Fleet operational utilization of 70.5% in Q3 23’ as the Company faced commercial idle days due to seasonal factors and technical off hire due to the scheduled drydocking of three product tankers.

67.2% of fleet calendar days equivalent to 565 days in Q3 23’ were dedicated to spot activity.

Net income of $12.1 million in Q3 23’ corresponding to a basic EPS of $0.56.

Revenues of $29.4 million in Q3 23’ generating an EBITDA of $13.9 million.

Cash and cash equivalents and time deposits of $125.9 million as of September 30, 2023 – approximately 3 times higher than our current market capitalization.

Gain on sale of the Aframax tanker Afrapearl II (ex. Stealth Berana) of $8.2 million and $0.6 million of related interest income in connection with $38.7 million of the selling price which is receivable by July 2024.

Net income of $64.7 million in 9M 23’ up by $48.9 million or 309% compared to the net income in 9M 22’. Basic EPS for the 9M 23’amounted to $3.59 which is approximately twice our current share price.

Under the share buyback program announced in September 2023, the Company has repurchased a 1,136,714 common shares for a total amount of approximately $1.9 million.

As a means to further enhance shareholders value, in October 2023, the Company repurchased 2.58 million outstanding warrants for $0.6 million.

Revenues for the three months ended September 30, 2023 amounted to $29.4 million, a decrease of $13.2 million, or 31.0%, compared to revenues of $42.6 million for the three months ended September 30, 2022, primarily due to lower charter rates for the period, the sale of our aframax tanker, increased commercial idle days due to seasonal factors and lost revenue due to the scheduled drydocking of three of our product tankers.

Voyage expenses and vessels’ operating expenses for the three months ended September 30, 2023 were $12.6 million and $6.1 million, respectively, compared to $18.4 million and $4.9 million, respectively, for the three months ended September 30, 2022. The $5.8 million decrease in voyage expenses is mainly due to the decrease of our bunker cost by approximately $13,400 per day, as a result of lower oil prices prevailing during the three month period ended September 30, 2023. The $1.2 million increase in vessels’ operating expenses was primarily due to the increase of our fleet by an average of one vessel.

Drydocking costs for the three months ended September 30, 2023 and 2022 was $2.8 million and nil, respectively. This increase is due to the fact that during the three months ended September 30, 2023 three of our product tankers, namely the Magic Wand, the Clean Nirvana and the Clean Thrasher, underwent drydocking.

General and administrative costs for the three months ended September 30, 2023 and 2022 were $1.3 million and $0.3 million, respectively. This increase is mainly attributed to a $0.6 million increase in stock-based compensation costs along with reporting costs related to our spin off project.

Depreciation for the three months ended September 30, 2023 and 2022 was $3.5 million and $3.4 million, respectively. The change is attributable to the increase in the average number of our vessels.

Gain on sale of vessel for the three months ended September 30, 2023 was $8.2 million, which was due to the sale of the Aframax tanker Afrapearl II (ex. Stealth Berana) to C3is Inc., a related party.

Interest and finance costs for the three months ended September 30, 2023 and 2022 were nil and $0.3 million, respectively. There was no debt outstanding during the three months ended September 30, 2023.

Interest income for the three months ended September 30, 2023 and 2022 was $1.7 million and $0.4 million, respectively. The increase is mainly attributed to a higher amount of funds placed under time deposit at improved rates as well as to the $0.6 million of accrued interest income – related party as of September 30, 2023 in connection with the $38.7 million of the selling price of the Aframax tanker Afrapearl II which is receivable by July 2024.

As a result of the above, for the three months ended September 30, 2023, the Company reported net income of $12.1 million, compared to net income of $15.5 million for the three months ended September 30, 2022. Dividends paid on Series A Preferred Shares amounted to $0.4 million for the three months ended September 30, 2023. The weighted average number of shares of common stock outstanding, basic, for the three months ended September 30, 2023 was 19.8 million. Earnings per share, basic, for the three months ended September 30, 2023, amounted to $0.56, compared to earnings per share, basic, of $1.18 for the three months ended September 30, 2022.

Adjusted net income was $4.5 million corresponding to an Adjusted EPS, basic of $0.19 for the three months ended September 30, 2023 compared to an Adjusted net income of $15.5 million corresponding to an Adjusted EPS, basic, of $1.18 for the same period of last year.

