Icon Energy Corp. Reports Financial Results for the Nine-Month Period Ended September 30, 2024, and Declares Cash Dividend of $0.085 per Common Share
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 2023
Operating profit of $0.6 million, compared to $0.7 million during the nine-month period ended September 30, 2023
Net income of $0.6 million, compared to $0.8 million during the nine-month period ended September 30, 2023
EBITDA(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 employment
Successful 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, 2024
The previously declared cash dividend of $0.08 per common share for the second quarter of 2024 was paid on September 30, 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
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
$
3,248
Operating profit
567
710
Net income
562
752
Non-GAAP financial measures (2)
EBITDA
$
1,492
$
1,484
Daily TCE
13,258
11,462
Daily OPEX
5,064
5,136
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,
2024
2023
Fleet operational data (3)
Ownership Days
281.8
273.0
Available Days
250.8
273.0
Operating Days
250.8
273.0
Vessel Utilization
100.0%
100.0%
Average Number of Vessels
1.0
1.0
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 charterexpiration
Alfa
Panamax
Japan, 2006
Index-linked time charter
October 2025
Bravo
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 ...
