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 fourth quarter
ended December 31, 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 also reflects 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 79.4% in Q4 22’ mainly due to
the drydocking of two vessels and the repositioning of one of our
Suezmax vessel.
- 42% of our fleet days dedicated to spot activity in Q4 22’
capturing high spot charter rates.
- Revenues of $37.9 million in Q4 22’ - up $33.9 million or
847.5% from Q4 21’.
- Net income of $13.8 million in Q4 22’ compared to a $1.5
million loss in Q4 21’.
- EBITDA1 of $17.8 million in Q4 22’ up $17.0 million or 2,125%
from Q4 21’.
- Cash and time deposits of $118.9 million as of December 31,
2022 – 1.7 times higher than our current market cap.
- For 12M 22’ we generated a Net Income of $29.5 million which is
equivalent to 43% of our current market cap.
- Under our $50 million ATM program which commenced on December
16, 2022 and was paused on February 7, 2023 we sold 35,344,898
shares and raised net proceeds of $9,303,361.
Fourth Quarter 2022 Results:
- Revenues for the three months ended December 31, 2022 amounted
to $37.9 million, an increase of $33.9 million, or 847.5%, compared
to revenues of $4.0 million for the three months ended December 31,
2021, primarily due to the increase of our average fleet by
approximately six vessels and a noticeable improvement in market
rates.
- Voyage expenses and vessels’ operating expenses for the three
months ended December 31, 2022 were $10.5 million and $6.4 million,
respectively, compared to $0.9 million and $1.8 million,
respectively, for the three months ended December 31, 2021. The
$9.6 million increase in voyage expenses is mainly due to the
increase in the spot days of our fleet by 320 days (516%) and the
rise in bunker prices. This quarter we incurred $1.7 million of
voyage costs due to the repositioning of one of our Suezmax tanker
for a total period of 46 days. The $4.6 million increase in
vessels’ operating expenses, was primarily due to the increase in
the average number of our vessels.
- Drydocking costs for the three months ended December 31, 2022
and 2021 was $1.9 million and $0.01 million, respectively. This
increase is due to the fact that during the three months ended
December 31, 2022 one of our Suezmax vessels and one of our dry
Handysize vessel underwent drydocking.
- Depreciation for the three months ended December 31, 2022 and
2021 was $4.0 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 December
31, 2022 and 2021 were $0.9 million and $0.1 million, respectively.
The increase is mainly attributable to the increase of our
borrowings.
- Interest income for the three months ended December 31, 2022
and 2021 was $0.8 million and $0.001 million, respectively. The
increase is attributed to time deposits of $93 million during the
period.
- As a result of the above, for the three months ended December
31, 2022, the Company reported net income of $13.8 million,
compared to net loss of $1.5 million for the three months ended
December 31, 2021. Dividends paid on Series A Preferred Shares
amounted to $0.4 million for the three months ended December 31,
2022. The weighted average number of shares of common stock
outstanding, basic, for the three months ended December 31, 2022
was 190.5 million.
- Earnings per share, basic, for the three months ended December
31, 2022 amounted to $0.07, compared to a loss per share of $0.34
for the three months ended December 31, 2021. EBITDA for the three
months ended December 31, 2022 amounted to $17.8 million.
Reconciliations of EBITDA to Net (Loss)/Income are set forth
below.
- An average of 9.79 vessels were owned by the Company during the
three months ended December 31, 2022 compared to 4.00 vessels for
the same period of 2021.
Twelve Months 2022 Results:
- Revenues for the twelve months ended December 31, 2022,
amounted to $97.0 million, an increase of $79.6 million, or 457.5%,
compared to revenues of $17.4 million for the twelve months ended
December 31, 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 twelve
months ended December 31, 2022 were $33.8 million and $16.4
million, respectively, compared to $3.6 million and $7.4 million
for the twelve months ended December 31, 2021. The $30.2 million
increase in voyage expenses is mainly due to the increase in the
spot days of our fleet by 815 days (271%) and the rise in daily
bunker cost by approximately $14,000. The $9.0 million increase in
vessels’ operating expenses was primarily due to the increase in
the average number of fleet by approximately three vessels and one
of our product tankers coming off bareboat in September 2022.
