Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Imperial Petroleum Inc. (NASDAQ:IMPP) Q1 2025 Earnings Conference Call May 23, 2025 10:00 PM ET Company Participants Harry Vafias - CEO Fenia Sakellari - Interim CFO Conference Call Participants Harry Vafias Good morning, everybody and thank you all for joining us at our Q1 '25 conference call for Imperial Petroleum. I'm Harry Vafias, the CEO of the company. Joining me on the call is Ms. Fenia Sakellari, who will be discussing our financial performance. Before we commence our discussion, please read the Saf ...

Financial Data and Key Metrics Changes - In Q1 2025, Imperial Petroleum generated revenues of $32.1 million and net income of $11.3 million, marking a 22.5% increase in revenue and a 190% increase in net income compared to Q4 2024 [6][21][25] - The company has maintained profitability since Q4 2021 and ended Q1 2025 with a cash base of approximately $227 million, which is about three times higher than its current market cap [5][22][25] Business Line Data and Key Metrics Changes - The performance of product tankers improved in Q1 2025, with the company benefiting from increased time charter coverage, as seven out of thirteen ships are currently under time charter employment [6][19] - Voyage costs decreased to $10.5 million, down $3.1 million from Q1 2024, attributed to increased time charter activity and reduced spot days [21] Market Data and Key Metrics Changes - Average rates for Suezmax and product tankers were lower by about 25% compared to the same period last year, reflecting broader market softness [5][21] - The tanker market experienced volatility due to geopolitical factors, including sanctions on tankers involved in Russian oil trade, which tightened capacity and strengthened day rates [10][13] Company Strategy and Development Direction - The company plans to expand its fleet significantly, adding seven new ships by Q3 2025, which will increase its fleet size by 60% [16][18] - The strategic addition of dry bulk carriers is aimed at diversifying the fleet and reducing volatility, as dry bulk carriers typically have a less volatile market cycle than tankers [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the positive momentum in Q1 2025 despite a soft market [25] - The company remains optimistic about the tanker market in the short to medium term due to OPEC's production increases and ongoing sanctions on Russian oil [13][24] Other Important Information - The company reported a basic earnings per share of $0.32 for Q1 2025 and noted a 10% increase in available cash during the quarter [22][23] - Imperial Petroleum's daily TCE earnings per fleet stand at approximately $20,500, with a cash flow breakeven per vessel at around $9,000 [23] Q&A Session Summary Question: What are the expectations for the tanker market moving forward? - Management indicated that the tanker market outlook is positive in the short to medium term, primarily due to OPEC's decision to increase output and the ongoing sanctions on Russian oil [13][24] Question: How is the company managing its fleet expansion? - The company is strategically adding dry bulk carriers to diversify its fleet and reduce operational volatility, with plans to increase its fleet size significantly by Q3 2025 [16][17]

Q1 2025 Financial & Operating Results May 23, 2025 Disclaimer This presentation contains forward-looking statements within the meaning of applicable federal securities laws. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "intends," and similar expressions are intended to identify ...

Core Viewpoint - Imperial Petroleum Inc. reported a decline in revenues and net income for Q1 2025 compared to Q1 2024, primarily due to decreased spot market tanker rates, but showed significant improvement in comparison to Q4 2024 [4][9]. Operational and Financial Highlights - Fleet operational utilization was 83.8% in Q1 2025, down from 86% in Q4 2024 and up from 80.6% in Q1 2024 [4]. - Revenues for Q1 2025 were $32.1 million, a decrease of 22.1% from $41.2 million in Q1 2024, attributed to stronger market rates in the previous year [4][28]. - Net income for Q1 2025 was $11.3 million, down from $16.7 million in Q1 2024, with an EPS of $0.32 compared to $0.56 in the same period last year [4][7]. - EBITDA for Q1 2025 was $14.7 million, with an adjusted EBITDA of $15.6 million [7][23]. - Cash and cash equivalents, including time deposits, totaled $227.4 million as of March 31, 2025, which is 167.5% higher than the current market capitalization of approximately $85 million [4][9]. Fleet and Employment - The company owns a total of 13 vessels with a combined capacity of 807,000 deadweight tons (dwt) and has contracted to acquire an additional six drybulk carriers, increasing the fleet to 19 vessels with a total capacity of 1.2 million dwt by mid-2025 [13][15]. - As of May 23, 2025, the fleet includes seven M.R. product tankers, two Suezmax tankers, and four Handysize drybulk carriers [13]. Cost and Expense Management - Voyage expenses decreased to $10.5 million in Q1 2025 from $13.5 million in Q1 2024, primarily due to increased time charter activity [4][28]. - Vessels' operating expenses increased to $7.1 million in Q1 2025 from $6.0 million in Q1 2024, attributed to an increase in fleet size [4][28]. - Drydocking costs were nil in Q1 2025, compared to $0.6 million in Q1 2024 [4]. Interest and Foreign Exchange - Interest income for Q1 2025 was $2.2 million, up from $1.0 million in Q1 2024, due to higher time deposits [7]. - The company reported a foreign exchange gain of $1.7 million in Q1 2025, compared to a loss of $0.8 million in Q1 2024 [7]. Management Commentary - The CEO expressed confidence in the company's growth trajectory, highlighting the expansion of the fleet and the achievement of a debt-free capital structure [9].

