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 second quarter
ended June 30, 2022. In November 2021, StealthGas Inc. contributed
to the Company four subsidiaries comprising a fleet of four tanker
vessels. The Company was spun-off from StealthGas Inc. in December
2021. Historical comparative period reflects the results of the
carve-out operations of the four subsidiaries that were contributed
to the Company.
OPERATIONAL AND FINANCIAL
HIGHLIGHTS
- Strategic decision to strengthen our fleet further.
- In July 2022, we entered into an agreement with an affiliated
party to acquire two handysize dry bulk carriers, the Eco Bushfire
(2011 built) and the Eco Angelbay (2009 built), for a total
consideration of $39 million. Both vessels are Japanese built with
an aggregate capacity of 64,000 dwt.
- Fleet operational utilization of 82.5% in Q2 22’ – mainly due
to the repositioning of our two suezmax tankers for a total of 56
days.
- Revenues of $11.3 million in Q2 22’ up by $6.2 million or
121.6% compared to Q1 22’ due to further improvement in market
rates and a higher number of vessels.
- Net income of $0.1 million – undermined by the $2.4 million
voyage and operating costs we incurred for the repositioning of our
two suezmaxes- benefit of which will appear in Q3 22’.
- EBITDA1 of $3.0 million in Q2 22’- 15.4% higher than in Q1 22’
and 114.3% or $1.6 million higher than in Q2 21’.
- Cash and cash equivalents of $79.1 million as of June 30,
2022.
Second Quarter 2022 Results:
- Revenues for the three months ended June 30, 2022 amounted to
$11.3 million, an increase of $7.1 million, or 169.0%, compared to
revenues of $4.2 million for the three months ended June 30, 2021,
primarily due to the increase of our average fleet by two vessels
and the improvement in market rates.
- Voyage expenses and vessels’ operating expenses for the three
months ended June 30, 2022 were $4.4 million and $3.3 million,
respectively, compared to $0.6 million and $2.0 million,
respectively, for the three months ended June 30, 2021. The $3.8
million increase in voyage expenses is mainly due to the increase
in the spot days of our fleet by 159 days (468%) and the rise in
bunker prices. This quarter we incurred $1.7 million of voyage
costs due to the repositioning of our two suezmax vessels for a
total period of 56 days. The $1.3 million increase in vessels’
operating expenses, was primarily due to the increase in the
average number of our vessels and supply costs incurred in relation
to the recent acquisition of our two suezmax vessels.
- Depreciation for the three months ended June 30, 2022 and 2021
was $2.7 million and $2.2 million, respectively. The change is
attributable to the increase in the average number of our
vessels.
- Interest and finance costs for the three months ended June 30,
2022 and 2021 were $0.2 million and $0.001 million, respectively.
The increase is attributable to the interest expense incurred
relating to our loan agreement entered into in November 2021.
- As a result of the above, for the three months ended June 30,
2022, the Company reported net income of $0.1 million, compared to
net loss of $0.8 million for the three months ended June 30, 2021.
Dividends paid on Series A Preferred Shares amounted to $0.4
million for the three months ended June 30, 2022. The weighted
average number of shares of common stock outstanding, basic, for
the three months ended June 30, 2022 was 112.6 million.
- Loss per share, basic, for the three months ended June 30, 2022
amounted to $0.00. EBITDA for the three months ended June 30, 2022
amounted to $3.0 million. Reconciliations of EBITDA to Net
(Loss)/Income are set forth below.
- An average of 5.96 vessels were owned by the Company during the
three months ended June 30, 2022 compared to 4.00 vessels for the
same period of 2021.
Six Months 2022 Results:
- Revenues for the six months ended June 30, 2022, amounted to
$16.5 million, an increase of $7.3 million, or 79.3%, compared to
revenues of $9.2 million for the six months ended June 30, 2021,
primarily due to the increase in the average number of our vessels
and the improvement in market rates.
