Goldman refreshes its gold stocks outlook for 2025
C3is Inc reported its second quarter 2025 earnings with a slight decrease in voyage revenues and a notable net loss primarily due to non-cash unrealized warrant loss. Despite the challenges, the company maintained a positive adjusted net income. The stock responded with a decline of 1.9% in regular trading, closing at $3.01, though it saw a slight increase of 1.23% to $3.05 in premarket trading. According to InvestingPro data, the stock is trading near its 52-week low of $2.85, having declined over 83% in the past year.
Key Takeaways
- C3is Inc reported a Q2 2025 net loss of $5.3 million due to non-cash unrealized warrant loss.
- Adjusted net income stood at $1.1 million, highlighting operational efficiency.
- The company paid $14.6 million for a new vessel, Echo Speedfire, without incurring bank debt.
- The stock fell by 1.9% in regular trading but showed a slight uptick in premarket activity.
Company Performance
C3is Inc’s overall performance in the second quarter of 2025 reflected the broader challenges in the global drybulk trade, which saw a 1% decline. The company’s voyage revenues fell by 1% compared to the same period in 2024, while net income for the first half of 2025 was $2.6 million. The firm highlighted its strategic focus on maintaining financial flexibility, demonstrated by acquiring the Echo Speedfire without bank loans.
Financial Highlights
- Voyage Revenues: $10.7 million (1% decrease from 2024)
- Net Loss: $5.3 million
- Adjusted Net Income: $1.1 million
- Cash Balance: $2.3 million (82% decrease from 2024)
Outlook & Guidance
C3is Inc remains committed to a disciplined growth strategy, emphasizing the acquisition of quality vessels not built in Chinese shipyards. The company aims to capitalize on short to medium-term charters and is confident in its ability to adapt to changing market conditions. Looking forward, the firm projects a revenue forecast of $50.76 million for FY2025 and $57.1 million for FY2026. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued, with a "Fair" overall financial health score. For detailed valuation metrics and comprehensive analysis, investors can access the Pro Research Report, available exclusively to InvestingPro subscribers.
Executive Commentary
Dr. Giannis Antiochi, CEO of C3is Inc, stated, "Despite these shifting dynamics, CPIS performance remained solid." This sentiment was echoed by CFO Nina Pindia, who emphasized the company’s financial flexibility by noting, "We have no bank debt." Dr. Antiochi further expressed confidence in the company’s adaptability to the evolving market landscape.
Risks and Challenges
- Decline in global drybulk trade could continue to impact revenues.
- The significant reduction in cash balance may constrain future investments.
- Dependency on short to medium-term charters could introduce volatility.
- Fluctuations in commodity imports, particularly from China, pose a risk.
- The aging fleet might require increased maintenance costs.
The earnings call did not include a Q&A section, leaving some analyst questions unanswered. C3is Inc’s strategic focus on financial flexibility and adaptability positions it to navigate current market challenges while pursuing growth opportunities.
Full transcript - C3is Inc (CISS) Q2 2025:
Conference Operator: Day, and thank you for standing by. Welcome to the C3IS Second Quarter twenty twenty five Financial and Operating Results Conference Call and Webcast. At this time, all participants are in listen only mode. Please be advised that this conference is being recorded. I would now like to hand the conference over to your speaker today, Doctor.
Diamantis Adiotis. Sir, please go ahead.
Dr. Giannis Antiochi, CEO, CPIS: Good morning, everyone, and welcome to our CTIA second quarter twenty twenty five earnings conference call and webcast. This is Doctor. Giannis Antiochi of the company. Joining me on the call today is our CFO, Minna Pindia. 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.
At this stage, 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 are implicitly stated in U. S. Dollars. Today, we have released our earnings results for the 2025.
So 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. For the 2025, we had a net loss of $5,300,000 which was due to a non cash item, the unrealized loss of the fair value of warrants of $6,400,000 Disregarding this accounting adjustment, we have an adjusted net income of $1,100,000 for the quarter. Our net income for the first half of the year was $2,600,000 In April 2025, we settled the final outstanding balance of $14,600,000 due on our latest addition, the Echo Speedfire. We met all of our CapEx obligations without resorting to any bank loans.
In Q3 twenty twenty five, our Aframax tanker, the Aframax II successfully completed its special survey. The next special survey will be for the EcoBoost fire in 2026. Slide four shows the drybulk trade for the 2025. The 2025 has seen the drybulk market navigate significant geopolitical volatility, particularly driven by ongoing tariff fluctuations and broader global economic uncertainties. While overall seaborne drybulk trade has experienced a modest decline of approximately 1%, market dynamics reveal new sector 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, seaborne iron trade softened versus 2024 with a 5% year on year drop in Chinese imports amid mill destocking, while India’s rise in imports contributed geographic diversification. Coal and iron ore imports traditionally major drivers of drybulk 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 realignment influenced by U. S.-China tariffs.
Additionally, minor bulk commodities such as fertilizers, aggregates in particular long haul bauxite trade from Guinea have shown resilience and provided partial offsetting demand support. Slide five shows the handysize market fundamentals. Handysize vessels have shown resilience benefiting from relatively stable miner bulk trades with commodities such as fertilizer aggregates and bauxite 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 protectionism exemplified by ongoing tariff escalations and shifting trade alliances pose substantial risks.
