Imperial Petroleum Inc. Reports Fourth Quarter and Twelve Months 2022 Net Income of $13.8 and $29.5 Million Respectively, Financial and Operating Results

Rhea-AI Summary

IMPERIAL PETROLEUM (NASDAQ: IMPP) reported impressive financial results for Q4 2022, with revenues soaring to $37.9 million, an increase of 847.5% year-over-year. Net income stood at $13.8 million, a significant turnaround from a loss of $1.5 million in Q4 2021. The company generated a total net income of $29.5 million for 2022, marking a 1,020% increase. The fleet utilization was 79.4%, with a strong focus on spot market activities. The company maintains a solid cash position of $118.9 million and a manageable debt of $70 million. CEO Harry Vafias highlighted successful market navigation and anticipates continued growth in 2023.

Positive

• Revenues increased to $37.9 million in Q4 2022, up 847.5% from Q4 2021.
• Net income for Q4 2022 was $13.8 million, compared to a loss of $1.5 million in Q4 2021.
• Annual net income reached $29.5 million for 2022, up 1,020% from the previous year.
• EBITDA soared to $17.8 million in Q4 2022, a 2,125% increase from Q4 2021.
• Cash and cash equivalents were $118.9 million as of December 31, 2022.

Negative

• Incurred $10.5 million in voyage expenses in Q4 2022, significantly higher than $0.9 million in Q4 2021.
• Drydocking costs rose to $1.9 million in Q4 2022 from $0.01 million in Q4 2021.
• Interest and finance costs increased to $0.9 million in Q4 2022 from $0.1 million in Q4 2021.

ATHENS, Greece, Feb. 15, 2023 (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 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.

FAQ

What are IMPP's financial results for Q4 2022?

IMPP reported revenues of $37.9 million, a net income of $13.8 million, and EBITDA of $17.8 million for Q4 2022.

How did IMPP perform in 2022 compared to 2021?

In 2022, IMPP generated a net income of $29.5 million, a substantial increase from a net loss of $3.6 million in 2021.

What was the revenue growth percentage for IMPP in Q4 2022?

IMPP experienced an 847.5% increase in revenues compared to the same quarter in 2021.

What is the current cash position of IMPP?

As of December 31, 2022, IMPP reported cash and time deposits of $118.9 million.

What are the key financial metrics for IMPP's performance in 2022?

In 2022, IMPP's revenues totaled $97.0 million, with EBITDA reaching $42.1 million.