- Voyage expenses and vessels’ operating expenses for the six
months ended June 30, 2022 were $4.9 million and $5.1 million,
respectively, compared to $1.9 million and $3.7 million for the six
months ended June 30, 2021. The $3.0 million increase in voyage
expenses is mainly due to the increase in the spot days of our
fleet by 39 days (21.5%) and the rise in daily bunker cost by
$9,400. The $1.4 million increase in vessels’ operating expenses,
was primarily due to the increase in the average number of our
vessels.
- Depreciation for the six months ended June 30, 2022, was $4.9
million, a $0.6 million increase from $4.3 million for the same
period of last year, due to the increase in the average number of
our vessels.
- As a result of the above, the Company reported net income for
the six months ended June 30, 2022 of $0.3 million, compared to a
net loss of $1.2 million for the six months ended June 30, 2021.
The weighted average number of shares outstanding for the six
months ended June 30, 2022 was 65.4 million. Loss per share, basic,
for the six months ended June 30, 2022 amounted to $0.01.
- EBITDA for the six months ended June 30, 2022 amounted to $5.6
million. Reconciliations of EBITDA to Net (Loss)/Income are set
forth below. An average of 5.01 vessels were owned by the Company
during the six months ended June 30, 2021 compared to 4.00 vessels
for the same period of 2021.
- As of June 30, 2022, cash and cash equivalents amounted to
$79.1 million and total debt, net of deferred finance charges,
amounted to $25.5 million. During the six months ended June 30,
2022 debt repayments amounted to $2.4 million.
CEO Harry Vafias
Commented Our second quarter financial and operating
results is a testimony that we are on track as per our commitment
to our investors. As you may all recall, we had promised our
shareholders growth and this is exactly what we are doing but at
the same time keeping a very solid balance sheet. Our fleet of four
vessels has grown to ten vessels within a six months’ period. We
have also placed emphasis on capitalizing on market conditions;
this quarter we successfully increased our revenue by $6 million
compared to Q1 22’. The repositioning of our two suezmax vessels
deprived us from further revenue generation but most importantly
undermined our profitability by an excess of $2 million; the
benefits of this decision will appear in the third quarter. We are
confident that the next quarter’s profitability will emulate the
revenue increase resulting from the current market conditions.
Conference Call details:
On July 27, 2022 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:
Beginning this quarter, 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.
https://register.vevent.com/register/BIc09c5d4c6e4749419ed5e0c1530e39b0
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 8 vessels; five M.R. product
tankers, one Aframax oil tanker and two suezmax tankers and has
entered into an agreement to acquire two handysize dry bulk
carriers. Following the delivery of these dry bulk vessels,
Imperial Petroleum’s fleet will count 10 vessels with a capacity of
approximately 737,000 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 or duration 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 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 our 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
Fleet Data: The following key
indicators highlight the Company’s operating performance during the
periods ended June 30, 2021 and June 30, 2022.