Such developments will potentially create opportunities through extended trade routes. On the handysize fleet growth, the segment is quite over age with 14% of the dry bulk handysize fleet being above twenty years of age. Handysize dry bulk carrier order book stands at 9% of the current fleet capacity in the two 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 changing profile suggests potential for increased scrapping with around 30% of the vessels over fifteen years old and 15% exceeding twenty years. Meanwhile, operational speeds remained historically low for both ballast and land and 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 continuing global tariff crusade has been various 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 Israeli Iran war created fears of a wide 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 levels. 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 worst stocks. If Russia loses buyers, this could have unpredictable impacts on oil and tanker markets. OECD oil inventories stand at five year 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 Israeli Iran conflict and created temporary market disruptions, we have seen normalized reinforcing conditions for replenishment supporting tanker activity. 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 0.60.8% in 2025 and 2026, respectively. On the Aframax fleet days, the global Aframax fleet now stands at eleven eighty two vessels with the highest number of vessels in the fifteen, twenty years category. Slide seven shows the tanker net fleet growth.
The combined order book for Aframax LR2s stands at 18% in contrast to approximately 22% of the existing fleet being over 20 years of age. The number of new tanker contracts surged across all segments in late twenty twenty three and early twenty twenty four, but experienced a steep decline from mid-twenty twenty four onwards due to geopolitical market uncertainty and limited yard capacity. Around 60% of crude tanker fleet capacity as of June 2025 is under sanction 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. 25% of the Aframax LR2 fleet is currently sanctioned. Slide eight shows the current fleet of CPIS. CPIS owns and operates a fleet of three handysize dry bulk carriers and one Aframax oil tanker.
In May 2024, the company took delivery for the 33,000 deadweight dry bulk carrier, the Echo Speedfire, bringing the total fleet capacity to two and fifteen thousand deadweight with an average age of 14.5. All vessels have had their ballast water systems already installed. The Afrapel 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 charters with whom the management company has developed strategic relationships and has experienced repeat business. Repeat business highlights the confidence our customers have for our operations and the satisfaction of the services we provide. The key maintaining to our relationships with these companies are high standards of safety and liability of service. I will now turn over the call to Nina Pindia for our financial performance.
Nina Pindia, CFO, CPIS: Thank you, Diamantis, and good morning to everyone. Please turn to Slide 10, and I will go through our financial performance for the 2025. We reported voyage revenues of $10,700,000 for the 2025 compared to $10,800,000 for the 2024, a reduction of 1%. This was primarily due to the decrease in the average time charter equivalent rate of our vessels. The TCE rates for the whole fleet were 45% lower than the rate for Q2 twenty twenty four.
Voyage costs for Q2 ’twenty five were $4,700,000 compared to $3,100,000 for Q2 ’twenty four due to the increase in the number of vessels that is the ECO Stipfire that was added to the fleet in April 24. Vessels operating expenses of $2,400,000 were recorded for Q2 twenty twenty five compared to 2,000,000 for Q2 twenty twenty four, again due to the addition of the Eco Specifier at the beginning of Q2 twenty twenty four. G and A expenses were $677,000 in Q2 twenty twenty five compared to $603,000 in Q2 twenty twenty four and related mainly to the stock based compensation costs. Depreciation increased from $1,500,000 in Q2 twenty twenty four to $1,600,000 in Q2 ’twenty five due to the increase in the average number of vessels. A noncash item of $6,300,000 loss was recorded for Q2 ’twenty five as compared to a loss of €14,500,000 for Q2 ’twenty four.
This item represents the unrealized loss on the fair value of non exercised warrants. This noncash item arose due to the change in the fair value of warrants, that is the insurance date versus 06/30/2025. As a result of the above, we reported a net loss of $5,000,000 and an adjusted net income of $1,100,000 for Q2 ’twenty five as compared to a net loss of $11,800,000 and an adjusted net income of $2,900,000 for 2024, a decrease of 55% on the net loss and a decrease of 60% on the adjusted net income compared to Q2 twenty twenty four. Turning to Slide 11 for the balance sheet. We had a cash balance of $2,300,000 compared to $12,600,000 at the 2024, a decrease of 82%.
This drop in our cash balance was because in Q2 ’twenty five, we paid off the remaining 90% payment balance due on the Handysize Eco Carrier Eco Spitfire and the bunkers remaining onboard, a total of $15,100,000 Other current assets mainly include charterers receivable of $5,700,000 for the 2025 compared to $2,800,000 at December 24, an increase of 85% as well as inventories of 1,100,000.0 compared to $900,000 at December 24. The vessel’s net value of $80,900,000 are for the four vessels less depreciation. Trade accounts payable of $1,400,000 are balances due to suppliers and brokers. Payable to related party of $3,000,000 represents the balance due to the management company, Brave Maritime. A warrant liability of $9,800,000 was recorded, a drop of 6% from the year end balance at year end ’twenty four when it was €10,400,000 Concluding the presentation on Slide 12, we are outlining the key variables that will assist us progress 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 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 insurances 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. No interest was charged by the affiliated sellers on the purchase prices of the Afrapoel II and the ECO Spitfire.
From July 23 to date, we have repaid all our CapEx obligations totaling $59,200,000 without resorting to bank loans. At this stage, our CEO, Doctor. Diavantis Andriyatis, will summarize the concluding remarks for the period examined.
Dr. Giannis Antiochi, CEO, CPIS: For the 2025, we reported Voyage revenues of $19,400,000 EBITDA of 6,000,000 net income of $2,600,000 and EPS of $0.52 In April 2025, we paid off the remaining balance of $14,600,000 due in our bulk carrier, the Ecos Pitfire. In August 2025, we successfully completed the drydocking of our Aframax tanker, the Afra Pelt 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, CPIS performance remained solid with an increase of its fleet capacity by over 210% since inception without incurring any bank debt. We are fully delivered thus increasing the 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. 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 2025.
Conference Operator: This concludes today’s conference call. Thank you for participating. You may now all disconnect. Have a nice day.
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