Home / Shipping News / International Shipping News / Castor Maritime Inc. reports $15.5 Million Net income for the Three Months Ended September 30, 2021, and $23.1 Million Net income for the Nine Months Ended September 30, 2021

Castor Maritime Inc. reports $15.5 Million Net income for the Three Months Ended September 30, 2021, and $23.1 Million Net income for the Nine Months Ended September 30, 2021

Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a diversified global shipping company, yesterday announced its results for the three and nine months ended September 30, 2021.

Highlights of the Third Quarter Ended September 30, 2021:

• Revenues, net: $43.3 million for the three months ended September 30, 2021, as compared to $2.8 million for the three months ended September 30, 2020;
• Net income/loss: Net income of $15.5 million for the three months ended September 30, 2021, as compared to net loss of $0.6 million for the three months ended September 30, 2020;
• Earnings/Loss per common share(1): $0.16 earnings per share for the three months ended September 30, 2021, as compared to loss per share of $0.05 for the three months ended September 30, 2020;
• EBITDA(2): $21.2 million for the three months ended September 30, 2021, as compared to $0.1 million for the three months ended September 30, 2020;
• Cash and restricted cash of $42.4 million as of September 30, 2021, as compared to $9.4 million as of December 31, 2020;
• During the third quarter of 2021 and as of the date of this press release, we have taken successful delivery of four vessels consisting of one Kamsarmax and three Panamax dry bulk carriers. As a result, Castor currently owns a diversified fleet of 27 vessels with an aggregate capacity of 2.3 million dwt, having more than quadrupled the number of the vessels it owns since December 31, 2020.
Earnings Highlights of the Nine Months Ended September 30, 2021:

• Revenues, net: $72.0 million for the nine months ended September 30, 2021, as compared to $8.1 million for the nine months ended September 30, 2020;
• Net income/loss: Net income of $23.1 million for the nine months ended September 30, 2021, as compared to net loss of $1.0 million for the nine months ended September 30, 2020;
• Earnings/Loss per common share (1): $0.29 earnings per share for the nine months ended September 30, 2021, as compared to loss per share of $0.21 for the nine months ended September 30, 2020; and
• EBITDA(2): $33.8 million for the nine months ended September 30, 2021, as compared to $2.1 million for the nine months ended September 30, 2020.
(1) All share and per share amounts disclosed throughout this press release and in the financial information presented in Appendix B have been retroactively updated to reflect the one-for-ten (1-for-10) reverse stock split effected on May 28, 2021, unless otherwise indicated.

(2) EBITDA is not a recognized measure under United States generally accepted accounting principles (“U.S. GAAP”). Please refer to Appendix B for the definition and reconciliation of this measure to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Management Commentary:

Mr. Petros Panagiotidis, Chief Executive Officer of Castor commented:

“We have completed all the acquisitions that we have announced since the beginning of 2021, and we are pleased with the solidity of our balance sheet following our expansion to date. The cash flow generation in the third quarter was robust and we have been able to fix a number of our vessels at attractive rates with our fleet utilization continuing at high levels.

The demand for dry bulk tonnage remains healthy and the newbuilding orderbook stands at a historically low level. We will continue to look for opportunities in the shipping space taking advantage of our strong capital position.”

Earnings Commentary:

Third Quarter ended September 30, 2021, and 2020 Results

Vessel revenues, net of charterers’ commissions, for the three months ended September 30, 2021, increased to $43.3 million from $2.8 million in the same period of 2020. This increase was largely driven by the increase in our Available Days (defined below) from 330 in the three months ended September 30, 2020, to 2,189 in the three months ended September 30, 2021, following the acquisition and delivery to our fleet of 22 vessels since September 30, 2020. The increase in vessel revenues during the three months ended September 30, 2021, as compared with the same period of 2020 was further underpinned by the healthy dry bulk shipping market resulting in a Daily TCE Rate (1) (as defined below) for the vessels of our fleet of more than double as compared to the same period a year ago.

The increase in operating expenses by $11.3 million, from $1.8 million in the three months ended September 30, 2020 to $13.1 million in the same period of 2021, as well as the increase in vessels’ depreciation costs by $4.0 million, from $0.4 million in the three months ended September 30, 2020 to $4.4 million in the same period of 2021, mainly reflect the increase in our Ownership Days following the expansion of our fleet.

Management fees in the three months ended September 30, 2021, amounted to $2.1 million, whereas, in the same period of 2020 management fees totalled $0.2 million. This increase in management fees is primarily due to the substantial increase in our Ownership Days for which our managers charge us with a daily management fee, following the acquisitions discussed above. Effective September 1, 2020, the daily management fee for the technical management of our fleet by Pavimar S.A. was increased from $500 to $600 per vessel, and the daily management fee for the commercial and administrative management of our fleet by Castor Ships S.A. was set to $250 per vessel.

General and administrative expenses in the three months ended September 30, 2021, amounted to $0.6 million, whereas, in the same period of 2020 general and administrative expenses totalled $0.3 million. This increase stemmed from incurred legal and other corporate fees primarily related to the growth of our company and the $0.3 million quarterly flat fee we pay Castor Ships S.A. with effect from September 1, 2020.

