Icon Energy Corp. (“
Icon” or the
“
Company”) (Nasdaq: ICON), an international
shipping company that provides worldwide seaborne transportation
services for dry bulk cargoes through the ownership, chartering and
operation of oceangoing vessels, announces its financial results
for the six-month period ended June 30, 2024 (the
“
Reporting Period”).
Financial Highlights for the Reporting
Period
- Revenue, net of
$2.7 million, an 18% increase compared to the six-month period
ended June 30, 2023
- Net income of
$1.0 million, a 43% increase compared to the six-month period ended
June 30, 2023
- EBITDA(1) of
$1.5 million, a 26% increase compared to the six-month period ended
June 30, 2023
- Operating profit
of $1.0 million, a 46% increase compared to the six-month period
ended June 30, 2023
Ismini Panagiotidi, Chairwoman and Chief
Executive Officer of Icon, commented:
“We are pleased to report that our financial
results for the first half of 2024 have surpassed last year’s
performance across all key metrics, providing tailwinds to our
transition to a public company with the successful listing of our
common shares on the Nasdaq in July 2024.
Since then, we have announced our first dividend
and first vessel acquisition as a public company, consistent with
both our dividend policy and growth strategy. In addition, we have
secured employment for our soon-to-be acquired vessel and have
entered into an innovative financing term sheet with upsize
potential to fuel our further growth, all with top-tier
counterparties.
We are thrilled by this positive momentum and
are honored by the trust demonstrated by our charterers and
financiers during Icon’s early stages, supporting our goal to
create value for our shareholders.”
Financial Performance
Summary
(in thousands of U.S. dollars,except daily figures) |
|
Six-monthperiod
endedJune 30, 2024(unaudited) |
|
Six-monthperiod
endedJune 30, 2023(unaudited) |
Income statement data |
|
|
|
|
Revenue, net |
$ |
2,719 |
$ |
2,309 |
Operating profit |
|
962 |
|
657 |
Net income |
|
987 |
|
688 |
|
|
|
|
|
Non-GAAP financial measures (2) |
|
|
|
|
EBITDA |
$ |
1,477 |
$ |
1,168 |
Daily TCE |
|
14,324 |
|
12,325 |
Daily OPEX |
|
4,962 |
|
5,066 |
|
|
|
|
|
During the six-month period ended June 30, 2024,
revenue, net, amounted to $2.7 million, an increase of $0.4
million, or 18%, compared to the first six months of 2023. Icon’s
sole vessel operated under similar index-linked charters and was
100% utilized during both periods. The increase in revenues, net,
is attributable to the higher charter rates prevailing in the
market during the first half of 2024 compared to the same period of
2023, resulting in a $0.3 million, or 46%, increase in operating
profit and a $0.3 million, or 43%, increase in net income.
Fleet Employment and Operational
Data
|
Six-monthperiod
endedJune 30, 2024 |
|
Six-monthperiod
endedJune 30, 2023 |
Fleet operational data (3) |
|
|
|
Ownership Days |
182.0 |
|
181.0 |
Available Days |
182.0 |
|
181.0 |
Operating Days |
182.0 |
|
180.9 |
Vessel Utilization |
100.0% |
|
100.0% |
Average Number of Vessels |
1.0 |
|
1.0 |
|
|
|
|
As of June 30, 2024, Icon owned one vessel, the
M/V Alfa, which is employed by an international commodity trading
conglomerate on a time charter expiring between October 2025 and
February 2026, earning a floating daily hire rate linked to the
Baltic Panamax Index. The minimum contracted revenue(4) expected as
of June 30, 2024, to be generated by this contract between June 30,
2024, and its earliest expiration date is $6.7 million.
Key Developments Subsequent to the
Reporting Period
Initial public offering. On
July 15, 2024, Icon successfully completed 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.”
Dividend. On August 23, 2024,
Icon declared a cash dividend of $0.08 per common share, payable on
or around September 30, 2024, to all of its common shareholders of
record as of September 15, 2024. Icon 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 (including the dividend
declared on August 23, 2024).
Vessel Acquisition. On August
2, 2024, Icon entered into an agreement with an unaffiliated
third-party to acquire a Kamsarmax dry bulk carrier, built in
November 2007 in Japan, for a purchase price of $17.57 million, to
be renamed M/V Bravo (the “Vessel Acquisition”).
The Vessel Acquisition is subject to the satisfaction of certain
customary closing conditions and is anticipated to conclude with
the vessel’s delivery to Icon between September and November of
2024.
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 “New Time Charter”).
The New Time Charter is subject to the satisfaction of certain
customary closing conditions and is anticipated to commence shortly
after the completion of the Vessel Acquisition.
Financing Term Sheet. On August
22, 2024, Icon entered into a non-binding term sheet with a leading
international financial institution for a new senior secured credit
facility in an aggregate amount of up to $91 million (the
“New Credit Facility”) of which:
- an aggregate
amount of up to $16 million (the “Initial
Advance”) is expected to be borrowed to finance a portion
of the purchase price of the M/V Bravo, and to leverage Icon’s
existing Panamax dry bulk carrier, M/V Alfa; and
- an additional
aggregate amount of up to $75 million (the “Upsize
Advance”) may be made available to Icon, in whole or in
parts, to finance future vessel acquisitions. This amount will
remain uncommitted and equally, Icon will not be obliged to borrow
it, or any part thereof.
