On Monday, C3is (NASDAQ:CISS) discussed first-quarter financial results during its earnings call. The full transcript is provided below.

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Summary

C3is reported significant financial performance improvements, including a 358% increase in adjusted net income to $5.5 million and a 130% rise in adjusted EBITDA to $6.9 million for Q1 2026.

The company achieved a 34% increase in voyage revenues to $11.6 million, with a notable 99% increase in time charter equivalent rates for the fleet.

C3is expanded its fleet with the acquisition of two new product tankers, enhancing its capacity by 387% since inception and maintaining a strategy of operating debt-free.

The company is navigating geopolitical challenges impacting trade flows and costs, while also benefiting from strong market demand in the tanker sector.

Future strategies focus on disciplined growth through selective acquisitions and short to medium-term charters, with no impact from potential US tariffs due to non-Chinese built vessels.

Full Transcript

Nina Pendia

Thank you Diamantis and good morning to everyone. Please turn to slide 10 and I will go through our financial performance for the first three months of 2026 we reported voyage revenues of 11.6 million from for 1Q26 compared to 8.7 million in Q1 25, an increase of 34%. Our debt revenues were $10.4 million compared to 5.8 million in 2025, an increase of 78%. The time charter equivalent rates of our vessels were also positively impacted with an increase of 99% for the fleet and 106% for our Aframax tanker compared to Q1.25. Voyage costs decreased by 57% from last year and was due to the decrease in bunker cost and port expenses. The bunker cost decrease was a result of more time and spot charters where the charterer pays the fuel cost. Voyage expenses for the three months ended March 31, 2026 included bunker cost and port expenses of 0.5 million and 0.3 million respectively, corresponding to 42% and 25% of total voyage expenses. Since the vessel AFRA Pearl 2 operated in the spot market. Operating expenses for the three months ended March 31, 2026 mainly included crew expenses of 1.2 corresponding to 48% of total operating expenses, and spares and consumable cost of 0.6 million, corresponding to 24% of total vessel operating expenses and maintenance expenses of 0.3 million representing works and repairs on the vessel corresponding to 12% of total vessel operating expenses. We reported $211,000 as interest income, an increase of 41% from last year due to a higher balance of funds placed under time deposit. Loss on warrants for the three months ended 3.31.26 was 2.3 million, whereas there was a gain on the warrants for the three months ended 3-31-25 of 6.9 million. This change related to the net fair value losses on our warrants and were classified as liabilities. This is a non cash item and does not reflect our operational performance. Our adjusted EBITDA came in at 6.9 million for Q1.26 compared to 2.9 million for Q1.25, an increase of 130%. We reported a net income of 3.2 million and an adjusted net income of 5.5 million. The latter represents an increase of 358% from Q1.25. We achieved a fleet operational utilization of 85% in Q1.26. Turning to slide 11 for the balance sheet we had a cash balance of 27 million, an increase of 82% from year end 25 in spite of the full payment of the 90% of the purchase price of the Eco Spitfire of 15.1 million in 2025. Other current assets consisted mainly of receivables of 2.6 million and inventories of 900,000. The vessels net value of 76 million are for the four vessels less depreciation vessels. Market values were 75.5 million. Trade accounts payable of 1.9 million are balances due to suppliers and brokers. 1.2 million from this balance has currently been paid off. Payable to related party of 790,000 represents the balance due to the management company Brave Maritime Corporation. The Warrant liability of 1.7 million relates to the net fair value difference on non exercise warrants as of March 31, 2026. This is a non cash item. Our shareholders equity is at a robust 102.2 million as of Q1.26 compared to 95.1 million as of year end 25. Concluding the presentation on slide 12, we outline the key variables that will assist us progress with our company's growth. Owning a high quality fleet reduces operating cost, 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. None of our vessels were built from Chinese shipyards, therefore any potential US Tariffs on Chinese built ships are not expected to have any impact on our fleet. 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 charters and spot voyages. Following on with this strategy, the company has added two product tankers to the fleet, one of which was delivered at the start of Q2.26 and the second one expected in Q3.26. We always charter to high quality charterers such as commodity traders, industrial companies and oil producers and refineries. Despite having increased our fleet by 387% since inception, the company has no bank debt. No interest were charged by the affiliated sellers on the purchase prices of the Afropol 2, the Eco Spitfire and the two recently acquired product tankers. Our upcoming capex obligations will be 39.7 million due on the two product tankers payable in January 2027. At this stage, our CEO, Dr. Diamantes Andreotis will summarize the concluding remarks for the period examined.

Diamantes Andreotis

For the first three months of 2026 we reported an adjusted net income of 5.5 million, an increase of 358% from 2025, an adjusted EBITDA of 6.9 million, an increase of 4 130% and a cash balance of 27 million, an increase of 82% from year end 2025 despite paying off the remaining balance of 15.1 million that was due on the Eco Spitfire in Q2 2025. At the start of Q2 2026, we took delivery of the first of the two product tankers recently acquired with the second one expected in Q3 2026. We are fully delevered, thus significantly enhancing our financial flexibility. C3is financial landscape is seeing dynamic shifts following its current expansion efforts, this will be critical for building future competitive resilience as adding product tankers to the fleet enhances operational diversity, thus exposing the company to the growing tanker market, a sector ripe with potential. This will allow the company to capitalize on booming charter rates leading to a possible surge in revenues. 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 second quarter of 2026.

Sam

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

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