LIMASSOL, Cyprus, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM) ("Castor” or the "Company”), a diversified global shipping company, today announced its results for the three months and nine months ended September 30, 2024.
Earnings Highlights of the Third Quarter Ended September 30, 2024:
- Total vessel revenues: $13.4 million for the three months ended September 30, 2024, as compared to $21.4 million for the three months ended September 30, 2023, or a 37.4% decrease;
- Net income of $2.8 million for the three months ended September 30, 2024, as compared to net loss of $5.4 million for the three months ended September 30, 2023, or a 151.9% increase;
- Earnings/(loss) per common share, basic: $0.21 per share for the three months ended September 30, 2024, as compared to $(0.60) per share for the three months ended September 30, 2023;
- EBITDA(1): $5.0 million for the three months ended September 30, 2024, as compared to $2.5 million for the three months ended September 30, 2023;
- Adjusted EBITDA(1): $6.8 million for the three months ended September 30, 2024, as compared to $10.9 million for the three months ended September 30, 2023;
- Cash and restricted cash of $171.5 million as of September 30, 2024, as compared to $120.9 million as of December 31, 2023; and
- Acquisition of the Company's first Ultramax bulk carrier, the M/V Magic Celeste, on August 16, 2024, after entering into an agreement to purchase the vessel on July 16, 2024 for $25.5 million.
- Total vessel revenues from continuing operations: $50.1 million for the nine months ended September 30, 2024, as compared to $71.2 million for the nine months ended September 30, 2023, or a 29.6% decrease;
- Net income from continuing operations: $48.0 million for the nine months ended September 30, 2024, as compared to net loss of $3.7 million for the nine months ended September 30, 2023, or a 1,397.3% increase;
- Net income of $48.0 million for the nine months ended September 30, 2024, as compared to $13.6 million for the nine months ended September 30, 2023, or a 252.9% increase;
- Earnings/(loss) per common share, basic from continuing operations: $4.73 per share for the nine months ended September 30, 2024, as compared to $(0.44) per share for the nine months ended September 30, 2023;
- EBITDA from continuing operations(1): $58.3 million for the nine months ended September 30, 2024, as compared to $20.2 million for the nine months ended September 30, 2023; and
- Adjusted EBITDA from continuing operations(1): $48.9 million for the nine months ended September 30, 2024, as compared to $33.7 million for the nine months ended September 30, 2023.
Management Commentary Third Quarter 2024:
Mr. Petros Panagiotidis, Chief Executive Officer of Castor, commented:
"In the third quarter of 2024, we continued to enjoy robust cash flows from operations which allowed us to invest in modern vessels to expand our fleet and further reduce our debt and strengthen our balance sheet.
In September, we repaid the vast majority of our debt, reducing our finance costs further and announced the acquisition of one Kamsarmax bulk carrier and one containership vessel, all of which have since been delivered, increasing our fleet size to 13 vessels today from ten at the end of June 2024.
As our liquidity position remains substantial, we remain committed to our growth trajectory by seeking further opportunities in the shipping space, including opportunities to modernize our fleet.”
Earnings Commentary:
Third Quarter ended September 30, 2024, and 2023, Results
Total vessel revenues for the three months ended September 30, 2024, decreased to $13.4 million from $21.4 million in the same period of 2023. This variation was mainly driven by the decrease in our Available Days (defined below) from 1,859 days in the three months ended September 30, 2023, to 929 days in the three months ended September 30, 2024, following the sale of seven dry bulk vessels during the six months ended June 30, 2024 and the sale of three dry bulk vessels in the fourth quarter of 2023, as partially offset by the acquisition of the M/V Magic Celeste on August 16, 2024. This decrease in Available Days was partially offset by an increase in prevailing charter rates of our dry bulk vessels.
There was a decrease in voyage expenses to $1.0 million in the three months ended September 30, 2024, from $1.3 million in the same period of 2023, which was mainly associated with a decrease in bunkers consumption.
