Q4 2024 C3is Inc Earnings Call
Okay.
Operator: Good day and thank you for standing by. Welcome to the C3IS Fourth Quarter Earnings Conference Call and Webcast. All participants will be in listen-only mode during the call, with no question and answer session at the end.
Speaker Change: Good day and thank you for standing by welcome to the C. Free I S fourth quarter earnings conference call and webcast.
Speaker Change: Participants will be in listen only mode. During the cold with no question and answer session at the end please.
Operator: Please note that today's conference is being recorded.
Dr. Eddy: Please note that today's conference is being recorded I would now like to the conference virtual speaker Dr. Eddy I'm on to something you just see you. Please go ahead.
Operator: I will now act on the conference of our two speakers, Dr. Diamantis Andriotis, CEO.
Diamantis Andriotis: Good morning everyone and welcome to our C3is 4th quarter earnings conference call and webcast.
Speaker Change: Good morning, everyone and welcome to our shipyard I guess fourth quarter earnings conference call and webcast. This is Doug I'll just hand, the Odyssey of the company.
Diamantis Andriotis: This is Dr. Diamantis Andriotis, CEO of the company.
Diamantis Andriotis: Joining on the call today is our CFO, Nina Pyndiah. Before we commence our presentation, I would like to remind you that we will be discussing forward-looking statements, which reflect current use with respect to future events and finance performance, and are based on current expectations and assumptions, which by nature are inherently uncertain and outside of the company's control. At this stage, if you could all take a moment to read our disclaimer on slide 2 of this presentation. I would also like to point out that all amounts quoted, unless otherwise clarified, are implicitly stated in USD.
Dr. Eddy: Joining me on the call today is our CFO and then up India.
Dr. Eddy: 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 has been killing me uncertain and outside the Companys control.
Dr. Eddy: At this stage if you could all take a moment to read our disclaimer on slide two of this presentation.
Dr. Eddy: I would also like to point out that all amounts quoted unless otherwise clarified are implicitly stated in U S dollars.
Diamantis Andriotis: Today we released our earnings results for the fourth quarter of 2024, so let's proceed to discuss these results and update you on the company's strategy and the market in general. Please turn to slide 3, where we summarize and highlight the company's performances, starting with our financial highlights. For the year 2024, we reported revenues of 42.3 million, which is an increase of 47% compared to year 2023. Our Alpha X tanker, the Alpha Platoon, contributed around 76% to the total revenue. Our net revenues came in at $28 million, an increase of 33% from 2023. Our adjusted EBITDA was $16.4 million, an increase of 11% from 2023.
Dr. Eddy: Today, we released our earnings results for the fourth quarter. It's been 24. So let's proceed to discuss these results and update you on the Companys strategy and the market in general.
Dr. Eddy: Please turn to slide three where we summarize and highlight the company's performance is starting with our financial highlights for the year 10, 24 reported revenues from $42 3 million, which is an increase of 47% compared to year 2023.
Dr. Eddy: Our aframax tanker the <unk> contributed around 76% of revenues.
Dr. Eddy: Our net revenues came in at $28 million, an increase of 33% from 2033.
Dr. Eddy: Our adjusted EBITDA was $16 4 million, an increase of 11% from 10 23.
Diamantis Andriotis: Our adjusted net income came in at $8.7 million, a decrease of 7% from 2023. Our vessel's net book value increased by 12% since year-end 2023 due to the addition of the Echo Spitfire, a handy-sized rival carrier that joined our fleet in April 2024. Our cash balance was $12.6 million by the end of Q4 2024, an increase of 39% from year end 2023, despite total capex payments of $41 million, $39.5 for our Afromax tanker, the Afrapl 2, and $1.62 million as 10% down payment on our bulk carrier, the Echo Spitfire. The balance due on our CapEx is $14.57 million in April 2025, which represents 90% of the purchase price of the hand-designed bulk-carrier EcoSpitfire.
Dr. Eddy: Our adjusted net income came in at $8 7 million, an decrease of 7% from <unk> 23.
