Q2 2025 C3is Inc Earnings Call
<unk> holding up India.
Diamantis Andriotis: Company. Joining 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 views with respect to future events in 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 two of this presentation. I would also like to point out that all amounts quoted, unless otherwise clarified, are implicitly stated in U.S. dollars. Today, we have released our earnings results for the second quarter of 2025. Let's proceed to discuss these results and update you on the company's strategy and the market in general. Please turn to slide three where we summarize and highlight the company's performances, starting with our financial highlights.
We will 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 Companys control.
At this pace if you don't take a moment to read our disclaimer on slide two of this presentation.
I would also like to point out that all amounts quoted unless otherwise clarified that implicitly stated in us dollars.
Today, we have released our earnings results for the second quarter of 2025. So let's proceed to discuss these results and update you on the Companys strategy and the market in general.
Please turn to slide three where we summarize and highlight the companys performances, starting with our financial highlights.
For the second quarter of 17, five we had a net loss of $5 3 million, which was due to a non cash item the unrealized loss on the fair value of warrants of $6 4 million.
Diamantis Andriotis: For the second quarter of 2025, we had the net loss of $5.3 million, which was due to a non-cash item, the unrealized loss of the fair value of warrants of $6.4 million. Disregarding this accounting adjustment, we have an adjusted net income of $1.1 million for the quarter. Our net income for the first half of the year was $2.6 million. In April 2025, we settled the final outstanding balance of $14.6 million due on our latest addition, the Eco Spitfire. We met all of our CapEx obligations without resorting to any bank loans. In Q3 2025, our Aframax tanker, the Afrapearl II, successfully completed its special survey. The next special survey will be for the Eco Spitfire in 2026. Slide four shows the dry bulk trade for the first half of 2025.
This regarding this accounting adjustment, we had an adjusted net income of $1 1 million for the quarter.
Our net income for the first half the year was $2 6 million.
In April 2025, we settled the final outstanding balance of $14 6 million view on our latest edition vehicle speed fire.
We met all of our Capex obligations without resorting to any bank loans in.
In Q3, 25, our Aframax tanker will be offered to successfully complete this year Special survey.
The next special survey will be for vehicle bushfire in 2026.
Slide four shows the dry bulk trade for the first half of 2005.
The first half of 'twenty into five has seen the dry bulk market navigate significant geopolitical volatility, particularly driven by ongoing tire fluctuations and broader global long term certainties.
Diamantis Andriotis: The first half of 2025 has seen the dry bulk market navigate significant geopolitical volatility, particularly driven by ongoing tariff fluctuations and broader global economic uncertainties. While overall, seaborne dry bulk trade has experienced a modest decline of approximately 1%, market dynamics reveal nuanced sectoral performances with patterns of strengths and weaknesses across specific market segments. On the demand side, the decrease in global dry bulk trade primarily reflects weakened demand from key markets, notably China, where commodity imports have contracted amid elevated inventories and structural overcapacity in the steel sector. During the first six months of 2025, C3is Inc. iron trade softened versus 2024, with a 5% year-on-year drop in Chinese imports amid mill restocking, while India's rise in imports contributed to geographic diversification.
While overall seaborne dry bulk trade has experienced a modest decline of approximately 1% market dynamics really noon sector performances with patterns of strengths and weaknesses across specific market segments.
The demand side the decrease in global dry bulk trade, primarily reflects weakening demand from key markets, notably China commodity inputs have contracted a new delivery did inventories and structural overcapacity in the steel sector.
During the first six months of 2025, seaborne iron trade softening versus delinquent for with a 5% year on year drop in Chinese imports amid mill destocking, while MBS rising inputs contribute geographic diversification.
Coal and iron ore imports traditionally major drivers of dry bulk shipping have shown marked market declines exacerbated by increased domestic production and reduce thermal energy requirements. In contrast, grain trade despite facing headwinds experienced increased ton mile demand due to trade grew three alignments.
