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Date

Tuesday, Nov. 18, 2025 at 10 a.m. ET

Call participants

  • Chief Executive Officer — Diamantis Andriotis
  • Chief Financial Officer — Nina Pyndiah

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Takeaways

  • Net income -- $5.3 million, up 281%, reversing a net loss of $3 million reported for the first nine months of 2024.
  • EBITDA -- $10.3 million, a 245% increase from $3 million for the comparable 2024 period.
  • Voyage revenues -- $24.2 million, a 26% decrease, attributed to 74 non-revenue days due to Aframax tanker dry docking.
  • TCE rates -- 40% decline versus the prior year period, directly impacted by vessel downtime.
  • EBITDA margin -- Margins expanded, supported by an 81% reduction in interest expenses to $400,000 and lower operating leverage post debt repayment.
  • Voyage costs -- $9.4 million, reduced from $10.4 million, with bunker costs making up 49% and port charges 40% of total voyage expenses.
  • Cash balance -- $6.6 million, a 48% decline from $12.6 million at year-end 2024, driven by final vessel purchase settlement outflows.
  • Warrant liability -- $3.9 million, down 63% from $10.4 million, reflecting fair value changes on cost B1/B2 and clause C1/C2 warrants.
  • Fleet structure -- Three handysize dry bulk carriers and one Aframax oil tanker, all unencumbered and on short to medium-term or spot charters.
  • Debt profile -- All bank debts cleared, with recent $14.6 million and $53.3 million obligations repaid without resorting to bank loans.
  • Fleet age -- Average vessel age stands at 14.8 years, with all ships compliant on ballast water systems and unaffected by postponed US-China tariffs.
  • Order book and fleet numbers -- Handysize global order book at 226 vessels with an order book-to-fleet ratio of 7.2%, compared to 10.5% of the fleet over 25 years old.
  • EPS -- $3.34, paralleling the swing to net income.
  • Strategic outlook -- Management affirmed ongoing discipline in growth, targeting new non-Chinese built vessel acquisitions and short to medium-term charters.

Summary

C3is (CISS 0.89%) delivered sharply improved net income and EBITDA, despite a substantial decline in voyage revenues due to extended Aframax tanker downtime from dry docking. Management highlighted the fleet’s unencumbered status, a fully debt-free balance sheet, and an ongoing focus on asset quality and operational flexibility through selective acquisitions. The company cited notable reductions in interest and warrant liabilities following full completion of recent vessel purchases without recourse to bank financing.

  • Chinese and Indian commodity import demand, despite some softness, underpinned steady minor bulk and Atlantic grain flows, while ongoing US-China trade shifts and geopolitical volatility were acknowledged as continuing sources of operational uncertainty.
  • The average vessel age and maintenance regime were positioned as strategic differentiators, with all ships meeting regulatory requirements and insulated from tariff impacts related to Chinese shipyard sourcing.
  • CEO Andriotis said, "We are fully delivered, thus significantly enhancing our financial flexibility," underscoring capital position to pursue growth initiatives absent bank debt exposure.
  • The company’s chartering strategy emphasized relationships with high-quality industrial and trading counterparties, reinforcing repeat business as a driver of commercial stability.

Industry glossary

  • Handysize: Dry bulk vessels typically between 15,000 and 35,000 deadweight tons, used for transporting a range of bulks on short/medium-haul trades.
  • Time charter equivalent (TCE): A shipping industry metric for comparing revenue performance, representing average daily earnings per vessel after voyage costs.
  • Aframax: Mid-sized oil tankers generally between 80,000 and 120,000 deadweight tons optimized for efficiency in regions with port size constraints.

Full Conference Call Transcript

For the first nine months of 2025, we achieved a net income of $5,260,000 compared to a net loss of $3,000,000 for the same period in 2024, an increase of 281%. Our voyage revenues decreased by 24% compared to the same period in 2024 due to the dry docking of our Aframax tanker resulting in a loss of revenue from our highest earning vessel over a period of seventy-four days. Our TCE rates were also impacted with a drop of 40%. In April 2025, we settled the final outstanding balance of $14,600,000 due on our latest addition, the Echo Speedfire. We reported an EBITDA of $10,000,000 compared to $3,000,000 for 2024, an increase of 245%.

Slide four shows the dry bulk rate for the first nine months of 2025. The recent US-China trade truce, while fragile, should support Q4 rates via more US exports. The iron ore and bauxite markets remain resilient and 2026 could see faster expansion than 2025 driven by South Atlantic iron bauxite volumes. The market was also supported by strong iron ore volumes to China. Dwindling Chinese iron ore and bauxite mining output will create scope for imports. Bauxite departures from Guinea to China show the usual three rainy season weakness. Much of the relatively strong demand has been driven by inventory building and dwindling Chinese mining output, rather than rapid growth in demand.