Dr. Eddy: Our vessels net book value increased by 12% since year end 2023 due to the addition of vehicles Spitfire and handy size dry bulk carrier that joined our fleet in April 2024.
Dr. Eddy: Our cash balance was $12 6 million by the end of Q4 2024, an increase of 39% from year end 2023. Despite total capex payments of 41 million $79 five for our Aframax tankers, the <unk> and $1 $62 million at 10% down payment.
Dr. Eddy: And our bulk carrier vehicles Spitfire.
Dr. Eddy: The balanced view in our Capex is 14 point $57 million in April 2025, which represents 90% of the purchase price or the handy size Mannkind Echo Spitfire.
Diamantis Andriotis: Our short-term bank deposits yielded $1 million for the year 2024. Our TCE for the year 2024 was $21,000 per day, 10% lower than the rate for the year 2023 when it was $23,400 per day.
Dr. Eddy: Our short term bank deposits skill did $1 million for the year 2024.
Dr. Eddy: Our D C for the year to end to end for was 21000 per day, 10% lower than the rate for the year 10, 23, when it was $23 4000 per day.
Diamantis Andriotis: Slide 4 shows the dry bulk trade by the end of the fourth quarter of 2024. Despite global economic fluctuations, the market demonstrated resilience, particularly in the latter half of the year. In terms of the overall global fleet, handy-sized vessels hold this unique concern, 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, fertilizers, and steel products. Iron ore and coal trade continue to have a lion's share in the dry bulk trade.
Dr. Eddy: Slide four shows the dry bulk trade by the end of the fourth quarter of <unk> 24.
Dr. Eddy: Despite the global economic locations the market demonstrated resilience, particularly in the latter half of the year.
Dr. Eddy: In terms of the overall global fleet handy size vessels hold the significant sir.
Dr. Eddy: Turning to minor bulk trades regional markets and routes for larger vessels face operational constraints.
Dr. Eddy: There were some Timothy makes them a vital segment and global dry bulk logistics facilitating trade across a broad range of commodities, including grains fertilizers and steel products.
Dr. Eddy: Iron ore and coal trade continued to have the lion's share and the dry bulk trade.
Diamantis Andriotis: 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 remains robust. with major minors maintaining or increasing output levels. The seaborne coal market in 2024 has been marked by significant shifts in market dynamics. Despite high inventory levels throughout the year, the Chinese thermal coal market remained fundamentally loose, with declining prices and induced volatility distinguishing it from the sharp price shrinks observed in prior years. Demand dynamics experience contrasting phases during the year. The first half of 2024 was weaker, as strong renewable energy outputs suppressed coal demand.
Dr. Eddy: But the iron ore market is currently navigating a transitional phase with system dynamics influenced by economic trends structural changes in the governmental pressures.
Dr. Eddy: Despite subdued month.
Dr. Eddy: Iron ore production remains robust.
Dr. Eddy: With major miners maintain or increase in output levels.
Dr. Eddy: The seaborne coal market in 2024 has been market marked by significant ceased in market dynamics.
Dr. Eddy: High inventory levels throughout the year, the Chinese thermal coal market remains fundamentally use with declining prices and used volatility distinguishing it from the sharp price swings.
Dr. Eddy: Observed in prior years.
Demand dynamics experienced contrasting phases during the year.
Dr. Eddy: The first half of 2024 was weaker or stronger 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 pall demand.
Diamantis Andriotis: However, prolonged hot and dry weather in the second half, coupled with unexpected growth in the chemical sector, spurred a rebound in coal demand. Looking ahead to 2025, demand growth in developing countries, particularly India and Southeast Asia, is expected to offset declining demand in China. Industrial activity and infrastructure projects in these regions will play pivotal roles in 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.
Dr. Eddy: Looking ahead to 2025 demand growth in developing countries, particularly India and southeast Asia is expected to offset declining demand in China.
Dr. Eddy: Industrial activity and infrastructure projects in these regions will play pivotal roles in sustaining coal demand.
Dr. Eddy: In the longer term growth opportunities will increasingly concentrate in emerging markets in Asia, while advanced economies continue to prioritize and renewable energy and the carbonization efforts.
