C3is Inc. Reports First Quarter 2023 Financial and Operating Results

ATHENS, Greece, June 23, 2023 (GLOBE NEWSWIRE) -- C3is Inc. (Nasdaq: CISS) (the “Company”), a ship-owning company providing drybulk seaborne transportation services, announced today its unaudited financial and operating results for the first quarter ended March 31, 2023. These financial results were prepared on a carve-out basis from the financial statements of Imperial Petroleum Inc., which was our parent company prior to the completion of our spin-off on June 21, 2023, and, accordingly, do not reflect any adjustments for the spin-off, the issuance of our common shares and Series A Convertible Preferred Shares, and the $5.0 million working capital contribution to the Company from Imperial Petroleum Inc. in conjunction therewith.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

• Successful spin-off of Imperial Petroleum Inc.’s two drybulk carriers to our newly listed company C3is Inc.; this was concluded on June 21, 2023.
• Our newly listed company currently owns 2 Handysize drybulk vessels, the Eco Angelbay (2009 built) and the Eco Bushfire (2011 built), with an average age of 12.9 years.
• Both vessels are unencumbered; C3is Inc. is a debt free company.
• Fleet operational utilization of 90.6% in Q1 23’, as our vessels were mainly under time charter employment.
• Currently our two vessels are on time charters of short-term duration, producing steady cash flows.
• Voyage revenues of $3.2 million in Q1 23’ and a daily TCE¹ of $15,927 in Q1 23’.
• Net income of $0.8 million for Q1 23’.
  

First Quarter 2023 Results:

• Voyage revenues for the three months ended March 31, 2023 amounted to $3.2 million. Total calendar days for our fleet were 180 days for the three months ended March 31, 2023. Of the total calendar days in the first quarter of 2023, 163 or 90.6% were time charter days. Our fleet operational utilization was 90.6% for this period.
• Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2023 were $0.3 million and $1.0 million, respectively. Voyage expenses mainly included bunker costs of $0.1 million corresponding to 33.3% of total voyage expenses, and commissions to third parties of $0.1 million corresponding to 33.3% of total voyage expenses. Operating expenses mainly included crew expenses of $0.6 million corresponding to 60% of total operating expenses, spares and consumables costs of $0.3 million, corresponding to 30% of total operating expenses, and maintenance expenses of $0.1 million, representing works and repairs on the vessels, corresponding to 10% of total vessel operating expenses.
• General and Administrative costs for the three months ended March 31, 2023 were $0.2 million related to Imperial Petroleum general and administrative expenses allocated to the carve-out entities.
• As a result of the above, for the three months ended March 31, 2023, the Company reported a net income of $0.8 million.
• EBITDA² for the three months ended March 31, 2023 amounted to $1.4 million.
• An average of 2.0 vessels were owned by the Company during the three months ended March 31, 2023.

Board Chairman Harry Vafias commented:

"We are pleased with the successful spin-off of two of Imperial Petroleum’s handysize drybulk vessels to a newly listed entity called C3is Inc. Our affiliated shipping group operates 5 active shipping companies - 3 Nasdaq listed and 2 private companies.

"C3is is our latest project; although currently a small scale company, we believe that current market conditions of the various shipping markets will assist our fast fleet expansion.

"Looking ahead we are eager to replicate the success story of IMPERIAL PETROLEUM which started with 4 levered ships and in less than 18 months had 12 debt free vessels and considerable cash as well. The dry bulk transport market is expected to see an increase in marine transport volume over the medium- and long-term horizon."

Conference Call details:

On June 23, 2023, at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

Conference Call details:

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

Online Registration:

https://register.vevent.com/register/BI74512470137d4536a57f2d438547a88 ...

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through C3is Inc. website (www.c3is.pro). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT C3IS INC.
C3is Inc. is a ship-owning company providing drybulk seaborne transportation services, including major national and private industrial users, commodity producers and traders. The Company owns two Handysize drybulk carriers with a total capacity of 64,000 deadweight tons (dwt). C3is Inc.’s shares of common stock are listed on the Nasdaq Capital Market and trade under the symbol “CISS.”

Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although C3IS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, C3IS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include risks discussed in our filings with the SEC and the following: the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in C3IS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Company Contact:

Nina Pyndiah
Chief Financial Officer

C3IS INC.
00-30-210-6250-001
E-mail: [e-mail]

Fleet Data:
The following key indicators highlight the Company’s operating performance during the three month period ended March 31, 2023.

