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Globe Newswire 13-Feb-2024 9:15 AM
ATHENS, Greece, Feb. 13, 2024 (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 fourth quarter and twelve months ended December 31, 2023.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Fourth Quarter 2023 Results:
Twelve Months 2023 Results:
Fleet Employment Table
As of February 13, 2024, the profile and deployment of our fleet is the following:
Name | Year Built | Country Built | Vessel Size (dwt) | Vessel Type | Employment Status | Daily Charter Rate | Expiration of Charter(1) | ||||||
Tankers | |||||||||||||
Magic Wand | 2008 | Korea | 47,000 | MR product tanker | Time Charter | $65,000 | February 2024 | ||||||
Clean Thrasher | 2008 | Korea | 47,000 | MR product tanker | Spot | ||||||||
Clean Sanctuary (ex. Falcon Maryam) | 2009 | Korea | 46,000 | MR product tanker | Spot | ||||||||
Clean Nirvana | 2008 | Korea | 50,000 | MR product tanker | Spot | ||||||||
Clean Justice | 2011 | Japan | 47,000 | MR product tanker | Spot | ||||||||
Suez Enchanted | 2007 | Korea | 160,000 | Suezmax tanker | Spot | ||||||||
Suez Protopia | 2008 | Korea | 160,000 | Suezmax tanker | Spot | ||||||||
Drybulk Carriers | |||||||||||||
Eco Wildfire | 2013 | Japan | 33,000 | Handysize drybulk | Time Charter | $18,200 | April 2024 | ||||||
Glorieuse | 2012 | Japan | 38,000 | Handysize drybulk | Time Charter | $15,000 | February 2024 | ||||||
Fleet Total | 628,000 dwt | ||||||||||||
(1) Earliest date charters could expire.
As previously announced, the Company has also entered into an agreement with affiliates of the Vafias family to acquire two tanker vessels, the aframax tanker Stealth Haralambos, built in 2009 and the product tanker Aquadisiac, built in 2008, with an aggregate capacity of approximately 163,716 dwt. The aggregate purchase price for these acquisitions is $71 million. Both vessels are expected to be delivered on a charter-free basis by the end of February 2024. The Company expects to finance the purchase price with cash-on-hand.
CEO Harry Vafias Commented:
"Since our Company's listing, we managed to almost triple our fleet, accumulate more than $100 million of cash, pay off all of our bank loans and excel in terms of profits. For 2023, our profitability was $71.1 million, that is 141% higher than 2022. Since September 2023, we have commenced a sharebuyback program. To date, we have purchased 4.3 million common shares and 5.8 million of outstanding warrants for a total consideration of approximately $10 million while, since the commencement of our share buyback program, our share price has doubled."
Conference Call details:
On February 13, 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.
https://register.vevent.com/register/BIb0d71756a48d45f7bcfb53165f7242da
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 nine vessels in the water- five M.R. product tankers, two suezmax tankers and two handysize dry bulk carriers with a total capacity of 628,000 deadweight tons (dwt) and has entered into an agreement to acquire two additional tanker vessels- one aframax and one product tanker which will be delivered up until the end of February 2024. Following these deliveries, the Company will own a fleet with an aggregate capacity of 791,716 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, 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 lingering 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, performance of counterparty to our vessel sale agreement, 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, the conflict on Israel and Gaza, the 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 December 31, 2022 and December 31, 2023.
FLEET DATA | Q4 2022 | Q4 2023 | 12M 2022 | 12M 2023 |
Average number of vessels (1) | 9.79 | 9.00 | 6.99 | 10.00 |
Period end number of owned vessels in fleet | 10 | 9 | 10 | 9 |
Total calendar days for fleet (2) | 901 | 828 | 2,552 | 3,650 |
Total voyage days for fleet (3) | 816 | 789 | 2,464 | 3,481 |
Fleet utilization (4) | 90.6% | 95.3% | 96.6% | 95.4% |
Total charter days for fleet (5) | 434 | 160 | 1,348 | 1,058 |
Total spot market days for fleet (6) | 382 | 629 | 1,116 | 2,423 |
Fleet operational utilization (7) | 79.4% | 68.5% | 84.8% | 75.1% |
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 Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:
Adjusted net income represents net income before impairment loss, net gain on sale of vessel and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net gain on sale of vessel and share based compensation.
Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.
EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide 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, | ||
2022 | 2023 | 2022 | 2023 | |
Net Income – Adjusted Net Income | ||||
Net income | 13,755,961 | 6,463,943 | 29,510,928 | 71,134,002 |
Less net gain on sale of vessel | -- | -- | -- | (8,182,777) |
Plus impairment loss | -- | -- | -- | 8,996,023 |
Plus share based compensation | 117,256 | 752,407 | 117,256 | 2,434,855 |
Adjusted Net Income | 13,873,217 | 7,216,350 | 29,628,184 | 74,382,103 |
Net income - EBITDA | ||||
Net income | 13,755,961 | 6,463,943 | 29,510,928 | 71,134,002 |
Plus interest and finance costs | 883,409 | 11,139 | 1,610,145 | 1,821,908 |
Less interest income | (844,025) | (2,004,611) | (1,290,059) | (5,833,756) |
Plus depreciation | 3,980,891 | 3,485,073 | 12,290,463 | 15,629,116 |
EBITDA | 17,776,236 | 7,955,544 | 42,121,477 | 82,751,270 |
Net income - Adjusted EBITDA | ||||
Net income | 13,755,961 | 6,463,943 | 29,510,928 | 71,134,002 |
Less net gain on sale of vessel | -- | -- | -- | (8,182,777) |
Plus impairment loss | -- | -- | -- | 8,996,023 |
Plus share based compensation | 117,256 | 752,407 | 117,256 | 2,434,855 |
Plus interest and finance costs | 883,409 | 11,139 | 1,610,145 | 1,821,908 |
Less interest income | (844,025) | (2,004,611) | (1,290,059) | (5,833,756) |
Plus depreciation | 3,980,891 | 3,485,073 | 12,290,463 | 15,629,116 |
Adjusted EBITDA | 17,893,492 | 8,707,951 | 42,238,733 | 85,999,371 |
EPS - Adjusted EPS | ||||
Net income | 13,755,961 | 6,463,943 | 29,510,928 | 71,134,002 |
Adjusted net income | 13,873,217 | 7,216,350 | 29,628,184 | 74,382,103 |
Cumulative dividends on preferred shares | 435,246 | 462,225 | 1,740,983 | 2,130,254 |
Deemed dividend from the conversion of the Series C Preferred Shares | -- | 6,507,789 | -- | 6,507,789 |
Effect on modification of Class B warrants | -- | -- | 2,943,675 | -- |
Weighted average number of shares, basic | 12,696,609 | 23,566,153 | 8,559,000 | 18,601,539 |
EPS - Basic | 1.05 | (0.02) | 2.89 | 3.22 |
Adjusted EPS | 1.06 | 0.01 | 2.91 | 3.39 |
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except for number of shares)
Quarters Ended December 31, | Twelve Month Periods Ended December 31, | |||||||
2022 | 2023 | 2022 | 2023 | |||||
Revenues | ||||||||
Revenues | 37,914,704 | 29,881,814 | 97,019,878 | 183,725,820 | ||||
Expenses | ||||||||
Voyage expenses | 10,027,535 | 13,470,678 | 32,604,893 | 60,276,962 | ||||
Voyage expenses - related party | 470,530 | 348,535 | 1,202,449 | 2,253,979 | ||||
Vessels' operating expenses | 6,320,567 | 5,541,258 | 16,227,636 | 25,295,851 | ||||
Vessels' operating expenses - related party | 70,000 | 117,500 | 165,500 | 346,583 | ||||
Drydocking costs | 1,890,247 | 2,454,960 | 1,890,247 | 6,551,534 | ||||
Management fees - related party | 396,880 | 364,320 | 1,045,640 | 1,606,440 | ||||
General and administrative expenses | 933,833 | 1,173,120 | 1,773,590 | 4,934,468 | ||||
Depreciation | 3,980,891 | 3,485,073 | 12,290,463 | 15,629,116 | ||||
Impairment loss | -- | -- | -- | 8,996,023 | ||||
Net gain on sale of vessel - related party | -- | -- | -- | (8,182,777) | ||||
Total expenses | 24,090,483 | 26,955,444 | 67,200,418 | 117,708,179 | ||||