Diamantis Andriotis: 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.
Dr. Eddy: The global grain trade in 2025 expected to exhibit steady, but uneven growth driven by a mix of regional demand patterns geopolitical factors and weather related challenges.
Dr. Eddy: Emerging markets in Asia, and Africa will continue to drive grain imports growth utilizing populations, increasing incomes and urbanization.
Dr. Eddy: Countries, such as Indonesia, being dominant Egypt are likely to remain key quarters supported by the growing food and feed needs.
Diamantis Andriotis: Slide 5 shows the dry bulk opportunities ahead and the handy size rate performance. The dry bulk seaborne trade is poised for steady growth, with minor bulk trade emerging as a critical driver in the medium and long term. While major bulks like iron ore and coal face slowing or declining growth rates, minor bulks are expected to gain prominence, supported by structural shifts in global trade and industrial demand. Minor bulk trade is anticipated to experience the highest growth in the long term, fueled by the increasing demand for materials tied to sustainable production. development. Key drivers include the expansion of renewable energy infrastructure such as solar and wind energy projects, the rise in adoption of electric vehicles and the ongoing surge in sustainable building practice.
Dr. Eddy: Slide five shows the dry bulk opportunities ahead in the handy size rate performance. The dry bulk seaborne trade is poised for solid growth with minor bulk trade emerging is critical driver in the medium and long term.
Dr. Eddy: While major backlogged iron ore and coal faced slowing or declining growth rates minor bulks are expected to gain prominence supported by structural shifts in global trade and industrial demand.
Dr. Eddy: Minor bulk trade as anticipated we experienced the highest growth in the long term fueled by an increasingly demand for materials tied sustainable.
Dr. Eddy: Development.
Dr. Eddy: Key drivers include the expansion of renewable energy infrastructure, such as solar and wind energy projects, the rising adoption of electric vehicles, and the ongoing surge and sustainable building practices.
Diamantis Andriotis: Commodities such as steel products, aluminum and other construction related materials will be central to meeting the needs of this growing industry. In the medium term, the stabilization of iron ore trade and the modest decline in coal shipments reflect a shift towards cleaner energy systems and a reduced reliance on traditional back commodities. Evolving environment policies and industry adaptations are likely to moderate potential downturns, positioning the sector for gradual but necessary transformation. Initiatives such as slower 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 and Southeast Asia, reshaping established trade routes and market dynamics.
Dr. Eddy: This helps us steel products aluminum and other construction related materials will be central to meeting the needs of these growing industries.
Dr. Eddy: In the medium term the stabilization of iron ore trade than the modest client coal shipments reflect the shift towards cleaner energy systems.
Dr. Eddy: Usually reliance from traditional bulk commodities.
Dr. Eddy: Walgreens environment policies and industry and the patients are likely to moderate potential downturn.
Dr. Eddy: Position the sector for gradual but necessary transformation.
Dr. Eddy: 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.
Dr. Eddy: China has realigned trade partnership tours nations, like Russia, India and Southeast Asia.
Dr. Eddy: Reshaping established trade routes and market dynamics.
Diamantis Andriotis: Slide 6 shows the AFIMAX Banking Market Fundamentals. In 2024 there was a significant difference between the first half of the year and the second. The year started with a strong first half on the tanker market in general and the Aframax market in particular. The Huthi attacks in the Red Sea resulted in substantial changes to the trading pattern of Afamax. The rerouting via the Cape of Good Hope for clean cargoes gave LR2s a significant boost in earnings in the first half of the year. This had a knock-on effect in the aftermarket since many dirty but coated vessels cleaned up the tanks and therefore reducing supply on the dirty side.
Dr. Eddy: Slide six shows the Aframax tanker market fundamentals.
Dr. Eddy: In 2024, there was a significant difference between the first half of the year and the second the year started with a strong first half of the thought on the tanker market in general and the Aframax market in particular.
Dr. Eddy: <unk> in the Red Sea resulted substantial changes to the trading pattern from axis.
