Financial Performance - For the second quarter of 2025, the company reported a net loss of $5.3 million, primarily attributed to a noncash item, specifically an unrealized loss on the fair value of warrants amounting to $6.4 million [4]. Strategic Outlook - The company plans to discuss its strategy and the overall market conditions during the earnings call, indicating a focus on future performance and expectations [3].

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss of $5.3 million, primarily due to a non-cash unrealized loss of $6.4 million on warrants, while adjusted net income was $1.1 million [3][16] - The net income for the first half of 2025 was $2.6 million, with voyage revenues of $10.7 million for Q2 2025, a slight decrease of 1% from $10.8 million in Q2 2024 [13][20] - The cash balance decreased by 82% to $2.3 million from $12.6 million at the end of 2024, attributed to the payment of $15.1 million for the Eco Spitfire and remaining bunkers [16] Business Line Data and Key Metrics Changes - Voyage costs increased to $4.7 million in Q2 2025 from $3.1 million in Q2 2024, due to the addition of the Eco Spitfire [14] - Operating expenses rose to $2.4 million in Q2 2025 from $2 million in Q2 2024, again due to the new vessel [15] - General and administrative expenses increased to $677,000 in Q2 2025 from $603,000 in Q2 2024, mainly due to stock-based compensation [15] Market Data and Key Metrics Changes - The dry bulk market saw a modest decline of approximately 1% in seaborne trade, with a 5% year-on-year drop in Chinese iron imports [4] - Coal and iron ore imports declined significantly, while grain trade experienced increased ton-mile demand due to trade route realignments [5] - The Aframax tanker market faced bearish conditions due to geopolitical tensions, with oil prices spiking in June 2025 but normalizing thereafter [9] Company Strategy and Development Direction - The company aims for disciplined growth through selective acquisitions of quality non-Chinese-built vessels, focusing on short to medium-term charters [18] - The strategy includes maintaining a high-quality fleet to reduce operating costs and improve safety, which provides a competitive advantage [18] - The company has increased its fleet capacity by over 230% since inception without incurring any bank debt, enhancing financial flexibility [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the company amidst geopolitical factors, environmental regulations, and shifting demand patterns [20] - The company is confident in its adaptability to changing market conditions, which will support the development of existing core businesses and exploration of new growth opportunities [21] - The management emphasized the importance of high standards of safety and reliability in maintaining customer relationships [12] Other Important Information - The company successfully completed the dry docking of the Afrapearl II in August 2025 and settled the final balance of $14.6 million for the Eco Spitfire in April 2025 [20] - The fleet consists of three Handysize dry bulk carriers and one Aframax oil tanker, with an average age of 14.5 years [11] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a formal Q&A session.

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss of $5.3 million, primarily due to a non-cash unrealized loss of $6.4 million on warrants, while adjusted net income was $1.1 million [3][16] - The net income for the first half of 2025 was $2.6 million, with voyage revenues of $10.7 million for Q2 2025, a slight decrease of 1% from $10.8 million in Q2 2024 [13][20] - The cash balance decreased by 82% to $2.3 million compared to $12.6 million at the end of 2024, attributed to the payment of the remaining balance for the Eco Spitfire [16] Business Line Data and Key Metrics Changes - Voyage costs increased to $4.7 million in Q2 2025 from $3.1 million in Q2 2024, driven by the addition of the Eco Spitfire [13] - Operating expenses rose to $2.4 million in Q2 2025 from $2 million in Q2 2024, again due to the new vessel [14] - General and administrative expenses increased to $677,000 in Q2 2025 from $603,000 in Q2 2024, mainly due to stock-based compensation [14] Market Data and Key Metrics Changes - The dry bulk market saw a modest decline of approximately 