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 DATA |
Q1 2022 |
Q1 2023 |
Average number of vessels (1) |
4.04 |
10.10 |
Period end
number of owned vessels in fleet |
5 |
12 |
Total
calendar days for fleet (2) |
364 |
909 |
Total voyage
days for fleet (3) |
364 |
903 |
Fleet
utilization (4) |
100.0% |
99.3% |
Total
charter days for fleet (5) |
337 |
408 |
Total spot
market days for fleet (6) |
27 |
495 |
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, |
|
2022 |
2023 |
Net
income – EBITDA |
|
|
Net
income |
218,382 |
35,724,102 |
Plus
interest and finance costs |
209,014 |
1,351,603 |
Less
interest income |
-- |
(1,279,216) |
Plus
depreciation |
2,168,666 |
4,088,852 |
EBITDA |
2,596,062 |
39,885,341 |
|
|
|
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' equity |
365,823,144 |
|
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 flows |
86,506,935 |
|
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.
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