Diamantis Andriotis: Coal and iron ore imports, traditionally major drivers of dry bulk shipping, have shown marked declines, exacerbated by increased domestic production and reduced thermal energy requirements. In contrast, grain trade, despite facing headwinds, experienced increased ton-mile demand due to trade route realignments influenced by U.S.-China tariffs. Additionally, minor bulk commodities such as fertilizers, aggregates, and particularly long-haul bauxite trade from Guinea have shown resilience and provided partial offset in demand support. Slide five shows the Handysize market fundamentals. Handysize vessels have shown resilience, benefiting from relatively stable minor bulk trades with commodities such as fertilizer, aggregates, and bauxite demonstrating notable growth. From a longer-term perspective, the broader global economic environment presents considerable uncertainty for the shipping industry. Growing trends of fragmentation and protectionism, exemplified by ongoing tariff escalations and shipping trade alliances, pose substantial risks. Such developments will potentially create opportunities through extended trade routes.
Influenced by U S sinusitis.
Additionally, minor bulk commodities, such as fertilizers aggregating basically long haul bullshit trade from Guinea has shown resilience and provided a partial offset and demand supports.
Slide five shows the handy size market fundamentals handy size vessels have shown resilience benefiting from relatively stable minor bulk trades with promote certain fertilizer aggregates in boxing demonstrating notably growth.
From a longer term perspective, the broader global economic environment presents considerable uncertainty for the shipping industry.
Growing trends of fragmentation and protection needs with <unk>.
Amplified by ongoing <unk> escalations in seafood trade alliances pose substantial risks.
Developments will potentially create opportunities through extended trade routes.
On the handy size fleet build the segments quite operate with 14% of the dry bulk handy size fleet being above 20 years of age.
Diamantis Andriotis: On the Handysize fleet growth, the segment is quite overage, with 14% of the dry bulk Handysize fleet being above 20 years of age. Handysize dry bulk carrier order book spans up 9% of the current fleet capacity in deadweight terms. Compliance with new environmental regulations requiring slower speeds and greater off-hire days for special surveys, coupled with an aging fleet profile, reduces effective fleet supply. The dry bulk supply outlook for 2025 reflects moderate fleet expansion, with overall tonnage projected to grow by approximately 2.5%. Fleet demolition activity remains historically low, though the fleet's aging profile suggests potential for increased scrapping, with around 30% of the vessels over 15 years old and 13% exceeding 20 years. Meanwhile, operational speeds remain historically low for both ballast and laden legs, driven by regulatory pressures, cost efficiency, and subdued trade market conditions. Slide six shows the Aframax tanker market fundamentals. U.S.
And besides dry bulk carrier order book stands at 9% of the current fleet capacity in deadweight terms.
Compliance with new environmental regulations, requiring slower speeds and greater off hire days for special surveys.
Happy with Amazing fleet profile and reduces effective fleet supply.
The dry bulk supply outlook presented five reflects moderate fleet expansion. We further on partners projected to grow by approximately two 5%.
Demolition activity remains historically low, though the fleet safety profiles of this potential for increased scrapping.
30% of the vessels over 15 years old and 15%, Steve exceeding 20 years.
Meanwhile, operational speeds remain historically low for both Biola, London legs, driven by regulatory pressures cost efficiency and subdued trade market conditions.
Slide six shows the Aframax tanker market fundamentals.
U S. President Trump's continued global tire Crusade has been bearish for oil prices.
Diamantis Andriotis: President Trump's continuing global tariff crusade has been bearish for oil prices. His threat to place additional tariffs on buyers of Russian crude targeted the Indian buyers in particular. This, combined with the announcement from the EU of a ban on oil products derived from Russian crude, resulted in increasing interest in Middle Eastern buyers. As we are in a historically low global stock, the market has witnessed seasonally buoyant demands. The Israel-Iran war created fears of a wider regional conflict, with potential attacks on energy facilities leading to a jump in oil prices and tanker rates. China continues to import more oil as compared to last year's disappointing level. However, this is more a reflection of building inventories rather than a demand-driven effort. President Trump is now threatening 100% tariffs on buyers of Russian oil unless the war stops.