Dr. Eddy: Rerouting via the Cape of good hope for clean cargos gable of two significant boost in earnings in the first half of the year.
Dr. Eddy: This had a knock on effect in the Aframax market since may 30, but coated vessels cleaned up the tanks and therefore, reducing supply on the dirt side.
Diamantis Andriotis: Politics will play an important role in the energy markets in 2025, particularly in the US, 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 in 2025. Geopolitical tensions and volatility are expected to continue to weigh heavily on oil tanker demand in 2025 and beyond. Russia is presumed to continue supplying crude and oil products in the market by complying with price cap or replenishing the shadow fleet. U.S.
Dr. Eddy: Voltage 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.
Dr. Eddy: Trump will improve sentiment towards the oil industry, though without already at record levels, it would be difficult to push levels much higher than in 2025.
Dr. Eddy: Geopolitical tensions and volatility I expect to continue to weigh heavily on oil tanker demand in 2025 and beyond.
Dr. Eddy: Russia is presumed to continue supplying crude and oil products in the market by complying with price cap or replenishing the shadow fleet.
Dr. Eddy: U S sanctions during trauma will tighten Iranian crude production and exports and in Houston next rose by 400000 barrels per day in the 'twenty to 'twenty five 'twenty six period.
Diamantis Andriotis: sanctions during Trump will tighten Iranian crude production and exports, reducing exports by 400,000 barrels per day in the 2025-2026 period. The Red Sea will gradually reopen as the Houthis lose financial support from Iran. In addition, the Israel-Hamas tensions are currently easing. Reduced daily transit through the Panama Canal due to low rainfall is not expected to emerge again in the near future. Thank you demanding is projected to gain structural support over the next five years. This growth will be driven by Nidalee's expanding screwed balance by 2 million bars 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 countries in the Middle East.
Dr. Eddy: Wed see will gradually reopen as the horses loose financial support from Iran. In addition to Israel Hamas pensions are currently using.
Dr. Eddy: Reduce daily tranches through the Panama Canal due to low rainfall is not expected to emerge again in the near future.
Dr. Eddy: Tanker demand is projected gain sexual and support over the next five years.
Dr. Eddy: This growth will be driven by middle east expanding screwed balance by 2 million barrels per day.
Dr. Eddy: We've consistently rational flow mid sized tankers will continue to benefit which could be further supported when the red Sea Chokepoints reopens and the lowest easier Russian oil flows for India, China and Congress in the Middle East.
Diamantis Andriotis: 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 flows ex-Vancouver are expected to range between the U.S. West Coast, Asia, and likely West Coast Panama. Since the project was completed in first half 2024, a total of 155 AfroMax cargos have been recorded at Vancouver.
Dr. Eddy: With North American wins West Coast market continues to garner a large amount of attention regarding the ramp up kind of the Trans mountain pipeline expansion BMX project.
Dr. Eddy: The pipeline is a more efficient way of sending and Canadian barrels failure.
Dr. Eddy: The Tms will bring an additional 590000 barrels per day of Canadian crude at full capacity to the port of Vancouver.
Dr. Eddy: And medium crude flows ex Vancouver are expected to range between the U S West Coast Asia, and likely West Coast Panama.
Dr. Eddy: Since the project was completed in first half 2000 for a total of 155 Aframax cargoes have been recorded at Vancouver.
Diamantis Andriotis: Slide 7 shows the handy-sized fleet age and growth. The handy-sized 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, 2% is 5 to 9 years old, while 5% has less than 5 years. The order book to trading ratio is 1.6% in deadweight term. In 2024, net flip growth for small handy bulkers of 20,000 to 34,000 deadweight was minus 0.3% year on year.
Dr. Eddy: Slide seven shows the handy size fleet age and growth.
Dr. Eddy: The handy size bulk fleet includes many old vessels with plenty of demolition potential.
Dr. Eddy: There are hardly any units on order at the moment.
Dr. Eddy: 32% of the trading fleet is over 20 years old 33% is 15 to 19 years old 27% is 10 to 14 years old 2% is five to nine years old whilst 5% has less than five years.