FLEET DATA |
Q2 2021 |
Q2 2022 |
6M 2021 |
6M 2022 |
Average number of vessels (1) |
4.00 |
5.96 |
4.00 |
5.01 |
Period end number of owned vessels in fleet |
4 |
8 |
4 |
8 |
Total calendar days for fleet (2) |
364 |
542 |
724 |
906 |
Total voyage days for fleet (3) |
353 |
539 |
712 |
903 |
Fleet utilization (4) |
97.0% |
99.4% |
98.3% |
99.7% |
Total charter days for fleet (5) |
319 |
346 |
531 |
683 |
Total spot market days for fleet (6) |
34 |
193 |
181 |
220 |
Fleet operational utilization (7) |
96.7% |
82.5% |
92.3% |
89.1% |
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 (loss)/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) |
Second Quarter EndedJune
30th, |
Six Months Period Ended June 30th, |
|
2021 |
2022 |
2021 |
2022 |
|
|
|
|
|
Net (loss)/income - EBITDA |
|
|
|
|
Net (loss)/income |
(802,449) |
85,719 |
(1,228,724) |
304,101 |
Plus interest and finance costs |
1,450 |
243,901 |
3,376 |
452,915 |
Less interest income |
-- |
(44,140) |
(4) |
(44,140) |
Plus depreciation |
2,168,665 |
2,734,165 |
4,337,331 |
4,902,831 |
EBITDA |
1,367,666 |
3,019,645 |
3,111,979 |
5,615,707 |
|
|
|
|
|
|
Imperial Petroleum Inc. |
Unaudited Consolidated Statements of
Operations |
(Expressed in United States Dollars, except for number of
shares) |
|
|
|
|
|
|
Quarters Ended June 30, |
|
Six Month Periods Ended June 30, |
|
|
|
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
4,157,352 |
|
11,348,271 |
|
9,226,877 |
|
16,464,649 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
524,584 |
|
4,263,884 |
|
1,815,116 |
|
4,721,312 |
|
Voyage expenses - related party |
|
51,793 |
|
141,591 |
|
116,665 |
|
203,462 |
|
Vessels' operating expenses |
|
1,966,603 |
|
3,290,751 |
|
3,695,123 |
|
5,034,767 |
|
Vessels' operating expenses - related party |
27,000 |
|
22,500 |
|
42,000 |
|
37,500 |
|
Management fees |
|
|
131,495 |
|
209,815 |
|
261,545 |
|
341,625 |
|
General and administrative expenses |
|
85,630 |
|
412,669 |
|
176,162 |
|
527,985 |
|
Depreciation |
|
|
2,168,665 |
|
2,734,165 |
|
4,337,331 |
|
4,902,831 |
Total expenses |
|
|
4,955,770 |
|
11,075,375 |
|
10,443,942 |
|
15,769,482 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Income from operations |
|
(798,418) |
|
272,896 |
|
(1,217,065) |
|
695,167 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (expenses)/income |
|
|
|
|
|
|
|
|
|
Interest and finance costs |
|
(1,450) |
|
(243,901) |
|
(3,376) |
|
(452,915) |
|
Interest income |
|
|
-- |
|
44,140 |
|
4 |
|
44,140 |
|
Foreign exchange (loss)/gain |
|
(2,581) |
|
12,584 |
|
(8,287) |
|
17,709 |
Other expenses, net |
|
|
(4,031) |
|
(187,177) |
|
(11,659) |
|
(391,066) |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Net Income |
|
|
(802,449) |
|
85,719 |
|
(1,228,724) |
|
304,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, Basic |
|
|
(0.17) |
|
(0.00) |
|
(0.26) |
|
(0.01) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares, Basic |
4,775,272 |
|
112,558,217 |
|
4,775,272 |
|
65,391,339 |
|
|
|
|
|
|
|
|
|
Imperial Petroleum Inc. |
Unaudited Consolidated Balance Sheets |
(Expressed in United States Dollars) |
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
3,389,834 |
|
79,135,753 |
|
Restricted cash |
|
|
451,225 |
|
485,693 |
|
Receivables from related party |
|
355,023 |
|
375,801 |
|
Trade and other receivables |
|
1,400,275 |
|
3,572,656 |
|
Other current assets |
|
|
-- |
|
581,331 |
|
Inventories |
|
|
258,846 |
|
4,935,331 |
|
Advances and prepayments |
|
150,544 |
|
543,884 |
Total current assets |
|
|
6,005,747 |
|
89,630,449 |
|
|
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
|
Vessels, net |
|
|
119,962,984 |
|
194,134,266 |
|
Restricted cash |
|
|
2,500,000 |
|
2,500,000 |
Total non current assets |
|
122,462,984 |
|