1% in seaborne trade, with a 5% year-on-year drop in Chinese iron imports [4] - Coal and iron ore imports have declined significantly, while grain trade experienced increased ton-mile demand due to trade route realignments [5] - The Aframax tanker market faced bearish conditions due to geopolitical tensions, but there was a seasonal increase in demand [9] Company Strategy and Development Direction - The company aims for disciplined growth with a focus on acquiring quality non-Chinese-built vessels and maintaining high operational standards [18] - The strategy includes equity issuances for selective acquisitions and chartering to high-quality clients [18] - The company has increased its fleet capacity by over 230% since inception without incurring bank debt, enhancing financial flexibility [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the company amidst geopolitical factors and environmental regulations affecting the shipping industry [20] - The company is confident in its adaptability to changing market conditions and plans to explore new growth opportunities [21] - The performance so far has demonstrated a solid foundation for future growth despite industry challenges [20] Other Important Information - The company successfully completed the dry docking of the Afrapearl II in August 2025 and has no vessels built in Chinese shipyards, mitigating tariff impacts [20] - The fleet consists of three Handysize dry bulk carriers and one Aframax oil tanker, with an average age of 14.5 years [11] Q&A Session Summary Question: What are the impacts of geopolitical tensions on the shipping market? - Management noted that geopolitical tensions have created both challenges and opportunities, particularly in the Aframax tanker market due to shifts in crude flows and sanctions [9][10] Question: How does the company plan to manage its fleet and operational costs? - The company emphasized maintaining a high-quality fleet through regular inspections and a comprehensive maintenance program, which helps reduce operating costs [18]

Core Viewpoint - C3is Inc. reported its financial and operational results for Q2 and the first half of 2025, highlighting a decrease in revenues and TCE rates, alongside a net loss for the quarter but a net income for the six-month period [1][8][9]. Operational and Financial Highlights - The company operates handysize dry bulk carriers on short-term charters, generating steady cash flows, while its Aframax tanker operates in the spot market with current voyage charter rates around $25,000 per day [4]. - Fleet operational utilization was 78% for Q2 2025, down from 87.7% in Q2 2024, primarily due to idle days of the Aframax tanker [4][19]. - Revenues for Q2 2025 were $10.7 million, a slight decrease from $10.8 million in Q2 2024, with a daily TCE of $16,466, down 31% from $23,938 in the same period last year [4][29]. - The company reported a net loss of $5.3 million for Q2 2025, with an EBITDA of $(3.7) million and a loss per share of $8.78 [4][30]. - For the first half of 2025, net income was $2.6 million, with earnings per share of $0.52, contrasting with a net loss of $7.97 million in the first half of 2024 [8][12]. Financial Performance - Adjusted net income for Q2 2025 was $1.1 million, a 62% decrease from $2.9 million in Q2 2024, while adjusted EBITDA was $2.8 million, down 43% from $4.9 million [4][12]. - The company settled a $14.6 million balance for the bulk carrier Eco Spitfire in April 2025, funded by operations and equity offerings [4][8]. - Total voyage revenues for the first half of 2025 were $19.4 million, down from $23.6 million in the same period of 2024, primarily due to lower average TCE rates [6][12]. - The average number of vessels owned increased from 3.3 in the first half of 2024 to 4.0 in 2025, contributing to increased operational expenses [6][12]. Industry Context - The maritime shipping industry is experiencing significant changes due to geopolitical factors, environmental regulations, and demand fluctuations, yet C3is Inc. has maintained solid performance with a fleet capacity increase of over 230% since inception without incurring bank debt [9][10]. - The company emphasizes its fully deleveraged position, enhancing financial flexibility and providing a strong foundation for future growth [10].

