Skip to main content

Imperial Petroleum Inc. Reports Record Net Income of $35.7 Million for the First Quarter of 2023 Financial and Operating Results

ATHENS, Greece, May 08, 2023 (GLOBE NEWSWIRE) — IMPERIAL PETROLEUM INC. (NASDAQ: IMPP, the “Company”), a ship-owning company providing petroleum products, crude oil and dry bulk seaborne transportation services, announced today its unaudited financial and operating results for the first quarter ended March 31, 2023.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

  • Fleet operational utilization of 85% in Q1 23’ with 6 days of technical off hire and 495 (54%) of our fleet days dedicated to spot activity.
  • Delivery of 2 Handysize dry bulk carriers, the Glorieuse and the Eco Wildfire, towards the end of March 2023 – expanding our fleet to 12 vessels.
  • Revenues of $65.4 million in Q1 23’ – up $60.3 million or 1,182% from Q1 22’.
  • Record net income of $35.7 million in Q1 23’ up by $35.5 million compared to Q1 22’ or 17,750%.
  • EBITDA1 of $39.9 million in Q1 23’ up $37.3 million or 1,435% from Q1 22’.
  • Cash and cash equivalents, including time deposits, of $114.1 million as of March 31, 2023 of which approximately $45.5 million were utilized within April 2023 for the repayment of all outstanding loans.
  • Proposed spin-off of two dry bulk carriers under a new Company called C3is Inc.
  • Expect to regain compliance with the Nasdaq minimum bid price requirement, following a 1:15 reverse stock split which took effect on April 28, 2023.

First Quarter 2023 Results:

  • Revenues for the three months ended March 31, 2023 amounted to $65.4 million, an increase of $60.3 million, or 1,182%, compared to revenues of $5.1 million for the three months ended March 31, 2022, primarily due to the increase of our fleet by eight vessels and strong market rates, particularly in the tanker sector.
  • Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2023 were $16.9 million and $6.9 million, respectively, compared to $0.5 million and $1.8 million, respectively, for the three months ended March 31, 2022. The $16.4 million increase in voyage expenses is mainly due to the increase in the spot days of our fleet by 468 days (1,733%), as we are responsible for voyage expenses under spot charters unlike time charters, and the rise in daily bunker costs by $5,300. The $5.1 million increase in vessels’ operating expenses, was primarily due to the increase in the number of our vessels.
  • Drydocking costs for the three months ended March 31, 2023 and 2022 was $0.6 million and nil million, respectively. This increase is due to the fact that during the three months ended March 31, 2023 one of our Handysize dry bulk carriers underwent drydocking.
  • General and administrative expenses for the three months ended March 31, 2023 and 2022 was $1.0 million and $0.1 million, respectively. The increase is due to increased reporting requirements, mainly due to our proposed spin-off.
  • Depreciation for the three months ended March 31, 2023 and 2022 was $4.1 million and $2.2 million, respectively. The change is attributable to the increase in the average number of vessels in our fleet.
  • Interest and finance costs for the three months ended March 31, 2023 and 2022 were $1.4 million and $0.2 million, respectively. The increase is mainly attributable to the increase of our borrowings in conjunction with a sharp rise of LIBOR rates. We have since repaid all of our outstanding bank debt.
  • Interest income for the three months ended March 31, 2023 and 2022 was $1.3 million and nil million, respectively. The increase is attributed to time deposits the Company entered into during the period.
  • As a result of the above, for the three months ended March 31, 2023, the Company reported net income of $35.7 million, compared to net income of $0.2 million for the three months ended March 31, 2022. Dividends paid on Series A Preferred Shares amounted to $0.4 million both for the three months ended March 31, 2023 and 2022, respectively. The weighted average number of shares of common stock outstanding, basic, for the three months ended March 31, 2023 was 15.1 million.
  • Earnings per share, basic, for the three months ended March 31, 2023 amounted to $2.31, compared to a loss per share of $0.18 for the three months ended March 31, 2022. EBITDA for the three months ended March 31, 2023 amounted to $39.9 million compared to $2.6 million for the three months ended March 31, 2022. Reconciliation of EBITDA to Net Income is set forth below.
  • An average of 10.10 vessels were owned by the Company during the three months ended March 31, 2023 compared to 4.04 vessels for the same period of 2022.