Chinese demand is not growing rapidly, but its inventories are. Q3 was a much stronger period for seaborne coal trades than in 2025. Overall, levels remain slightly down against 2024 levels. Come 2026, a modest rebound in coal trade is expected, as trade tensions and La Niña remain key risks. This was primarily driven by bumper grain volumes. The grain trade boomed in Q3, in the Atlantic. China bought enormous volumes of Brazilian soybeans far later in the year than usual, as it avoided buying US soybeans as part of the wider trade dispute between the two nations, resulting in US exports falling 35% by the end of Q3.

There were also strong grain and soy meal volumes from Argentina, thanks to government cuts in export levies and strong harvests. Come 2026, firmer EG production, moderate Black Sea growth, and strong ECSA volumes support a modest rebound in grain flows. A much more vigorous rebound will be from Chinese return to the market in Q4 with demand extending well into 2026. Minor bulk demand remains resilient as steady manufacturing and construction underpin minor bulk imports. Slide five shows the handysize market fundamentals and the fleet age and growth. The market outlook shows that in January-September 2025, global exports of all dry bulk commodities loaded on handysize vessels reached 1,328,000 tons according to excess marine vessel tracking data.

15% of exports loaded were coal. This was largely due to a slowdown in coal mine output in China. Indian appetite for coal imports was down significantly in Q3 in line with typical seasonal trends. Indian demand was also hampered by strong domestic mining. Moving on to the handysize fleet age and growth, the global handysize fleet now stands at 3,202 vessels. Of these, 569 vessels are over 20 years of age, accounting for 17.8% of the total number of vessels. With a starting tally of 3,117 vessels, the current fleet represents a change of 2.73% in vessel numbers over the year so far.

The global handysize order book now stands at 226 vessels, of which 37 vessels are scheduled for delivery within 2025. Currently, the order book to fleet ratio stands at 7.2%, while in comparison, 10.5% of the fleet is over 25 years of age, and an average of 7.3% is between 20 and 24 years of age. The average age of the C3is Inc. Handy Fleet was 15.2 years by the end of Q3 2025. Slide six shows the Aframax LR2 fleet size and age. As of 2025, the Aframax fleet in service comprised 1,191 vessels with a total deadweight capacity of 131,500,000 deadweight reflecting a year-to-date growth of 3.03%. Deliveries in 2025 reached 47 vessels.

Demolitions totaled nine vessels with two vessels removed during Q3. The current order book stands at 197 vessels. Fleet age 20 years or older totals 252 vessels, representing 21% of the total fleet. The highest number of vessels is in the fifteen to twenty years category. The age of our Aframax tanker was 15.2 years by the end of Q3 2025. Slide seven summarizes the current tanker market fundamentals. Global oil consumption rose only modestly in Q3 and speculations are now growing over an oil supply surplus next year. Q3 Chinese crude oil imports were down 0.4% on Q2 but up 5% year on year.

Chinese oil demand is sluggish, increasing purchases are cost opportunistic, and destined to build up inventories as domestic demand is flatlining. There is only another 2% of total growth in oil demand expected until 2030. War and global uncertainty will keep causing market disruptions, typically boosting earnings. Refinery attacks in Russia are just the latest example. Tariffs and trade. Global growth has proven stronger than anticipated in the face of trade tariffs. However, part of this resilience was masked by front-loaded exports. China remains on track to meet its 5% growth target, an outcome few expected earlier this year.

The real test will come next year even if Chinese exports remain strong, net exports are not likely to grow as much as in 2025. China-US relations have steadied with a one-year truce agreed but some tariffs remain without a comprehensive long-term deal. Uncertainty will persist. The recent US tariff reduction on Chinese goods is marginal, now 47% down from 57%. And China-US trade is expected to keep declining. Geopolitical uncertainty continues to dominate, especially the US-China trade and maritime rivalry. Late October saw a one-year truce agreed with US tariffs on China reduced to 47%, and other measures delayed. Early Q4 saw the Israel-Hamas ceasefire which is holding for now, albeit delicately.

Ships still avoid the Red Sea despite the Gaza ceasefire. This continues to mask oversupply. It will take time for the route to be deemed safe. There was little end in sight to the Ukraine war, but the US is now talking tougher on sanctions with implications for oil and tanker markets. Q3 was all about waiting for the IMO vote on net zero measures in October. The vote was eventually delayed until next year after US lobbying against the rules. Barring a start change of US policy, any global carbon measures are unlikely to pass next year or at any point in Trump's term. The rules, if passed, would have effectively introduced a carbon tax on burning fuel oil.

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 dry bulk carrier, the Echo Speedfire, bringing the total fleet capacity to 213,000 deadweight. All vessels have had their ballast water systems already installed. With an average age of 14.8 years at the end of Q3. The fleet successfully completed the dry dock in August 2025, and the next one due will be in August 2028. All the vessels are unencumbered and currently employed on short to medium-term period charters and spot voyages.