Income from operations | 13,824,221 | 2,926,370 | 29,819,460 | 66,017,641 | ||||
Other (expenses)/income | ||||||||
Interest and finance costs | (883,409) | (11,139) | (1,610,145) | (1,821,908) | ||||
Interest income | 844,025 | 1,260,971 | 1,290,059 | 4,470,396 | ||||
Interest income - related party | -- | 743,640 | -- | 1,363,360 | ||||
Dividend income from related party | -- | 191,667 | -- | 404,167 | ||||
Foreign exchange (loss)/gain | (28,876) | 1,352,434 | 11,554 | 700,346 | ||||
Other (expenses)/income, net | (68,260) | 3,537,573 | (308,532) | 5,116,361 | ||||
Net Income | 13,755,961 | 6,463,943 | 29,510,928 | 71,134,002 | ||||
Earnings/(loss) per share1 | ||||||||
- Basic | 1.05 | (0.02) | 2.89 | 3.22 | ||||
- Diluted | 1.05 | (0.02) | 2.89 | 2.93 | ||||
Weighted average number of shares1 | ||||||||
-Basic | 12,696,609 | 23,566,153 | 8,559,000 | 18,601,539 | ||||
-Diluted | 12,696,609 | 23,566,153 | 8,593,575 | 22,933,671 |
1 Adjusted retroactively to reflect the 1-for-15 reverse stock split effected on April 28, 2023.
Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
December 31, | December 31, | |||
2022 | 2023 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | 50,901,092 | 91,927,512 | ||
Time deposits | 68,000,000 | 32,099,810 | ||
Restricted cash | 1,005,827 | -- | ||
Receivables from related parties | 146,708 | 37,906,821 | ||
Trade and other receivables | 7,898,103 | 13,498,813 | ||
Other current assets | 240,002 | 302,773 | ||
Inventories | 5,507,423 | 7,291,123 | ||
Advances and prepayments | 172,908 | 161,937 | ||
Total current assets | 133,872,063 | 183,188,789 | ||
Non current assets | ||||
Vessels, net | 226,351,081 | 180,847,252 | ||
Restricted cash | 5,600,000 | -- | ||
Investment in related party | -- | 12,798,500 | ||
Total non current assets | 231,951,081 | 193,645,752 | ||
Total assets | 365,823,144 | 376,834,541 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities | ||||
Trade accounts payable | 8,115,462 | 8,277,118 | ||
Payable to related parties | 3,016,438 | 2,324,334 | ||
Accrued liabilities | 1,982,306 | 3,008,500 | ||
Deferred income | 1,089,959 | 919,116 | ||
Current portion of long-term debt | 10,176,538 | -- | ||
Total current liabilities | 24,380,703 | 14,529,068 | ||
Non current liabilities | ||||
Long-term debt | 59,787,923 | -- | ||
Total non current liabilities | 59,787,923 | -- | ||
Total liabilities | 84,168,626 | 14,529,068 | ||
Commitments and contingencies | ||||
Stockholders' equity | ||||
Capital stock | 129,724 | 332,573 | ||
Preferred stock, Series A | 7,959 | 7,959 | ||
Preferred stock, Series B | 160 | 160 | ||
Treasury stock | - | (5,885,727) | ||
Additional paid-in capital | 252,912,550 | 270,242,635 | ||
Retained earnings | 28,604,125 | 97,607,873 | ||
Total stockholders' equity | 281,654,518 | 362,305,473 | ||
Total liabilities and stockholders' equity | 365,823,144 | 376,834,541 |
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars
December 31, | ||||||||||
2022 | 2023 | |||||||||
Cash flows from operating activities | ||||||||||
Net income for the year | 29,510,928 | 71,134,002 | ||||||||
Adjustments to reconcile net income to net cash | ||||||||||
provided by operating activities: | ||||||||||
Depreciation | 12,290,463 | 15,629,116 | ||||||||
Amortization of deferred finance charges | 94,007 | 474,039 | ||||||||
