Toro Corp. Reports Net Income of $1.0 Million for the Three Months Ended December 31, 2024 and $25.2 Million for the Year Ended December 31, 2024. Spin-Off of Handysize Tanker Business completed on April 14, 2025.
LIMASSOL, Cyprus, April 15, 2025 (GLOBE NEWSWIRE) -- Toro Corp. (NASDAQ:TORO), ("Toro", or the "Company"), an international energy transportation services company, today announced its results for the three months and the year ended December 31, 2024.
Highlights of the Fourth Quarter Ended December 31, 2024:
Total vessel revenues from continuing operations: $5.2 million, as compared to $7.3 million for the three months ended December 31, 2023, or a 28.8% decrease;
Net income from continuing operations: $1.0 million, as compared to $9.3 million for the three months ended December 31, 2023, or a 89.2% decrease;
Net income: $1.0 million, as compared to $28.2 million for the three months ended December 31, 2023, or a 96.5% decrease;
(Loss)/Earnings per common share, basic, from continuing operations: $(0.01) per share, as compared to $0.36 per share for the three months ended December 31, 2023;
EBITDA(1) from continuing operations: $0.2 million, as compared to $9.6 million for the three months ended December 31, 2023;
Cash and restricted cash of $37.2 million as of December 31, 2024, as compared to $155.6 million as of December 31, 2023;
On December 11, 2024, the Company entered into a facility agreement with Castor Maritime Inc. ("Castor") to provide a $100.0 million senior term loan facility to Castor which was drawn-down on the same date; and
On December 12, 2024, the Company purchased an additional 50,000 5.00% Series D Cumulative Perpetual Convertible Preferred Shares of Castor ("Castor Series D Preferred Shares") with a stated amount of $1,000 each for total consideration of $50.0 million in cash.
The spin-off of our Handysize tanker segment to a new Nasdaq-listed company, Robin Energy Ltd. ("Robin") was completed on April 14, 2025.
Highlights of the Year Ended December 31, 2024:
Total vessel revenues from continuing operations: $22.4 million, as compared to $22.3 million for the year ended December 31, 2023, or a 0.4% increase;
Net income from continuing operations: $5.5 million, as compared to $11.2 million for the year ended December 31, 2023, or a 50.9% decrease;
Net income: $25.2 million, as compared to $140.6 million for the year ended December 31, 2023, or a 82.1% decrease;
(Loss)/Earnings per common share, basic, from continuing operations: $(0.04) per share, as compared to $0.31 per share for the year ended December 31, 2023;
EBITDA(1) from continuing operations: $1.9 million, as compared to $12.6 million for the year ended December 31, 2023;
Delivery of the M/T Wonder Sirius to its new owners on January 24, 2024, after entering into an agreement to sell the vessel on January 8, 2024 for $33.8 million, resulting in a capital gain of $19.6 million; and
Repurchased 644,556 common shares at an aggregate cost of $3.7 million under the Company's share repurchase program, which was approved on November 6, 2023 and expired on March 31, 2024.
(1) EBITDA is not a recognized measure under United States generally accepted accounting principles ("U.S. GAAP"). Please refer to Appendix B for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer of the Company, commented:
"On April 14, 2025, we completed the previously announced spin-off of our Handysize tanker segment through the distribution of all of the common shares of Robin Energy Ltd. to our shareholders of record as of April 7, 2025 (the "Robin Spin-Off"),which represents a substantial payment by Toro to its shareholders .
During the fourth quarter of 2024, the markets for LPG carriers remained firm and we enjoyed positive cash flows. In addition, while we utilized part of our substantial cash, we maintain a strong balance sheet with significant cash reserves and no outstanding debt. As we move forward, we continue to seek opportunities that will further drive our growth and strengthen our position in the market."