CEO Harry Vafias Commented
Our performance in the first quarter of 2023 resulted in record revenues and profitability. We are pleased that our strategies are paying off. Commercially, we capitalized on the strong tanker market and efficiently utilized an average fleet of 10 vessels to produce in a single quarter net income of $36 million marking a 17,750% increase compared to the net income generated in the first quarter of 2022, and an EBITDA of nearly $40 million that is 1,435% higher than the same period of last year. Strategically, we proposed the spin-off of 2 of our dry vessels to a separate company called C3is Inc. In terms of financial strategy, we paid down all our debt and have stopped issuing new shares. Without a doubt we are well positioned to benefit from good market conditions that seem will last.

Conference Call details:

On May 8, 2023 at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

Online Registration:

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

Online Registration:
https://register.vevent.com/register/BI68d776c66434411c8315f6c5cf88b05d

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the IMPERIAL PETROLEUM INC. website (www.ImperialPetro.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About IMPERIAL PETROLEUM INC.        
Imperial Petroleum Inc. is a ship-owning company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of twelve vessels; five M.R. product tankers, one Aframax oil tanker, two Suezmax tankers and four Handysize dry bulk carriers with a capacity of approximately 806,804 deadweight tons (dwt). Imperial Petroleum Inc.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP,” respectively.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact of any resurgence of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release 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 IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of any resurgence of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in any financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment        
For information on our fleet and further information:
Visit our website at www.ImperialPetro.com

Company Contact:
Fenia Sakellaris
IMPERIAL PETROLEUM INC.
E-mail: info@ImperialPetro.com

Fleet Data:
The following key indicators highlight the Company’s operating performance during the periods ended March 31, 2022 and March 31, 2023.

   
FLEET DATAQ1 2022Q1 2023
Average number of vessels (1)4.0410.10
Period end number of owned vessels in fleet512
Total calendar days for fleet (2)364909
Total voyage days for fleet (3)364903
Fleet utilization (4)100.0%99.3%
Total charter days for fleet (5)337408
Total spot market days for fleet (6)27495
Fleet operational utilization (7)98.9%85.0%
   

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.
3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.
4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.
6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.
7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

Reconciliation of EBITDA:

EBITDA represents net income before interest and finance costs, interest income and depreciation.

EBITDA is not a recognized measurement under U.S. GAAP. Our calculation of EBITDA may not be comparable to that reported by other companies in the shipping industry or other industries.

EBITDA measurement is included herein because it is a basis, upon which our investors and we assess our financial performance. It allows us to present our performance from period to period on a comparable basis and provides investors with a means of better evaluating and understanding our operating performance.

  
(Expressed in United States Dollars,
except number of shares)
Three Months Period Ended March 31st,
 20222023
Net income – EBITDA  
Net income218,38235,724,102
Plus interest and finance costs209,0141,351,603
Less interest income(1,279,216)
Plus depreciation2,168,6664,088,852
EBITDA2,596,06239,885,341
   

Imperial Petroleum Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except for number of shares)

      
     For The Three Months Ended March 31,
       2022 2023
       
Revenues        
 Revenues     5,116,378 65,421,101
          
Expenses        
 Voyage expenses    457,428 16,077,827
 Voyage expenses – related party    61,871 810,530
 Vessels’ operating expenses    1,744,016 6,875,876
 Vessels’ operating expenses – related party   15,000 65,000
 Drydocking costs     621,376
 Management fees – related party    131,810 397,760
 General and administrative expenses   115,316 978,969
 Depreciation     2,168,666 4,088,852
Total expenses     4,694,107 29,916,190
          
Income from operations     422,271 35,504,911
          
Other (expenses)/income        
 Interest and finance costs    (209,014) (1,351,603)
 Interest income    1,279,216
 Foreign exchange gain    5,125 291,578
Other (expenses)/income, net     (203,889) 219,191
          
Net Income     218,382 35,724,102
          
(Loss)/Earnings per share2        
– Basic and Diluted     (0.18) 2.31
          
Weighted average number of shares2        
– Basic     1,180,026 15,054,406
– Diluted     1,180,026 15,054,406
         

Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)