Company Overview - Imperial Petroleum Inc. is a ship-owning company that provides petroleum products, crude oil, and drybulk seaborne transportation services [4] - The company owns a total of thirteen vessels, including seven M.R. product tankers, two suezmax tankers, three handysize drybulk carriers, and one panamax drybulk carrier, with a total capacity of 807,000 deadweight tons (dwt) [4] - Imperial Petroleum has contracted to acquire an additional six drybulk carriers with an aggregate capacity of 387,000 dwt, which will increase the fleet to a total of 19 vessels [4] - The company's shares are listed on the Nasdaq Capital Market under the symbols "IMPP" for common stock and "IMPPP" for 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock [4] Upcoming Financial Results - The company will release its first quarter financial results for the period ended March 31, 2025, before the market opens in New York on May 23, 2025 [1] - A conference call will be hosted by the company's management on May 23, 2025, at 10:00 am ET to discuss the results and the company's operations and outlook [1]

Fleet Capacity and Utilization - As of April 15, 2025, the total cargo carrying capacity of the combined fleet will be 1,194,000 dwt after the delivery of contracted vessels [366]. - In the year ended December 31, 2023, the fleet's total operational utilization was 75.1%, with 66.4% of calendar days operated in the spot market [371]. - The average number of vessels increased from 7.0 in 2022 to 10.0 in 2023, and further to 10.39 in 2024 [379]. - Total voyage days for the fleet rose from 2,464 in 2022 to 3,481 in 2023, and projected to reach 3,700 in 2024 [379]. - The fleet's operational utilization is expected to vary based on market conditions, with a focus on maximizing spot market exposure during favorable periods [372]. Financial Performance - Voyage revenues increased from $97.02 million in 2022 to $183.73 million in 2023, with a projected revenue of $147.48 million in 2024 [381]. - Revenues for the year ended December 31, 2024 were $147.5 million, a decrease of $36.2 million or 19.7% compared to $183.7 million in 2023, primarily due to softer market spot rates [406]. - Net income for the year ended December 31, 2024 was $50.2 million, down from $71.1 million in 2023, reflecting a decrease of $20.9 million or 29.4% [417]. - Net income for the year ended December 31, 2023, was $71.1 million, up from $29.5 million in 2022, reflecting improved profitability [428]. Operating Expenses - The total daily operating expenses increased from $7,119 in 2022 to $8,377 in 2023, reflecting rising operational costs [379]. - Voyage expenses rose from $33.81 million in 2022 to $62.53 million in 2023, with an expected decrease to $52.02 million in 2024 [381]. - General and administrative expenses increased by $3.1 million or 172.2% to $4.9 million for the year ended December 31, 2023, primarily due to a rise in stock-based compensation costs [425]. - Vessel operating expenses increased to $26.4 million in 2024 from $25.6 million in 2023, an increase of $0.8 million or 3.1% due to fleet size increase [408]. - Dry docking costs significantly decreased to $1.7 million in 2024 from $6.6 million in 2023, reflecting fewer vessels undergoing dry docking [409]. Charter Rates and Revenues - The adjusted average charter rate increased from $25,654 in 2022 to $34,816 in 2023, before decreasing to $25,799 in 2024 [379]. - Charter equivalent revenues grew from $63.21 million in 2022 to $121.19 million in 2023, with a forecast of $95.46 million in 2024 [381]. - Average daily spot market rates for standard product tankers decreased to $22,000 in 2024 from $33,000 in 2023, and for standard suezmax tankers decreased to $30,000 from $60,000 [406]. Debt and Cash Position - As of December 31, 2024, the company had no outstanding bank debt after repaying $70 million in the first half of 2023 [391]. - Cash and cash equivalents as of December 31, 2024, totaled $206.7 million, with $29.1 million raised in gross proceeds from equity offerings during 2023 [430]. - The company had no outstanding bank debt as of December 31, 2024, after repaying $70.0 million in the first half of 2023 [682]. Future Plans and Acquisitions - The company plans to evaluate vessel purchase opportunities to expand the fleet and enhance earnings and cash flow [374]. - The company expects to acquire seven drybulk carriers for a total purchase price of $129 million, with payment anticipated in the third quarter of 2025 [432]. - The company had contracts to acquire five supramax drybulk carriers and two kamsarmax drybulk carriers, with deliveries expected in 2025 [366]. Market Conditions and Trends - Crude tanker deadweight tonnage (dwt) demand rose by 6.6% in 2022 and is estimated to increase by 6.7% in 2023, while product tanker demand is expected to grow by around 10% in 2023 [455]. - The Baltic Dry Index (BDI) fluctuated between a low of 965 and a high of 3,369 in 2022, with a notable high of 3,346 in December 2023 [459]. - The crude tanker trading fleet is estimated to have increased by 2.0% in 2023, while the product tanker fleet grew by approximately 0.5% [455]. Currency and Inflation Impact - Approximately 11.8% of the company's expenses were incurred in currencies other than U.S. dollars in 2024 [683]. - The company does not hedge foreign currency exposures as the amounts involved are not economically significant [683]. - Inflation had a moderate impact on expenses, particularly in 2022, with milder effects in 2023 and 2024 [389].

