Q2 2026 C3is Inc Earnings Call
Speaker #1: 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 #1: 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 US dollars.
Speaker #1: We have today released our endless results for the second quarter of 2026, so let's proceed to discuss these results and update you on the company's strategy and the market in general.
Speaker #1: Please turn to slide 3, where we present the impressive results achieved by C3is for the first 6 months of the year. Our voyage revenues were $24 million for Q2 2026 compared to $10.7 million for Q2 2025, an increase of 124%.
Speaker #1: For the first 6 months of the year, our revenues were $35.6 million, compared to $19 million in 2025, an increase of 84%. Our net revenues were $17 million for the quarter, an increase of 185%, compared to Q2 2025.
Speaker #1: For the first half of the year, our revenues were $27.4 million, compared to $11.8 million in 2025, an increase of 132%. Our net income was nearly $10 million for the quarter, compared to a loss of $5 million in 2025, a 287% increase.
Speaker #1: For the 6 months we had the net income of $13 million, compared to $2.6 million last year, a whopping increase of $409%. Our adjusted net income was $9.8 million for the quarter, compared to $1.1 million in 2025, a massive increase of $755%.
Speaker #1: For the first 6 months of 2026, our adjusted net income increased by an impressive $562% to $15.3 million, compared to $2.3 million in 2025.
Speaker #1: By the end of June 2026, our cash balance went up $123% from year-end 2025 to $33.2 million. By the end of July 2026, the balance went further up to $48 million, an increase of $222% from year-end 2025.
Speaker #1: At $12 million, our EBITDA went up a remarkable 426% in Q2 2026, compared to -3.7 million for Q2 2025. For the 6-month period, our EBITDA jumped by $176% to $16.7 million, compared to $6.0 million for the 6 months 2025.
Speaker #1: On slide 4, we summarize and highlight the company's performance. For the second quarter of 2026, the time-charter equivalent rate of our fleet—which is the voyage revenues less voyage expenses—divided by the voyage dates.
Speaker #1: Increased by 145% compared to Q2 2025, reaching $40,300. The TCE rate of our Aframax tanker for the same period was $133,500, an increase of $202% compared to Q2 2025.
Speaker #1: For the first 6 months of 2026, the TCE rate of our fleet increased by 125% compared to 6 months 2025, reaching $36,800. The TCE rate of our Aframax tanker for the same period was $105,700, an increase of $151% compared to 6 months 2025.
Speaker #1: Following on the vessel strategy of growth and diversification, C3is has had 5 vessel acquisitions since inception, an Aframax oil tanker in 2023, a bulk carrier in 2024, and 2 product tankers in 2026.
Speaker #1: We have thus increased our fleet capacity by 387% compared to our fleet when we commenced operations. Our capital expenditure for the 2 product tankers delivered this year is $39.78 million, which will become due in January 2027.
Speaker #1: As of July 2026, our cash balance was $48 million, amply meeting our future financial obligations. As of June 30, 2026, the average age of the fleet was 16.8 years, including the new additions.
Speaker #1: None of our fleet are Chinese-built, hence no risk of potential US tariffs. Our EPS for the second quarter of 2026 was $353.87, and $483.39 for the first 6 months of 2026.
Speaker #1: Our net asset value per share for the first 6 months of 2026 was $12.83, using the share price at closing on August 25 of $2.67 we were trading at a discount of $380%.
Speaker #1: We had 2 public offerings this year, the first one was an ATM agreement in February 2026 with $2.7 million gross profit so far. The second one was a share offer in July 2026 with gross profit of $6 million.
Speaker #1: Slide 5 shows the handy size demand and the time-charter average rates. In January and June 2026, global exports of all dry bulk commodities on handy SUPRA tonage reached $910.7 million tons.
Speaker #1: The iron ore picture is bearish on price and bullish on distance. Chinese steel demand remains subdued, and benchmark price has eased toward the low 90s per ton.
Speaker #1: And yet, the freight read is positive. The ramp-up of Cimadu and continued West African volumes lengthened average holds, so ton miles can grow even as the headline price softens.
Speaker #1: Guinea is expected to become one of the world's leading producers of iron ore. The high-grade Cimadu iron ore is suitable for conversion into steel via less carbon-intensive methods.