FLEET DATA	Q1 2023
Average number of vessels (1)	2.00
Period end number of owned vessels in fleet	2
Total calendar days for fleet (2)	180
Total voyage days for fleet (3)	180
Fleet utilization (4)	100.0%
Total charter days for fleet (5)	163
Total spot market days for fleet (6)	17
Fleet operational utilization (7)	90.6%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.
3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.
4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.
6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.
7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

Reconciliation of EBITDA:

EBITDA represents net income before other finance costs, interest income and depreciation. EBITDA is not a recognized measurement under U.S. GAAP. Our calculation of EBITDA may not be comparable to that reported by other companies in the shipping or other industries.

EBITDA is included herein because it is a basis, upon which we and our investors assess our financial performance. It allows us to present our performance from period to period on a comparable basis and provides investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars)		Three Months Ended March 31,
		2023
Net income - EBITDA
Net income	751,353
Plus interest and finance costs	305
Less interest income	--
Plus depreciation	670,064
EBITDA	1,421,722

Reconciliation of TCE:

Time Charter Equivalent rate or “TCE” rate is determined by dividing voyage revenue net of voyage expenses by voyage days for the relevant time period. TCE is a non-GAAP measure which provides additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure to Time charter equivalent revenues assisting the Company’s management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance

(Expressed in U.S. Dollars except for voyage days)		Three Months Period Ended March 31st,
		2023
Voyage Revenues	3,151,845
Voyage expenses	(285,020)
Time charter equivalent revenues	2,866,825
Total voyage days for fleet	180
Time charter equivalent rate	15,927

C3is Inc.
Unaudited Condensed Combined Carve-out Statement of Income
(Expressed in United States Dollars)

							Three Months Ended March 31,
									2023
Revenues
	Revenues							3,151,845
Expenses
	Voyage expenses							250,976
	Voyage expenses – related party							34,044
	Vessels’ operating expenses							1,013,558
	Vessels’ operating expenses – related party							15,000
	Drydocking costs							143,712
	Management fees – related party							79,200
	General and administrative expenses							193,855
	Depreciation							670,064
Total expenses								2,400,409
Income from operations								751,436
Other (expenses)/income
	Interest and finance costs							(305)
	Foreign exchange gain							222
Other (expenses)/income, net								(83)
Net income								751,353

C3is Inc.
Unaudited Condensed Combined Carve-out Balance Sheets
(Expressed in United States Dollars)

					December 31,		March 31,
					2022		2023
Assets
Current assets
	Trade and other receivables				674,827		950,525
	Receivables from related party				146,708		146,708
	Advances and prepayments				36,340		32,004
	Inventories				165,645		402,547
Total current assets					1,023,520		1,531,784
Non current assets
	Vessels, net				38,836,151		38,166,087
Total non current assets					38,836,151		38,166,087
Total assets					39,859,671		39,697,871
Liabilities and Stockholders' Equity
Current liabilities
	Trade accounts payable				792,142		507,699
	Accrued liabilities				173,324		249,854
Total current liabilities					965,466		757,553
Total liabilities					965,466		757,553
Commitments and contingencies
Net parent investment					38,894,205		38,940,318
Total liabilities and net parent investment					38,859,671		39,697,871

C3is Inc.
Unaudited Condensed Combined Carve-out Statement of Cash Flows
(Expressed in United States Dollars)

							Three Months Ended March 31,
						2023
Cash flows from operating activities
	Net income for the period							751,353
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation							670,064
Changes in operating assets and liabilities:
	(Increase)/decrease in
	Trade and other receivables							(275,698)
	Balances with related party							-
	Advances and prepayments							4,336
	Inventories							(236,902)
	Increase/(decrease) in
	Trade accounts payable							(284,443)
	Accrued liabilities							76,530
	Deferred income							-
Net cash provided by operating activities								705,240
Cash flows from investing activities
	Improvement of vessels							-
Net cash used in investing activities								-
Cash flows from financing activities
	Net transfers to parent							(705,240)
Net cash used in financing activities								(705,240)
Net increase in cash and cash equivalents								-
Cash, cash equivalents and restricted cash at beginning of year								-
Cash, cash equivalents and restricted cash at end of period								-

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1} TCE is a non-GAAP measure. Refer to the reconciliation of this measure to the most directly comparable financial measure in accordance with U.S. GAAP set forth later in this release.

² EBITDA is a non-GAAP measure. Refer to the reconciliation of this measure to the most directly comparable financial measure in accordance with U.S. GAAP set forth later in this release.