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 third quarter
ended September 30, 2022. In November 2021, StealthGas Inc.
contributed to the Company four subsidiaries comprising a fleet of
four tanker vessels, and the Company was spun-off from StealthGas
Inc. in December 2021. Historical comparative periods of 2021
reflect the results of the carve-out operations of the four
subsidiaries that were contributed to the Company.
OPERATIONAL AND FINANCIAL
HIGHLIGHTS
- Fleet operational utilization of 86.3% in Q3 22’ – with a
predominant presence in the spot market.
- Delivery of our second handysize dry bulkcarrier, the Eco
Angelbay, on October 19, 2022.
- Revenues of $42.6 million - up $31.3 million or 277% from Q2
22’.
- Net income of $15.5 million - up $15.4 million or 15,400% from
Q2 22’ and equivalent to approximately 23% of our current market
capitalization.
- EBITDA1 of $18.7 million in Q3 22’ up $15.7 million or 523%
from Q2 22’.
- Cash and time deposits of $92.4 million as of September 30,
2022, which is 1.3 times higher than our current market cap.
Third Quarter 2022 Results:
- Revenues for the three months ended September 30, 2022 amounted
to $42.6 million, an increase of $38.5 million, or 939.0%, compared
to revenues of $4.1 million for the three months ended September
30, 2021, primarily due to the increase in the size of our average
fleet by approximately four vessels and a marked improvement in
charter rates.
- Voyage expenses and vessels’ operating expenses for the three
months ended September 30, 2022 were $18.4 million and $4.9
million, respectively, compared to $0.7 million and $1.9 million,
respectively, for the three months ended September 30, 2021. The
$17.7 million increase in voyage expenses is mainly due to the
increase in the spot days of our fleet by 456 days (786%) and the
rise in bunker prices. This quarter we incurred $1.2 million of
voyage costs due to the repositioning of three of our product
tankers for a total period of 42 days. The $3.0 million increase in
vessels’ operating expenses was primarily due to the increase in
the average number of our vessels and one of our product tankers
coming off a bareboat charter, under which we do not bear operating
expenses, during the third quarter of 2022.
- Depreciation for the three months ended September 30, 2022 and
2021 was $3.4 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 September
30, 2022 and 2021 were $0.3 million and $0.004 million,
respectively. The increase is mainly 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 September
30, 2022, the Company reported net income of $15.5 million,
compared to net loss of $0.9 million for the three months ended
September 30, 2021. Dividends paid on Series A Preferred Shares
amounted to $0.4 million for the three months ended September 30,
2022. The weighted average number of shares of common stock
outstanding, basic, for the three months ended September 30, 2022
was 190.3 million.
- Earnings per share, basic, for the three months ended September
30, 2022 amounted to $0.08, compared to a loss per share of $0.19
for the three months ended September 30, 2021. EBITDA for the three
months ended September 30, 2022 amounted to $18.7 million.
Reconciliations of EBITDA to Net (Loss)/Income are set forth
below.
- An average of 8.1 vessels were owned by the Company during the
three months ended September 30, 2022 compared to 4.0 vessels for
the same period of 2021.
Nine Months 2022 Results:
- Revenues for the nine months ended September 30, 2022, amounted
to $59.1 million, an increase of $45.7 million, or 341.0%, compared
to revenues of $13.4 million for the nine months ended September
30, 2021, primarily due to the increase in the average number of
our vessels and improved market conditions resulting in higher
rates particularly in the spot market.
- Voyage expenses and vessels’ operating expenses for the nine
months ended September 30, 2022 were $23.3 million and $10.0
million, respectively, compared to $2.7 million and $5.6 million
for the nine months ended September 30, 2021. The $20.6 million
increase in voyage expenses is mainly due to the increase in the
spot days of our fleet by 495 days (207.1%) and the rise in daily
bunker cost by approximately $16,000. The $4.4 million increase in
vessels’ operating expenses was primarily due to the increase in
the average number of our vessels and one of our product tankers
coming off a bareboat charter during the third quarter of
2022.