EBITDA for the three months ended September 30, 2023 amounted to $13.9 million, while Adjusted EBITDA for the three months ended September 30, 2023 amounted to $6.3 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.

An average of 9.1 vessels were owned by the Company during the three months ended September 30, 2023 compared to 8.1 vessels for the same period of 2022.

Revenues for the nine months ended September 30, 2023 amounted to $153.8 million, an increase of $94.7 million, or 160.2%, compared to revenues of $59.1 million for the nine months ended September 30, 2022, primarily due to the increased size of our fleet by an average of four vessels.

Voyage expenses and vessels’ operating expenses for the nine months ended September 30, 2023 were $48.7 million and $20.0 million, respectively, compared to $23.3 million and $10.0 million, respectively, for the nine months ended September 30, 2022. The $25.4 million increase in voyage expenses is mainly due to the increase in the spot days of our fleet by 1,060 days (144.4%). The $10.0 million increase in vessels’ operating expenses was primarily due to the increase in the average number of vessels in our fleet by approximately four vessels.

Drydocking costs for the nine months ended September 30, 2023 and 2022 were $4.1 million and nil, respectively. This increase is due to the fact that during the nine months ended September 30, 2023 three of our product tankers and one of our drybulk carriers underwent drydocking.

General and administrative costs for the nine months ended September 30, 2023 and 2022 were $3.8 million and $0.8 million, respectively. This rise is mainly attributed to $1.7 million of stock-based compensation expense along with a rise in reporting costs related to our spin off project.

Depreciation for the nine months ended September 30, 2023 was $12.1 million, a $3.8 million increase from $8.3 million for the same period of last year, due to the increase in the average number of our vessels.

Impairment loss for the nine months ended September 30, 2023 stood at $9.0 million, and related to the spin-off of two of our drybulk carriers to C3is Inc. The decline of drybulk vessels’ fair values compared to the values prevailing when these vessels were acquired, resulted in the incurrence of impairment loss.

Gain on sale of vessel for the nine months ended September 30, 2023 was $8.2 million, which was due to the sale of the Aframax tanker Afrapearl II (ex. Stealth Berana) to C3is Inc., a related party.

Interest and finance costs for the nine months ended September 30, 2023 and 2022 were $1.8 million and $0.7 million, respectively. The $1.8 million of costs for the nine months ended September 30, 2023 relate mainly to $1.3 million of interest charges incurred up to the full repayment of all outstanding loans concluded in April 2023 along with the full amortization of $0.5 million of loan related charges following the repayment of the Company’s outstanding debt.

Interest income for the nine months ended September 30, 2023 and 2022 was $3.8 million and $0.4 million, respectively. The increase is attributed to our time deposits during the period at favourable time deposit rates as well as to the $0.6 million of accrued interest income – related party as of September 30, 2023 in connection with the $38.7 million of the selling price of the Aframax tanker Afrapearl II which is receivable by July 2024.

As a result of the above, the Company reported net income for the nine months ended September 30, 2023 of $64.7 million, compared to a net income of $15.8 million for the nine months ended September 30, 2022. The weighted average number of shares outstanding, basic, for the nine months ended September 30, 2023 was 16.9 million. Earnings per share, basic, for the nine months ended September 30, 2023 amounted to $3.59 compared to earnings per share, basic, of $1.61 for the nine months ended September 30, 2022.

Adjusted Net Income was $67.2 million corresponding to an Adjusted EPS, basic of $3.74 for the nine months ended September 30, 2023 compared to adjusted net income of $15.8 million, corresponding to an Adjusted EPS, basic, of $1.61 for the same period of last year.

EBITDA for the nine months ended September 30, 2023 amounted to $74.8 million while Adjusted EBITDA for the nine months ended September 30, 2023 amounted to $77.3 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.

An average of 10.3 vessels were owned by the Company during the nine months ended September 30, 2023 compared to 6.1 vessels for the same period of 2022.

As of September 30, 2023, cash and cash equivalents and time deposits amounted to $125.9 million and total debt amounted to nil. During the nine months ended September 30, 2023 debt repayments amounted to $70.4 million.