Threat to place additional price and buyers of Ras include targeted the Indian buyers in particular.
This combined with the announcement from the EU of the bond Memorial products derived from bras include resulting increasing interests middle east environments.
As we are in this 30 low global stock the market has witnessed seasonally volume demands.
These very young work created fears from and why the reason promptly with potential attacks from LNG facilities, leading to a jump in oil prices and banking rates.
China continues to import more oil as compared to last year's disappointing levels. However, this is more a reflection of building inventories 100 demand driven effort.
President Trump is now threatening 100% positive some buyers of rationally unless the worst stops <unk> loses buyers this could have.
Diamantis Andriotis: If Russia loses buyers, this could have unpredictable impacts on oil and tanker markets. OECD oil inventories stand at five years historically low, while lower bunker fuel costs will likely encourage inventory restocking, as is already the case with China. Although oil prices spiked in June due to heightened geopolitical tensions, including the Israel-Iran conflict, and created temporary market disruptions, they have since normalized, reinforcing conditions for replenishment and supporting tanker activities. In 2025, global oil production is expected to increase by 1.7%, mainly driven by a rise in OPEC supply and increasing offshore oil production, potentially boosting ton-mile demand. Crude tanker demand is expected to grow by 0.6% and 0.8% in 2025 and 2026, respectively. On the Aframax fleet age, the global Aframax fleet now stands at 1,182 vessels, with the highest number of vessels in the 15-20 years category. Slide seven shows the tanker net fleet growth.
And predictable impacts from oil and tanker markets.
OECD oil inventories spans of five year historic low.
Lower bunker fuel cost will likely encouraging vendor is bookings as is already the case this time.
Although oil prices spiked in June due to heightened geopolitical tensions, including these variety of Iran. Currently.
<unk> created a temporary market disruptions, we have since normalized reinforcing conditions for replenishment supporting tanker activity.
In 2025 global oil production is expected to increase by one 7%, mainly driven by a rise in notebooks supply increasing offshore early production potentially boosting ton mile demand.
Crude tanker demand is expected to grow by <unk>, 6%.
0.8% in 2005 in Princeton to seek respectively.
On the Aframax fleet as the global Lockbox fleet now stands at 1182 vessels.
With the highest number of vessels in the 16 20 years category.
Slide seven shows the banking net fleet growth the.
The combined order book for Aframax LR twos.
Diamantis Andriotis: The combined order book for Aframax LR2 stands at 18% in contrast to approximately 22% of the existing fleet being over 20 years of age. The number of new tanker contracts shifts across all segments in late 2023 and early 2024, but experiences a steep decline from mid-2024 onward due to geopolitical market uncertainty and limited yard capacity. Around 16% of crude tanker fleet capacity as of June 2025 is under sanctions, significantly reducing capacity. Emissions-related regulations are expected to further constrain the effective tanker supply. 56 LR2s and seven Aframaxes are scheduled to be delivered in 2025, and a larger number of deliveries in 2026. Aframaxes are likely to continue benefiting from the shift in Russian crude flows, but LR2s tend to lose the most if there are increased transits through the Suez Canal. Some offset could come from more sanctioning of the gray fleet.
Tons up 18% in contrast to approximately 22% of the existing fleet being over 20 years of age.
The number of new tanker comverse shirts across those segments in late to Infinity and thirdly for instance court, but experienced a steep decline for instance for onward due to geopolitical market uncertainty and needing to get capacity.
Around 60% of crude tanker fleet capacity as of June 2005 is under sanction significantly reducing capacity.
Emissions related regulations are expected to further constrain the effective tanker supply.