- Drydocking costs: for the twelve months ended December 31, 2022
and 2021 were $1.9 million and $0.01 million, respectively. This
increase is due to the fact that during the twelve months ended
December 31, 2022 one of our Suezmax vessel and one of our dry
Handysize vessel underwent drydocking.
- Depreciation for the twelve months ended December 31, 2022, was
$12.3 million, a $3.6 million increase from $8.7 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 twelve months ended December
31, 2022 and 2021 were $1.6 million and $0.1 million, respectively.
The increase is mainly attributable to year on year increase of our
borrowings.
- Interest income for the twelve months ended December 31, 2022
and 2021 was $1.3 million and $0.001 million, respectively. The
increase is attributed to time deposits of $158 million during the
year.
- As a result of the above, the Company reported net income for
the twelve months ended December 31, 2022 of $29.5 million,
compared to a net loss of $3.6 million for the twelve months ended
December 31, 2021. The weighted average number of shares, basic,
outstanding for the twelve months ended December 31, 2022 was 128.4
million. Earnings per share, basic, for the twelve months ended
December 31, 2022 amounted to $0.19, compared to a loss per share
of $0.79 for the twelve months ended December 31, 2021.
- EBITDA for the twelve months ended December 31, 2022 amounted
to $42.1 million. Reconciliations of EBITDA to Net (Loss)/Income
are set forth below.
- An average of 6.99 vessels were owned by the Company during the
twelve months ended December 31, 2022 compared to 4.00 vessels for
the same period of 2021.
- As of December 31, 2022, cash and cash equivalents amounted to
$50.9 million and total debt, net of deferred finance charges,
amounted to $70.0 million. During the twelve months ended December
31, 2022 debt repayments amounted to $5.4 million.
CEO Harry Vafias
Commented
The year 2022 can simply be characterized by one
word: success; as market conditions were favorable particularly
during the second half of year, we managed to increase our net
income by about 1,020%, increase our EBITDA by 2,125 %, grow our 1
year old company to 10 vessels and generate an annual net income of
$30 million. Going forward our main focus will continue to be
growth and profitability. We positioned the company well with an
enviable capital structure $257 million in asset market values,
$120 million in cash and only $70 million of debt. The market
outlook for tankers looks promising for 2023 and we are set to
capture the continuing favorable charter market environment as well
as acquisition opportunities in the tanker and dry bulk
sectors.
Conference Call details:
On February 15, 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:
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/BI8f10f4fdc98d4483a0f9eaa3d2b00b80
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 ten vessels; five M.R.
product tankers, one Aframax oil tanker, two Suezmax tankers and
two Handysize dry bulk carriers 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 December 31, 2021 and December 31, 2022.
FLEET DATA |
Q4 2021 |
Q4 2022 |
12M 2021 |
12M 2022 |
Average number of vessels (1) |
4.00 |
9.79 |
4.00 |
6.99 |
Period end
number of owned vessels in fleet |
4 |
10 |
4 |
10 |
Total
calendar days for fleet (2) |
368 |
901 |
1,460 |
2,552 |
Total voyage
days for fleet (3) |
368 |
816 |
1,428 |
2,464 |
Fleet
utilization (4) |
100.0% |
90.6% |
97.8% |
96.6% |
Total
charter days for fleet (5) |
306 |
434 |
1,127 |
1,348 |
Total spot
market days for fleet (6) |
62 |
382 |
301 |
1,116 |
Fleet
