Castor Maritime Inc. Reports Fourth Quarter and Full Year Results for 2024

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

LIMASSOL, Cyprus, May 14, 2025 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM) ("Castor” or the "Company”), a diversified global shipping and energy company, today announced its results for the three months and year ended December 31, 2024.

Highlights of the Year Ended December 31, 2024:

• Total vessel revenues from continuing operations: $65.1 million for the year ended December 31, 2024, as compared to $97.5 million for the year ended December 31, 2023, or a 33.2% decrease;
• Net income from continuing operations: $15.3 million for the year ended December 31, 2024, as compared to net income of $21.3 million for the year ended December 31, 2023, or a 28.2% decrease;
• Net income of $15.3 million for the year ended December 31, 2024, as compared to $38.6 million for the year ended December 31, 2023, or a 60.4% decrease;
• Earnings per common share, basic from continuing operations: $3.50 per share for the year ended December 31, 2024, as compared to $2.05 per share for the year ended December 31, 2023;
• EBITDA from continuing operations⁽¹⁾: $29.7 million for the year ended December 31, 2024, as compared to $51.6 million for the year ended December 31, 2023; and
• Adjusted EBITDA from continuing operations⁽¹⁾: $51.4 million for the year ended December 31, 2024, as compared to $46.5 million for the year ended December 31, 2023.
• Cash and restricted cash of $87.9 million as of December 31, 2024, as compared to $120.9 million as of December 31, 2023;
• For the year ended December 31, 2024, the Company completed three acquisitions and seven disposals and for the year ended December 31, 2023, there were no vessels acquired or sold;
• On December 11, 2024, the Company entered into a facility agreement with Toro Corp. ("Toro”) to borrow a $100.0 million senior term loan facility from Toro, which was drawn down on the same date;
• On December 12, 2024, the Company agreed to issue to Toro an additional 50,000 5.00% Series D Cumulative Perpetual Convertible Preferred Shares of Castor ("Series D Preferred Shares”) with a stated amount of $1,000 per share for total consideration of $50.0 million in cash;
• On December 12, 2024, the Company, through a wholly owned subsidiary, entered into a share purchase agreement, pursuant to which the Company agreed to acquire from MPC Münchmeyer Petersen & Co. GmbH ("MPC Holding”), subject to certain terms and conditions, 26,116,378 shares of common stock of MPC Münchmeyer Petersen Capital AG ("MPC Capital”), representing 74.09% of MPC Capital's outstanding common stock, for a cash price of €7.00 per share, equivalent to aggregate consideration of €182.8 million (approximately $192.0 million at the time of the transaction), excluding transaction related costs. The acquisition was completed on December 16, 2024; and
• Following the acquisition of MPC Capital, the Company determined that it operates in three reportable segments (previously two), i.e., (i) the dry bulk segment, (ii) the containership segment, and (iii) the asset management segment.

^{(1) EBITDA and Adjusted EBITDA 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 2024:

Mr. Petros Panagiotidis, Chief Executive Officer of Castor, commented:

"The fourth quarter of 2024 marked an important milestone for Castor Maritime as we completed the acquisition of MPC Capital, a strategic transaction which diversifies our business and allows us to enter the asset management sector in the shipping and energy infrastructure areas. It is an important step to our growth trajectory and positions us well for the balancing of our future income streams.

"Overall, throughout 2024, we delivered on our plans, enjoyed robust cash flows from operations, modernized our fleet, simplified our capital structure and built a robust liquidity position.

"During the course of 2025, we fully repaid the $100 million loan from Toro, which was used in part to finance the MPC Capital acquisition. As a result, our balance sheet remains strong, allowing us to continue pursuing growth opportunities and remain focused on executing our strategy as a diversified global shipping and energy company.”

Earnings Commentary:

Fourth Quarter ended December 31, 2024, and 2023, Results

Total vessel revenues for the three months ended December 31, 2024, decreased to $15.0 million from $26.4 million in the same period of 2023. This variation was mainly driven by (i) the decrease in our Available Days (defined below) from 1,740 days in the three months ended December 31, 2023, to 1,180 days in the three months ended December 31, 2024, following the sale of seven dry bulk vessels during the six months ended June 30, 2024 and the sale of three dry bulk vessels in the fourth quarter of 2023, 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 December 31, 2024, amounted to $1.2 million and relates to revenue earned from our newly acquired subsidiary, MPC Capital, for the period from December 16, 2024 (the date on which the MPC Capital acquisition was consummated) to December 31, 2024. 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 $1.2 million in the three months ended December 31, 2024, from $1.1 million in the same period of 2023, 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 $3.8 million to $6.3 million in the three months ended December 31, 2024 from $10.1 million in the same period of 2023, mainly reflecting the decrease in the Ownership Days of our fleet to 1,186 days in the three months ended December 31, 2024, from 1,740 days in the same period in 2023.

Cost of revenue from services for the three months ended December 31, 2024, amounted to $1.1 million and relates to expenses for purchased services and employee expenses from our newly acquired subsidiary MPC Capital for the period from December 16, 2024 to December 31, 2024.

Management fees in the three months ended December 31, 2024 amounted to $1.3 million, whereas in the same period of 2023, management fees totaled $1.7 million. This decrease in management fees is due to the decrease in the total number of Ownership Days for which our managers charge us a daily management fee following the sales of the dry bulk 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.

The decrease in depreciation and amortization costs by $0.9 million to $4.0 million in the three months ended December 31, 2024, from $4.9 million in the same period of 2023, mainly reflects the decrease in our Ownership Days following the sale of seven dry bulk vessels during the six months ended June 30, 2024 and the sale of three dry bulk vessels in the fourth quarter of 2023, partially offset by the acquisition of two dry bulk vessels and one containerships vessel during the second half of 2024.

General and administrative expenses in the three months ended December 31, 2024, amounted to $8.5 million, whereas, in the same period of 2023, general and administrative expenses totaled $1.3 million. This increase mainly reflects the increased costs related to the acquisition of MPC Capital.

Loss on vessels held for sale in the three months ended December 31, 2024, amounted to $3.6 million, representing the expected loss from the sale of the containership vessel M/V Ariana A during the next twelve-month period. We did not record any loss on any vessels held for sale during the three months ended December 31, 2023. During the three months ended December 31, 2023, 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.

Net gain from equity method investments in the three months ended December 31, 2024 and 2023, amounted to $2.7 million and $0, respectively, representing our share in jointly owned companies or equity method investments (all of which relate to the asset management segment).

During the three months ended December 31, 2024, we incurred net interest costs and finance costs amounting to $0.02 million compared to $1.4 million during the same period in 2023. The decrease is mainly associated with the drop in our weighted average indebtedness.

Other (expenses)/income, net in the three months ended December 31, 2024, amounted to $(25.6) million, which includes a loss of $(28.0) million from our investments in listed equity securities, partially offset by dividend income on equity securities of $2.0 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”). The loss of $(28.0) million from our investments in listed equity securities includes an unrealized loss of $(24.1) million, mostly related to revaluing our investments in listed equity securities at period end market rates.

Other income, net in the three months ended December 31, 2023, amounted to $19.1 million, which mainly includes (i) the unrealized gain of $18.6 million from revaluing our investments in listed equity securities at period end market rates, (ii) dividend income on equity securities of $0.1 million and (iii) dividend income of $0.4 million from our investment in the Toro Series A Preferred Shares.

Recent Financial Developments Commentary:

Liquidity/Financing/Cash flow update

Our consolidated cash position (including our restricted cash) as of December 31, 2024, decreased by $33.0 million to $87.9 million, as compared to our cash position on December 31, 2023, which amounted to $120.9 million. The decrease was mainly the result of: (i) $41.9 million of net operating cash flows received during the year ended December 31, 2024, (ii) $107.9 million inflow of net proceeds from the sales of the M/V Magic Moon, M/V Magic Nova, M/V Magic Orion, M/V Magic Nebula, M/V Magic Venus, M/V Magic Vela and M/V Magic Horizon, (iii) inflows of $1.4 million of proceeds from a claim, (iv) $50.0 million of net proceeds following the issuance of additional Series D Preferred Shares to Toro, (v) $100.0 million proceeds related to the Toro term loan facility, as offset by (vi) $86.9 million for scheduled principal repayments, early prepayments in connection with the sale of vessels and voluntary prepayments, on our debt, (vii) the acquisition of MPC Capital for $192.0 million, net of $28.0 million in cash held by MPC Capital and $1.0 million included in assets held for sale on the acquisition date, (viii) the acquisitions of the M/V Magic Celeste, the M/V Raphaela and M/V Magic Ariel amounting to $72.2 million, (ix) net outflows of $7.0 million associated with the purchase and sale of equity securities, (x) $2.5 million of dividends paid relating to Series D Preferred and (xi) $1.1 million for payments related to the repurchase in May 2024 of our outstanding Common Share Purchase Warrants issued on April 7, 2021.