Company Announcement - C3is Inc. will release its second quarter financial results for the period ended June 30, 2025, before the market opens in New York on September 2, 2025 [1] - A conference call will be hosted by the company's management on September 2, 2025, at 10:00 am ET to present the results and discuss the company's operations and outlook [1] Webcast Information - There will be a live and archived webcast of the conference call available on the C3is Inc. website [2] - Participants are advised to register approximately 10 minutes prior to the start of the webcast, which will be in listen-only mode [2] Company Overview - C3is Inc. is a ship-owning company that provides seaborne transportation services to dry bulk and tanker charterers, including major national and private industrial users, commodity producers, and traders [3] - As of the end of Q2 2025, the company owned three Handysize dry bulk carriers and one Aframax oil tanker, with a total capacity of 213,464 deadweight tons (dwt) [3] - C3is Inc.'s shares are listed on the Nasdaq Capital Market under the symbol "CISS" [3]

[Company Overview](index=1&type=section&id=Company%20Overview) C3is Inc. is a Nasdaq-listed ship-owning company specializing in dry bulk and crude oil seaborne transportation with a four-vessel fleet [Introduction](index=1&type=section&id=Introduction) C3is Inc. announced its unaudited financial and operating results for the first quarter ended March 31, 2025, highlighting its role as a ship-owning company in dry bulk and tanker seaborne transportation services - C3is Inc. reported unaudited financial and operating results for **Q1 2025**[2](index=2&type=chunk)[3](index=3&type=chunk) - The company operates in the dry bulk and tanker seaborne transportation services sector[3](index=3&type=chunk) [About C3is Inc.](index=4&type=section&id=About%20C3is%20Inc.) C3is Inc. is a ship-owning company specializing in dry bulk and crude oil seaborne transportation, operating a fleet of four vessels with a total capacity of 213,464 deadweight tons - C3is Inc. provides drybulk and crude oil seaborne transportation services[19](index=19&type=chunk) C3is Inc. Fleet Composition | Vessel Type | Number of Vessels | Total Capacity (dwt) | | :---------- | :---------------- | :------------------- | | Handysize drybulk carriers | 3 | 97,664 | | Aframax oil tanker | 1 | 115,800 | | **Total Fleet** | **4** | **213,464** | - The company's common stock is listed on the **Nasdaq Capital Market** under the symbol '**CISS**'[19](index=19&type=chunk) [Operational and Financial Highlights (Q1 2025)](index=1&type=section&id=Operational%20and%20Financial%20Highlights%20(Q1%202025)) C3is Inc. reported a net income of $7.9 million for Q1 2025, with 91.7% fleet utilization, despite a 32% revenue decrease and 56% drop in daily TCE [Key Operational Metrics](index=1&type=section&id=Key%20Operational%20Metrics) The company's fleet maintained a high operational utilization of 91.7% in Q1 2025, with Handysize dry bulk carriers on short-term time charters and the Aframax tanker operating in the spot market at strong daily rates - Handysize dry bulk carriers are on short-term time charters, providing steady cash flows[5](index=5&type=chunk) - The Aframax tanker operates in the spot market, achieving voyage charter rates of approximately **$46,000 per day**[5](index=5&type=chunk) Fleet Operational Utilization | Metric | Q1 2025 | | :----------------------- | :------ | | Fleet operational utilization | 91.7% | [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) C3is Inc. reported a net income of $7.9 million for Q1 2025, despite a 32% decrease in revenues to $8.7 million, primarily due to a significant 56% drop in daily TCE. Adjusted net income and EBITDA also saw substantial decreases Q1 2025 vs Q1 2024 Key Financial Highlights | Metric | Q1 2025 ($) | Q1 2024 ($) | Change | | :----------------------- | :------ | :------ | :----- | | Revenues | 8.7 million | 12.8 million | -32% | | Daily TCE | 16,202 | 36,480 | -56% | | Net Income | 7.9 million | 3.8 million | +109% | | EBITDA | 9.7 million | 5.7 million | +70% | | Basic EPS | 14.89 | 16.61 | -10.3% | | Adjusted Net Income | 1.2 million | 4.5 million | -73% | | Adjusted EBITDA | 3.0 million | 6.4 million | -53% | - Cash balance stood at **$15.7 million** at the end of **Q1 2025**[5](index=5&type=chunk) [First Quarter 2025 Detailed Financial Results](index=2&type=section&id=First%20Quarter%202025%20Detailed%20Financial%20Results) Q1 2025 saw a $4.1 million decrease in voyage revenues due to lower charter rates, while operating expenses increased with more vessels, and a $6.9 million non-cash gain on warrants boosted net income [Revenue and Voyage Expenses](index=2&type=section&id=Revenue%20and%20Voyage%20Expenses) Voyage revenues decreased by $4.1 million year-over-year to $8.7 million in Q1 2025, primarily due to lower charter rates, despite an increase in total calendar days for the fleet. Voyage expenses remained stable Voyage Revenues and Expenses (Q1 2025 vs Q1 2024) | Metric | Q1 2025 ($) | Q1 2024 ($) | Change ($) | | :---------------- | :------ | :------ | :----- | | Voyage Revenues | 8.7 million | 12.8 million | -4.1 million | | Voyage Expenses | 2.8 million | 2.8 million | Stable | - The decrease in voyage revenues was primarily attributed to lower charter rates[8](index=8&type=chunk) Fleet Calendar and Charter Days | Metric | Q1 2025 | Q1 2024 | | :------------------ | :------ | :------ | | Total calendar days | 360 | 273 | | Time charter days | 247 (68.6%) | 164 (60.1%) | | Fleet utilization | 100.0% | 100.0% | [Operating Expenses and Depreciation](index=2&type=section&id=Operating%20Expenses%20and%20Depreciation) Vessels' operating expenses and depreciation increased in Q1 2025 due to an increase in the average number of vessels. General and administrative costs decreased significantly, mainly due to lower warrant-related expenses Operating Expenses and Depreciation (Q1 2025 vs Q1 2024) | Expense Category | Q1 2025 ($) | Q1 2024 ($) | Change ($) | | :----------------------------- | :------ | :------ | :----- | | Vessels' operating expenses | 2.2 million | 1.8 million | +0.4 million | | Depreciation | 1.6 million | 1.4 million | +0.2 million | | Management fees | 0.16 million | 0.12 million | +0.04 million | | General and Administrative costs | 0.7 million | 1.5 million | -0.8 million | - The increase in vessels' operating expenses, depreciation, and management fees was attributed to the increase in the average number of vessels[8](index=8&type=chunk) - General and Administrative costs decreased mainly due to lower expenses allocated to warrants issued in Q1 2024[8](index=8&type=chunk) [Other Income and Expenses](index=3&type=section&id=Other%20Income%20and%20Expenses) The company recorded a significant non-cash gain on warrants of $6.9 million in Q1 2025, which contributed to the higher net income. Interest and finance costs decreased, while interest income also saw a slight reduction Other Income and Expenses (Q1 2025 vs Q1 2024) | Category | Q1 2025 ($) | Q1 2024 ($) | Change ($) | | :------------------------ | :------ | :------ | :----- | | Interest and finance costs | 0.3 million | 0.7 million | -0.4 million | | Interest income | 0.1 million | 0.2 million | -0.1 million | | Gain on warrants | 6.9 million | -0.6 million (loss) | +7.5 million | - The **$6.9 million** gain on warrants was a non-cash adjustment due to changes in fair value of warrants[8](index=8&type=chunk)[13](index=13&type=chunk) - Interest and finance costs in **Q1 2025** were mainly related to the accrued interest expense for the Eco Spitfire acquisition, which was settled in **April 2025**[9](index=9&type=chunk) [CEO Commentary and Business Outlook](index=3&type=section&id=CEO%20Commentary%20and%20Business%20Outlook) The CEO highlighted a 109% net income increase despite revenue decline, emphasizing debt-free fleet expansion and a strategy for diversification in a mixed 2025 economic environment [CEO's Statement](index=3&type=section&id=CEO's%20Statement) CEO Dr. Diamantis Andriotis highlighted a 109% increase in Net Income for Q1 2025, despite a 32% revenue decrease due to lower TCE rates. He emphasized the company's success in fulfilling all capital expenditure commitments without bank loans, significantly expanding the fleet's deadweight tonnage - Net Income increased by **109%** in **Q1 2025** to **$7.9 million**, while Revenues decreased by **32%** due to a drop in TCE rates[10](index=10&type=chunk) - All capital expenditure commitments were successfully fulfilled by **April 2025** without resorting to any bank loans[11](index=11&type=chunk) - The