C3is (NASDAQ:CISS) reported sharply higher first-quarter 2026 earnings and revenue, citing stronger tanker rates, lower voyage costs and a larger cash position as the shipping company prepares to expand its fleet with two product tankers.
Chief Executive Officer Dr. Diamantis Andriotis said on the company’s earnings call that adjusted net income rose to $5.5 million for the quarter, compared with $1 million in the prior-year period, an increase of 358%. Voyage revenues increased 34% to $11.6 million from $8.7 million in the first quarter of 2025.
Rates Strengthen Across Fleet
Andriotis said C3is benefited from significantly higher Time Charter Equivalent rates. The TCE rate for the company’s Aframax tanker increased 106% from the first quarter of 2025 to $77,500. Across the fleet, the TCE rate increased 98.6% to $32,000.
CFO Nina Pyndiah said net revenues rose 78% to $10.4 million from $5.8 million a year earlier. Voyage costs declined 57%, which she attributed to lower bunker costs and port expenses. Pyndiah said the bunker cost decrease reflected a greater share of time and spot charters under which charterers pay the fuel costs.
For the quarter ended March 31, 2026, voyage expenses included bunker costs of $0.5 million and port expenses of $0.3 million, representing 42% and 25% of total voyage expenses, respectively, as the company’s Afrapearl II operated in the spot market.
Operating expenses primarily included crew expenses of $1.2 million, or 48% of total operating expenses; spares and consumables of $0.6 million, or 24%; and maintenance expenses of $0.3 million, or 12%.
The company reported net income of $3.2 million. Pyndiah noted that C3is recorded a $2.3 million loss on warrants in the quarter, compared with a $6.9 million gain on warrants in the first quarter of 2025. She said the change related to fair value losses on warrants classified as liabilities and was a non-cash item that did not reflect operational performance.
Fleet Expansion Continues With Product Tankers
At the end of the first quarter, C3is owned and operated three Handysize dry bulk carriers and one Aframax oil tanker. The company has also acquired two product tankers. Andriotis said the first, the Clean Fury, was delivered at the beginning of the second quarter of 2026, while the second is expected to be delivered in the third quarter.
With those additions, C3is said its fleet capacity will increase to 311,431 deadweight tons, representing a 387% increase from inception. The company said all vessels have ballast water systems installed, are unencumbered and are employed on short- to medium-term period charters and spot voyages.
Management also emphasized that none of C3is’s vessels were built in China. Pyndiah said that means any potential U.S. tariffs on Chinese-built ships are not expected to affect the company’s fleet.
The company said its vessels had a net book value of $76 million at the end of the first quarter, compared with a market value of $75.5 million. Those figures excluded the two newly acquired product tankers because neither had been delivered by the end of the quarter.
Balance Sheet Shows No Bank Debt
Pyndiah said shareholders’ equity stood at $102.2 million as of the first quarter, compared with $95.1 million at year-end 2025. Trade accounts payable were $1.9 million, of which $1.2 million has since been paid, she said. The company also reported $790,000 payable to related party Brave Maritime, its management company.
C3is said it remains fully delevered with no bank debt. Pyndiah said no interest was charged by affiliated sellers on the purchase prices of the Afrapearl II, the Eco Spitfire and the two recently acquired product tankers.
The company said upcoming capital expenditure obligations total $39.7 million related to the two product tankers, payable in January 2027.
Management Cites Geopolitical Impact on Shipping Markets
Andriotis said the Handysize dry bulk market has been heavily affected by the Middle East conflict, including disruptions around the Strait of Hormuz. He said geopolitical tensions are influencing trade flows, input costs and ton-mile demand.
According to Andriotis, the immediate impact on the dry bulk market has included surging bunker costs and tighter prompt availability. He said bunker suppliers have advised clients to secure fuel stems at least 10 days in advance across multiple bunkering hubs.
The Handysize time charter average increased from $9,400 for the January-to-April period in 2025 to $12,700 for the same period in 2026, up 35%, according to the company. Andriotis also said trade disruptions, including U.S.-China trade tensions, Russia’s invasion of Ukraine, Houthi attacks in the Red Sea and conflict in the Middle East, have had a direct impact on ton-mile growth.
In the tanker market, Andriotis said Aframax rates strengthened during the quarter. He cited stronger activity in the Atlantic, firming Mediterranean routes and tight market conditions in both basins. The highest average rate was on the North Sea-continent route at nearly $120,000 per day, while the Caribbean-U.S. Gulf route rose 209% to an average of nearly $110,000 per day and recorded a peak daily rate of $325,000.
Management said C3is plans to continue pursuing disciplined growth, including timely and selective acquisitions of quality non-Chinese-built vessels, with a current focus on short- to medium-term charters and spot voyages.
About C3is (NASDAQ:CISS)
C3is Inc offers international seaborne transportation services. It provides its services to dry bulk charterers, including national and private industrial users, commodity producers and traders, oil producers, refineries, and commodities traders and producers. The company owns and operates a fleet of two drybulk carriers, which transport major bulks, such as iron ore, coal and grains, as well as minor bulks comprising bauxite, phosphate, and fertilizers, and one Aframax crude oil tanker that transports crude oil.