Core Viewpoint - Imperial Petroleum Inc. announced a dividend of $0.546875 per share on its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock, payable on March 31, 2025, to holders of record as of March 26, 2025, covering the period from December 30, 2024, to March 29, 2025 [1] Company Overview - Imperial Petroleum Inc. is a ship-owning company that provides petroleum products, crude oil, and drybulk seaborne transportation services [3] - The company owns a total of twelve vessels, including seven M.R. product tankers, two suezmax tankers, and three handysize drybulk carriers, with a total capacity of 751,000 deadweight tons (dwt) [3] - Imperial Petroleum has contracted to acquire an additional seven drybulk carriers with an aggregate capacity of 443,000 dwt, which will increase its fleet to a total of 19 vessels [3] - The company's common stock and Series A Preferred Shares are listed on the Nasdaq Capital Market under the symbols "IMPP" and "IMPPP," respectively [3][2] Dividend Information - The dividend payment of $0.546875 per share is related to the period from the last dividend payment date on December 30, 2024, through March 29, 2025 [1] - As of the date of the announcement, there are 795,878 Series A Preferred Shares outstanding [2]

Financial Performance - Revenues for Q4 2024 were $26.2 million, a decrease of 12.4% compared to $29.9 million in Q4 2023, primarily due to lower spot market rates[5] - Net income for Q4 2024 was $3.9 million, down from $6.5 million in Q4 2023, impacted by a $3.3 million foreign exchange loss[5] - For the twelve months ended December 31, 2024, revenues totaled $147.5 million, a decline of 19.7% from $183.7 million in 2023, attributed to softer market spot rates[8] - Adjusted net income for the twelve months ended December 31, 2024 was $55.1 million, down from $74.4 million in 2023, with an Adjusted EPS of $1.70 compared to $3.39[8] - EBITDA for the twelve months ended December 31, 2024 was $59.2 million, while Adjusted EBITDA was $64.2 million[8] - Total revenues for Q4 2023 were $29,881,814, a decrease from $26,211,665 in Q4 2024, while total revenues for the twelve-month period decreased from $183,725,820 in 2023 to $147,479,980 in 2024[26] - Adjusted net income for Q4 2023 was $7,216,350, compared to $4,582,723 in Q4 2024, with a twelve-month adjusted net income of $74,382,103 in 2023, down to $55,144,556 in 2024[25] - EBITDA for Q4 2023 was $7,955,544, compared to $6,391,755 in Q4 2024, with a twelve-month EBITDA of $82,751,270 in 2023, decreasing to $59,242,475 in 2024[24] - The company reported a net income of $6,463,943 for Q4 2023, which decreased to $3,917,661 in Q4 2024, with a twelve-month net income of $71,134,002 in 2023, down to $50,157,772 in 2024[26] - Net income for the year decreased to $50,157,772 in 2024 from $71,134,002 in 2023, representing a decline of approximately 29.5%[28] Fleet and Operational Metrics - Fleet operational utilization reached 86.0% in Q4 2024, up from 68.5% in Q4 2023[5] - Fleet utilization increased from 95.3% in Q4 2023 to 99.8% in Q4 2024, while operational utilization rose from 68.5% to 86.0% during the same period[20] - The average number of vessels in the fleet increased from 9.00 in Q4 2023 to 11.00 in Q4 2024, with a total of 11 owned vessels by the end of both periods[20] - The fleet's total calendar days increased from 828 in Q4 2023 to 1,012 in Q4 2024, indicating enhanced