Imperial Petroleum Inc. Reports Fourth Quarter and Twelve Months 2021 Financial and Operating Results

Rhea-AI Summary

Imperial Petroleum Inc. (NASDAQ: IMPP) reported unaudited financial results for Q4 and 12M 2021. The company raised $91 million from public offerings in February and March 2022. In Q4 2021, revenues decreased by 28.6% to $4.0 million, with a net loss of $1.5 million. For the full year, revenues fell 14.3% to $17.4 million, resulting in a net loss of $3.6 million. Operational utilization was 92.9% due to weak market conditions. The company declared a dividend of $0.546875 per preferred share, payable March 30, 2022.

Positive

• Raised $91 million in net proceeds from public offerings.
• Acquired two MR product tankers for $31 million, enhancing fleet capacity.

Negative

• Q4 2021 revenues decreased by 28.6% to $4.0 million.
• Net loss of $1.5 million in Q4 2021 compared to a net income of $0.2 million in Q4 2020.
• Full year 2021 revenues fell 14.3% to $17.4 million.
• Reported a net loss of $3.6 million for 2021, worsening from a loss of $0.4 million in 2020.

ATHENS, Greece, March 29, 2022 (GLOBE NEWSWIRE) -- IMPERIAL PETROLEUM INC. (NASDAQ: IMPP) (the “Company”), a ship-owning company providing petroleum product and crude oil seaborne transportation services, announced today its unaudited financial and operating results for the fourth quarter and twelve months ended December 31, 2021. These financial results were based on the accounts of Imperial Petroleum Inc. and its wholly owned subsidiaries which were prepared using the historical carrying costs of the assets and the liabilities of the subsidiaries from their dates of incorporation.

OPERATIONAL AND FINANCIAL HIGHLIGHTS¹

• As of March 28, 2022, we had raised $27 million in total net proceeds, after underwriting discounts, from our first public offering in February 2022 and $64 million in total net proceeds, after underwriting discounts, from our second public offering in March 2022.
• In March 2022, we entered into agreements to acquire two MR product tankers from a related party for an aggregate price of $31 million; the first vessel was delivered on March 28, 2022 and the second will be delivered by the end of May 2022.
• Declaration of a dividend on our 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock ($0.546875 per preferred share) payable on March 30, 2022 to holders of record on March 25, 2022.
• Fleet operational utilization of 92.9% in Q4 21’ compared to 97.0% in the same period of the previous year; the weak spot market led to a rise in commercial off-hire days.
• Revenues of $4.0 million in Q4 21’, marking a decrease of $1.6 million compared to Q4 20’ due to the sharp drop in both time charter and spot rates.
• Net loss of $1.5 million for Q4 21’ corresponding to a loss per share of $0.34.
• EBITDA¹ of $0.8 million in Q4 21’.
• For 12M 2021, EBITDA¹ came in at $5.2 million, while net loss amounted to $3.6 million.

Fourth Quarter 2021 Results:

• Revenues for the three months ended December 31, 2021 amounted to $4.0 million, a decrease of $1.6 million, or 28.6%, compared to revenues of $5.6 million for the three months ended December 31, 2020, mainly due to the weakening of the tanker market.
• Voyage expenses and vessels’ operating expenses for the three months ended December 31, 2021 were $0.9 million and $1.8 million, respectively, compared to $1.2 million and $1.8 million, respectively, for the three months ended December 31, 2020. The $0.3 million decrease in voyage expenses is mainly due the decrease of spot days by 24 days (27.9%) offset by voyage costs of $0.8 million incurred due to the ballasting of our product tanker Clean Thrasher to its new period employment. Vessels’ operating expenses remained stable.
• General and administrative expenses for the three months ended December 31, 2021 and 2020 were $0.3 million and $0.1 million, respectively. This $0.2 million increase compared to the same period of last year reflects costs associated with the spin-off of Imperial Petroleum Inc. from StealthGas Inc.
• As a result of the above, for the three months ended December 31, 2021, the Company reported a net loss of $1.5 million, compared to a net income of $0.2 million for the three months ended December 31, 2020. The weighted average number of shares outstanding for the three months ended December 31, 2021 was 4.8 million.
• Loss per share, basic and diluted², for the three months ended December 31, 2021 amounted to $0.34. EBITDA for the three months ended December 31, 2021 amounted to $0.8 million. Reconciliations of EBITDA to Net Loss are set forth below.
• An average of 4.0 vessels were owned by the Company during the three months ended December 31, 2021 and 2020.