56, <unk>, 7% from Max's are scheduled to be delivered in 2025, and the larger number of deliveries in 2000 seats.
Offer Max's are likely to continue benefiting from the safety run in crude flows but tailored to stand to lose the most is the increased <unk> come out.
Some offset could come from more sanctioning of the briefly.
95% of the Aframax LR two fleet is currently fraction.
Diamantis Andriotis: 25% of the Aframax LR2 fleet is currently sanctioned. Slide eight shows the current fleet of C3is Inc. C3is Inc. owns and operates a fleet of three Handysize dry bulk carriers and one Aframax oil tanker. In May 2024, the company took delivery of the 33,000 deadweight tons dry bulk carrier, the Eco Spitfire, bringing the total fleet capacity to 213,000 deadweight tons, with an average age of 13.5 years. All vessels have had their ballast water systems already installed. The Afrapearl II successfully completed its special survey in August 2025. All the vessels are currently unencumbered and currently employed on short to medium-term period charters and spot voyages. None of the vessels will be built in Chinese shipyards, hence not affected by the newly imposed tariffs. Slide nine shows a sample of the international charterers with whom the company has developed strategic relationships and has experienced repeat business.
Slide eight shows the current fleet of Ccas Gpas owns and operates a fleet of <unk> dry bulk carriers in Guam iphones sold tanker maintenance planned for the company took delivery of the 33000 deadweight dry bulk carrier Echo Spitfire, bringing the total fleet capacity to 200.
15000 deadweight with an average age of 14 five years.
All vessels have their ballast water system solid installed the affirming the applicant to successfully completed Geospatial survey mobile Sim quantify at.
All the vessels by currently in timber and currently employed on short to medium term period charters and spoke volumes.
None of the vessels will be built.
<unk> same shipyards, hence not affected by the newly imposed tariffs.
Slide nine shows a sample of international charterers, with whom the monitoring company has developed strategic relationships and has experienced repeat business with big business highlights the confidence our customers have for our operations and the satisfaction of the services we provide.
Diamantis Andriotis: 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 Nina Pyndiah for our financial performance.
The key maintaining to our relationships with these companies are high standards of safety and reliability of service.
I will now turn over the call to unit, India for our financial performance.
Thank you gentlemen, and good morning to everyone.
Nina Pyndiah: Thank you, Diamantis, and good morning to everyone. Please turn to slide 10, and I will go through our financial performance for the second quarter of 2025. We reported voyage revenues of $10.7 million for the second quarter of 2025 compared to $10.8 million for the second quarter of 2024, a reduction of 1%. This was primarily due to the decrease in the average time charter equivalent rate of our vessels. The TCE rate for the whole fleet was 45% lower than the rate for Q2 2024. Voyage costs for Q2 2025 were $4.7 million compared to $3.1 million for Q2 2024 due to the increase in the number of vessels, that is the Eco Spitfire that was added to the fleet in April 2024.
Turning to slide 10, and I will go through our financial performance for the second quarter of 10 contains high.
We reported a voyage revenues of $10 7 million for the second quarter compared to $10 8 million for the second quarter hedge for a reduction of 1%.
This was primarily JC that decrease in the average time charter equivalent rate of backfill.
The TCE rates for the whole screen.
<unk>, 5% lower than the rate for Q4.
Voyage cost for TC five by $4 7 million compared to $3 1 million for Q2 24.
Due to the increase in the number of vessels.
<unk> that was added to the fleet in April as helpful.
Operating expenses of $2 4 million were recorded for Q2, five compared to $2 million for QC transform again due to the addition of the acre.