operational capacity[20] Cash and Assets - Cash and cash equivalents, including time deposits, increased by 66.7% to $206.7 million as of December 31, 2024, compared to $124.0 million a year earlier[5] - Total current assets as of December 31, 2023, amounted to $183.18 million, a decrease from $188.78 million in 2022[27] - Total non-current assets reached $193.64 million, compared to $175.22 million in the previous year, indicating a growth of approximately 10.5%[27] - Total assets increased to $376.83 million, reflecting a rise from $354.49 million year-over-year[27] - Current liabilities were reported at $145.29 million, a slight increase from $140.37 million in 2022[27] - Total liabilities stood at $145.29 million, consistent with the previous year's figure, indicating stable financial obligations[27] - The company reported cash and cash equivalents of $91.92 million, a decrease from $127.97 million in the prior year, representing a decline of approximately 28%[27] - Trade receivables from related parties were $37.90 million, down from $68.21 million, showing a significant reduction of about 44.7%[27] - Inventories were valued at $72.91 million, a decrease from $91.12 million, indicating a reduction of approximately 20%[27] - The company has made investments in related parties totaling $12.79 million, consistent with the previous year[27] - Total cash and cash equivalents at the end of the year were $91,927,531, up from $78,353,531 at the beginning of the year, indicating an increase of approximately 17.5%[29] Strategic Plans and Management Insights - The company plans to acquire seven Japanese-built drybulk carriers, totaling approximately 443,000 dwt, expected to be delivered between February and May 2025[11] - CEO Harry Vafias emphasized the company's focus on fleet growth and maintaining profitability despite softer market conditions in 2024[12] - The company has contracted to acquire an additional seven drybulk carriers with an aggregate capacity of 443,000 deadweight tons, increasing the total fleet to 19 vessels[16] Cash Flow and Expenses - Net cash provided by operating activities was $77,695,426 in 2024, slightly down from $79,530,359 in 2023, indicating a decrease of about 2.3%[28] - Cash flows from investing activities showed a significant outflow of $94,651,169 in 2024 compared to a net inflow of $12,288,684 in 2023, reflecting a change of approximately 871.5%[28] - Proceeds from the sale of vessels increased to $41,153,578 in 2024 from $3,865,890 in 2023, marking a substantial increase of about 964.5%[28] - The company reported a depreciation expense of $16,991,900 in 2024, up from $15,629,116 in 2023, which is an increase of about 8.7%[28] - Share-based compensation rose to $3,397,082 in 2024 from $2,434,855 in 2023, reflecting an increase of approximately 39.6%[28] - The impairment loss recorded in 2023 was $8,996,023, while there was no impairment loss reported in 2024, indicating a significant reduction in losses[28] - The company experienced a net loss on the sale of vessels amounting to $1,589,702 in 2024, which was not present in 2023[28]

Q4 & 12M 2024 Selected Company Financial Data ($ millions) 2 Key Highlights Financial & Operating Results February 13, 2025 Disclaimer This presentation contains forward-looking statements within the meaning of applicable federal securities laws. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," ...