company more than **trebled the deadweight tonnage** of its exclusively non-Chinese built fleet without incurring bank debts[12](index=12&type=chunk) [Economic Environment and Company Strategy](index=3&type=section&id=Economic%20Environment%20and%20Company%20Strategy) The company anticipates a year of mixed signals in 2025 for the global economic environment and shipping sector. C3is Inc. plans to adapt by focusing on diversification and aligning with sustainable practices to leverage regional growth drivers and evolving economic dynamics - The global economic environment in **2025** is expected to present mixed signals, with risks and opportunities for the shipping sector[13](index=13&type=chunk) - C3is Inc. plans to adapt to evolving dynamics by focusing on diversification and aligning with growing emphasis on sustainable practices[14](index=14&type=chunk) - The company aims to leverage regional growth drivers and evolving economic dynamics to maintain resilience[15](index=15&type=chunk) [Fleet Data](index=6&type=section&id=Fleet%20Data) The fleet data for Q1 2025 shows an increase in the average number of vessels to 4.0, contributing to higher total calendar and voyage days. Fleet utilization remained at 100%, while operational utilization slightly decreased to 91.7% due to commercial idle days Fleet Operating Performance (Q1 2025 vs Q1 2024) | FLEET DATA | Q1 2024 | Q1 2025 | | :-------------------------- | :------ | :------ | | Average number of vessels | 3.00 | 4.00 | | Period end number of owned vessels in fleet | 3 | 4 | | Total calendar days for fleet | 273 | 360 | | Total voyage days for fleet | 273 | 360 | | Fleet utilization (%) | 100.0% | 100.0% | | Total charter days for fleet | 164 | 247 | | Total spot market days for fleet | 109 | 113 | | Fleet operational utilization (%) | 93.4% | 91.7% | - Fleet operational utilization of **91.7%** for **Q1 2025** was mainly due to commercial idle days of the Aframax tanker operating in the spot market[5](index=5&type=chunk) - Definitions for fleet data metrics (Average number of vessels, Total calendar days, Total voyage days, Fleet utilization, Total charter days, Total spot market charter days, Fleet operational utilization) are provided to clarify calculations[28](index=28&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures like Adjusted Net Income, EBITDA, and TCE to GAAP, providing insights into the company's operational performance [Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EPS Reconciliation](index=6&type=section&id=Adjusted%20Net%20Income%2C%20EBITDA%2C%20Adjusted%20EBITDA%2C%20and%20Adjusted%20EPS%20Reconciliation) This section provides reconciliations of non-GAAP measures such as Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EPS to their most directly comparable GAAP financial measures. These metrics are used by management and investors to assess financial performance on a comparable basis - Adjusted net income represents net income before (loss)/gain on warrants and share-based compensation[26](index=26&type=chunk) - EBITDA represents net income before interest and finance costs, interest income, and depreciation[26](index=26&type=chunk) Reconciliation of Net Income to Adjusted Net Income, EBITDA, and Adjusted EBITDA | Metric | Q1 2024 ($) | Q1 2025 ($) | | :------------------------------------------ | :------ | :------ | | Net income | 3,786,620 | 7,916,841 | | Plus/(less) loss/(gain) on warrants | 629,871 | (6,866,761) | | Plus share based compensation | 63,464 | 113,628 | | **Adjusted Net Income** | **4,479,955** | **1,163,708** | | **EBITDA** | **5,712,285** | **9,723,097** | | **Adjusted EBITDA** | **6,405,620** | **2,969,964** | Basic EPS and Adjusted EPS | Metric | Q1 2024 ($) | Q1 2025 ($) | | :------------------------------------------ | :------ | :------ | | EPS - Basic | 16.61 | 14.89 | | Adjusted EPS, Basic | 32.28 | 1.05 | [Time Charter Equivalent (TCE) Reconciliation](index=8&type=section&id=Time%20Charter%20Equivalent%20(TCE)%20Reconciliation) The Time Charter Equivalent (TCE) rate, a non-GAAP measure, is reconciled by dividing voyage revenue net of voyage expenses by voyage days. It serves as a standard shipping industry performance measure to compare period-to-period changes despite varying charter types - TCE rate is calculated by dividing voyage