Twelve Months 2021 Results:

• Revenues for the twelve months ended December 31, 2021, amounted to $17.4 million, a decrease of $2.9 million, or 14.3%, compared to revenues of $20.3 million for the twelve months ended December 31, 2020, primarily due to lower revenues stemming from our vessels operating in the spot market, as rates for tankers were weaker in 2021 when compared to 2020.
• Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2021 were $3.6 million and $7.4 million, respectively, compared to $3.2 million and $7.2 million for the twelve months ended December 31, 2020. The $0.4 million increase in voyage expenses, despite the decline of spot days is attributable to the increase of voyage costs, particularly bunker costs. The $0.2 million increase in vessels’ operating expenses, was primarily due to an increase in crew charges related to the COVID-19 pandemic such as crew medical and crew change costs.
• General and administrative expenses for the twelve months ended December 31, 2021 were $0.6 million and $0.2 million, respectively. This $0.4 million increase compared to the same period of last year is mainly due to additional one-off charges related to the spin-off of Imperial Petroleum Inc. from StealthGas Inc.
• Drydocking costs for the twelve months ended December 31, 2021 and 2020 were $0.01 million and $0.9 million, respectively. The costs for the twelve months ended December 31, 2020 mainly related to the drydocking of our aframax tanker.
• Depreciation for each of the twelve months ended December 31, 2021 and 2020 was $8.7 million.
• As a result of the above, the Company reported a net loss for the twelve months ended December 31, 2021 of $3.6 million, compared to a net loss of $0.4 million for the twelve months ended December 31, 2020. The weighted average number of shares outstanding for the twelve months ended December 31, 2021 was 4.8 million. Loss per share² for the twelve months ended December 31, 2021 amounted to $0.79.
• EBITDA for the twelve months ended December 31, 2021 amounted to $5.2 million. Reconciliations of EBITDA to Net Loss are set forth below. An average of 4 vessels were owned by the Company during the twelve months ended December 31, 2021 and 2020.
• As of December 31, 2021, cash and cash equivalents amounted to $3.4 million and total debt amounted to $28.0 million. During the twelve months ended December 31, 2021 no debt repayments occurred.

CEO Harry Vafias Commented

Since becoming an independent public company, Imperial Petroleum has had an outstanding course. The daily share trading volume has stunned all of us and investors expressed their trust in our Company’s vision by helping us raise about $90 million of new equity.
We are truly indebted and obliged to our investors, and grateful for their trust and confidence in Imperial Petroleum. Our core strategy is growth as evident from the acquisition of two product tankers. We will focus on expanding our fleet further and endeavour to convert shareholders’ expectations into reality.

Conference Call details:

On March 29, 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.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +18778709135 (US Toll Free Dial In) or 08002796619 (UK Toll Free Dial In).
Access Code: 8576259
        
In case of any problems with the above numbers, please dial +16467413167 (US Toll Dial In), +44 (0) 2071 928338 (Standard International Dial In).
Access Code: 8576259

A telephonic replay of the conference call will be available until April 5, 2022 by dialing +1 (866) 331-1332 (US Local Dial In), +44 (0) 3333009785 (Standard International Dial In).

