 25.
Neenap India: Interest income of $800,000 for the first nine months of 2024 were recorded and relate to the interest received on our bank deposits.
Neenap India: As a result of the above, for the nine months ended September 30, 2024, the company reported an adjusted net income of $7.7 million.
Neenap India: compared to an adjusted net income of $3.7 million for the same period of last year, an increase of 106%.
Neenap India: Adjusted EBITDA for the nine months ended September 24 amounted to $13.5 million, compared to an adjusted EBITDA of $7 million for the same period of last year, an increase of 92%.
Neenap India: A non-cash item of $15.18 million loss was recorded in Q2'24 and $4.8 million gain in Q3'24, resulting in a net loss of $10.35 million for the nine months of Q2'24.
Neenap India: These represent the unrealized gain or loss on the fair value of non-exercised warrants.
Thank you. Thank you. Thank you.
Neenap India: Turning to slide 12 for the balance sheet, our cash balance was $8 million by the end of Q3-24, after paying $39.5 million for the remaining 90% purchase price.
of our AfraMax tanker, AfraPOW2, in Q3-24.
Neenap India: and $1.62 million, which was 10% of the purchase price of the handy-sized dry-bar carrier EcoSpeed Triger in Q224.
Neenap India: The fleet book value as at the end of September 24 was $85.8 million, an increase of 16% from year-end 23 due to the addition of the bulk carrier, the Echo Spitfire.
The company has no outstanding bank debt.
Neenap India: The financial liability of $11.9 million relates to the following. 90% of the purchase price of Echo Spitfire, which was
Neenap India: $14.7 million, less receivable of $2.7 million freight income from the management company which was collected in Q4-24.
Neenap India: The warrant liability of $9.7 million relates partly to the next fair value losses on non-exercised warrants at HF124.
Neenap India: 690,000 from the total fair value losses has been recorded to equity.
Neenap India: Concluding the presentation on slide 13, we outlined the key variables that will assist us progress with our company's growth.
Neenap India: Owning a high-quality fleet reduces operating costs, improves safety, and provides a competitive advantage in securing favorable charters.
Neenap India: We maintain the quality of the vessels by carrying out regular inspections, both while in port and at sea, and adopting a comprehensive maintenance program for each vessel.
Neenap India: The company's strategy is to follow a disciplined growth with in-depth technical and condition assessment review.
Neenap India: Management is continuously seeking a timely and selective acquisition of quality vessels with current focus on short to medium term charters and spot voyagers.
Neenap India: We always charter to high quality charters, such as commodity traders, industrial companies, and oil producers and refineries.
Neenap India: The company maintains an adequate level of cash flow and liquidity that will enable us to act instantly as the windows of growth and opportunities open.
Neenap India: Despite being in operation for just over a year, and having increased our fleet by 234 percent since inception, the company has no bank debts.
Neenap India: No interest was charged by the affiliated sellers for the subsequent 90% payments due on the Afropo2 and the Ecospeed fire.
Speaker Change: At this stage, our CEO, Dr. Diamantis Andriotis, will summarize the concluding remarks for the period examined.
Thank you.
Speaker Change: Following the completion of the first 9 months of operations of 2024, C3IS has reported various revenues of $32.9 million.
an increase of 1.20% from 2023.
Speaker Change: an Adjusted Net Income of $7.7 million, 106% higher than 2023, and an Adjusted EBITDA of $13.5 million, 92% higher than 2023.
Speaker Change: We have taken delivery of our fourth vessel this year, bringing our total fleet capacity to 213,000 deadweight, an increase of 234% from the company's inception over a year ago.
Speaker Change: In April 2024 we paid off 1.62 million, representing the 10% balance due on the Echo Spitfire, and in July 2024 we paid off the remaining balance of 13.5 million due on our Aframax Tanker.
Speaker Change: We have more than tripled our fleet capacity without incurring any bank debts.
Speaker Change: Our strategy of expansions has continuously been bearing fruits, as proven by the results of every single quarter since the company's inception.
Speaker Change: We will continue to aim at achieving sustainable growth despite the current challenges of macro and micro conditions.
Speaker Change: The results of the US elections will have significant implications on the global shipping industry.
Speaker Change: The proposed policies of 10% tariff on all U.S. imports and 60% tariff on Chinese products are poised to reshape trade dynamics, thus affecting shipping.
Speaker Change: The industry also faces added uncertainties around the current geopolitical situation, with the two major conflicts having a significant impact on shipping markets, combined with the outcome of environmental regulations.
Speaker Change: We will closely monitor these evolving situations and maintain an agile and effective control of our business, focusing on maximizing our results.
Speaker Change: We will continue to address industry challenges and will maintain our strategy to provide safe global transportation services in parallel with producing excellent financial performance, attractive returns and growth prospects for our shareholders.
Speaker Change: We would like to thank you for joining us today and look forward to having you with us again at our next call for fourth quarter of 2024 results.