Earnings Commentary:
Fourth quarter ended December 31, 2024, and 2023 Results
Total vessel revenues, net of charterers' commissions, from continuing operations decreased to $5.2 million in the three months ended December 31, 2024, from $7.3 million in the same period in 2023. This decrease of $2.1 million was mainly associated with the decrease in the Available Days of our fleet to 460 days in the three months ended December 31, 2024 from 507 days in the same period in 2023 due to changes in the composition of our fleet. During the three months ended December 31, 2024, our fleet earned on average a Daily TCE Rate of $10,724, compared to an average Daily TCE Rate of $13,139 earned during the same period in 2023. This decrease was mainly due to the substantially lower hire rates of our Handysize vessel in the three months ended December 31, 2024 compared to the same period in 2023. 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.
Voyage expenses from continuing operations for our fleet decreased to $0.3 million in the three months ended December 31, 2024, from $0.6 million in the same period in 2023. This decrease of $0.3 million was mainly associated with decreased bunkers consumption costs of $0.4 million in the three months ended December 31, 2024, as compared to the same period in 2023.
The decrease in vessel operating expenses from continuing operations by $0.6 million to $2.5 million in the three months ended December 31, 2024, from $3.1 million in the same period in 2023, mainly reflects the decrease (i) in the Daily vessel operating expenses of the vessels in our fleet to $5,349 in the three months ended December 31, 2024 from $6,212 in the same period in 2023, mainly due to the change in the mix of our fleet following the addition of the LPG vessels which incur lower Daily vessel operating expenses than the Handysize tanker vessels due to their size and (ii) in the Ownership Days of our fleet to 460 days in the three months ended December 31, 2024 from 507 days in the same period in 2023 due to the decrease of the average number of operating vessels to 5.0 vessels in the three months ended December 31, 2024 from 5.5 vessels in the same period of 2023.
Management fees from continuing operations amounted to $0.5 million in the three months ended December 31, 2024, and in the same period in 2023, as a result of the decrease in the Ownership Days of our fleet, offset by increases in management fees effected from July 1, 2023 and from July 1, 2024, respectively, under the terms of the amended and restated master management agreement between the Company, the Company's ship owning subsidiaries and Castor Ships S.A., effective from July 1, 2022.
Depreciation expenses from continuing operations for our fleet amounted to $1.1 million in the three months ended December 31, 2024 and in the same period in 2023. Dry-dock and special survey amortization charges from continuing operations amounted to $0.2 million for the three months ended December 31, 2024, compared to a charge of $0.1 million in the three months ended December 31, 2023. This increase in dry-dock amortization charges is related to the amortization of the M/T Wonder Mimosa, which initiated and completed its scheduled dry-dock and special survey in the second and third quarters of 2024, respectively.
General and administrative expenses from continuing operations in the three months ended December 31, 2024, amounted to $2.4 million, whereas, in the same period of 2023, general and administrative expenses totaled $2.3 million. This increase is mainly associated with the higher corporate fees, partially offset by the decrease of the stock based compensation cost for non-vested shares granted under our Equity Incentive Plan amounting to $1.0 million in the three months ended December 31, 2024, as compared to $1.3 million in the same period in 2023.
Interest and finance costs, net, from continuing operations amounted to $(2.1) million in the three months ended December 31, 2024, whereas, in the same period of 2023, interest and finance costs, net amounted to $(0.9) million. This variation is mainly due to increase in interest income we earned from our time and cash deposits due to increased average cash balances during the three months ended December 31, 2024, as compared with the same period of 2023.
Recent Financial Developments Commentary:
Equity update
On January 15, 2025, the Company paid to Castor a dividend amounting to $0.3 million on its 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares (the "Series A Preferred Shares") for the period from October 15, 2024 to January 14, 2025.
As of April 14, 2025, we had 19,093,853 common shares issued and outstanding.