        
     December 31, March 31,
     2022 2023
        
Assets      
Current assets     
 Cash and cash equivalents 50,901,092 95,519,418
 Time deposits  68,000,000 18,536,290
 Restricted cash  1,005,827 2,855,771
 Receivables from related party 146,708 146,708
 Trade and other receivables 7,898,103 15,587,598
 Other current assets  240,002 727,806
 Inventories  5,507,423 7,943,037
 Advances and prepayments 172,908 153,368
Total current assets  133,872,063 141,469,996
        
Non current assets     
Operating lease right-of-use-assets   47,108
 Vessels, net  226,351,081 258,201,089
 Restricted cash  5,600,000 600,000
Total non current assets 231,951,081 258,848,197
Total assets  365,823,144 400,318,193
        
Liabilities and Stockholders’ Equity    
Current liabilities     
 Trade accounts payable 8,115,462 8,606,973
 Payable to related party 3,016,438 3,649,821
 Accrued liabilities  1,982,306 2,588,250
 Operating lease liabilities   47,108
 Deferred income  1,089,959 683,937
 Current portion of long-term debt 10,176,538 31,886,430
Total current liabilities  24,380,703 47,462,519
        
Non current liabilities     
 Long-term debt  59,787,923 13,636,458
Total non current liabilities 59,787,923 13,636,458
Total liabilities  84,168,626 61,098,977
        
Commitments and contingencies    
        
Stockholders’ equity     
 Capital stock  129,724 165,398
 Preferred Stock, Series A 7,959 7,959
 Preferred Stock, Series B 160 160
 Preferred Stock, Series C  139
 Additional paid-in capital 252,912,550 274,717,333
 Retained earnings  28,604,125 64,328,227
Total stockholders’ equity 281,654,518 339,219,216
Total liabilities and stockholders’ equity365,823,144 400,318,193
    

Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars

        
       For The Three Months Ended March 31,
       2022 2023
       
Cash flows from operating activities      
 Net income for the period    218,382 35,724,102
          
Adjustments to reconcile net income to net cash     
provided by operating activities:      
 Depreciation    2,168,666 4,088,852
 Amortization of deferred finance charges   134,427
 Amortization of operating lease right-of-use-assets   16,316
 Share based compensation    301,541
Changes in operating assets and liabilities:     
 (Increase)/decrease in      
 Trade and other receivables   (371,437) (7,689,495)
 Other current assets     (487,804)
 Inventories    (1,069,966) (2,435,614)
 Change in operating lease liabilities     (16,316)
 Advances and prepayments   (33,507) 19,540
 Increase/(decrease) in      
 Trade accounts payable   1,364,080 476,307
 Balances with related parties   (247,509) 633,383
 Accrued liabilities    905,266 605,944
 Deferred income    53,461 (406,022)
Net cash provided by operating activities  2,987,436 30,965,161
          
Cash flows from investing activities      
 Acquisition and improvement of vessels  (12,625,000) (25,923,656)
 Increase in bank time deposits   (18,536,290)
 Maturity of bank time deposits   68,000,000
Net cash (used in)/provided by investing activities  (12,625,000) 23,540,054
          
Cash flows from financing activities      
 Proceeds from equity offerings  96,772,890 12,095,255
 Stock issuance costs  (6,534,204) (120,954)
 Dividends paid on preferred shares   (435,246) (435,246)
 Loan repayments    (24,576,000)
Net cash provided by/(used in) financing activities  89,803,440 (13,036,945)
          
Net increase in cash, cash equivalents and restricted cash  80,165,876 41,468,270
Cash, cash equivalents and restricted cash at beginning of year  6,341,059 57,506,919
Cash, cash equivalents and restricted cash at end of period  86,506,935 98,975,189
Cash breakdown        
 Cash and cash equivalents   82,202,037 95,519,418
 Restricted cash, current   1,804,898 2,855,771
 Restricted cash, non current   2,500,000 600,000
Total cash, cash equivalents and restricted cash shown in the statements of cash flows86,506,935 98,975,189
    

1 EBITDA is a non-GAAP measure. Refer to the reconciliation of this measure to the most directly comparable financial measure in accordance with GAAP set forth later in this release.
2 Adjusted retroactively to reflect the 1-for-15 reverse stock split effected at the close of trading on April 28, 2023.

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.