Dr. Eddy: The order book to trading ratio is one 6% in deadweight terms.
Dr. Eddy: In 2024 net fleet growth for small hundred bulk carriers of 20 to 34000 deadweight was minus <unk>, 3% year on year.
Diamantis Andriotis: Net flip growth is expected to continue at around 0% in 2025 and then at around minus 0.5% in 2026.
Dr. Eddy: Net fleet growth is expected to continue at around zero percent in 2025, and then at around minus <unk>, 5% in 2006.
Diamantis Andriotis: Flip growth forecast for 2025-2027 is based on the current order book after assuming slip Slide 8 shows the Aframax tanker's fleet age, growth and order book. The global Aframax LR2 fleet currently stands at 1,154 vessels. Of these, 262 vessels are over 20 years of age, accounting for 22.7% of the total number of vessels. With a starting tally of 1134 vessels, the current fleet represents a change of 1.76% in vessel numbers over the years so far. The order book now stands at 213 vessels and presents 18% of the current fleet. Demolition activity is expected to remain strong going forward.
Dr. Eddy: Fleet growth forecast for <unk> 25, 27 based on the current order book after assuming slippers and expected demolition.
Dr. Eddy: Slide eight shows the Aframax tankers fleet age growth in order to book the global aftermarket seller to fleet currently stands at 1154 vessels.
Dr. Eddy: Of these 262 vessels are over 20 years of age accounting for 22, 7% of the total number of vessels with.
Dr. Eddy: With a starting salary of 1134 vessels. The current fleet represents a change of 176% investment numbers over the year so far.
Dr. Eddy: The order book now stands at 213 vessels and presents 18% of the current fleet demolition activity is expected to remain strong going forward.
Diamantis Andriotis: Significantly more vessels were built in the early 2000s compared to the 90s. Aframax vessels dominate the 2024 tanker sector, with total new building investments reaching $11.4 billion, claiming the top position for the year among their largest counterparts. New building prices remain at their highest level year-to-date, although they appear to have stabilized over the latter part of the year.
Dr. Eddy: <unk> simply more vessels will be built in the early two thousands compare to the nineties.
Dr. Eddy: Our products vessels dominated trade 24 tanker sector with total new building investments, reaching 11 4 billion, claiming the top position for the year are among the largest counterparts.
Dr. Eddy: New building prices remain at their highest level year to date, although they appear to have stabilized over the latter part of the year.
Diamantis Andriotis: Slide 9 shows the current fleet of C3is. By the end of 2024, C3is 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 33,000 deadweight dry bulk carrier, the Ecospeedfire, bringing the total fleet capacity to 213,000 deadweight with an average age of 14 years. All vessels have had their ballast water systems already installed. Our capital commitment due in 2025 is a special survey of the tanker Afrapel 2, scheduled in Q3 2025. All the vessels are unencumbered and currently employed on short to medium-term period charters and spread voyages.
Dr. Eddy: Slide nine shows the current fleet of <unk> by 10% to 24 <unk> shown that operated a fleet of 300, <unk> dry bulk carriers and one aframax tanker.
Dr. Eddy: In May 2024, the company took delivery of 33000 deadweight of dry bulk carrier of vehicles Spitfire, bringing the total fleet capacity to 215000 deadweight with an average age of 14 years.
Dr. Eddy: All vessels have had their balance whether it shifts centralizing stone.
Dr. Eddy: Our capital commitments. During 2025 is a special survey of the tanker offer two scheduled in Q3 2025.
Dr. Eddy: All the vessels are unencumbered and currently employed on short to medium term period charters and spent four years.
Diamantis Andriotis: Slide 10 shows a sample of international charters with whom the management company has developed strategic relationships and has experienced repeat business. 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.
Dr. Eddy: Slide 10 shows a sample of international Charterers, with whom the management company has developed such agency relationships and has experienced repeat business repeat business highlights the confidence our customers have for our operations and as a distraction of the services we provide.
Dr. Eddy: The key to maintaining our relationships with these companies are high standards of safety and reliability of service.