Speaker #1: Coal is regionally divided. Chinese seaborne thermal imports have softened, on strong domestic output and hydro, while demand across the rest of Asia-Pacific has firmed, and Gulf-related energy prices have made seaborne coal more competitive for ASEAN buyers.
Speaker #1: The Middle East conflict has opened the forward dimension that did not exist at the start of the year. With a liquefied natural gas shortfall of around $35 million tons this year, after damages to the Gulf export infrastructure, gas-exposed power systems in Japan, South Korea, Taiwan, and Southeast Asia are running coal harder, and dependent estimates point to an additional $70 to $90 million tons of Asia-Pacific thermal coal demand in 2026, with China comparatively insulated by its low gas penetration.
Speaker #1: Grain and oil seeds are resilient. And soybean trade is forecast at about $189 million tons in 2026-2027, a fresh high with Brazil alone exporting over $117 million tons and China importing around $114 million.
Speaker #1: Rice trade is at a record, with India accounting for about 40% of exports. Minor bulks and bauxite remain a quiet structural support. The signaled shift in ton from maximizing volume to preserving value marks a change after years of record growth.
Speaker #1: Indonesia pulled the other way over the long run. Its 2023 raw bauxite export band took it out of the seaborne export market, and the domestic refinery built out is lifting its bauxite requirements from around $15 million tons in 2025 toward $25 million this year, with mine output lagging, so a future seaborne import pull cannot be ruled out.
Speaker #1: For the rates, several factors weigh beneficially on the dry bulk market. The stronger farise demand for coal is a ton-mile support for the segments that carry the trade.
Speaker #1: Coking coal has been the firmer subsegment, with Chinese coking coal and coke prices reaching the highest since late 2024, and Indian metallurgical imports up about 32% in 2025.
Speaker #1: The adoption of China's 5-year plan in March 2026 covers 2026 to 2030, and rests on high-quality development, technological surface reliance, stronger domestic demand, and a deeper green transition.
Speaker #1: For dry bulk, it matters less as a stimulus signal than as confirmation of where Chinese commodity demand is heading. Entry forces the distance over price thesis.
Speaker #1: As steelmakers urgently seek to reduce the carbon emissions, demand is increasing for higher-grade, lower-impurity iron ore. The essential feedstock in the production of steel.
Speaker #1: The Cimadu mine is a very large, high-grade iron ore deposit in Guinea. The mine holds an estimated 2.4 billion tons of ore grade 65% iron, making it one of the largest untapped iron ore resources in the world.
Speaker #1: At $23 billion, the project is the world's most capital-intensive mining project, with China and Singapore owning 80% of the mining rights. El Niño impacted the Panama Canal, resulting in a lower level of water, thus forcing shipping through reroutes of United States Gulf and East Coast grain and coal toward longer voyages, which is ton-mile positive.
Speaker #1: A notable thread for the next half is India. Where a weak monsoon concern has already pushed the country to import soybeans, a reminder that the El Niño transmission into agriculture is beginning to register.
Speaker #1: The major Middle East conflict and disruption around the Strait of Hormuz have reshaped the shipping market, yet dry bulk has stayed relatively insulated and has in places benefited from longer routings.
Speaker #1: Slide 6 shows the Afrimax LR2 rates and aides. The spot rates for Afrimax tankers are currently experiencing fluctuations based on current market conditions. North Sea to continent June 2026 average rates recorded was $116,749 per day, the highest percentage increase compared to the average rate over the last 5 years.
Speaker #1: With an average daily spot rate of $34,727 over the last 5 years, this was an increase of $236% from the last 5 years average.
Speaker #1: Highest average spot rate from the last 5 years was on the Med-Med route at $37,316. The conflict in the Middle East has stranded tankers and throttled global trade.
Speaker #1: But China and Russia have been gearing up for what could be a record season along the North Sea route. Disruptions to trade due to fighting around the Red Sea and the Strait of Hormuz may push the shifting dynamics along the Northern Sea route, as the safest and most reliable and efficient route.
Speaker #1: Due to the deepening economic and geopolitical ties between Russia and China, transits along the Northern Sea route hit a record high last year, hinting at a new transit milestone.