operational utilization (7) |
92.9% |
79.4% |
90.5% |
84.8% |
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) |
Fourth Quarter Ended December 31st, |
Twelve Months Period Ended December 31st, |
|
2021 |
2022 |
2021 |
2022 |
|
|
|
|
|
Net
(loss)/income - EBITDA |
|
|
|
|
Net
(loss)/income |
(1,482,949) |
13,755,961 |
(3,639,979) |
29,510,928 |
Plus
interest and finance costs |
137,905 |
883,409 |
145,013 |
1,610,145 |
Less
interest income |
(973) |
(844,025) |
(980) |
(1,290,059) |
Plus
depreciation |
2,168,666 |
3,980,891 |
8,674,663 |
12,290,463 |
EBITDA |
822,649 |
17,776,236 |
5,178,717 |
42,121,477 |
|
|
|
|
|
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Operations
(Expressed in United States Dollars, except for number of
shares)
|
|
|
|
Quarters Ended December 31, |
|
Twelve Month Periods Ended December 31, |
|
|
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
4,006,614 |
|
37,914,704 |
|
17,362,669 |
|
97,019,878 |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
869,377 |
|
10,027,535 |
|
3,366,223 |
|
32,604,893 |
|
Voyage expenses - related party |
|
51,640 |
|
470,530 |
|
218,192 |
|
1,202,449 |
|
Vessels' operating expenses |
|
1,776,524 |
|
6,320,567 |
|
7,346,527 |
|
16,227,636 |
|
Vessels' operating expenses - related party |
20,500 |
|
70,000 |
|
86,500 |
|
165,500 |
|
Drydocking costs |
|
14,380 |
|
1,890,247 |
|
14,380 |
|
1,890,247 |
|
Management fees – related party |
|
132,940 |
|
396,880 |
|
527,425 |
|
1,045,640 |
|
General and administrative expenses |
322,985 |
|
933,833 |
|
614,786 |
|
1,773,590 |
|
Depreciation |
|
|
2,168,666 |
|
3,980,891 |
|
8,674,663 |
|
12,290,463 |
Total expenses |
|
|
5,357,012 |
|
24,090,483 |
|
20,848,696 |
|
67,200,418 |
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Income from operations |
|
|
(1,350,398) |
|
13,824,221 |
|
(3,486,027) |
|
29,819,460 |
|
|
|
|
|
|
|
|
|
|
|
Other (expenses)/Income |
|
|
|
|
|
|
|
|
|
|
Interest and finance costs |
|
(137,905) |
|
(883,409) |
|
(145,013) |
|
(1,610,145) |
|
Interest income |
973 |
|
844,025 |
|
980 |
|
1,290,059 |
|
Foreign exchange gain/(loss) |
|
4,381 |
|
(28,876) |
|
(9,919) |
|
11,554 |
Other expenses, net |
|
|
(132,551) |
|
(68,260) |
|
(153,952) |
|
(308,532) |
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)/Income |
|
|
(1,482,949) |
|
13,755,961 |
|
(3,639,979) |
|
29,510,928 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
- Basic and Diluted |
|
|
(0.34) |
|
0.07 |
|
(0.79) |
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
- Basic |
|
|
4,775,272 |
|
190,506,460 |
|
4,775,272 |
|
128,399,446 |
- Diluted |
|
|
4,775,272 |
|
190,506,460 |
|
4,775,272 |
|
128,788,421 |
Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
3,389,834 |
|
50,901,092 |
|
Time deposits |
|
|
-- |
|
68,000,000 |
|
Restricted cash |
|
|
451,225 |
|
1,005,827 |
|
Receivables from related parties |
|
355,023 |
|
146,708 |
|
Trade and other receivables |
|
1,400,275 |
|
8,651,996 |
|
Other current assets |
|
|
-- |
|
240,002 |
|
Inventories |
|
|
258,846 |
|
5,507,423 |
|
Advances and prepayments |
|
150,544 |
|
172,908 |
Total current assets |
|
|
6,005,747 |
|
134,625,956 |
|
|
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
|
Vessels, net |
|
|
119,962,984 |
|
226,351,081 |
|
Restricted cash |
|
|
2,500,000 |
|
5,600,000 |
Total non current assets |
|
122,462,984 |
|
231,951,081 |
Total assets |
|
|
128,468,731 |
|
366,577,037 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade accounts payable |
|
1,430,251 |
|
8,115,462 |
|
Payable to related party |
|
1,119,055 |
|
3,016,438 |
|
Accrued liabilities |
|
|
486,674 |
|
1,982,306 |
|
Customer deposits |
|
|