Amortization of operating lease right-of-use assets | 117,256 | 62,609 | ||||||||
Share based compensation | -- | 2,434,855 | ||||||||
Impairment loss | -- | 8,996,023 | ||||||||
Net gain on sale of vessel - related party | -- | (8,182,777) | ||||||||
Unrealized foreign exchange gain on time deposits | -- | (426,040) | ||||||||
Dividends income from related party | -- | (404,167) | ||||||||
Changes in operating assets and liabilities: | ||||||||||
(Increase)/decrease in | ||||||||||
Trade and other receivables | (6,497,828) | (6,477,912) | ||||||||
Other current assets | (240,002) | (62,771) | ||||||||
Inventories | (5,248,577) | (1,908,513) | ||||||||
Changes in operating lease liabilities | -- | (62,609) | ||||||||
Advances and prepayments | (22,364) | (181,990) | ||||||||
Increase/(decrease) in | ||||||||||
Trade accounts payable | 6,685,211 | 118,523 | ||||||||
Balances with related parties | 2,105,698 | (2,940,967) | ||||||||
Accrued liabilities | 1,495,632 | 1,383,841 | ||||||||
Deferred income | 607,638 | (54,903) | ||||||||
Net cash provided by operating activities | 40,898,062 | 79,530,359 | ||||||||
Cash flows from investing activities | ||||||||||
Dividends income received | -- | 241,667 | ||||||||
Proceeds from sale of vessel, net | -- | 3,865,890 | ||||||||
Acquisition and improvement of vessels | (118,678,560) | (28,145,103) | ||||||||
Increase in bank time deposits | (68,000,000) | (167,501,480) | ||||||||
Maturity of bank time deposits | -- | 203,827,710 | ||||||||
Net cash (used in)/provided by investing activities | (186,678,560) | 12,288,684 | ||||||||
Cash flows from financing activities | ||||||||||
Proceeds from equity offering | 168,001,415 | 29,070,586 | ||||||||
Stock issuance costs | (11,179,941) | (1,492,817) | ||||||||
Stock repurchase | -- | (5,885,727) | ||||||||
Warrants repurchase | -- | (1,521,738) | ||||||||
Proceeds from issuance of Series B preferred shares | 200,000 | -- | ||||||||
Dividends paid on preferred shares | (1,740,983) | (2,130,254) | ||||||||
Customer deposits paid | (368,000) | -- | ||||||||
Deferred finance charges paid | (404,633) | -- | ||||||||
Loan repayments | (5,354,000) | (70,438,500) | ||||||||
Proceeds from long-term debt | 47,792,500 | -- | ||||||||
Cash retained by C3is Inc. at spin off | -- | (5,000,000) | ||||||||
Net cash provided by/(used in) financing activities | 196,946,358 | (57,398,450) | ||||||||
Net increase in cash, cash equivalents and restricted cash | 51,165,860 | 34,420,593 | ||||||||
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 year | 57,506,919 | 91,927,512 | ||||||||
Cash breakdown | ||||||||||
Cash and cash equivalents | 50,901,092 | 91,927,512 | ||||||||
Restricted cash, current | 1,005,827 | -- | ||||||||
Restricted cash, non current | 5,600,000 | -- | ||||||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 57,506,919 | 91,927,512 | ||||||||
Supplemental Cash Flow Information: | ||||||||||
Interest paid | 898,368 | 1,735,054 | ||||||||
Non cash investing activity – Vessel improvements included in liabilities | -- | 859,320 | ||||||||
Non cash investing activity – Dividend income from related party included in Investment in related party | -- | 162,500 | ||||||||
Distribution of net assets of C3is Inc. to shareholders and warrantholders | -- | 20,957,952 |