- Depreciation for the nine months ended September 30, 2022, was
$8.3 million, an $1.8 million increase from $6.5 million for the
same period of last year, due to the increase in the average number
of our vessels.
- Interest and finance costs for the nine months ended September
30, 2022 and 2021 were $0.7 million and $0.007 million,
respectively. The increase is mainly attributable to the interest
expense incurred relating to our loan agreement entered into in
November 2021.
- As a result of the above, the Company reported net income for
the nine months ended September 30, 2022 of $15.8 million, compared
to a net loss of $2.2 million for the nine months ended September
30, 2021. The weighted average number of shares outstanding for the
nine months ended September 30, 2022 was 107.5 million. Earnings
per share, basic, for the nine months ended September 30, 2022
amounted to $0.13, compared to a loss per share of $0.45 for the
nine months ended September 30, 2021.
- EBITDA for the nine months ended September 30, 2022 amounted to
$24.3 million. Reconciliations of EBITDA to Net (Loss)/Income are
set forth below.
- An average of 6.05 vessels were owned by the Company during the
nine months ended September 30, 2022 compared to 4.00 vessels for
the same period of 2021.
- As of September 30, 2022, cash and cash equivalents amounted to
$62.4 million, time deposits amounted to $30.0 million and total
debt, net of deferred finance charges, amounted to $42.3 million.
During the nine months ended September 30, 2022 debt repayments
amounted to $2.4 million.
CEO Harry Vafias
Commented "This quarter’s unprecedented profitability
growth is solid proof that our company’s strategy is paying off.
With the capital recently raised we have managed to grow our fleet,
substantially increase our profitability and cash flow and create
value for our investors. As a result of having acquired six vessels
in the course of ten months, we generated net income of $15.5
million in a single quarter which is 15,400% higher than our profit
in Q2 22’ and equivalent to 23% of our current market
capitalization; We incurred moderate debt during the quarter,
maintaining a healthy capital structure with $42.3 million of debt
while preserving a free cash balance available for further fleet
expansion of about $92 million. Given the strong market
fundamentals and the promising charter rate environment and by
taking advantage of our efficient management of our expanded fleet,
we believe that we will achieve strong results and generate
significant cash flow going forward. However, the valuation of our
shares of common stock does not reflect our strong financial
performance and capital available to fund our growth
prospects."
Conference Call details:
On October 24, 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:
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/BI33ddeb9d344f44e7931215e5dbf2c5ec
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 10 vessels; five M.R. product
tankers, one Aframax oil tanker, two Suezmax tankers and two
Handysize dry bulk carriers with an aggregate 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
StatementsMatters 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
Company Contact: Fenia
Sakellaris IMPERIAL PETROLEUM INC. 00-30-210-6250-001
Fleet Data: The following key
indicators highlight the Company’s operating performance during the
periods ended September 30, 2021 and September 30, 2022.