Speaker #1: On the Afrimax fleet, by the end of the second quarter of the year, there was a $3.51% increase in the total fleet. The global Afrimax fleet now stands at 1,239 vessels, of which 291 vessels are over 20 years of age, accounting for 24% of the total number of vessels.
Speaker #1: With a starting tally of 1,197 vessels, the current fleet represents a change of 3.51% in vessels number and around 3.65% in deadweight over the years so far.
Speaker #1: Over the last quarter, the fleet has increased by 17 vessels. The age of our Afrimax tanker was 15.94 years. By the end of Q2 2026, the highest number of Afrimax tankers are in this category of 15 to 20 years, which is around 28%.
Speaker #1: Slide 7 shows the product tanker fleet structure and average rates. The quoted product tanker fleet in the size range 30,000 to 119,000 deadweight currently numbers 3,685 trading units, for a total of 216.5 million deadweight.
Speaker #1: The MR2 segment is the largest numerically, 54% of the total fleet, with about 1,986 units. The general outlook for MR2 tankers is structurally firm, driven by strong ton-mile demand, aging global fleets, and geopolitical trade disruptions.
Speaker #1: Ton-mile demand: geopolitical sanctions and shifting refining hubs continue to alter trade routes, increasing voyage lengths and favoring flexible MR2 tonnage. Fleet aging and replacement: roughly 33% of the existing MR2 fleet is 16 years or older, which supports long-term recycling and new-build demand.
Speaker #1: Product tanker rates had another strong quarter. April started spectacularly with MR2s briefly averaging over 70,000 per day, globally, thanks to 100,000 per day rates in the Atlantic.
Speaker #1: There was, however, a significant slowdown after April, with MR2s falling to 30,000 per day by July, still healthy but unspectacular. Rates on routes out of the MEG were largely redundant, given the lack of liquidity.
Speaker #1: Product tanker rates remain well-supported, although momentum has become more uneven across vessel classes and regions. MR2s are seeing a more balanced setup, with rates lower but still firm versus historical levels.
Speaker #1: The near-term outlook is still shaped by Hormuz. Reopening of the Strait of Hormuz should support volumes and utilization, but this is more a recovery of lost activity than a new ton-mile impulse.
Speaker #1: Overall, product tanker fundamentals remain supported, with MRs face a more balanced market with rising supply pressure. Slide 8 shows the fleet of C3is. At the end of Q2 2026, C3is owned and operated the fleet of 300 sized dry bulk carriers, 1 Afrimax oil tanker, and 1 product tanker.
Speaker #1: As previously announced, the company has acquired 2 product tankers, one of which the Clean Fury was delivered at the beginning of Q2 2026, the second product tanker the Clean Reaper was delivered to the company in Q3 2026.
Speaker #1: With this addition, the fleet has increased its capacity to 311,431 deadweight and increase of 387% from inception. All vessels have had their ballast weather systems already installed, and all the vessels are unencumbered and currently employed on shore to medium-term period charters and spot voyages.
Speaker #1: None of the vessels were Chinese-built, hence not affected by the ongoing threat on tariffs and are of superior quality. Slide 9 shows a sample of the international charters with whom the management company has developed strategic relationships and has experienced repeat business.
Speaker #1: 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.
Speaker #1: 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 10, and I will go through our financial performance for the second quarter and the first half of the year 2026.
Speaker #1: We achieved revenues of 24 million in Q2 2026, compared with 10.7 million for Q2 2025. This was an increase of 124% quarter on quarter.
Speaker #1: For the first 6 months of 2026, revenues were 35.6 million, compared with 19.4 million for 6 months 2025, representing an increase of 84%. Net revenues were 17 million for Q2 2026, compared with 6 million for Q2 2025, up 185%.
Speaker #1: For the first 6 months of 2025, net revenues were 27.4 million, compared with 11.8 million for the 6 months of 2025. This was an increase of 132%.
Speaker #1: Our income from operations was 9.7 million for Q2 2026, compared with 1 million for Q2 2025, up 820%. For 6 months 2026, our income from operations was 15 million, compared with 2.3 million for the same period of 2025, representing an increase of 554%.
Speaker #1: Our net income was 10 million for Q2 2026, compared to a loss of 5.3 million for Q2 2025, an increase of 287%. For 6 months 2026, our net income was 13.2 million, compared with 2.6 million for 6 months 2025, up 409%.