368,000 |
|
-- |
|
Deferred income |
|
|
482,321 |
|
1,089,959 |
|
Current portion of long-term debt |
|
4,747,616 |
|
10,176,538 |
Total current liabilities |
|
|
8,633,917 |
|
24,380,703 |
|
|
|
|
|
|
|
|
Non current liabilities |
|
|
|
|
|
|
Long-term debt |
|
|
23,088,971 |
|
59,787,923 |
Total non current liabilities |
|
23,088,971 |
|
59,787,923 |
Total liabilities |
|
|
31,722,888 |
|
84,168,626 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Capital stock |
|
|
47,753 |
|
1,977,621 |
|
Preferred Stock, Series A |
|
7,959 |
|
7,959 |
|
Preferred Stock, Series B |
|
-- |
|
160 |
|
Additional paid-in capital |
|
97,161,688 |
|
251,818,546 |
|
(Accumulated deficit)/Retained earnings |
|
|
(471,557) |
|
28,604,125 |
Total stockholders' equity |
|
96,745,843 |
|
282,408,411 |
Total liabilities and stockholders' equity |
128,468,731 |
|
366,577,037 |
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net (loss)/income for the year |
|
|
|
|
(3,639,979) |
|
29,510,928 |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net (loss)/income to net
cash |
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
8,674,663 |
|
12,290,463 |
|
Amortization of deferred finance charges |
|
|
32,587 |
|
94,007 |
|
Share based compensation |
|
|
|
-- |
|
117,256 |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
(Increase)/decrease in |
|
|
|
|
|
|
|
Trade and other receivables |
|
|
|
(734,400) |
|
(6,497,828) |
|
Other current assets |
|
|
|
|
173,930 |
|
(240,002) |
|
Inventories |
|
|
|
|
577,151 |
|
(5,248,577) |
|
Advances and prepayments |
|
|
|
(10,943) |
|
(22,364) |
|
Increase/(decrease) in |
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
289,086 |
|
6,685,211 |
|
Balances with related parties |
|
|
|
(708,968) |
|
2,105,698 |
|
Accrued liabilities |
|
|
|
|
238,351 |
|
1,495,632 |
|
Deferred income |
|
|
|
|
347,727 |
|
607,638 |
Net cash provided by operating activities |
|
|
5,239,205 |
|
40,898,062 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisition and improvement of vessels |
|
|
(142,600) |
|
(118,678,560) |
|
Increase in bank time deposits |
|
|
-- |
|
(68,000,000) |
Net cash used in investing activities |
|
|
(142,600) |
|
(186,678,560) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Proceeds from issuance of Series B preferred shares |
|
|
|
|
-- |
|
200,000 |
|
Net transfers to former Parent Company |
|
|
(7,792,798) |
|
-- |
|
Dividends paid to former Parent company |
|
|
(25,752,729) |
|
-- |
|
Proceeds from equity offerings |
|
|
|
-- |
|
168,001,415 |
|
Stock issuance costs |
|
|
|
|
-- |
|
(11,179,941) |
|
Deferred finance charges paid |
|
|
|
(196,000) |
|
(404,633) |
|
Customer deposits paid |
|
|
|
(500,000) |
|
(368,000) |
|
Dividends paid on preferred shares |
|
|
|
(130,574) |
|
(1,740,983) |
|
Loan repayments |
|
|
|
|
-- |
|
(5,354,000) |
|
Proceeds from long-term debt |
|
|
|
28,000,000 |
|
47,792,500 |
Net cash (used in)/provided by financing
activities |
|
|
(6,372,101) |
|
196,946,358 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash, cash equivalents and restricted
cash |
|
|
(1,275,496) |
|
51,165,860 |
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
year |
|
|
6,341,059 |
|
57,506,919 |
Cash breakdown |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
3,389,834 |
|
50,901,092 |
|
Restricted cash, current |
|
|
|
451,225 |
|
1,005,827 |
|
Restricted cash, non current |
|
|
|
2,500,000 |
|
5,600,000 |
Total cash, cash equivalents and restricted cash shown in
the statements of cash flows |
6,341,059 |
|
57,506,919 |
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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