FLEET DATA |
Q3 2021 |
Q3 2022 |
9M 2021 |
9M 2022 |
Average number of vessels (1) |
4.00 |
8.10 |
4.00 |
6.05 |
Period end
number of owned vessels in fleet |
4 |
9 |
4 |
9 |
Total
calendar days for fleet (2) |
368 |
745 |
1,092 |
1,651 |
Total voyage
days for fleet (3) |
348 |
745 |
1,060 |
1,648 |
Fleet
utilization (4) |
94.6% |
100.0% |
97.1% |
99.8% |
Total
charter days for fleet (5) |
290 |
231 |
821 |
914 |
Total spot
market days for fleet (6) |
58 |
514 |
239 |
734 |
Fleet
operational utilization (7) |
84.8% |
86.3% |
89.7% |
87.8% |
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) |
Third Quarter Ended September 30th, |
Nine Months Period Ended September 30th, |
|
2021 |
2022 |
2021 |
2022 |
|
|
|
|
|
Net
(loss)/income – EBITDA |
|
|
|
|
Net
(loss)/income |
(928,306) |
15,450,866 |
(2,157,030) |
15,754,967 |
Plus
interest and finance costs |
3,732 |
273,821 |
7,108 |
726,736 |
Less
interest income |
(3) |
(401,894) |
(7) |
(446,034) |
Plus
depreciation |
2,168,666 |
3,406,741 |
6,505,997 |
8,309,572 |
EBITDA |
1,244,089 |
18,729,534 |
4,356,068 |
24,345,241 |
|
|
|
|
|
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except for number of
shares)
|
|
|
|
|
Quarters Ended September 30, |
|
Nine Month Periods Ended September 30, |
|
|
|
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
4,129,178 |
|
42,640,525 |
|
13,356,055 |
|
59,105,174 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
681,730 |
|
17,856,046 |
|
2,496,846 |
|
22,577,358 |
|
Voyage expenses - related party |
|
49,887 |
|
528,457 |
|
166,552 |
|
731,919 |
|
Vessels' operating expenses |
|
1,874,880 |
|
4,872,302 |
|
5,570,003 |
|
9,907,069 |
|
Vessels' operating expenses - related party |
24,000 |
|
58,000 |
|
66,000 |
|
95,500 |
|
Management fees – related party |
|
|
132,940 |
|
307,135 |
|
394,485 |
|
648,760 |
|
General and administrative expenses |
|
115,639 |
|
311,772 |
|
291,801 |
|
839,757 |
|
Depreciation |
|
|
2,168,666 |
|
3,406,741 |
|
6,505,997 |
|
8,309,572 |
Total expenses |
|
|
5,047,742 |
|
27,340,453 |
|
15,491,684 |
|
43,109,935 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Income from operations |
|
(918,564) |
|
15,300,072 |
|
(2,135,629) |
|
15,995,239 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (expenses)/income |
|
|
|
|
|
|
|
|
|
Interest and finance costs |
|
(3,732) |
|
(273,821) |
|
(7,108) |
|
(726,736) |
|
Interest income |
|
|
3 |
|
401,894 |
|
7 |
|
446,034 |
|
Foreign exchange (loss)/gain |
|
(6,013) |
|
22,721 |
|
(14,300) |
|
40,430 |
Other (expenses)/income, net |
|
|
(9,742) |
|
150,794 |
|
(21,401) |
|
(240,272) |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Net Income |
|
|
(928,306) |
|
15,450,866 |
|
(2,157,030) |
|
15,754,967 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
- Basic |
|
|
(0.19) |
|
0.08 |
|
(0.45) |
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
-Basic |
|
|
4,775,272 |
|
190,254,034 |
|
4,775,272 |
|
107,469,610 |
Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
|
|
|
|
|
December 31, |
|
September 30, |
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
3,389,834 |
|
62,435,080 |
|
Time deposits |
|
|
-- |
|
30,000,000 |
|
Restricted cash |
|
|
451,225 |
|
1,942,773 |
|
Receivables from related parties |
|
355,023 |
|
571,233 |
|
Trade and other receivables |
|
1,400,275 |
|
4,700,641 |
|
Other current assets |
|
|
-- |
|
336,049 |
|
Inventories |
|
|
258,846 |
|
7,135,008 |
|
Advances and prepayments |
|
150,544 |
|
455,133 |
Total current assets |
|
|
6,005,747 |
|
107,575,917 |
|
|
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
|
Vessels, net |
|
|
119,962,984 |
|
211,425,582 |
|
Restricted cash |
|
|
2,500,000 |
|
3,100,000 |
Total non current assets |
|
122,462,984 |
|
214,525,582 |