Speaker #1: Our EBITDA was 12 million for Q2 2026, compared to minus 3.7 million for Q2 2025, up 426%. For 6 months 2026, our EBITDA was 16.6 million, compared with 6 million for 6 months 2025, up 176%.
Speaker #1: We recorded an unrealized loss on warrants of 2 million for the first half of the year. This is a non-cash item and does not reflect our operational performance.
Speaker #1: Our adjusted EBITDA was therefore 11.8 million for the quarter, compared with 2.8 million in 2025, an increase of 325%. For the 6 months of 2026, the adjusted EBITDA was 18.7 million, compared with 5.8 million in 2025, an increase of 226%.
Speaker #1: Our adjusted net income was 9.8 million for the quarter, compared with 1.1 million in 2025, up 755%. For the 6 months, the adjusted net income was 15.3 million, compared with 2.3 million in 2025, up 562%.
Speaker #1: Turning to slide 11 for the balance sheet, we had a cash balance of 33.2 million, an increase of 123% from year-end 2025. Our cash balance by the end of July 2026 was 48 million, up 222% from year-end 2025.
Speaker #1: Our capex on the two newly acquired product tankers is 39.78 million, and is due in January 2027. Halfway through the year, we already have ample cash to cover for this payable due in January next year.
Speaker #1: Other current assets consisted mainly of receivables of 11.7 million, of which 9 million has already been received to date, and inventories of 3.2 million, which consist of bunkers and lubricants on board the vessels, at the end of Q2 2026.
Speaker #1: The vessel's net value of 96 million are for the 5 vessels less depreciation. Vessel's market values were 123 million. Payable to related party of 24.5 million mainly represents the balance due on the product tanker Clean Fury that was delivered to the company in Q2 2026.
Speaker #1: The warrant liability of 1.3 million relates to the net fair value difference on non-exercised warrants as of June 30, 2026. This is a non-cash item.
Speaker #1: Our shareholders' equity is at a robust 114.6 million as of Q2 2026, compared to 95.1 million as of year-end 2025. Concluding the presentation on slide 12, we outlined the key variables that will assist us progress with our company's growth.
Speaker #1: Earning a high-quality fleet reduces operating costs, improves safety, and provides a competitive advantage in securing favorable charters. We maintain the quality of the vessel by carrying out regular inspections, both while in port and at sea, and adopting a comprehensive maintenance program for each vessel.
Speaker #1: None of our vessels were built from Chinese shipyards. Therefore, any potential U.S. tariffs on Chinese-built ships are not expected to have any impact on our fleet.
Speaker #1: 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.
Speaker #1: Following on with this strategy, the company has added two product tankers to the fleet, one of which was delivered at the start of Q2 2026, and the second one in Q3 2026.
Speaker #1: The expansion and diversification of our fleet has positioned the company to capitalize on strong charter market conditions. We always charter to high-quality charterers, such as commodity traders, industrial companies, and oil producers and refineries.
Speaker #1: Despite having increased our fleet by 387% since inception, the company has no bank debt. No interests were charged by the affiliated sellers on the purchase prices of the Afropoe 2, the EcoSpeedfire, and the two recently acquired product tankers.
Speaker #1: Our upcoming capex obligation of 39.78 million due on the two product tankers and payable in January 2027 is already covered by our cash balance.
Speaker #1: At this stage, our CEO, Dr. Diamantis Andriotis, will summarize the concluding remarks for the period examined.
Speaker #2: For the first 6 months of 2026, we reported the net income of 13.18 million, an increase of 409% from 2025, and adjusted net income of 15.28 million, an increase of 562% from 2025, and EBITDA of 16.6 million, representing an increase of 176% from 2025, and an adjusted EBITDA of 18.7 million, an increase of 226% from 2025.
Speaker #2: These numbers speak for themselves, as to the remarkable results achieved by our company. They prove that the strategy of expansion and diversification was a lucrative one, and we have built a debt-free fleet that showed a tangible path to rapid growth, exploited the current market conditions, and accomplished such a performance.
Speaker #2: We are confident that the second half of the year will mirror the first half, as our expansion efforts are projected to boost profitability 45 financial strength and introduce flexibility vital for C3is' future operational strategies.
Speaker #2: 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 2026.