The Initial Advance is expected to contain
security and covenants customary for transactions of this type, to
have a four-year tenor, and to bear interest at 3.95% over SOFR.
The terms of each Upsize Advance will be determined at the time it
is requested. No interest or other fees are expected to apply on
any amount that remains uncommitted. The New Credit Facility is
subject to important conditions, including the negotiation and
execution of definitive documentation and the satisfaction of
certain customary closing conditions, and is anticipated to
conclude on or prior to the completion of the Vessel
Acquisition.
About Icon
Icon is an international shipping company that
provides worldwide seaborne transportation services for dry bulk
cargoes through the ownership, chartering and operation 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 PsachosChief Financial Officer+30 211 88
81 300ir@icon-nrg.comwww.icon-nrg.com
Exhibit I
Interim Consolidated Statements of Income
(in thousands of U.S. dollars,except for share data and earnings
per share) |
|
Six-monthperiod
endedJune 30, 2024(unaudited) |
|
Six-monthperiod
endedJune 30, 2023(unaudited) |
Revenue, net |
$ |
2,719 |
$ |
2,309 |
Voyage expenses, net |
|
(112) |
|
(79) |
Vessel operating expenses |
|
(903) |
|
(917) |
Management fees |
|
(213) |
|
(136) |
General and administrative expenses |
|
(12) |
|
(6) |
Depreciation expense |
|
(339) |
|
(337) |
Amortization of deferred drydocking costs |
|
(178) |
|
(177) |
Operating Profit |
$ |
962 |
$ |
657 |
Finance costs |
|
(3) |
|
(1) |
Interest income |
|
27 |
|
34 |
Other income/(costs), net |
|
1 |
|
(2) |
Net Income |
$ |
987 |
$ |
688 |
|
|
|
|
|
Accrued dividends on preferred shares |
|
(75) |
|
— |
Net income attributable to common
shareholders |
$ |
912 |
$ |
688 |
Earnings per common share, basic and diluted |
$ |
4.56 |
$ |
3.44 |
Weighted average number of shares, basic and diluted |
|
200,000 |
|
200,000 |
|
|
|
|
|
Condensed Interim Consolidated Balance Sheet
Data
(in thousands of U.S. dollars) |
|
June 30, 2024(unaudited) |
|
December 31,2023(5) |
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
477 |
$ |
2,702 |
Other current assets |
|
474 |
|
320 |
Vessel, net |
|
8,842 |
|
9,181 |
Other non-current assets |
|
1,510 |
|
679 |
Total assets |
$ |
11,303 |
$ |
12,882 |
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
Total current liabilities |
$ |
1,147 |
$ |
3,713 |
Total shareholders’ equity |
|
10,156 |
|
9,169 |
Total liabilities and shareholders’ equity |
$ |
11,303 |
$ |
12,882 |
|
|
|
|
|
Summarized Cash Flow Data
(in thousands of U.S. dollars) |
|
Six-monthperiod
endedJune 30, 2024(unaudited) |
|
Six-monthperiod
endedJune 30, 2023(unaudited) |
Cash provided by operating activities |
$ |
957 |
$ |
1,068 |
Cash used in investing activities |
|
(2) |
|
- |
Cash used in financing activities |
|
(3,180) |
|
(907) |
Net (decrease)/increase in cash and cash
equivalents |
$ |
(2,225) |
$ |
161 |
Cash and cash equivalents at the beginning of the period |
|
2,702 |
|
3,551 |
Cash and cash equivalents at the end of the
period |
$ |
477 |
$ |
3,712 |
|
|
|
|
|
Non-GAAP Financial Measures Definitions and
Reconciliation to GAAP
To supplement our financial information
presented in accordance with the United States generally accepted
accounting principles (“U.S. GAAP”), we may use
certain “non-GAAP financial measures” as such term is defined in
Regulation G promulgated by the SEC. Generally, a non-GAAP
financial measure is a numerical measure of a company’s operating
performance, financial position or cash flows that excludes or
includes amounts that are included in, or excluded from, the most
directly comparable measure calculated and presented in accordance
with U.S. GAAP. We believe non-GAAP financial measures provide
investors with greater transparency and supplemental data relating
to our financial condition and results of operations and,
therefore, a more complete understanding of our business and
financial performance than the comparable U.S. GAAP measures alone.
However, non-GAAP financial measures should only be used in
addition to, and not as substitutes for, financial results
presented in accordance with U.S. GAAP. Although we believe the
following definitions and calculation methods are consistent with
industry standards, our non-GAAP financial measures may not be
directly comparable to similarly titled measures of other
companies.