None of the vessels were built in Chinese shipyards, hence, not affected by the newly postponed tariffs. Slide nine 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 in our operations and the satisfaction of the services we provide. The key to maintaining relationships with these companies is high standards of safety and reliability of service. I will now turn over the call to Nina Pyndiah for our financial performance.

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 first nine months of 2025. We reported voyage revenues of $24,200,000 for the first nine months of 2025 compared to $32,900,000 in 2024, a reduction of 26%, primarily due to the dry docking of our Aframax tanker, which resulted in seventy-four non-revenue days. The time charter equivalent rates of our vessels were also impacted with a decrease of 40% compared to the same period of 2024. Voyage costs for the first nine months of 2025 were $9,400,000 compared to $10,400,000 in 2024.

This decrease was attributed to the decrease in voyage days due to the dry docking of the Aframax tanker. Voyage costs for the nine months ended September 30, 2025, mainly included bunker costs of $4,700,000, corresponding to 49% of total voyage expenses, and port expenses of $3,800,000, corresponding to 40% of total voyage expenses. Operating expenses for the nine months ended September 30, 2025, were $7,000,000 and mainly included crew expenses of $3,500,000, corresponding to 50% of total operating expenses, spares and consumables cost of $1,600,000, and maintenance expenses of $1,000,000, representing works and repairs on the vessels. The dry docking costs for the Aframax were $1,700,000.

General and administrative costs for the nine months ended September 30, 2025, were $2,000,000 and $2,500,000, respectively. The $500,000 decrease mainly related to expenses incurred in the nine months ended September 2024 relating to the two public offerings. Depreciation for the nine months ended September 30, 2025, was $4,900,000, a $300,000 increase from $4,600,000 for the same period of last year due to the increase in the average number of our vessels. Interest and finance costs for the nine months ended September 30, 2025, and 2024 were $400,000 and $2,100,000, respectively.

The $1,700,000 decrease is related to the accrued interest expense related party in connection with the $53,300,000 part of the acquisition prices of our Aframax tanker Yafra Pole two, which was completely repaid in July 2024, and our bulk carrier, the Echo Speedfire, which was completely paid in April 2025. Gain on warrants for the nine months ended September 30, 2025, was $6,700,000 as compared with the loss on warrants of $10,400,000 for the nine months ended September 30, 2024, and mainly related to the net fair value changes on our cost B1 and cost B2 warrants and clause C1 and C2 as well. These were classified as liabilities.

For the first nine months of 2025, the company reported a net income of $5,300,000 and a related EPS of 3.34. Turning to Slide 11 for the balance sheet. We had a cash balance of $6,600,000 compared to $12,600,000 at the end of 2024, a decrease of 48% due to the full settlement of the 90% of the purchase price of the Echo Speedfire in Q2 2025. Other current assets mainly include charterers receivable of $3,500,000 compared to $2,800,000 in December 2024, as well as inventories of $600,000 compared to $900,000 at December 2024. The vessel's net value of $179,000,000 was for the four vessels less depreciation. Trade accounts payable of $1,800,000 are balances due to suppliers and brokers.

Payable to related party of $4,300,000 represents the balance due to the management company Brave Maritime. A warrant liability of $3,900,000 was recorded, a drop of 63% from the year-end balance of 2024 when it was $10,400,000. Concluding the presentation on slide 12, we outlined the key variables that will assist us in progressing 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 ongoing tariff threats by the US to China will be of no consequence to our fleet. The company's strategy is to follow disciplined growth. With in-depth technical and conditional assessment review, equity issuances will continue as management is continuously seeking a timely and selective acquisition of quality non-Chinese built vessels with a 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 having increased our fleet by 234% since inception, the company has no bank debts.

Interest was charged by the affiliated sellers on the purchase prices of the Atropo two and the Echo Speedfire. From July 2023 to date, we have repaid all of our CapEx obligations totaling $59,200,000 without resorting to bank loans. At this stage, our CEO, Diamantis Andriotis, will summarize the concluding remarks for the period examined.

Diamantis Andriotis: For the first nine months of 2025, we reported voyage revenues of $24,200,000, and EBITDA of $10,300,000, an increase of 245%, net income of $5,300,000, an increase of 281%, and EPS of 3.5. In April 2025, we paid off the remaining balance of $14,600,000 due on our bulk carrier, the Echo Speedfire. In August 2025, we successfully completed the dry docking of our tanker, the AfraPal two. We are fully delivered, thus significantly enhancing our financial flexibility. As the world goes through an uncertain volatile era, turbulences in the shipping market are unavoidable. The market remains as uncertain as they have ever been, due to this geopolitical environment.

But despite all this uncertainty, major economies are still growing, trade volumes are still rising across sectors. In the midst of these shifting dynamics, C3is Inc.'s performance remained solid, and we have proved that we have built resilient and organic foundations adaptable to this changing environment. We will therefore continue with our strategy with our debt-free balance sheet of 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 we look forward to having you with us again on our next call for the results of 2025.