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 product and crude oil seaborne transportation services. The Company owns four M.R. product tankers and one Aframax oil tanker with a total capacity of 305,804 deadweight tons (dwt) and has acquired one more product tanker with expected delivery by the end of May 2022. 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 dry dockings, 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
E-mail: fs@ImperialPetro.com

Fleet Data:
The following key indicators highlight the Company’s operating performance during the periods ended December 31, 2020 and December 31, 2021.

FLEET DATA	Q4 2020	Q4 2021	12M 2020	12M 2021
Average number of vessels (1)	4.00	4.00	4.00	4.00
Period end number of owned vessels in fleet	4	4	4	4
Total calendar days for fleet (2)	368	368	1,464	1,460
Total voyage days for fleet (3)	368	368	1,417	1,428
Fleet utilization (4)	100.0%	100.0%	96.8%	97.8%
Total charter days for fleet (5)	282	306	1,061	1,127
Total spot market days for fleet (6)	86	62	356	301
Fleet operational utilization (7)	97.0%	92.9%	95.7%	90.5%

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 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)	Three Months Period Ended December 31st,			Twelve Months Period Ended December 31st,
	2020		2021	2020		2021
Net loss – EBITDA
Net loss	159,946		(1,482,949)	(393,761)		(3,639,979)
Plus interest and finance costs	-		137,905	10,008		145,013
Less interest income	(120)		(973)	(108)		(980)
Plus depreciation	2,168,666		2,168,666	8,643,920		8,674,663
EBITDA	2,328,492		822,649	8,260,059		5,178,717

Imperial Petroleum Inc.
Unaudited Consolidated Statements of Operations
(Expressed in United States Dollars, except for number of shares)

				Three Month Periods Ended December 31,				Twelve Month Periods Ended December 31,
				2020		2021		2020		2021
Revenues
	Revenues			5,572,172		4,006,614		20,302,052		17,362,669
Expenses
	Voyage expenses			1,111,882		869,377		2,944,071		3,366,223
	Voyage expenses - related party			66,592		51,640		250,241		218,192
	Vessels' operating expenses			1,788,888		1,776,524		7,112,094		7,346,527
	Vessels' operating expenses - related party			15,000		20,500		48,500		86,500
	Drydocking costs			54,656		14,380		935,565		14,380
	Management fees			132,940		132,940		503,355		527,425
	General and administrative expenses			61,942		322,985		219,717		614,786
	Depreciation			2,168,666		2,168,666		8,643,920		8,674,663
Total expenses				5,400,566		5,357,012		20,657,463		20,848,696
Income/(Loss) from operations				171,606		(1,350,398)		(355,411)		(3,486,027)
Other (expenses)/income
	Interest and finance costs			-		(137,905)		(10,008)		(145,013)
	Interest income			120		973		108		980
	Foreign exchange (loss)/gain			(11,780)		4,381		(28,450)		(9,919)
Other expenses, net				(11,660)		(132,551)		(38,350)		(153,952)
Net income/(loss)				159,946		(1,482,949)		(393,761)		(3,639,979)
Earnings per share3
- Basic & Diluted				0.03		(0.34)		(0.08)		(0.79)
Weighted average number of shares
- Basic & Diluted				4,775,272		4,775,272		4,775,272		4,775,272

Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)

					December 31,		December 31,
					2020		2021
Assets
Current assets
	Cash and cash equivalents				6,451,524		3,389,834
	Restricted cash				1,165,031		451,225
	Receivable from related party				--		355,023
	Trade and other receivables				665,875		1,400,275
	Other current assets				173,930		--
	Inventories				835,997		258,846
	Advances and prepayments				139,601		150,544
Total current assets					9,431,958		6,005,747
Non current assets
	Vessels, net				128,689,447		119,962,984
	Restricted cash						2,500,000
Total non current assets					128,689,447		122,462,984
Total assets					138,121,405		128,468,731
Liabilities and Stockholders' Equity
Current liabilities
	Trade accounts payable				1,192,965		1,430,251
	Payable to related party				1,473,000		1,119,055
	Accrued and other liabilities				390,923		486,674
	Customer deposits				868,000		368,000
	Deferred income				134,594		482,321
	Current portion of long-term debt				--		4,747,616
Total current liabilities					4,059,482		8,633,917
Non current liabilities
	Long-term debt				--		23,088,971
Total non current liabilities					--		23,088,971
Total liabilities					4,059,482		31,722,888
Commitments and contingencies					--		--
Stockholders' equity
	Former Parent Company investment				134,061,923		--
	Capital stock				--		47,753
	Preferred stock				--		7,959
	Additional paid-in capital				--		97,161,688
	Accumulated deficit				--		(471,557)
Total stockholders' equity					134,061,923		96,745,843
Total liabilities and stockholders' equity					138,121,405		128,468,731

Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)

							Twelve Month Periods Ended December 31,
							2020		2021
Cash flows from operating activities
	Net loss for the year						(393,761)		(3,639,979)
Adjustments to reconcile net loss to net cash
provided by operating activities:
	Depreciation						8,643,920		8,674,663
	Amortization of deferred finance charges						--		32,587
Changes in operating assets and liabilities:
	(Increase)/decrease in
	Trade and other receivables						(484,710)		(734,400)
	Other current assets						(173,930)		173,930
	Inventories						(704,521)		577,151
	Advances and prepayments						(59,317)		(10,943)
	Increase/(decrease) in
	Trade accounts payable						618,057		289,086
	Balances with related parties						1,473,000		(708,968)
	Accrued liabilities						172,655		238,351
	Deferred income						(223,798)		347,727
Net cash provided by operating activities							8,867,595		5,239,205
Cash flows from investing activities
	Vessel improvements						(728,000)		(142,600)
Net cash used in investing activities							(728,000)		(142,600)
Cash flows from financing activities
	Net transfers to former Parent Company						(9,225,887)		(7,792,798)
	Dividends paid to former Parent Company						--		(25,752,729)
	Deferred finance charges paid						--		(196,000)
	Customer deposits paid						(100,000)		(500,000)
	Dividends paid on preferred shares						--		(130,574)
	Proceeds from long-term debt						--		28,000,000
Net cash used in financing activities							(9,325,887)		(6,372,101)
Net decrease in cash, cash equivalents and restricted cash							(1,186,292)		(1,275,496)
Cash, cash equivalents and restricted cash at beginning of year							8,802,847		7,616,555
Cash, cash equivalents and restricted cash at end of year							7,616,555		6,341,059
Cash breakdown
	Cash and cash equivalents						6,451,524		3,389,834
	Restricted cash, current						1,165,031		451,225
	Restricted cash, non current						--		2,500,000
Total cash, cash equivalents and restricted cash shown in the statements of cash flows							7,616,555		6,341,059

^{_______________________________________________________________________
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.

² The reported loss per common share calculations give retroactive effect to the issuance of the common shares as of January 1, 2020.

³ The reported loss per common share calculations give retroactive effect to the issuance of the common shares as of January 1, 2020.

 

FAQ

What were the financial results for Imperial Petroleum Inc. in Q4 2021?

In Q4 2021, Imperial Petroleum reported revenues of $4.0 million, a decrease of 28.6% from $5.6 million in Q4 2020, along with a net loss of $1.5 million.

How much did Imperial Petroleum raise in public offerings?

Imperial Petroleum raised a total of $91 million from its public offerings in February and March 2022.

What is the net loss for Imperial Petroleum for the full year 2021?

The company reported a net loss of $3.6 million for the full year 2021, compared to a loss of $0.4 million in 2020.

What dividend was declared by Imperial Petroleum Inc.?

Imperial Petroleum declared a dividend of $0.546875 per preferred share, payable on March 30, 2022.

What was the operational utilization rate for Imperial Petroleum in Q4 2021?

The operational utilization rate for Imperial Petroleum in Q4 2021 was 92.9%.