revenue net of voyage expenses by voyage days[31](index=31&type=chunk) - TCE is a non-GAAP measure used to compare performance across periods despite changes in charter types (spot vs. time charters)[31](index=31&type=chunk) Time Charter Equivalent (TCE) Rate Reconciliation | Metric | Q1 2024 ($) | Q1 2025 ($) | | :-------------------------- | :------ | :------ | | Voyage revenues | 12,792,011 | 8,670,664 | | Voyage expenses | (2,832,992) | (2,837,998) | | Time charter equivalent revenues | 9,959,019 | 5,832,666 | | Total voyage days for fleet | 273 | 360 | | **Time charter equivalent rate** | **36,480** | **16,202** | [Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited financial statements for Q1 2025 show increased net income driven by a gain on warrants, higher total assets, and a shift in cash flow dynamics [Statements of Operations](index=9&type=section&id=Statements%20of%20Operations) The condensed consolidated statements of operations show a decrease in total revenues for Q1 2025 compared to Q1 2024, but a significant increase in net income, largely driven by a gain on warrants Unaudited Condensed Consolidated Statements of Operations | | Q1 2024 ($) | Q1 2025 ($) | | :------------------------------------------ | :------ | :------ | | Revenues | 12,792,011 | 8,670,664 | | Total expenses | 7,652,522 | 7,436,472 | | Income from operations | 5,139,489 | 1,234,192 | | Other (expenses)/income, net | (1,352,869) | 6,682,649 | | Net income | 3,786,620 | 7,916,841 | | Earnings per share (Basic) ($) | 16.61 | 14.89 | | Weighted average number of shares (Basic) | 43,716 | 465,245 | - The computation of earnings per share gives retroactive effect to shares issued in connection with the spin-off and reverse stock splits[33](index=33&type=chunk) [Balance Sheets](index=10&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets indicate an increase in total assets and stockholders' equity from December 31, 2024, to March 31, 2025, primarily driven by an increase in cash and cash equivalents and retained earnings, while warrant liability significantly decreased Unaudited Condensed Consolidated Balance Sheets | | Dec 31, 2024 ($) | Mar 31, 2025 ($) | | :------------------------------------------ | :----------- | :----------- | | Cash and cash equivalents | 4,640,343 | 15,691,873 | | Total current assets | 16,339,358 | 21,072,012 | | Vessels, net | 84,149,805 | 82,524,334 | | Total assets | 100,489,163 | 103,596,346 | | Total current liabilities | 18,690,874 | 20,821,849 | | Warrant liability | 10,437,034 | 3,570,273 | | Total liabilities | 29,127,908 | 24,392,122 | | Total stockholders' equity | 71,361,255 | 79,204,224 | | Total liabilities and stockholders' equity | 100,489,163 | 103,596,346 | - Cash and cash equivalents increased significantly from **$4.6 million** at **Dec 31, 2024**, to **$15.7 million** at **Mar 31, 2025**[35](index=35&type=chunk) - Warrant liability decreased substantially from **$10.4 million** to **$3.6 million**, reflecting fair value changes[35](index=35&type=chunk) [Statements of Cash Flows](index=11&type=section&id=Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows show a decrease in net cash provided by operating activities in Q1 2025 compared to Q1 2024, but a significant increase in cash from investing activities due to the maturity of time deposits. Financing activities resulted in a net cash outflow Unaudited Condensed Consolidated Statements of Cash Flows | | 3M 2024 ($) | 3M 2025 ($) | | :------------------------------------------ | :------ | :------ | | Net cash provided by operating activities | 14,793,672 | 3,294,491 | | Net cash provided by investing activities | 1,452,006 | 7,948,706 | | Net cash provided by/(used in) financing activities | 11,222,612 | (191,667) | | Net increase in cash and cash equivalents | 27,468,290 | 11,051,530 | | Cash and cash equivalents at end of period | 28,163,578 | 15,691,873 | - Net cash provided by operating activities decreased significantly from **$14.8 million** in **Q1 2024** to **$3.3 million** in **Q1 2025**[36](index=36&type=chunk) - Investing activities provided **$7.9 million** in cash in **Q1 2025**, primarily from the maturity of bank time deposits[36](index=36&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) This section provides details on the Q1 2025 conference