Liquidity/ Financing/Cash flow update
Our consolidated cash position (including restricted cash from discontinued operations) decreased by $118.4 million, from $155.6 million as of December 31, 2023, to $37.2 million as of December 31, 2024. During the year ended December 31, 2024, our cash position decreased mainly as a result of (i) $10.8 million of net operating cash flows provided from continuing operations, (ii) $155.1 million of net investing cash flows used from continuing operations, mainly reflecting the $100.0 million senior term loan facility to Castor, the purchase of an additional 50,000 5.00% Series D Cumulative Perpetual Convertible Preferred Shares of Castor with a stated amount of $1,000 each for the purchase price of $50.0 million, the payments of vessel improvement and ballast water treatment system ("BWTS") installation expenses amounting to $0.1 million and the purchase of equity securities amounting to $5.2 million, partially offset by $0.2 million of proceeds from sale of equity securities, (iii) $5.1 million of net financing cash flows used from continuing operations, including $3.7 million for the payment for repurchase of common shares and $1.4 million for the payment of dividends to Castor on our Series A Preferred Shares for the period from October 15, 2023 to October 14, 2024 and (iv) $31.0 million of net cash provided from discontinued operations.
Recent Business Developments Commentary:
Toro provides Castor with a $100.0 million senior term loan facility
On December 11, 2024, Toro entered into a facility agreement with Castor to provide a $100.0 million senior term loan facility to Castor (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 Toro 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, and March 31, 2025, the Company received from Castor partial prepayments related to the Term Loan amounting to $13,500,000 and $34,000,000, respectively.
Toro's investment in Castor through purchase of an additional 50,000 Castor Series D Preferred Shares
On December 12, 2024, the Company purchased an additional 50,000 Castor Series D Preferred Shares with a stated amount of $1,000 each for a total consideration of $50.0 million in cash. The Company owns all 100,000 outstanding Castor Series D Preferred Shares 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 Toro annual report on Form 20-F, filed pursuant to the Securities Exchange Act of 1934 which is available at www.sec.gov.
Completion of the Handysize tanker business Spin-Off
On April 14, 2025, we completed our previously announced Robin Spin-Off of our one Handysize tanker vessel . In the Robin Spin-Off distribution, Toro shareholders received one common share of Robin for every eight Toro common shares held at the close of business on April 7, 2025. Additional information about Robin and the Robin Spin-Off transaction can be found in the Robin registration statement filed pursuant to the Securities Exchange Act of 1934 on Form 20-F, which is available at www.sec.gov.
Fleet Employment Status (as of April 14, 2025): During the three months ended December 31, 2024, we operated on average 5.0 vessels earning a Daily TCE Rate(1) of $10,724 as compared to an average of 5.5 vessels earning a Daily TCE Rate(1) of $13,139 during the same period in 2023. Our employment profile as of April 14, 2025 is presented immediately below.
(1) 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.
LPG Carriers
Type
DWT
Year Built
Country of Construction
Type of Employment
Gross Charter Rate
Estimated Redelivery Date
Earliest
Latest
Dream Terrax
LPG carrier 5,000 cbm
4,743
2020
Japan
Time Charter period(1)
$338,000 per month
Aug-25
Aug-26
Dream Arrax
LPG carrier 5,000 cbm
4,753
2015
Japan
Time Charter period(2)
$323,000 per month
May-25
May-26
Dream Syrax
LPG carrier 5,000 cbm
5,158
2015
Japan
Time Charter period(3)
$323,000 per month
Dec-25
Jan-27
Dream Vermax
LPG carrier 5,000 cbm
5,155
2015
Japan
Time Charter period(4)
$354,500 per month
Mar-26
Apr-27
(1)
The vessel has been fixed under a time charter period contract of twelve months starting from August 2024, at $338,000 per month plus twelve months at the charterer's option. The rate for the optional period will be increased at a rate between 2.5% and 9% to be mutually agreed between us and the charterers.
(2)
The vessel has been fixed under a time charter period contract of twelve months starting from May 2024, at $323,000 per month plus twelve months at $335,000 per month at the charterer's option.