Nina Pyndiah: I will now turn over the call to Nina Pyndiah for our financial performance. Thank you Diamantis and good morning to everyone. Please turn to slide 11 and I will go through our financial performance for the fourth quarter and 12 months of 2024. Voyage revenues for the year 24 amounted to $42.3 million, an increase of 47% compared to 23%. 76% of our total revenues were contributed by our AfroMax tanker, the AfroPearl 2. Our net revenues for the period generated December 24 were $28.2 million, an increase of 33% compared to the same period of last year. Our daily time charter equivalent was down by 10% from Q4-23.
Speaker Change: I'll now turn over the call to <unk> for our financial performance.
Speaker Change: Thank you Dan mandates and good morning to everyone.
Speaker Change: Please turn to slide 11, and I will go through our financial performance for the fourth quarter and tough months of 10% full.
Speaker Change: Voyage revenues for the attention for amounted to $42 3 million, an increase of 47% compared to 23 seven.
Speaker Change: 76% of our touch.
Speaker Change: Our revenues were.
Speaker Change: Contributed by our Aframax tanker the <unk>.
Speaker Change: Our net revenues for the period January to December 24, or $28 2 million, an increase of 33% compared to the same period of last year.
Speaker Change: Our daily time charter equivalent was down by 10% from Q4 2003.
Nina Pyndiah: Our fleet operational utilization was 90.3% for the 12-month period ending December 31, 24, compared to 91.6% for the same period in 23. Voyage expenses and vessels operating expenses for the year 24 were $14.1 million and $8.4 million. The increase in voyage expenses was related to increases in bunker costs and port expenses, and the vessels operating expenses increase was attributed to the increase in the average number of vessels. Voyage expenses for 2024 mainly included bunker costs of $6.9 million and port expenses of $4.7 million, corresponding to 82% of total voyage expenses. This was due to the fact that our tanker, the Afropo-2, was operating in the spot market.
Speaker Change: Our fleet operational utilization was 93% for the 12 month period, ending December 31st plentiful compared to 91, 6% for the same period in 2003.
Speaker Change: Voyage expenses and vessels operating expenses for the year 2004 was $14 1 million and $8 4 million.
Speaker Change: The increase in voyage expenses was related to increases in bunker costs, and <unk> expenses and the vessels operating expenses increase was attributed to the increase in the average number of vessels.
Speaker Change: Voyage expenses for 2024, mainly included Banca <unk>.
Speaker Change: $6 9 million and <unk> expenses of $4 7 million corresponding to 82% of total voyage expenses.
Speaker Change: This was due to the fact that our tank car of the aircraft.
Speaker Change: Was operating in the spot market.
Nina Pyndiah: Operating expenses for 24 mainly included core expenses of $4.4 million corresponding to 52% of total operating expenses. Spares and consumable costs of $1.8 million, corresponding to 21%, and maintenance expenses of $900,000, representing works and repairs on board the vessels, 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. The GNA costs were $3 million and mainly related to the expenses incurred from the two public offerings and the reverse stock split. The depreciation recorded for 2024 was $6.2 million, a 51% increase from last year due to the increase in the average number of assets.
Speaker Change: Operating expenses for 2004, mainly included Greg expenses of $4 4 million corresponding to 52% of total operating expenses.
Speaker Change: Bass, and consumable cost of $1 8 million corresponding to 21% and maintenance expenses of 900000, representing works and repairs on both the vessels corresponding to a 11% of total vessel operating expenses.
Speaker Change: Management fees increased by 48% from 10 control due to the increase in the average number of vessels.
Speaker Change: G&A costs were $3 million and mainly related to the expenses incurred from the two public offerings and the reverse stock split.
Depreciation recorded for 2004 was $6 2, million% to 51% increase from last year due to the increase in the average number of vessels.
Nina Pyndiah: Related party interest and finance costs for the period was $2.5 million and related to the accrued interest expenses as of December 31, 2024, in connection with the balance table on the acquisition prices of our AfraMax tanker AfraPo2 and our bug carrier, the Echo Spitfire. 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 Pearl II was completely paid off in July 24, and 90% of the balance due on the Echo Spitfire is payable in April 25.