call, important forward-looking statements, and company contact information [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) C3is Inc. hosted a conference call on May 15, 2025, to discuss Q1 2025 results, operations, and outlook, with a live and archived webcast available on the company's website - A conference call was held on **May 15, 2025**, at **10:00 am ET** to present **Q1 2025** results and company outlook[17](index=17&type=chunk) - A live and archived webcast of the conference call is available on the C3is Inc. website (**www.c3is.pro**)[18](index=18&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future events and financial performance, which are subject to significant uncertainties and contingencies. Important factors that could cause actual results to differ materially are discussed, including economic conditions, market changes, and geopolitical risks - The release contains forward-looking statements reflecting current views on future events and financial performance, including fleet growth, diversification, and financing[20](index=20&type=chunk) - These statements are based on assumptions inherently subject to significant uncertainties and contingencies beyond the company's control[21](index=21&type=chunk) - Important factors that could cause actual results to differ include world economies, geopolitical conditions (e.g., Ukraine conflict, Middle East conflict, Red Sea disruptions), market conditions, and operating expenses[21](index=21&type=chunk) [Company Contact](index=5&type=section&id=Company%20Contact) Contact information for C3is Inc.'s Chief Financial Officer, Nina Pyndiah, is provided for inquiries - Contact for C3is Inc. is **Nina Pyndiah**, **Chief Financial Officer**[23](index=23&type=chunk)

Financial Data and Key Metrics Changes - The company achieved a net income of $8,000,000 for Q1 2025, an increase of 109% from Q1 2024 [3][30] - Net revenues were reported at $5,800,000, a decrease of 41% compared to Q1 2024, primarily due to a decrease in charter rates [3][21] - Cash balance increased by 25% to $15,700,000 from the end of 2024 [4][24] - Adjusted net income decreased by 74% to $1,200,000 compared to Q1 2024 [24] Business Line Data and Key Metrics Changes - The Aframax tanker, Afra Pearl II, contributed approximately 72% to total revenues, with TCE rates 55% lower than Q1 2024 [4][21] - The TCE rates for the entire fleet were 56% lower than the rates for Q1 2024 [4][21] - Voyage costs remained stable at $2,800,000, while vessel operating expenses increased to $2,100,000 from $1,800,000 in Q1 2024 [22] Market Data and Key Metrics Changes - The dry bulk trade is experiencing shifting dynamics influenced by economic trends and environmental pressures, with a forecasted long-term downtrend in the iron ore market [5][6] - Global dry bulk trading ton miles are expected to grow by 1.5% in 2025, lagging behind fleet growth of 3.1% [8] - China's grain imports are expected to slow due to high inventories and policy adjustments [7] Company Strategy and Development Direction - The company aims for disciplined growth through technical assessments and selective acquisitions of non-Chinese built vessels [27][28] - The strategy includes maintaining high-quality fleet standards to reduce operating costs and secure favorable charters [27][28] - The company has no bank debts and has met all CapEx obligations without resorting to bank loans [29][30] Management's Comments on Operating Environment and Future Outlook - The global economic environment in 2025 is characterized by mixed signals, presenting both risks and opportunities for the shipping sector [11][30] - Economic shocks and evolving policy measures are expected to shape the outlook, contributing to a cautious yet dynamic landscape [11][30] - The company is positioned to leverage regional growth drivers and adapt to evolving economic dynamics [31] Other Important Information - The company has increased its fleet by 234% since inception and maintains a focus on high-quality charterers [28][29] - The global Handysize fleet has seen a slight increase, with 3,151 vessels currently in operation [15] - The Aframax LR2 fleet stands at 1,174 vessels, with a significant portion over 20 years of age [17] Q&A Session Summary - No specific questions or answers were documented in the provided content.