Earnings before Interest, Tax,
Depreciation and Amortization (“EBITDA”). EBITDA is a
financial measure we calculate by deducting interest and finance
costs, interest income, taxes, depreciation and amortization, from
net income. EBITDA assists our management by carving out the
effects that non-operating expenses and non-cash items have on our
financial results. We believe this also enhances the comparability
of our operating performance between periods and against companies
that may have varying capital structures, other depreciation and
amortization policies, or that may be subject to different tax
regulations. The following table reconciles EBITDA to the most
directly comparable U.S. GAAP financial measure:
(in thousands of U.S. dollars) |
|
Six-monthperiod
endedJune 30, 2024(unaudited) |
|
Six-monthperiod
endedJune 30, 2023(unaudited) |
Net income |
$ |
987 |
$ |
688 |
Plus: Depreciation expense |
|
339 |
|
337 |
Plus: Amortization of deferred drydocking costs |
|
178 |
|
177 |
Less: Interest income |
|
(27) |
|
(34) |
EBITDA |
$ |
1,477 |
$ |
1,168 |
|
|
|
|
|
Time Charter Equivalent
(“TCE”). TCE is a measure of revenue generated over a
period that accounts for the effect of the different charter types
under which our vessels may be employed. TCE is calculated by
deducting voyage expenses from revenue and making any other
adjustments required to approximate the revenue that would have
been generated, had the vessel been employed under a time charter.
TCE is typically expressed on a daily basis (“Daily
TCE”) by dividing it by Operating Days, to eliminate the
effect of changes in fleet composition between periods. The
following table reconciles TCE and Daily TCE to the most directly
comparable U.S. GAAP financial measure:
(in thousands of U.S. dollars,except fleet operational data and
daily figures) |
|
Six-monthperiod
endedJune 30, 2024(unaudited) |
|
Six-monthperiod
endedJune 30, 2023(unaudited) |
Revenue, net |
$ |
2,719 |
$ |
2,309 |
Less: Voyage expenses |
|
(112) |
|
(79) |
TCE |
$ |
2,607 |
$ |
2,230 |
Divided by: Operating Days |
|
182 |
|
180.9 |
Daily TCE |
$ |
14,324 |
$ |
12,327 |
|
|
|
|
|
Daily Vessel Operating Expenses (“Daily
OPEX”). Daily OPEX, is a measure of the vessel operating
expenses incurred over a period divided by Ownership Days, to
eliminate the effect of changes in fleet composition between
periods. The following table reconciles Daily OPEX to vessel
operating expenses:
(in thousands of U.S. dollars,except fleet operational data and
daily figures) |
|
Six-monthperiod
endedJune 30, 2024(unaudited) |
|
Six-monthperiod
endedJune 30, 2023(unaudited) |
Vessel operating expenses |
$ |
903 |
$ |
917 |
Divided by: Ownership Days |
|
182 |
|
181 |
Daily OPEX |
$ |
4,962 |
$ |
5,066 |
|
|
|
|
|
Other Definitions and Methodologies
This press release refers to the terms and
methodologies described below. Although we believe the following
definitions and calculation methods are consistent with industry
standards, these measures may not be directly comparable to
similarly titled measures of other companies.
Ownership Days. Ownership Days
are the total days we owned our vessels during the relevant period.
We use this to measure the size of our fleet over a period.
Available Days. Available Days
are the Ownership Days, less any days during which our vessels were
unable to be used for their intended purpose as a result of
scheduled maintenance, upgrades, modifications, drydockings,
special or intermediate surveys, or due to change of ownership
logistics, including positioning for and repositioning from such
events. We use this to measure the number of days in a period
during which our vessels should be capable of generating
revenues.
Operating Days. Operating Days
are the Available Days, less any days during which our vessels were
unable to be used for their intended purpose as a result of
unforeseen events and circumstances. We use this to measure the
number of days in a period during which our vessels actually
generated revenues.
Vessel Utilization. Vessel
Utilization is the ratio of Operating Days to Available Days.
Average Number of Vessels.
Average Number of Vessels is the ratio of Ownership Days to
calendar days in a period.
Minimum contracted revenue. The
amount of minimum contracted revenue is estimated by reference to
the contracted period and hire rate, net of charterers’ commissions
but before reduction for brokerage commissions and assuming no
unforeseen off-hire days. For index-linked contracts, minimum
contracted revenue is estimated by reference to the average of the
relevant index during the 15 days preceding the calculation
date.
1 EBITDA is a non-GAAP financial measure. For
the definitions of non-GAAP financial measures and their
reconciliation to the most directly comparable financial measures
calculated and presented in accordance with the United States
generally accepted accounting principles, please refer to “Exhibit
I—Non-GAAP Financial Measures Definitions and
Reconciliation to GAAP.”2 EBITDA, Daily TCE, and Daily OPEX, are
non-GAAP financial measures. For the definitions of non-GAAP
financial measures and their reconciliation to the most directly
comparable financial measures calculated and presented in
accordance with the United States generally accepted accounting
principles, please refer to “Exhibit I—Non-GAAP
Financial Measures Definitions and Reconciliation to GAAP.”3 For
the definitions of fleet operational measures please refer to
“Exhibit I—Other Definitions and Methodologies.”4
For the contracted revenue calculation methodology please refer to
“Exhibit I—Other Definitions and Methodologies.”5 Balance sheet
data derives from the audited consolidated financial statements as
of that date.
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