Speaker Change: Related party interest and finance costs for the period was $2 5 million and related to the accrued interest expenses as of December 31st 74 in connection with the balance payable on the acquisition prices of our products tanker.
Speaker Change: And our bulk carrier the acoustic fire.
Speaker Change: Accounting purposes, the balance payable under two vessels had to be reported as capital and interest costs.
Speaker Change: Although net interest charge by the salaries.
Speaker Change: Final balances paid remain the same as the originally agreed purchase prices.
Speaker Change: The effort was completely paid off in July 24, and 90% of the balance on the Echo stick tire is payable on April 25.
Nina Pyndiah: Interest income of $1,000,424 was recorded and relates to the interest received on our bank deposit. As a result of the above, for the 12 months ended December 31st, 2024, the company reported an adjusted net income of $8.7 million compared to an adjusted net income of $9.3 million for the same period of last year. a decrease of seven percent. Adjusted EBITDA for the 12th month and the 31st of December 2014 amounted to $16.4 million compared to an adjusted EBITDA of $14.7 million for the same period of last year, an increase of 11%. A non-cash item of $11.13 million loss was recorded at year-end 24, resulting in a net loss of $2.7 million for the year 24.
Speaker Change: Interest income of $1 million for 24 was reported and relate to the interest received on our bank deposits.
Speaker Change: As a result of the above for the 12 months ended December 31st plentiful. The company reported an adjusted net income of $8 7 million compared to an adjusted net income of $9 3 million for the same period of last year, a decrease of 7%.
Speaker Change: Adjusted EBITDA for the 12 months ended 30 <unk> of December tangible amounted to $16 4 million compared to an adjusted EBITDA of $14 7 million for the same period of last year, an increase of 11%.
Speaker Change: A noncash item of 11, one 3 million loss was recorded at year end 24, resulting in a net loss of $2 7 million for the year 'twenty four.
Nina Pyndiah: 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 $8.4 million for 2024. Turning to slide 12 for the balance sheet, our cash balance was $12.6 million by the end of Q4-24 after paying $39.5 million for the remaining 90% purchase price of our AfraMax tanker AfraPro2 in Q3-24 and $1.62 million which was 10% of the purchase price of the handy-sized dry bulk carrier EcoSplit dryer in Q2-24. The fleet book value as at the end of December 24 was $84 million, an increase of 12% from year-end 23 due to the addition of the Barkaria Echo Spitfire.
Speaker Change: This non cash item represent the unrealized loss on the SaaS value of non exercised warrants.
Speaker Change: Discounting this noncash item would have resulted in a net profit of $8 4 million for 2024.
Speaker Change: Turning to slide 12 for the balance sheet, our cash balance was $12 6 million by the end of Q4 24 after paying $39 5 million for the remaining 90% purchase price of our Aframax tanker fab in.
Speaker Change: In Q3 times, four and 162 million, which was 10% of the purchase price of the handy size dry bulk carrier Echo Spitfire in Q2 24.
Speaker Change: The fleet book value as at the end of December 24 was $84 million, an increase of 12% from <unk> 23 due to the addition of the bulk carrier echoes a fire.
Nina Pyndiah: The company has no outstanding bank debt. The financial liability of $16.3 million relates to the following 90% of the purchase price of the Echo Spitfire of $14.71 million plus payables of $1.59 million due to the management company and subsequently paid in January 2025. The warrant liability of 10.4 million relates partly to the net fair value losses on non-exercise warrants at year-end 24. 690,000 from the total fair value losses has been recorded to equity.
Speaker Change: The company has no outstanding bank debt.
Speaker Change: The financial liability of $16 3 million relates to the following 90% of the purchase price of the <unk> decline of $14 $71 million plus payables of $1 five 9 million due to the management company and subsequently paid in January 10 to 25.
Speaker Change: The warrant liability of $10 4 million relate to.