(3)
The vessel has been fixed under a time charter period contract of twelve months starting from May 2024, at $323,000 per month. On October 9, 2024, we and the charterers agreed that from May 18, 2025 until January 1, 2026 (plus or minus seven days), the rate will be increased to $337,000 per month, plus twelve months at the charterer's option. The rate for the optional period will be increased at a rate between 2% and 6% to be mutually agreed between us and the charterers.
(4)
The vessel has been fixed under a time charter period contract of twelve months starting from March 2024, at $318,000 per month plus twelve months at the charterer's option at a rate to be mutually agreed between us and the charterers. On January 22, 2025, it was agreed between us and the charterers that from March 22, 2025 until March 22, 2026 (plus or minus thirty days), the rate is increased to $354,500 per month, plus twelve months at the charterer's option. The rate for the optional period will be increased at a rate to be mutually agreed between us and the charterers.
Financial Results (Continuing Operations) Overview:
Set forth below are selected financial and operational data of our Handysize tanker and LPG carrier segments for each of the three months and year ended December 31, 2024 and 2023, respectively:
Three Months Ended
Year Ended
(Expressed in U.S. dollars)
December 31, 2024 (unaudited)
December 31, 2023 (unaudited)
December 31, 2024 (unaudited)
December 31, 2023 (unaudited)
Total vessel revenues
$
5,228,802
$
7,297,089
$
22,394,283
$
22,304,613
Operating (loss)/ income
$
(1,733,481
)
$
7,756,106
$
(5,557,155
)
$
8,200,225
Net income and comprehensive income
$
997,459
$
9,297,013
$
5,511,535
$
11,180,943
EBITDA(1)
$
248,084
$
9,561,930
$
1,924,499
$
12,570,698
(Loss)/Earnings per common share, basic
$
(0.01
)
$
0.36
$
(0.04
)
$
0.31
(Loss)/Earnings per common share, diluted
$
(0.01
)
$
0.18
$
(0.04
)
$
0.21
(1)
EBITDA is not recognized measure under U.S. GAAP. Please refer to Appendix B of this release for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Consolidated Fleet Selected Financial and Operational Data (Continuing Operations):
Set forth below are selected financial and operational data of our Handysize tanker and LPG carrier segments for each of the three months and year ended December 31, 2024 and 2023, respectively, that we believe are useful in analyzing trends in our results of operations. For pro forma financial information reflecting the performance of our business after giving effect to the Robin Spin-Off, see our Current Report on Form 6-K filed on April 15, 2025, which is available at www.sec.gov.
Three Months Ended December 31,
Year Ended December 31,
(Expressed in U.S. dollars except for operational data)
2024
2023
2024
2023
Ownership Days(1)(7)
460
507
1,830
1,422
Available Days(2)(7)
460
507
1,790
1,379
Operating Days(3)(7)
460
500
1,790
1,325
Daily TCE Rate(4)
$
10,724
$
13,139
$
11,620
$
14,358
Fleet Utilization(5)
100%
99%
100%
96%
Daily vessel operating expenses(6)
$
5,349
$
6,212
$
5,082
$
6,605
(1)
Ownership Days are the total number of calendar days in a period during which we owned a vessel.
(2)
Available Days are the Ownership Days in a period less the aggregate number of days our vessels are off-hire due to scheduled repairs, dry-dockings or special or intermediate surveys.
(3)
Operating Days are the Available Days in a period after subtracting unscheduled off-hire and idle days.
(4)
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.
(5)
Fleet Utilization is calculated by dividing the Operating Days during a period by the number of Available Days during that period.
(6)
Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by the Ownership Days for such period.
(7)
Our definitions of Ownership Days, Available Days, Operating Days, Fleet Utilization may not be comparable to those reported by other companies.
APPENDIX A
TORO CORP.Unaudited Condensed Consolidated Statements of Comprehensive Income(Expressed in U.S. Dollars—except for number of share data)
(In U.S. dollars except for number of share data)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
REVENUES
Time charter revenues
3,921,031
2,833,506
14,315,299
3,439,356
Voyage charter revenues
—
711,879
1,310,312
3,253,385
Pool revenues
1,307,771