Vessel operating expenses decreased by $4.9 million to $5.2 million in the three months ended September 30, 2024 from $10.1 million in the same period of 2023, mainly reflecting the decrease in the Ownership Days of our fleet to 966 days in the three months ended September 30, 2024, from 1,859 days in the same period in 2023.
Management fees in the three months ended September 30, 2024 amounted to $1.1 million, whereas in the same period of 2023, management fees totaled $1.8 million. This decrease in management fees is due to the decrease in the total number of Ownership Days for which our managers charge us a daily management fee following the sales of the dry bulk vessels mentioned above, partly offset by a management fee adjustment for inflation under our Amended and Restated Master Management Agreement with effect from July 1, 2024.
The decrease in depreciation and amortization costs by $2.2 million to $3.7 million in the three months ended September 30, 2024, from $5.9 million in the same period of 2023, mainly reflects the decrease in our Ownership Days following the sale of seven dry bulk vessels during the six months ended June 30, 2024 and the sale of three dry bulk vessels in the fourth quarter of 2023.
General and administrative expenses in the three months ended September 30, 2024, amounted to $1.5 million, whereas, in the same period of 2023, general and administrative expenses totaled $1.6 million. This decrease mainly stemmed from lower professional fees during the period.
During the three months ended September 30, 2024, we incurred net interest costs and finance costs amounting to $(1.5) million compared to $1.9 million during the same period in 2023. The decrease is due to the drop in our weighted average indebtedness, as well as an increase in interest income we earned from our time and cash deposits due to increased cash balances during the three months ended September 30, 2024, as compared with the same period of 2023.
Other income, net in the three months ended September 30, 2024, amounted to $0.4 million, which includes (i) a loss of $1.8 million from our investments in listed equity securities, (ii) dividend income on equity securities of $1.8 million and (iii) dividend income of $0.4 million from our investment in 140,000 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares of Toro Corp. (the "Toro Series A Preferred Shares”).
Other income/(expenses), net in the three months ended September 30, 2023, amounted to $(7.2) million, which mainly includes the unrealized loss of $8.4 million from revaluing our investments in listed equity securities at period end market rates. Other expenses in the three months ended September 30, 2023 were partially offset by dividend income on equity securities of $0.8 million and dividend income of $0.4 million from our investment in the Toro Series A Preferred Shares.
Recent Financial Developments Commentary:
Liquidity/Financing/Cash flow update
Our consolidated cash position (including our restricted cash) as of September 30, 2024, increased by $50.6 million to $171.5 million, as compared to our cash position on December 31, 2023, which amounted to $120.9 million. The increase was mainly the result of: (i) $31.6 million of net operating cash flows received during the nine months ended September 30, 2024, (ii) $107.9 million inflow of net proceeds from the sales of the M/V Magic Moon, M/V Magic Nova, M/V Magic Orion, M/V Magic Nebula, M/V Magic Venus, M/V Magic Vela and M/V Magic Horizon, (iii) net inflows of $28.0 million associated with the purchase and sale of equity securities and inflows of $1.4 million of proceeds from a claim, offset by (iv) $25.5 million associated with the acquisition of the M/V Magic Celeste and $4.7 million advances for the acquisition of the M/V Raphaela and M/V Magic Ariel, (v) $1.9 million of dividends paid on the Series D Preferred Shares, (vi) $85.0 million for scheduled principal repayments, early prepayments in connection with the sale of vessels and voluntary prepayments, on our debt and (vii) $1.1 million for payments related to the repurchase in May 2024 of our outstanding Common Share Purchase Warrants issued on April 7, 2021.
As of September 30, 2024, our total debt, gross of unamortized deferred loan fees, was $1.6 million, all of which is repayable within one year, as compared to $86.6 million of gross total debt as of December 31, 2023, a decline mainly due to prepayments in connection with vessel dispositions and voluntary prepayments of our long term debt.