Financial Data and Key Metrics Changes - The company reported a net income of $8,000,000 for Q1 2025, an increase of 109% from Q1 2024 [3][24] - Net revenues were $5,800,000, a decrease of 41% compared to Q1 2024, primarily due to a decrease in charter rates [3][21] - Cash balance increased by 25% to $15,700,000 from the end of 2024 [4][24] - Adjusted net income decreased by 74% to $1,200,000 compared to Q1 2024 [24] Business Line Data and Key Metrics Changes - The Aframax tanker, Afra Pearl II, contributed 72% to total revenues, with TCE rates 55% lower than Q1 2024 [4][21] - The TCE rates for the entire fleet were 56% lower than the rates for Q1 2024 [4][21] - Voyage costs remained stable at $2,800,000, while vessel operating expenses increased to $2,100,000 from $1,800,000 in Q1 2024 [22] Market Data and Key Metrics Changes - The dry bulk trade is experiencing shifting dynamics influenced by economic trends and environmental pressures, with a forecasted long-term downtrend in the iron ore market [5][6] - Global dry bulk trading ton miles are expected to grow by 1.5% in 2025, lagging behind fleet growth of 3.1% [8] - China's grain imports are expected to slow due to high inventories and policy adjustments [7] Company Strategy and Development Direction - The company aims for disciplined growth through technical assessments and selective acquisitions of non-Chinese built vessels [27] - The strategy includes maintaining high-quality fleet standards to reduce operating costs and secure favorable charters [26] - The company has no bank debts and has met all CapEx obligations without resorting to bank loans [28][29] Management's Comments on Operating Environment and Future Outlook - The global economic environment in 2025 is characterized by mixed signals, presenting both risks and opportunities for the shipping sector [10][29] - Economic shocks and evolving policy measures are expected to shape the outlook, contributing to a cautious yet dynamic landscape [10][29] - The company is positioned to leverage regional growth drivers and adapt to evolving economic dynamics [30] Other Important Information - The company has increased its fleet by 234% since inception and maintains a focus on short to medium-term charters and spot voyages [27][28] - The global Handysize fleet has seen a slight increase, with 3,151 vessels currently in operation [14] Q&A Session Summary Question: What are the expectations for the dry bulk market in 2025? - The dry bulk market is expected to face lower demand growth due to various uncertainties, but a relatively balanced supply-demand dynamic is anticipated [9] Question: How is the company managing its fleet and operational costs? - The company maintains high standards of safety and reliability, conducting regular inspections and adopting comprehensive maintenance programs [26] Question: What impact do environmental regulations have on the shipping sector? - Environmental regulations are expected to play a significant role in market dynamics, influencing supply-side conditions and operational practices [8][10]

Financial Performance - Net income for Q1 2025 was $8 million, a 109% increase compared to Q1 2024[7] - Net revenues for Q1 2025 were $5.6 million, a 43% decrease compared to Q1 2024[7] - Adjusted EBITDA for Q1 2025 was $2.8 million, a 56% decrease compared to Q1 2024[7] Fleet and TCE Rates - The company's vessels NBV (Net Book Value) is $82.5 million[7] - The company's cash balance is $15.7 million[7] - Q1 2025 TCE rates for the C3is fleet were 56% lower than Q1 2024 and 21% lower than the full year 2024[7] - Q1 2025 TCE rates for the Aframax tanker were 55% lower than Q1 2024 and 25% lower than the full year 2024[7] Fleet Composition and Strategy - The company's fleet consists of three Handysize drybulk carriers and one Aframax oil tanker[41] - The average age of the fleet is 14.3 years as of March 31, 2025[7, 43] - CAPEX repayments of $59.2 million have been made from July 2023 to April 2025 without resorting to bank loans[7, 49]

Core Insights - C3is Inc. reported a net income of $7.9 million for Q1 2025, a 109% increase from Q1 2024, despite a 32% decrease in revenues due to lower TCE rates [8][30][31] - The company successfully met all capital expenditure obligations totaling $59.2 million without resorting to bank loans, while increasing fleet deadweight tonnage significantly [8][14] Operational Highlights - The fleet operational utilization was 91.7% for Q1 2025, primarily due to idle days of the Aframax tanker in the spot market [5][19] - The average number of vessels owned increased from 3.0 in Q1 2024 to 4.0 in Q1 2025, with total calendar days for the fleet rising from 273 to 360 [19][30] Financial Performance - Revenues for Q1 2025 were $8.7 million, down from $12.8 million in Q1 2024, with a daily TCE of $16,202, a 56% decrease year-over-year [5][29] - Adjusted net income for Q1 2025 was $1.2 million, a 73% decrease from $4.5 million in Q1 2024, while adjusted EBITDA fell by 53% to $3.0 million [5][9][30] Cash Flow and Balance Sheet - The cash balance at the end of Q1 2025 was $15.7 million, up from $4.6 million at the end of Q4 2024 [32][34] - The company recorded a non-cash adjustment of $6.9 million as "Gain on Warrants" for Q1 2025, reflecting changes in fair value [5][9] Market Outlook - The global economic environment in 2025 is expected to present mixed signals, with risks and opportunities influencing the shipping sector [10][11] - C3is Inc. plans to adapt to evolving market dynamics by focusing on diversification and sustainable practices [11]