During the three months ended September 30, 2021, we incurred net interest costs and finance costs amounting to $0.9 million compared to $0.3 million during the same period in 2020. The increase is mainly due to the higher level of weighted average indebtedness we had during the three months ended September 30, 2021, as compared with the same period of 2020.

(1) Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B of this press release for the definition and reconciliation of this measure to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Recent Financial and Business Developments Commentary:

Vessel acquisitions update

During the third quarter of 2021 and as of the date of this earnings press release, we have taken delivery of four vessels, aggregating to 21 completed vessel acquisitions since the beginning of this year.

Details and delivery information of our completed acquisitions within the third quarter of 2021 and as of the date of this press release are as follows:

Repayment of related party debt

On September 3, 2021, at its extended maturity, we repaid in full $5.0 million of outstanding indebtedness and $0.6 million of accrued interest owed to Thalassa Investment Co. S.A., or Thalassa, an entity affiliated with our CEO (the “Thalassa Loan”). The Thalassa Loan was advanced to Castor in September 2019 for the purpose of partly financing the acquisition of the Magic Sun.

Equity update

In connection with our ongoing at-the-market common stock offering program (“ATM Program”), from June 15, 2021, and as of September 30, 2021, we had raised net proceeds of $12.4 million by issuing and selling 4,654,240 common shares, after commissions paid to our sales agent of $0.3 million, at an average price per share of $2.76.

As of November 4, 2021, we had issued and outstanding 94,610,088 common shares.

Between October 1, 2021, and November 4, 2021, no sales of common shares have taken place under the ATM Program, and there have been no subsequent warrant exercises under our currently effective warrant schemes.

New Financing

On October 19, 2021, through two of our ship-owning subsidiaries owning the Magic Rainbow and the Magic Phoenix, we entered into a binding term sheet with a financial institution for a term loan facility of $23.15 million. The facility is expected to be executed and drawn within this year, subject to customary closing conditions and execution of definitive documentation.

Series A Preferred Shares update

On November 8, 2021, pursuant to a decision approved by our Board of Directors, we served a notice of redemption to our holders of the 480,000 Series A Preferred Shares, constituting all of the issued and outstanding Series A Preferred Shares (the “Notice”). Based on the amended and restated statement of designations of Castor dated October 10, 2019, and according to the Notice, the holders of the Series A Preferred Holders will receive a cash redemption having a value of $30.00 per Series A Preferred Share not more than 30 days after the serving of the Notice.

Cash Flow update

Our consolidated cash position as of September 30, 2021, increased by $33.0 million, to $42.4 million, in relation to our cash position on December 31, 2020. During the nine months period ended September 30, 2021, our cash position improved mainly as a result of: (i) $28.5 million of operating cash flows generated during the nine months ended September 30, 2021, (ii) $157.0 million of net cash proceeds pursuant to the three registered direct offerings of an aggregate 42,405,770 common shares and the concurrent private placement of an equivalent aggregate number of warrants on January 5, January 12 and April 7, 2021, (iii) proceeds of approximately $83.4 million resulting from subsequent exercises of approximately 34.4 million warrants pursuant to the June 2020, July 2020 and the January 2021 equity offerings, that resulted in the issuance of an equal number of common shares, (iv) net cash inflows of approximately $72.5 million following our entry into three secured loan facilities in January, April and July of 2021, and (v) $12.5 million of net cash proceeds pursuant to common stock sales under our effective ATM Program. We used $312.5 million of the net cash flows generated during the nine-month period ended September 30, 2021, from our operations, equity and debt financings to fund the growth of our fleet and for general corporate purposes, whereas, $8.4 million were used for scheduled principal repayments on our then existing debt.

As of September 30, 2021, our total debt, gross of unamortized deferred loan fees, was $84.0 million of which $11.9 million was repayable within one year, as compared to $18.5 million of gross total debt as of December 31, 2020.

New employment agreements

On November 5, 2021, the Magic Sun was fixed on a time charter contract at a gross daily charter rate of $26,250 plus a one-time gross ballast bonus of $1,085,000 or at a gross daily charter rate of $26,400 plus a one-time gross ballast bonus of $1,120,000, depending on the redelivery area to be declared by the charterer. The charter is expected to commence on or around November 28, 2021 and will have a duration of about 65 days.

On November 5, 2021, the Magic Thunder commenced a time charter contract at a gross daily charter rate equal to 100% of the average of Baltic Panamax Index (“BPI”) 5TC routes. The charter has a minimum duration of eleven months and a maximum duration of fourteen months at the charterer’s option.

On November 1, 2021, the Magic P commenced a time charter contract at a gross daily charter rate of $27,500. The charter has a minimum duration of six months and a maximum duration of about eight months, at the charterer’s option.

On November 1, 2021, the Magic Perseus was fixed on a time charter contract at a gross daily charter rate equal to 100% of the average of Baltic Panamax Index 5TC routes. The charter is expected to commence on or around November 14, 2021 and will have a minimum duration of eleven months and a maximum duration of fourteen months at the charterer’s option.

Fleet Employment Status (as of November 5, 2021)

During the three months ended September 30, 2021, we operated on average 24.3 vessels earning a Daily TCE Rate of $16,913 as compared to an average 3.6 vessels earning a Daily TCE Rate of $7,273 during the same period in 2020.
Source: Castor Maritime Inc.

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping