CISS Turns Loss Into Profit, But Voyage Revenue Dropped 18%

Date of Call: Feb 19, 2026

Financials Results

• Revenue: $34.8 million, down 18% compared to $42 million in 2024

Business Commentary:

Financial Performance and Growth:

• CISS reported a net income of $10.5 million for the first 12 months of 2025, compared to a net loss of $3 million for the same period in 2024, representing an increase of 481%.
• The company's EBITDA for 2025 was $17 million, a significant increase of 244% from $7 million in 2024.
• This substantial improvement in financial performance was driven by an increase in voyage revenues and reduced interest expenses, despite challenges such as the dry docking of their Aframax tanker.

Dry Bulk Market and Commodity Dynamics:

• The dry bulk market saw a year-over-year increase in global Handysize loaded tonnage by 2%, with 15% of exports being coal, 13% grains, and 9% steel.
• The market is influenced by shifting dynamics in iron ore and coal trade, with iron ore maintaining robust production and the Simandou project in Guinea introducing new long-haul trade routes.
• Despite a projected increase in total dry bulk cargo volumes by less than 1% in 2026, the demand for ship days is expected to expand by around 2% annually due to lengthening trade routes.

Tanker Market Outlook and Strategic Acquisitions:

• The Aframax spot rates showed significant improvements, with the Caribbean-U.S. Gulf route experiencing an increase of 88.7% to day rates of $66,426, and the Med-Med routes with an increase of 85.3% to $65,808.
• CISS anticipates strong demand for Aframax tankers due to geopolitical factors, including sanctions on Iran and Russia, and increased oil imports to China and India.
• The company plans to enhance its fleet capacity by acquiring two product tankers, which are expected to be delivered between Q1 and Q3 2026, increasing its capacity by 387% from inception.

Operational Challenges and Strategic Responses:

• Voyage revenues decreased by 18% in 2025 compared to 2024, primarily due to the dry docking of the Aframax tanker, which resulted in 74 nonrevenue days.
• Despite this, CISS maintained high operational standards and developed strategic relationships with international charters, ensuring repeat business and customer satisfaction.
• The company's strategy focuses on disciplined growth, emphasizing technical assessments and selective acquisitions of quality vessels to capitalize on market opportunities.

Sentiment Analysis:

Overall Tone: Positive

• Management highlights a 481% increase in net income and 244% increase in EBITDA for the year. They state 'elevated freight rates, resilient oil demand and shifting trade patterns continue to underpin the bullish outlook' and project 'another firm year for 2026.'

Contradiction Point 1

Financial Performance and Outlook

Contradiction on net income growth and EBITDA trajectory between quarters.

What are the key factors affecting the company's hypothetical financial performance? - (Hypothetical – Financial Performance Overview)

20260219-2025 Q4: The company reported a net income of $10.5 million for 2025, a 481% increase from a net loss in 2024. EBITDA increased 244% year-over-year to $17 million. - [Dr. Diamantis Andriotis](CEO) & [Nina Pyndiah](CFO)

What were the main 2025 financial results? - (Not Specified)

20251118-2025 Q3: The company reported a 281% increase in net income to $5.3 million and a 245% increase in EBITDA to $10.3 million year-over-year. - [Nina Pyndiah](CFO)

Contradiction Point 2

Tanker Market Outlook

Contradiction on demand growth forecast for the oil tanker market.

How might geopolitical factors impact the tanker market? - (Hypothetical – Tanker Market & Geopolitical Factors)

20260219-2025 Q4: Geopolitical factors... are structurally shifting trade... The Aframax/LR2 spot rates saw significant increases in 2025... The shift from 'shadow fleet' to compliant vessels is a key growth driver. - [Dr. Diamantis Andriotis](CEO)

How do geopolitical events impact the tanker market? - (Not Specified)

20251118-2025 Q3: The oil tanker market faces headwinds from sluggish Chinese demand and modest global oil consumption growth. ... limited long-term demand growth with only 2% expected growth in oil demand until 2030. - [Diamantis Andriotis](CEO)

Contradiction Point 3

Dry Bulk Market Outlook

Contradiction on the direction of seaborne dry bulk trade volume growth.

What is the dry bulk market outlook? - (Hypothetical – Dry Bulk Market Outlook)

20260219-2025 Q4: Dry bulk tonne-mile demand is expected to grow... seaborne demand measured in transport work should expand by around 2% annually. - [Dr. Diamantis Andriotis](CEO)

What is the forecast for the dry bulk market in 2026? - (Implied from context - Market Conditions)

2025Q2: The market experienced a ~1% decline in seaborne trade H1 2025, driven by... weakened demand from China. - [Dr. Diamantis Andriotis](CEO)

Contradiction Point 4

Risk Mitigation Strategy

Inconsistency regarding the company's leverage position and debt strategy.

How is the company planning to expand its fleet and what strategies are involved? - (Hypothetical – Fleet Expansion & Strategy)

20260219-2025 Q4: The strategy is disciplined growth... The company maintains no bank debt and continues to follow a capital-light model. - [Dr. Diamantis Andriotis](CEO), [Nina Pyndiah](CFO)

What is the fleet growth strategy and details on upcoming acquisitions? - (Implied from context - Strategic Outlook)

2025Q2: The company is fully delevered, having repaid all CapEx obligations of $59.2 million since July 2023 without bank loans... - [Nina Pyndiah](CFO)

Contradiction Point 5

Primary Driver of Revenue Decline and Net Income

Contradiction on whether a non-cash gain or operational performance drove financial results.

Can you summarize the company's recent financial performance? - (Hypothetical – Financial Performance Overview)

20260219-2025 Q4: The company reported a net income of $10.5 million for 2025, a 481% increase from a net loss in 2024. Voyage revenues were $34.8 million, down 18% from 2024... - [Dr. Diamantis Andriotis](CEO) & [Nina Pyndiah](CFO)

What were the key 2025 financial results? - Unnamed Participant (Investor/Analyst)

2025Q1: The 109% increase in net income to $8,000,000 was primarily due to a non-cash gain of $6,900,000 from the unrealized gain/loss on the fair value of non-exercise warrants, compared to a loss in the prior year. This gain is distinct from the 32% revenue decline... - [Dr. Diamantis Andrioti](CEO), [Minna Pindia](CFO)