|
Limassol, Cyprus - August 11, 2025 Castor Maritime Inc. (NASDAQ: CTRM) ("Castor" or the "Company"), a diversified global shipping and energy company, today announced its results for the three months ended March 31, 2025. Highlights of the First Quarter Ended March 31, 2025: • Total vessel revenues: $11.3 million for the three months ended March 31, 2025, as compared to $20.4 million for the three months ended March 31, 2024, or a 44.6% decrease; • Net loss of $23.3 million for the three months ended March 31, 2025, as compared to net income of $22.3 million for the three months ended March 31, 2024, or a 204.5% decrease. The loss is primarily attributable to unrealized losses of $26.4 million recognized as of March 31, 2025, resulting from the remeasurement of our equity method investments to period-end fair market values; • Adjusted net income(1) of $4.9 million for the three months ended March 31, 2025, as compared to adjusted net income of $12.4 million for the three months ended March 31, 2024; • (Loss) / earnings per common share, basic: $(2.18) per share for the three months ended March 31, 2025, as compared to $2.23 per share for the three months March 31, 2024; • EBITDA (1): $(18.3) million for the three months ended March 31, 2025, as compared to $26.8 million for the three months ended March 31, 2024; • Adjusted EBITDA (1): $9.9 million for the three months ended March 31, 2025, as compared to $16.9 million for the three months ended March 31, 2024; • Cash of $78.3 million as of March 31, 2025, as compared to $87.9 million as of December 31, 2024; • On March 24, 2025, March 31, 2025 and April 29, 2025, Castor made partial prepayments to the term loan from Toro Corp. ("Toro"), amounting to $13,500,000, $34,000,000 and $14,000,000, respectively, in addition to $2,500,000 as part of the scheduled repayment of the loan. On May 5, 2025, we prepaid the amount of $36,000,000 that remained outstanding as of that date; and • For the three months ended March 31, 2025, the Company completed two vessel disposals and for the three months ended March 31, 2024, completed three vessel disposals. (1) EBITDA, Adjusted EBITDA and adjusted net income are not recognized measures under United States generally accepted accounting principles ("U.S. GAAP"). Please refer to Appendix B for the definition of these measures and reconciliation to Net income / (Loss), the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP Management Commentary for First Quarter 2025: Mr. Petros Panagiotidis, Chief Executive Officer of Castor, commented: "The first quarter of 2025 presented a challenging operating environment, with softer conditions in the dry bulk shipping market and a more modest contribution from our investment portfolio. Nevertheless, our underlying performance remained resilient, underpinned by disciplined operations, prudent cost management, and a commitment to long-term value creation. Importantly, during the course of 2025, we successfully fully repaid the $100 million loan from Toro, which was used in part to finance the MPC Capital acquisition. Supported by a solid cash position of $78.3 million as of March 31, 2025, this achievement significantly strengthened our financial position, providing us with enhanced flexibility, lower financial risk, and greater capacity to fund future growth without the constraints of leverage. Looking ahead, we remain firmly focused on executing our strategic priorities and actively pursuing attractive acquisition opportunities across the shipping and energy sectors to drive sustainable, long-term growth." Earnings Commentary: First Quarter ended March 31, 2025, and 2024, Results Total vessel revenues for the three months ended March 31, 2025, decreased to $11.3 million from $20.4 million in the same period of 2024. This variation was mainly driven by (i) the decrease in our Available Days (defined below) from 1,441 days in the three months ended March 31, 2024, to 1,068 days in the three months ended March 31, 2025, following the sale of four dry bulk vessels during the second quarter ended June 30, 2024, and the sale of one dry bulk vessel and one container vessel in the first quarter of 2025, as partially offset by the acquisitions of the M/V Magic Celeste on August 16, 2024, M/V Raphaela on October 3, 2024 and M/V Magic Ariel on October 9, 2024 and (ii) the decrease in prevailing charter rates of our dry bulk vessels. Revenue from services for the three months ended March 31, 2025, amounted to $9.0 million and relates to revenue earned from our subsidiary acquired in late 2024, MPC Münchmeyer Petersen Capital AG ("MPC Capital"). Revenue from services is generated through the following streams: (i) transaction services, (ii) management services for companies and assets, and (iii) ship management services. There was an increase in voyage expenses to $1.11 million in the three months ended March 31, 2025, from $1.1 million in the same period of 2024, which was mainly associated with the increase of port and other expenses, partially offset by the decrease of brokerage commissions due to the decrease in our Available Days and prevailing charter rates of our dry bulk vessels. Vessel operating expenses decreased by $2.4 million to $5.7 million in the three months ended March 31, 2025 from $8.1 million in the same period of 2024, mainly reflecting the decrease in the Ownership Days of our fleet to 1,094 days in the three months ended March 31, 2025, from 1,441 days in the same period in 2024. Cost of revenue from services for the three months ended March 31, 2025, amounted to $4.7 million