196,634,266 |
Total assets |
|
|
128,468,731 |
|
286,264,715 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade accounts payable |
|
1,430,251 |
|
5,770,455 |
|
Payable to related party |
|
1,119,055 |
|
394,328 |
|
Accrued liabilities |
|
|
486,674 |
|
1,093,353 |
|
Customer deposits |
|
|
368,000 |
|
368,000 |
|
Deferred income |
|
|
482,321 |
|
190,499 |
|
Current portion of long-term debt |
|
4,747,616 |
|
4,753,798 |
Total current liabilities |
|
|
8,633,917 |
|
12,570,433 |
|
|
|
|
|
|
|
|
Non current liabilities |
|
|
|
|
|
|
Long-term debt |
|
|
23,088,971 |
|
20,710,259 |
Total non current liabilities |
|
23,088,971 |
|
20,710,259 |
Total liabilities |
|
|
31,722,888 |
|
33,280,692 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Capital stock |
47,753 |
|
1,902,540 |
|
Preferred stock |
|
7,959 |
|
7,959 |
|
Additional paid-in capital |
|
97,161,688 |
|
251,240,980 |
|
Accumulated deficit |
|
|
(471,557) |
|
(167,456) |
Total stockholders' equity |
|
96,745,843 |
|
252,984,023 |
Total liabilities and stockholders' equity |
128,468,731 |
|
286,264,715 |
|
Imperial Petroleum Inc. |
Unaudited Consolidated Statements of Cash
Flows |
(Expressed in United States Dollars |
|
|
|
|
|
|
|
|
Six Month Periods Ended June 30, |
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net (loss)/income for the period |
|
|
|
|
(1,228,724) |
|
304,101 |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net (loss)/income to net
cash |
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
4,337,331 |
|
4,902,831 |
|
Amortization of deferred finance charges |
|
|
-- |
|
29,470 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
(Increase)/decrease in |
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
(803,931) |
|
(2,172,381) |
|
Other current assets |
|
|
|
|
173,930 |
|
(581,331) |
|
Inventories |
|
|
|
|
457,906 |
|
(4,676,485) |
|
Advances and prepayments |
|
|
|
(43,949) |
|
(393,340) |
|
Increase/(decrease) in |
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
-- |
|
4,288,624 |
|
Balances with related parties |
|
|
|
(99,682) |
|
(745,505) |
|
Accrued liabilities |
|
|
|
|
55,250 |
|
606,679 |
|
Deferred income |
|
|
|
|
459,188 |
|
(291,822) |
Net cash provided by operating activities |
|
|
3,307,319 |
|
1,270,841 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisition and improvement of vessels |
|
|
(142,600) |
|
(79,022,533) |
Net cash used in investing activities |
|
|
(142,600) |
|
(79,022,533) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Net transfers to former Parent Company |
|
|
(6,333,468) |
|
-- |
|
Proceeds from follow-on offerings |
|
|
|
-- |
|
167,572,514 |
|
Stock issuance costs |
|
|
|
|
-- |
|
(10,767,943) |
|
Dividends paid on preferred shares |
|
|
|
-- |
|
(870,492) |
|
Loan repayments |
|
|
|
|
-- |
|
(2,402,000) |
Net cash (used in)/provided by financing
activities |
|
|
(6,333,468) |
|
153,532,079 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash, cash equivalents and restricted
cash |
|
|
(3,168,749) |
|
75,780,387 |
Cash, cash equivalents and restricted cash at beginning of
year |
|
|
7,616,555 |
|
6,341,059 |
Cash, cash equivalents and restricted cash at end of
period |
|
|
4,447,806 |
|
82,121,446 |
Cash breakdown |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
3,282,775 |
|
79,135,753 |
|
Restricted cash, current |
|
|
|
1,165,031 |
|
485,693 |
|
Restricted cash, non current |
|
|
|
-- |
|
2,500,000 |
Total cash, cash equivalents and restricted cash shown in
the statements of cash flows |
4,447,806 |
|
82,121,446 |
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.
Company Contact:
Fenia Sakellaris
IMPERIAL PETROLEUM INC.
00-30-210-6250-001
E-mail: fs@ImperialPetro.com
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