ATHENS, Greece, Nov. 11, 2024 (GLOBE NEWSWIRE) — Icon Energy Corp. (“Icon” or the “Company”) (Nasdaq: ICON), an international shipping company that provides worldwide seaborne transportation services for dry bulk cargoes via its fleet of oceangoing vessels, announces its financial results for the nine-month period ended September 30, 2024, (the “Reporting Period”) and declares cash dividend of $0.085 per common share.
Financial Highlights for the Reporting Period
Revenue, net of $3.6 million, up $0.4 million from the first nine months of 2023Operating profit of $0.6 million, compared to $0.7 million during the nine-month period ended September 30, 2023Net income of $0.6 million, compared to $0.8 million during the nine-month period ended September 30, 2023EBITDA(1) of $1.5 million, equal to the same period last year Operational Highlights
Delivery of our recently acquired Kamsarmax dry bulk carrier, M/V Bravo, in September 2024, and commencement of her period employmentSuccessful closing of a $91.5 million term loan facility, of which $16.5 million was drawn and the balance of $75 million is reserved for future vessel acquisitions Quarterly Cash Dividend
Icon’s Board of Directors approved a cash dividend of $0.085 per common share for the third quarter of 2024. The cash dividend will be paid on or around December 27, 2024, to all of its common shareholders of record as of December 16, 2024The previously declared cash dividend of $0.08 per common share for the second quarter of 2024 was paid on September 30, 2024Icon expects to pay quarterly cash dividends on its common shares during the one-year period following its initial public offering, in an aggregate amount of approximately $500,000 for the year
Ismini Panagiotidi, Chairwoman and Chief Executive Officer of Icon, commented:
“We are pleased to announce our financial results for the first nine months of 2024, reflecting the completion of our initial public offering in July 2024 and the progress we have made in executing our strategic priorities since then.
The successful delivery and commencement of employment of Icon’s second vessel, M/V Bravo, marks our first step toward realizing our growth ambitions, while the recent $91.5 million term loan facility, with $75 million reserved for future vessel acquisitions, provides a strong foundation for expansion. These transactions underscore the strong support we enjoy from charterers and financiers, positioning us well for further growth opportunities.
In addition, staying true to our stated dividend policy and following the $0.08 per common share cash dividend paid for the second quarter of the year, we are pleased to announce a cash dividend of $0.085 per common share for the third quarter, reaffirming our dedication to returning value to our shareholders.”
Financial Performance Summary
Nine-month period ended
September 30,(in thousands of U.S. dollars,
except daily figures)2024
(unaudited)2023
(unaudited)Income statement data Revenue, net$3,582 $3,248Operating profit 567 710Net income562 752 Non-GAAP financial measures (2) EBITDA $1,492 $1,484Daily TCE13,25811,462Daily OPEX5,0645,136 Throughout the first nine months of 2024 and 2023, Icon’s vessels operated under index-linked time charters, benefitting from the year-on-year increase in the dry bulk charter market rates. The resulting increase in revenue, net was partly offset by the fewer Operating Days during the Reporting Period (see “Fleet Employment and Operational Data” section below). Overall, revenue, net increased by 10% to $3.6 million during the Reporting Period, from $3.2 million in the comparable period. Daily TCE increased to $13,258 during the Reporting Period, up 16% from the same period last year.
The increase in revenue, net was primarily offset by costs associated with positioning the M/V Alfa for her scheduled drydocking and with the delivery of the M/V Bravo, which resulted in a $0.2 million increase in voyage expenses. Additionally, Icon’s incremental obligations as a public company since July 2024, translated into a $0.1 million increase in general and administrative expenses, while the costs related to changing ship management company earlier this year contributed to a $0.1 million increase in management fees. Vessel operating expenses were maintained at similar levels, with a slight improvement on a daily basis, as reflected by the decrease in ‘Daily OPEX’ to $5,064 during the Reporting Period, compared to $5,136 during the corresponding period of 2023.
Operating profit during the nine-month period ended September 30, 2024, was $0.6 million, down from $0.7 million in the comparable period, due to the non-cash write-off of the unamortized balance of previously deferred drydocking costs, upon arrival of the M/V Alfa at the shipyard for her scheduled drydocking. Lastly, the decrease in operating profit, coupled with the interest and finance costs associated with Icon’s new term loan facility, resulted to a $0.2 million decrease in net income, from $0.8 million during the first nine months of 2023, to $0.6 million during the Reporting Period.
EBITDA remained consistent between the two periods at $1.5 million.
Fleet Employment and Operational Data
Nine-month period ended
September 30, 20242023Fleet operational data (3) Ownership Days281.8 273.0Available Days250.8 273.0Operating Days250.8 273.0Vessel Utilization100.0%100.0%Average Number of Vessels1.01.0 Ownership days for the nine-month period ended September 30, 2024, increased to 281.8 from 273.0 the previous year, due to the addition of Icon’s second vessel, the Kamsarmax dry bulk carrier M/V Bravo, delivered on September 23, 2024. Available days decreased from 273.0 to 250.8, primarily because the M/V Alfa was temporarily taken out of service for her scheduled drydocking. Utilization remained consistent at 100%.
Vessel name Type Built Employment Earliest charter
expirationAlfa Panamax Japan, 2006 Index-linked time charter October 2025Bravo Kamsarmax Japan, 2007 Index-linked time charter August 2025 As of September 30, 2024, Icon owned two vessels, both time-chartered by an international commodity trading conglomerate and earning floating daily hire rates linked to the Baltic Panamax Index. The minimum contracted revenue(4) expected, as of September 30, 2024, to be generated by these contracts between September 30, 2024, and their respective earliest expiration dates is $8.8 million.