Speaker Change: Partly to the net fair value losses on non exercise warrants at year end 'twenty four.
Speaker Change: 690000 from the total fair value losses has been recorded to equity.
Nina Pyndiah: 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 inspections, 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. tariffs 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.
Speaker Change: Concluding the presentation on slide 13, we outlined the key variables that will assess as progress with our company's growth.
Speaker Change: Owning a high quality fleet reduces operating costs improve safety and provides a competitive advantage in securing favorable charters.
Speaker Change: 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: None of our vessels were bit from Chinese shipyards, hence the proposed U S. Tariffs on all Chinese built ships would be significant it will be a significant positive shift for our fleet.
Speaker Change: The company's strategy is to follow a disciplined growth with in depth technical and condition assessment review.
Nina Pyndiah: Management is continuously seeking a timely and selective acquisition of quality vessels with current focus on short to medium term charters and sport voyages. We always charter to high-quality charters, such as commodity traders, industrial companies, and oil producers and refineries. 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. Despite being in operation for less than two years and having increased our fleet by 234% since inception, the company has no bank debt. No interest was charged by the affiliated sellers for the subsequent 90% payments due on the Afropol 2 and the EcoSpit.
Speaker Change: Management is continuously seeking a timely and selective acquisitions of quality vessels with current focus on short to medium term charters and spot voyages.
Speaker Change: We always charter to high quality charterers, such as commodity traders industrial companies and oil producers and refineries.
Speaker Change: The company maintains 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 less than two years, and having increased our fleet by 234% since inception. The company has no bank debt.
Speaker Change: No interest charge by the affiliated sellers for the subsequent 90% payments on.
Speaker Change: On the <unk>, two and the Echo Spitfire.
Diamantis Andriotis: At this stage, our CEO, Dr. Diamantis Andriotis, will summarize the concluding remarks for the period examiner. For the year 2024, we reported voyage revenues of 42.3 million, an increase of 47% from 2023, net revenues of 28 million, an increase of 33% from 2033, and adjusted debita of 16.4 million, 11% higher than 2023. 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. We have more than tripled our fleet capacity without incurring any bank debt. Our cash balance at year-end 2024 was $12.6 million after capex payments of $41 million during the year.
Speaker Change: At this stage our CEO, Dr. <unk> will summarize the concluding remarks for the period examined.
Speaker Change: For the year 2024, we reported voyage revenues of $42 3 million, an increase of 47% from 2023.
Speaker Change: Net revenues of $28 million, an increase of 33% from 10, 53, and adjusted EBITDA of $16 4 million, 11% higher than 2023.
Speaker Change: We have taken delivery of our fourth vessel this year, bringing our total fleet capacity to 215000 deadweight, an increase of 234% from the company's inception over a year ago.
Speaker Change: We have more than trebled, our fleet capacity without incurring any bank debt.
Speaker Change: Cash balance at year end 2024 was $12 6 million after capex payments of 41 million during the year.
Diamantis Andriotis: Shipping is currently navigating a transitional phase, with shifting 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 profit.
Speaker Change: Shipping is currently navigating the transitional phase with shifting dynamics influenced by geopolitical factors environmental regulations demand patterns from the weather related challenges.
Speaker Change: 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.
Diamantis Andriotis: Politics will play an important role in CPN 2025, particularly in the US. 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, are two important factors that, if they materialize, could have a significant positive impact on the profitability of our company.
Speaker Change: Politics will play an important role in shipping to intensify, particularly in the U S.
Speaker Change: The Trump administration is likely to push an agenda aligned with drill baby drill.
Speaker Change: This combined with the threat of tariffs on Chinese built vessels of which we have none are two important factors that if they materialize could have a significant positive impact on the profitability of our company.
Diamantis Andriotis: 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.
With a clear focus on the emerging opportunities. We remain confident that 2025 will be a year that will produce strong financial performance and potential growth prospects.
Diamantis Andriotis: 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 2025 results.
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 our first quarter of 2025 results.
Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.
Speaker Change: This concludes today's conference call. Thank you all for participating you may now disconnect your lines. Thank you.