Tankers

Magic Wand

Clean Thrasher

Clean Sanctuary (ex. Falcon Maryam)

Clean Nirvana

Clean Justice

Suez Enchanted

Suez Protopia

Drybulk Carriers

Eco Wildfire

Glorieuse

Fleet Total

FLEET DATA

Average number of vessels (1)

Period end number of owned vessels in fleet

Total calendar days for fleet (2)

Total voyage days for fleet (3)

Fleet utilization (4)

Total charter days for fleet (5)

Total spot market days for fleet (6)

Fleet operational utilization (7)

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.

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.

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.

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.

Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

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.

(Expressed in United States Dollars,
except number of shares)

Net Income – Adjusted Net Income

Net income

Less net gain on sale of vessel

Plus impairment loss

Plus share based compensation

Adjusted Net Income

Net income - EBITDA

Net income

Plus interest and finance costs

Less interest income

Plus depreciation

EBITDA

Net income - Adjusted EBITDA

Net income

Less net gain on sale of vessel

Plus impairment loss

Plus share based compensation

Plus interest and finance costs

Less interest income

Plus depreciation

Adjusted EBITDA

EPS - Adjusted EPS

Net income

Adjusted net income

Cumulative dividends on preferred shares

Weighted average number of shares, basic

EPS - Basic

Adjusted EPS

Revenues

Revenues

Expenses

Voyage expenses

Voyage expenses - related party

Vessels’ operating expenses

Vessels’ operating expenses - related party

Drydocking costs

Management fees - related party

General and administrative expenses

Depreciation

Impairment loss

Net gain on sale of vessel - related party

Total expenses

Income from operations

Other (expenses)/income

Interest and finance costs

Interest income

Interest income - related party

Dividend income from related party

Foreign exchange gain/(loss)

Other income/(expenses), net

Net Income

Earnings per share1

- Basic

- Diluted

Weighted average number of shares1

-Basic

-Diluted

Adjusted retroactively to reflect the 1-for-15 reverse stock split effected on April 28, 2023.

Assets

Current assets

Cash and cash equivalents

Time deposits

Restricted cash

Receivables from related parties

Trade and other receivables

Other current assets

Inventories

Advances and prepayments

Total current assets

Non current assets

Operating lease right-of-use assets

Vessels, net

Restricted cash

Investment in related party

Total non current assets

Total assets

Liabilities and Stockholders’ Equity

Current liabilities

Trade accounts payable

Payable to related parties

Accrued liabilities

Operating lease liabilities

Deferred income

Current portion of long-term debt

Total current liabilities

Non current liabilities

Long-term debt

Total non current liabilities

Total liabilities

Commitments and contingencies

Mezzanine equity

Preferred stock, Series C

Total Mezzanine equity

Stockholders’ equity

Capital stock

Preferred stock, Series A

Preferred stock, Series B

Treasury stock

Additional paid-in capital

Retained earnings

Total stockholders’ equity

Total liabilities, mezzanine equity and stockholders’ equity

Cash flows from operating activities

Net income for the period

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

Amortization of deferred finance charges

Amortization of operating lease right-of-use assets

Share based compensation

Impairment loss

Net gain on sale of vessel - related party

Dividends income from related party

Changes in operating assets and liabilities:

(Increase)/decrease in

Trade and other receivables

Other current assets

Inventories

Changes in operating lease liabilities

Advances and prepayments

Increase/(decrease) in

Trade accounts payable

Balances with related parties

Accrued liabilities

Deferred income

Net cash provided by operating activities

Cash flows from investing activities

Proceeds from sale of vessel, net

Acquisition and improvement of vessels

Increase in bank time deposits

Maturity of bank time deposits

Net cash used in investing activities

Cash flows from financing activities

Proceeds from equity offering

Stock issuance costs

Stock repurchase

Dividends paid on preferred shares

Customer deposits paid

Deferred finance charges paid

Loan repayments

Proceeds from long-term debt

Cash retained by C3 is Inc. at spin off

Net cash provided by/(used in) financing activities

Net increase/(decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of year

Cash, cash equivalents and restricted cash at end of period

Cash breakdown

Cash and cash equivalents

Restricted cash, current

Restricted cash, non current

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

Supplemental Cash Flow Information:

Interest paid

Non cash investing activity – Vessel improvements included in liabilities

Non cash investing activity – Dividend income from related party included in Investment in related party

Non cash financing activity – Dividends on Preferred Shares Series C included in Balances with related parties

Distribution of net assets of C3 is Inc. to shareholders and warrantholders