As of December 31, 2024, our total debt, gross of unamortized deferred loan fees, was $103.7 million, of which $11.1 million is repayable within one year, as compared to $86.6 million of gross total debt as of December 31, 2023, an increase mainly due to the $100.0 million senior term loan facility with Toro offset by the prepayments in connection with vessel dispositions and voluntary prepayments of our long term debt.

Loan prepayments

On December 3, 2024, we fully repaid the amount of $1.6 million that remained outstanding under the $11.0 million senior secured term loan facility with Alpha Bank S.A, secured against two dry bulk vessels (the M/V Magic P and M/V Magic Moon).

Recent Business Developments Commentary:

Senior term loan facility agreement of $100.0 million from Toro

On December 11, 2024, Castor entered into a facility agreement with Toro to receive a $100.0 million senior term loan facility from Toro (the "Term Loan”) which was drawn down on the same date.

This transaction and its terms were approved by the independent members of the board of directors of each of Castor and Toro at the recommendation of their respective special committees composed of independent and disinterested directors, which negotiated the transaction and its terms.

Additional information about this transaction and its terms can be found in the Castor annual report on Form 20-F, filed pursuant to the Securities Exchange Act of 1934 which is available at www.sec.gov.

On March 24, 2025, March 31, 2025 and April 29, 2025, Castor performed partial prepayments to Toro related to the Term Loan 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 remaining outstanding as of that date.

Issuance of an additional 50,000 Series D Preferred Shares

On December 12, 2024, Castor issued an additional 50,000 Series D Preferred Shares with a stated amount of $1,000 per share to Toro for a total consideration of $50.0 million in cash. Toro may not dispose of any of the Castor Series D Preferred Shares for a period of 180 days after the closing date of the transaction.

This transaction and its terms were approved by the independent members of the board of directors of each of Castor and Toro at the recommendation of their respective special committees composed of independent and disinterested directors, which negotiated the transaction and its terms.

Additional information about this transaction and its terms can be found in the Castor annual report on Form 20-F, filed pursuant to the Securities Exchange Act of 1934 which is available at www.sec.gov.

Acquisition of MPC Capital

On December 12, 2024, the Company, through a wholly owned subsidiary, entered into a share purchase agreement, pursuant to which the Company agreed to acquire from MPC Holding, subject to certain terms and conditions, 26,116,378 shares of common stock of MPC Capital, representing 74.09% of MPC Capital's outstanding common stock, for a cash price of €7.00 per share, equivalent to aggregate consideration of €182.8 million (approximately $192.0 million at the time of the transaction), excluding transaction related costs. On December 16, 2024, the acquisition was completed. MPC Capital is an asset manager specializing in infrastructure projects in the maritime and energy sectors. Partnering and co-investing with institutional investors, MPC Capital provides tailor-made investment solutions, project access, and integrated asset management expertise, including technical and commercial ship management. MPC Capital is a public limited liability company incorporated and domiciled in Germany and is listed on the Scale Segment of the Frankfurt Stock Exchange since 2000.

Vessel Acquisitions

We have completed the acquisition of the two vessels listed below:

Sale of vessels

We have completed the sale of the four vessels listed below:

Fleet Employment Status (as of May 13, 2025)

During the three months ended December 31, 2024, we operated on average 12.9 vessels earning a Daily TCE Rate⁽²⁾ of $11,648 as compared to an average of 18.9 vessels earning a Daily TCE Rate⁽²⁾ of $14,530 during the same period in 2023.

Our employment profile as of May 13, 2025 is presented immediately below.

^{(2) Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.}