Loan prepayments
On August 7, 2024, we prepaid in full the amount of $14.6 million remaining outstanding under the $22.5 million senior secured term loan facility with Chailease International Financial Services (Singapore) Pte., Ltd., secured against two containership vessels (the M/V Ariana A and M/V Gabriela A).
On September 3, 2024, we prepaid in full the amount of $10.6 million remaining outstanding under the $55.0 million senior secured term loan facility with Deutsche Bank AG, secured against four dry bulk vessels (the M/V Magic Starlight, M/V Magic Mars, M/V Magic Pluto and M/V Magic Perseus).
On September 17, 2024, we prepaid in full the amount of $13.8 million remaining outstanding under the $40.75 million senior secured term loan facility with Hamburg Commercial Bank AG, secured against two dry bulk vessels (the M/V Magic Thunder and M/V Magic Eclipse).
Recent Business Developments Commentary:
Vessel Acquisitions
On July 16, 2024, we entered into an agreement with an unaffiliated third party to acquire a secondhand 2015-built Ultramax dry bulk carrier for a purchase price of $25.5 million. The M/V Magic Celeste was delivered to us on August 16, 2024. The acquisition was financed in its entirety with cash on hand.
On September 6, 2024, we entered into an agreement with an unaffiliated third party to acquire a secondhand 2008-built 1,850 TEU containership vessel, the M/V Raphaela, for a purchase price of $16.49 million. The vessel was delivered to us on October 3, 2024. The acquisition was financed in its entirety with cash on hand.
On September 19, 2024, we entered into an agreement with an unaffiliated third party to acquire a secondhand 2020-built Kamsarmax dry bulk carrier, the M/V Magic Ariel, for a purchase price of $29.95 million. The vessel was delivered to us on October 9, 2024. The acquisition was financed in its entirety with cash on hand.
Fleet Employment Status (as of November 7, 2024)
During the three months ended September 30, 2024, we operated on average 10.5 vessels earning a Daily TCE Rate(2) of $13,367 as compared to an average of 20.2 vessels earning a Daily TCE Rate(2) of $10,830 during the same period in 2023.
Our employment profile as of November 7, 2024 is presented immediately below.
(2) Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
| Dry Bulk Carriers | |||||||||
| Vessel Name | Type | Capacity (dwt) | Year Built | Country of Construction | Type of Employment(1) | Daily Gross Charter Rate | Estimated Redelivery Date | ||
| Earliest | Latest | ||||||||
| Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | TC period | 97% of BPI5TC (2) | -(5) | -(5) | |
| Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | TC period | 100% of BPI5TC | -(5) | -(5) | |
| Magic Starlight | Kamsarmax | 81,048 | 2015 | China | TC period | 98% of BPI5TC | -(5) | -(5) | |
| Magic Ariel | Kamsarmax | 81,845 | 2020 | China | TC period | 108% of BPI5TC | May-25(6) | -(5) | |
| Magic Mars | Panamax | 76,822 | 2014 | Korea | TC period | 102% of BPI4TC (3) | -(5) | -(5) | |
| Magic P | Panamax | 76,453 | 2004 | Japan | TC period | 96% of BPI4TC | -(5) | -(5) | |
| Magic Eclipse | Panamax | 74,940 | 2011 | Japan | TC period | 100% of BPI4TC | -(5) | -(5) | |
| Magic Pluto | Panamax | 74,940 | 2013 | Japan | TC period | 100% of BPI4TC | -(5) | -(5) | |
| Magic Callisto | Panamax | 74,930 | 2012 | Japan | TC period | 101% of BPI4TC | -(5) | -(5) | |
| Magic Celeste | Ultramax | 63,310 | 2015 | China | TC period | 111% of BSI10TC (4) | May-25(7) | -(5) | |
| Containerships | |||||||||
| Vessel Name | Type | Capacity (dwt) | Year Built | Country of Construction | Type of Employment | Daily Gross Charter Rate ($/day) | Estimated Redelivery Date | ||