Total assets |
|
|
128,468,731 |
|
322,101,499 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade accounts payable |
|
1,430,251 |
|
6,240,355 |
|
Payable to related party |
|
1,119,055 |
|
1,928,940 |
|
Accrued liabilities |
|
|
486,674 |
|
1,555,051 |
|
Customer deposits |
|
|
368,000 |
|
-- |
|
Deferred income |
|
|
482,321 |
|
2,179,501 |
|
Current portion of long-term debt |
|
4,747,616 |
|
6,916,798 |
Total current liabilities |
|
|
8,633,917 |
|
18,820,645 |
|
|
|
|
|
|
|
|
Non current liabilities |
|
|
|
|
|
|
Long-term debt |
|
|
23,088,971 |
|
35,429,878 |
Total non current liabilities |
|
23,088,971 |
|
35,429,878 |
Total liabilities |
|
|
31,722,888 |
|
54,250,523 |
|
|
|
|
|
|
|
|
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 |
|
250,657,067 |
|
Accumulated deficit/retained earnings |
|
|
(471,557) |
|
15,283,410 |
Total stockholders' equity |
|
96,745,843 |
|
267,850,976 |
Total liabilities and stockholders' equity |
128,468,731 |
|
322,101,499 |
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars
|
|
|
|
|
|
|
Nine Month Periods Ended September 30, |
|
|
|
|
|
|
|
2021 |
|
2022 |
Cash flows from operating activities |
|
|
|
|
|
|
|
Net (loss)/income for the period |
|
|
|
|
(2,157,030) |
|
15,754,967 |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net
cash |
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
6,505,997 |
|
8,309,572 |
|
Amortization of deferred finance charges |
|
|
-- |
|
39,589 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
(Increase)/decrease in |
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
(194,597) |
|
(3,300,366) |
|
Other current assets |
|
|
|
|
173,930 |
|
(336,049) |
|
Inventories |
|
|
|
|
(414,521) |
|
(6,876,162) |
|
Advances and prepayments |
|
|
|
28,698 |
|
(304,589) |
|
Increase/(decrease) in |
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
1,123,831 |
|
4,810,104 |
|
Balances with related parties |
|
|
|
(1,473,000) |
|
1,164,908 |
|
Accrued liabilities |
|
|
|
|
(31,221) |
|
1,068,377 |
|
Deferred income |
|
|
|
|
9,219 |
|
1,697,180 |
Net cash provided by operating activities |
|
|
3,571,306 |
|
22,027,531 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisition and improvement of vessels |
|
|
(142,600) |
|
(99,772,170) |
|
Increase in bank time deposits |
|
|
-- |
|
(30,000,000) |
|
Advances to affiliate |
|
|
-- |
|
(571,233) |
Net cash used in investing activities |
|
|
(142,600) |
|
(130,343,403) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Net transfers to former Parent Company |
|
|
(9,108,825) |
|
-- |
|
Proceeds from follow-on offering |
|
|
|
-- |
|
167,572,514 |
|
Stock issuance costs |
|
|
|
|
-- |
|
(10,916,611) |
|
Deferred finance charges paid |
|
|
|
-- |
|
(127,500) |
|
Customer deposits paid |
|
|
|
(500,000) |
|
(368,000) |
|
Dividends paid on preferred shares |
|
|
|
-- |
|
(1,305,737) |
|
Loan repayments |
|
|
|
|
-- |
|
(2,402,000) |
|
Proceeds from long-term debt |
|
|
|
-- |
|
17,000,000 |
Net cash (used in)/provided by financing
activities |
|
|
(9,608,825) |
|
169,452,666 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash, cash equivalents and restricted
cash |
|
|
(6,180,119) |
|
61,136,794 |
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 |
|
|
1,436,436 |
|
67,477,853 |
Cash breakdown |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
1,436,436 |
|
62,435,080 |
|
Restricted cash, current |
|
|
|
-- |
|
1,942,773 |
|
Restricted cash, non current |
|
|
|
-- |
|
3,100,000 |
Total cash, cash equivalents and restricted cash shown in
the statements of cash flows |
1,436,436 |
|
67,477,853 |
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.
Imperial Petroleum (NASDAQ:IMPP)
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