Key Developments
Initial public offering. On July 15, 2024, Icon successfully closed the initial public offering of 1,250,000 of its common shares, at an offering price of $4.00 per share, for gross proceeds of approximately $5,000,000, before deducting underwriting discounts and offering expenses. Icon’s common shares began trading on the Nasdaq Capital Market on July 12, 2024, under the symbol “ICON.”
Vessel Acquisition. On August 2, 2024, Icon entered into an agreement with an unaffiliated third-party to acquire a Kamsarmax dry bulk carrier for a purchase price of $17.57 million. The vessel was successfully delivered to Icon on September 23, 2024, and was renamed M/V Bravo. The acquisition was financed with a combination of cash on hand and borrowings under Icon’s new term loan facility discussed below.
Vessel Charter. On August 29, 2024, Icon entered into an agreement with an international commodity trading conglomerate to time charter the M/V Bravo for a period of 11 to 14 months, at a floating daily hire rate linked to the Baltic Panamax Index. The charter commenced shortly after the vessel’s delivery to Icon.
Vessel Drydocking. On September 2, 2024, the M/V Alfa completed her scheduled drydocking, undergoing routine repairs and maintenance to ensure continued operational efficiency, safety, and compliance with class requirements.
Financing. On September 19, 2024, we borrowed an amount of $16.5 million under a new term loan facility with a leading international financial institution to finance a portion of the purchase price of the M/V Bravo and to leverage the M/V Alfa. The term loan facility contains securities and financial and other covenants customary for transactions of this type. It has a four-year term and outstanding amounts thereunder bear interest at 3.95% over SOFR.
An additional amount of up to $75 million may be made available to us under the same term loan facility, in whole or in parts, to finance future vessel acquisitions. This additional amount remains uncommitted, free of interest or other fees, and we are not obliged to borrow it, or any part thereof. The terms of borrowing the balance amount, or any part thereof, will be determined at the time it is requested.
Dividends. On September 30, 2024, we paid a cash dividend of $0.08 per common share for the second quarter of the year. For the third quarter, Icon declared a cash dividend of $0.085 per common share, payable on or around December 27, 2024, to all of its common shareholders of record as of December 16, 2024.
About Icon
Icon is an international shipping company that provides worldwide seaborne transportation services for dry bulk cargoes via its fleet of oceangoing vessels. Icon maintains its principal executive office in Athens, Greece, and its common shares trade on the Nasdaq Capital Market under the symbol “ICON.”
Forward Looking Statements
This communication contains “forward-looking statements.” Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions that are other than statements of historical fact are forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant risks, uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, the Company cannot provide assurance that it will achieve or accomplish these expectations, beliefs or projections. The Company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons, including as described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”). As a result, you are cautioned not to unduly rely on any forward-looking statements, which speak only as of the date of this communication.
Factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, among other things: the Company’s future operating or financial results; the Company’s liquidity, including its ability to service any indebtedness; changes in shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations; broader market impacts arising from war (or threatened war) or international hostilities; risks associated with pandemics (including COVID-19); and other factors listed from time to time in the Company’s filings with the SEC. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. You should, however, review the factors and risks the Company describes in the reports it files and furnishes from time to time with the SEC, which can be obtained free of charge on the SEC’s website at www.sec.gov.
Contact Information
Icon Energy Corp.
Dennis Psachos
Chief Financial Officer
+30 211 88 81 300
ir@icon-nrg.com
www.icon-nrg.com
(Please refer to Exhibit I, attached, for supplementary information)
Exhibit I
Interim Consolidated Statements of Income
Nine-month period ended
September 30,(in thousands of U.S. dollars,
except for share data and earnings per share) 2024
(unaudited)2023
(unaudited)Revenue, net $3,582 $3,248Voyage expenses, net (257) (119)Vessel operating expenses (1,427) (1,402)Management fees (293) (205)General and administrative expenses (111) (37)Depreciation expense (547) (508)Amortization of deferred drydocking costs (380) (267)Operating Profit $567 $710Interest and finance costs (61) (2)Interest income 58 45Other costs, net (2) (1)Net Income $562 $752 Accrued dividends on Series A Preferred Shares (526) -Net income attributable to common shareholders $36 $752Earnings per common share, basic and diluted $0.06 $3.76Weighted average number of shares, basic and diluted 555,839 200,000 Condensed Interim Consolidated Balance Sheet Data
(in thousands of U.S. dollars) September 30,
2024
(unaudited) December 31,
2023(5)Assets Cash, cash equivalents and restricted cash $1,823 $2,702Other current assets 1,202 320Vessels, net 26,662 9,181Other non-current assets 864 679Total assets $30,551 $12,882 Liabilities and shareholders’ equity Total long-term debt, net of deferred financing costs $16,206 $-Other liabilities 1,704 3,713Total shareholders’ equity 12,641 9,169Total liabilities and shareholders’ equity $30,551 $12,882 Summarized Cash Flow Data
Nine-month period ended
September 30,(in thousands of U.S. dollars)2024
(unaudited)2023
(unaudited)Cash provided by operating activities$588 $1,533Cash used in investing activities(18,006) -Cash provided by/(used in) financing activities16,539 (3,307)Net decrease in cash, cash equivalents and restricted cash$(879) $(1,774)Cash, cash equivalents and restricted cash at the beginning of the period2,702 3,551Cash, cash equivalents and restricted cash at the end of the period$