| Earliest | Latest | ||||||||
| Ariana A | Containership | 38,117 | 2005 | Germany | TC period | $18,000 | Jun-25 | Aug-25 | |
| Gabriela A | Containership | 38,121 | 2005 | Germany | TC period | $17,000 | Feb-25 | May-25 | |
| Raphaela | Containership | 26,811 | 2008 | Turkey | TC period | $29,000 | Feb-25(8) | Feb-25(8) | |
| (1) | TC stands for time charter. |
| (2) | The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 5TC routes ("BPI5TC”) is a non-scrubber fitted 82,000mt dwt vessel (Kamsarmax) with specific age, speed-consumption, and design characteristics. |
| (3) | The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 4TC routes ("BPI4TC”) is a non-scrubber fitted 74,000mt dwt vessel (Panamax) with specific age, speed-consumption, and design characteristics. |
| (4) | The benchmark vessel used in the calculation of the average of the Baltic Supramax Index 10TC routes ("BSI10TC”) is a non-scrubber fitted 58,000mt dwt vessel (Supramax) with specific age, speed-consumption, and design characteristics. |
| (5) | In accordance with the prevailing charterparty, both parties (owners and charterers) have the option to terminate the charter by providing 3 months' written notice to the other party. |
| (6) | The earliest redelivery under the prevailing charter party is 7 months after delivery. Thereafter, both owners and charterers have the option to terminate the charter by providing 3 months written notice to the other party. |
| (7) | The earliest redelivery under the prevailing charter party is 9 months after delivery. Thereafter, both owners and charterers have the option to terminate the charter by providing 3 months written notice to the other party. |
| (8) | The vessel has been fixed upon delivery under a time charter period contract of four months at $29,000 per day with earliest redelivery taking place in February 2025. On October 14, 2024, the vessel was fixed under a new time charter contract with a delivery date upon the redelivery of the vessel from the current employment, at a gross daily charter rate of $19,250 per day, with earliest redelivery in October 2025 and latest redelivery in December 2025. |
Financial Results Overview of Continuing Operations:
Set forth below are selected financial data of our dry bulk and containerships segments (continuing operations) for each of the three and nine months ended September 30, 2024, and 2023, respectively:
| Three Months Ended | Nine Months Ended | ||||||||||||
| (Expressed in U.S. dollars) | September 30, 2024(unaudited) | September 30, 2023(unaudited) | September 30, 2024(unaudited) | September 30, 2023(unaudited) | |||||||||
| Total vessel revenues | $ | 13,410,037 | $ | 21,404,903 | $ | 50,079,813 | $ | 71,151,984 | |||||
| Operating income | $ | 981,382 | $ | 3,787,522 | $ | 28,438,066 | $ | 14,565,656 | |||||
| Net income / (loss), net of taxes | $ | 2,836,455 | $ | (5,387,321 | ) | $ | 48,021,812 | $ | (3,710,568 | ) | |||
| EBITDA(1) | $ | 5,001,855 | $ | 2,511,214 | $ | 58,347,516 | $ | 20,232,425 | |||||
| Adjusted EBITDA(1) | $ | 6,811,682 | $ | 10,874,129 | $ | 48,919,666 | $ | 33,702,767 | |||||
| Earnings per common share, basic | $ | 0.21 | $ | (0.60 | ) | $ | 4.73 | $ | (0.44 | ) | |||
| Earnings per common share, diluted | $ | 0.14 | $ | (0.60 | ) | $ | 2.28 | $ | (0.44 | ) | |||
Consolidated Fleet Selected Financial and Operational Data:
Set forth below are selected financial and operational data of our dry bulk and containership segments (continuing operations) for each of the three and nine months ended September 30, 2024, and 2023, respectively, that we believe are useful in analyzing trends in our results of operations.
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