and relates to expenses for purchased services from third party providers and employee expenses from our newly acquired subsidiary MPC Capital. Management fees in the three months ended March 31, 2025 amounted to $1.3 million, whereas in the same period of 2024, management fees totaled $1.4 million. This decrease in management fees is due to the net decrease in the total number of Ownership Days for which our managers charge us a daily management fee following the sales and acquisitions of 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. Depreciation and amortization expenses are comprised of vessels' depreciation, the amortization of vessels' capitalized dry-dock costs, property and equipment depreciation and intangible assets amortization. Depreciation expenses decreased to $2.7 million in the three months ended March 31, 2025, from $3.5 million in the same period of 2024. The decrease by $0.8 million reflects mainly the net decrease in the Ownership Days of our fleet following the sales and acquisitions of vessels discussed above. Dry-dock and special survey amortization charges amounted to $0.2 million for the three months ended March 31, 2025, compared to a charge of $0.4 million in the respective period of 2024. This variation in dry-dock amortization charges primarily resulted from the decrease in aggregate amortization days, mainly as a result of the sale of vessels mentioned above. Further to the above, depreciation and amortization expenses for our asset management segment amounted to $0.6 million for the three-month period ended March 31, 2025, comprising property and equipment depreciation and intangible assets amortization. General and administrative expenses in the three months ended March 31, 2025, amounted to $4.1 million, whereas, in the same period of 2024, general and administrative expenses totaled $1.9 million. This increase mainly reflects the $2.4 million costs related to the operations at the level of our subsidiary MPC Capital for the three-month period ended March 31, 2025. Loss on vessels held for sale in the three months ended March 31, 2025, amounted to $5.6 million, representing the expected loss from the sale of the dry bulk vessel M/V Magic Callisto during the next twelve-month period (delivered to its new owners on April 28, 2025). During the three months ended March 31, 2024, for the dry bulk vessels that were classified as vessels held for sale, no loss on vessels held for sale was recorded, since each vessel's estimated fair value less costs to sell exceeded each vessel's carrying value. Loss on sale of vessels in the three months ended March 31, 2025, amounted to $2.1 million following the sales of the: (i) M/V Ariana A on January 22, 2025 and (ii) M/V Magic Eclipse on March 24, 2025. Gain on sale of vessels in the three months ended March 31, 2024, amounted to $7.9 million following the sales of: (i) M/V Magic Moon on January 16, 2024, (ii) M/V Magic Nova on March 11, 2024 and (iii) M/V Magic Orion on March 22, 2024. Net loss from equity method investments measured at fair value in the three months ended March 31, 2025 and 2024, amounted to $26.4 million and $0 million, respectively, resulting from the revaluation of such investments. These represent our share in MPC Container Ships ASA and MPC Energy Solutions N.V for which we have elected the fair value option. Gain from equity method investments in the three months ended March 31, 2025 and 2024, amounted to $0.6 million and $0, respectively. During the three months ended March 31, 2025, we incurred net interest costs and finance costs amounting to $1.3 million compared to $0.6 million during the same period in 2024. The increase is mainly associated with the decrease in interest income we earned from our time and cash deposits due to decreased average cash balances during the three months ended March 31, 2025. Other income, net in the three months ended March 31, 2025, amounted to $11.7 million, which includes mainly (i) a realized gain on sale of equity securities of $2.0 million and an unrealized gain of $0.3 million from revaluing our investments in listed equity securities at period end market rates, (ii) dividend income on equity securities of $0.8 million and 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 (the "Toro Series A Preferred Shares"), (iii) dividend income from equity method investments that are measured at fair value of $5.1 million, and (iv) foreign exchange gains of $3.0 million mainly resulting from the revaluation of the equity method investments. Other income, net in the three months ended March 31, 2024, amounted to $11.1 million, which includes (i) an unrealized gain of $9.9 million from revaluing our investments in listed equity securities at period end market rates, (ii) dividend income on equity securities of $0.8 million and (iii) dividend income of $0.4 million from our investment in 140,000 Toro Series A Preferred Shares. Full report About Castor Maritime Inc. Castor Maritime Inc. is a diversified global shipping and energy company, with activities directly and indirectly in asset management, vessel ownership, technical and commercial ship management and energy infrastructure projects. Castor's fleet comprises 9 vessels, with an aggregate capacity of 0.6 million dwt. Castor is also the majority shareholder of the Frankfurt-listed asset manager MPC Münchmeyer Petersen Capital AG. For more information, please visit the Company's website at www.castormaritime.com. Information on our website does not constitute a part of this press release. Castor Maritime press release 
|