Nina Pyndiah: Vessels operating expenses of $2.4 million were recorded for Q2 2025 compared to $2 million for Q2 2024, again due to the addition of the Eco Spitfire at the beginning of Q2 2024. G&A expenses were $677,000 in Q2 2025 compared to $603,000 in Q2 2024, and related mainly to the stock-based compensation cost. Depreciation increased from $1.5 million in Q2 2024 to $1.6 million in Q2 2025 due to the increase in the average number of vessels. A non-cash item of $6.3 million loss was recorded for Q2 2025 as compared to a loss of $14.5 million for Q2 2024. This item represents the unrealized loss on the fair value of non-exercised warrants. This non-cash item arose due to the change in the fair value of warrants, that is, the issuance date versus June 30, 2025.
At the beginning of Q2 control.
G&A expenses was 677000 in Q2, five compared to 603, California in quality control and related mainly to the stock based compensation costs.
Depreciation increased from $1 5 million in Q2, four to $1 6 million in Q3 and five.
Due to the increase in the average number of vessels.
A noncash item of $6 3 million was recorded for key six inch five as compared to a loss of <unk>.
$14 5 million for Q2 2004.
This item represents.
Realized loss on the sale value of non exercise Huawei.
This non cash item.
Due to the change in the half IGF, one that is the insurance date versus GBP 95.
As a result of the above we reported a net loss of $5 million and adjusted net income of $1 1 million for Q2 high.
Nina Pyndiah: As a result of the above, we reported a net loss of $5 million and an adjusted net income of $1.1 million for Q2 2025 as compared to a net loss of $11.8 million and an adjusted net income of $2.9 million for 2024. A decrease of 55% on the net loss and a decrease of 60% on the adjusted net income compared to Q2 2024. Turning to slide 11 for the balance sheet, we had a cash balance of $2.3 million compared to $12.6 million at the end of 2024, a decrease of 82%. This drop in our cash balance was because in Q2 2025, we paid off the remaining 90% payment balance due on the Handysize Eco Spitfire and the bunkers remaining on board, a total of $15.1 million.
As compared to a net loss of $11 8 million and an adjusted net income of $2 9 million for 2004.
A decrease of 55% on the net loss and a decrease of 60% on the adjusted net income compared to Q2 tangible.
Turning to slide 11 for the balance sheet, we had a cash balance of $2 3 million compared to $12 6 million at the end of 2024, a decrease of eight 2%.
This drop in our cash balance was because you do $2 five we paid off the remaining 90% payment balance June on the handy sized echo carrier.
<expletive> buyout and the bunker is remaining of onboard.
$15 1 million.
Other current assets, mainly incurred charter as receivable of $5 7 million for the first half of bench by.
Nina Pyndiah: Other current assets mainly include charterers receivable of $5.7 million for the first half of 2025 compared to $2.8 million at December 2024, an increase of 85%, as well as inventories of $1.1 million compared to $0.9 million at December 2024. The vessels' net value of $80.9 million are for the four vessels less depreciation. Trade accounts payable of $1.4 million are balances due to suppliers and brokers. Payable to related party of $3 million represents the balance due to the management company, Braze Maritime. A warrant liability of $9.8 million was recorded, a drop of 6% from the year-end balance at year-end 2024 when it was $10.4 million. Concluding the presentation on slide 12, we outlined the key variables that will assist us to progress with our company's growth. Owning a high-quality fleet reduces operating costs, improves safety, and provides a competitive advantage in securing profitable charters.
Compared to $2 8 million at December control, an increase of 85% as well as inventories of $1 1 million compared to <unk> 9 million at December Thanks, Paul.
The vessel net value of $89 million for the full vessels.
Depreciation.
Accounts payable of $1 4 million AR balances Jay to suppliers and brokers.
Payable to related party of framing Yang represents the balance sheet at the management company Brave Maritime.
A warrant liability of $9 8 million was recorded a drop of 6% from the year end balance at yearend 2004, when it was $10 4 million.
Concluding our presentation on slide 12, we allow we have outlined the key variables that we see.
Progress with our company growth.
Owning a high quality fleet reduces operating costs improved safety and provides a competitive advantage in securing favorable charters.
We maintain the quality of the vessels by carrying out regular inspections.
Nina Pyndiah: 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 imposed U.S. tariffs on all Chinese-built ships starting in October 2025 is 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. Equity issuances will continue as management is continuously seeking a timely and selective acquisition of quality non-Chinese-built vessels, with current focus on short to medium-term charters and spot voyages. We always charter to high-quality charterers such as commodity traders, industrial companies, and oil producers and refineries. Despite being in operation for two years and having increased our fleet by 234% since inception, the company has no bank debt.
First while import analyses and adopting a comprehensive maintenance program for each vessel.
None of our vessels will be from Chinese shipyard, hence the incurred U S salaries on all Chinese built ships starting in October I think.
It is a significant positive shift for our fleet.
The company's strategy is to follow a dissipate in growth.
With in depth technical and condition economic review.
Equity Insurances will continue as management is continuously seeking a timely and selective acquisition of quality non Chinese based backhaul.
With current focus on short to medium term charters.
Spot voyages.
We always charter to high quality charterers, such as commodity traders industrial companies and oil producers and refineries.
Despite being in operation for two years, and having increased our fleet by 234% since inception, the company has new bank debt.
Net interest charge by the actually aggregated sandals on the purchase prices of the <unk>.
Nina Pyndiah: No interest was charged by the affiliated sellers on the purchase prices of the Afrapearl II and the Eco Spitfire. From July 2023 to date, we have repaid all our CapEx obligations, totaling $59.2 million, without resorting to bank loans. At this stage, our CEO, Dr. Diamantis Andriotis, will summarize the concluding remarks for the period examined.
<unk> and the echoes a fire.
From July <unk> to date, we have repaid all our capex obligations totaling $59 2 million without resorting to backflow.
At this stage our CEO Dr. <unk> says, we've summarized our concluding remarks for the period examined.
For the first half of strengthened five we reported royalty revenues of $90 4 million EBITDA 6 million net income of $2 6 million and EPS of <unk> 52.
Diamantis Andriotis: For the first half of 2025, we reported voyage revenues of $19.4 million, EBITDA of $6 million, net income of $2.6 million, and EPS of $0.52. In April 2025, we paid off the remaining balance of $14.6 million due on our bulk carriers, the Eco Spitfire. In August 2025, we successfully completed the dry loading of our Aframax tanker, the Afrapearl II. Major changes in the maritime shipping industry were caused by extensive transitions in the world due to geopolitical factors, environmental regulations, demand patterns, and weather-related challenges. Despite these shifting dynamics, C3is Inc. performance remains solid, with an increase of its fleet capacity by over 230% since inception, without incurring any bank debt. We are fully deliberate, thus significantly enhancing our financial flexibility. This financial position provides a strong foundation for our future growth. Our performance so far has demonstrated our resilience and strategic focus.
In April <unk>, we paid off the remaining balance of $14 6 million <unk> bulk carriers vehicles require.
In <unk> five we successfully completed the drydocking of our Aframax tanker the occupancy.
Major changes in the maritime shipping industry with caused by extensive transitions new room due to geopolitical factors environmental regulations demand partners and weather related challenges.
Despite these seasonal dynamics Cci's performance remains solid with an increase of this fleet capacity by over 207% since inception without incurring any bank debt.
We are fully delivered thus increasingly enhancing our financial flexibility.
This financial position provides a strong foundation for our future growth.
Our performance so far has demonstrated a resilience and protective focus we are confident that we have established foundations that are adapting to this changing environment, thereby enhancing our fundamental ability to both further develop existing core businesses Oswald lodge explore potential new growth businesses.
Diamantis Andriotis: We are confident that we have established foundations that are adaptable to this changing environment, thereby enhancing our fundamental ability to both further develop existing core businesses as well as explore potential new growth businesses. 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 results of the third quarter of 2025.
We would like to thank you for joining us today and look forward to having you with us again.
<unk> call for the results of the third quarter of <unk> 25.