OceanPal Inc. Reports Financial Results for the First Quarter Ended March 31, 2024
OceanPal (NASDAQ: OP), a global shipping company, announced its Q1 2024 financial results. The company reported time charter revenues of $5.7 million, a notable increase from $3.9 million in Q1 2023. Despite the revenue growth, OceanPal faced a net loss of $1.3 million, compared to a net income of $88 thousand in Q1 2023. The net loss attributed to common stockholders grew to $1.7 million from $472 thousand. The fleet saw improved utilization at 99.1% and an increase in the average time charter equivalent (TCE) rate to $11,200 from $8,459. However, vessel operating expenses also rose to $2.7 million. The company operates five vessels, maintaining an older fleet with a weighted average age of 19 years. Key challenges include mounting operational costs and a significant net loss.
- Time charter revenues increased to $5.7 million in Q1 2024 from $3.9 million in Q1 2023.
- Fleet utilization improved to 99.1% from 98.2%.
- Average time charter equivalent (TCE) rate rose to $11,200 from $8,459.
- Net loss of $1.3 million in Q1 2024 compared to a net income of $88 thousand in Q1 2023.
- Net loss attributed to common stockholders increased to $1.7 million from $472 thousand.
- Vessel operating expenses grew to $2.7 million from $2.6 million.
- Older fleet with a weighted average age of 19 years, potentially leading to higher maintenance costs.
Insights
OceanPal Inc. reported time charter revenues of
Analyzing the employment profile of OceanPal Inc.'s fleet provides insight into the company's operational strategy. The fleet consists of 3 Panamax Bulk Carriers and 2 Capesize Bulk Carriers. Each vessel's charter rates and durations suggest a diversified approach aimed at optimizing revenue streams. The Panamax carriers have gross rates ranging from
OceanPal Inc.'s financial performance in Q1 2024 highlights several dynamics within the shipping industry. The reported time charter revenues increase aligns with broader market trends where demand for bulk carriers has been rising due to global trade recovery and commodity price fluctuations. The fleet utilization rate of
ATHENS, Greece, June 06, 2024 (GLOBE NEWSWIRE) -- OceanPal Inc. (NASDAQ: OP) (the “Company”), a global shipping company specializing in the ownership of vessels, today reported time charter revenues of
Fleet Employment Profile (As of June 5, 2024)
OceanPal Inc.’s fleet is employed as follows:
| Vessel | Sister Ships* | Gross Rate (USD/Day) | Com** | Charterers | Delivery Date to Charterers*** | Redelivery Date to Owners**** | Notes | |||
| BUILT DWT | ||||||||||
| 3 Panamax Bulk Carriers | ||||||||||
| 1 | PROTEFS | A | LOUIS DREYFUS COMPANY FREIGHT ASIA PTE LTD | 12-Sep-23 | 09-Apr-24 | 1 | ||||
| 2004 73,630 | CHINA RESOURCE CHARTERING LIMITED | 14-Apr-24 | 13-Jul-24 | 2 | ||||||
| 2 | CALIPSO | A | COFCO INTERNATIONAL FREIGHT(S) PTE. LTD. | 05-Nov-23 | 24-Feb-2024 | |||||
| 2005 73,691 | HMM CO., LTD. | 24-Feb-2024 | 28-Mar-2024 | |||||||
| COFCO INTERNATIONAL FREIGHT SA | 06-Apr-2024 | 05-Jul-2024 | ||||||||
| 3 | MELIA | LOUIS DREYFUS COMPANY FREIGHT ASIA PTE LTD | 12-Dec-23 | 06-Feb-2024 | ||||||
| 2005 76,225 | ASL BULK SHIPPING LIMITED | 06-Feb-24 | 27-Apr-24 | |||||||
| OLDENDORFF CARRIERS GMBH & CO. KG | 01-May-24 | 30-Jul-24 | 2 | |||||||
| 2 Capesize Bulk Carriers | ||||||||||
| 4 | SALT LAKE CITY | FIVE OCEAN CORPORATION | 26-Sep-23 | 06-Feb-2024 | ||||||
| 2005 171,810 | DEYESION SHIPPING & TRADING COMPANY LIMITED | 06-Feb-2024 | 01-Jun-24 | |||||||
| 01-Jun-24 | 06-Jul-24 | 3 | ||||||||
| 5 | BALTIMORE | RICHLAND BULK PTE. LTD. | 18-Nov-23 | 02-May-24 | 4 | |||||
| 2005 177,243 | 09-May-24 | 15-Sep-24 – 15-Nov-24 | 5 | |||||||
* Each dry bulk carrier is a "sister ship", or closely similar, to other dry bulk carriers that have the same letter.
** Total commission percentage paid to third parties.
*** In case of newly acquired vessel with new time charter attached, this date refers to the expected/actual date of delivery of the
vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers' option, but subject to the terms, conditions,
and exceptions of the particular charterparty.
1 Charterers compensated the Owners at a rate of
2 Redelivery date on an estimated time charter trip duration of about 90 days.
3 Redelivery date on an estimated time charter trip duration of about 35 days.
4 Vessel on scheduled drydocking during the period from May 2, 2024 to May 9, 2024.
5 Vessel has been sold and it is expected to be delivered to her new Owners by latest November 20, 2024.
| Summary of Selected Financial & Other Data | |||||||||
| Three months ended March 31, | |||||||||
| 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||
| STATEMENT OF OPERATIONS DATA (in thousands of US Dollars) | |||||||||
| Time charter revenues | $ | 5,687 | $ | 3,888 | |||||
| Voyage expenses | 591 | 572 | |||||||
| Vessel operating expenses | 2,721 | 2,551 | |||||||
| Net (loss)/income and comprehensive (loss)/income | (1,306) | 88 | |||||||
| Net loss and comprehensive loss attributed to common stockholders | (1,698) | (472) | |||||||
| FLEET DATA | |||||||||
| Average number of vessels | 5.0 | 4.6 | |||||||
| Number of vessels | 5.0 | 5.0 | |||||||
| Weighted average age of vessels | 19.0 | 18.0 | |||||||
| Ownership days | 455 | 412 | |||||||
| Available days | 455 | 392 | |||||||
| Operating days | 451 | 385 | |||||||
| Fleet utilization | |||||||||
| AVERAGE DAILY RESULTS (in US Dollars) | |||||||||
| Time charter equivalent (TCE) rate (1) | $ | 11,200 | $ | 8,459 | |||||
| Daily vessel operating expenses (2) | $ | 5,980 | $ | 6,192 | |||||
Non-GAAP Measures
(1) Time charter equivalent rates, or TCE rates, are defined as time charter revenues less voyage expenses during a period divided by the number of Available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
(2) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.
About the Company
OceanPal Inc. is a global provider of shipping transportation services through its ownership of vessels. The Company’s vessels currently transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes and it is expected that the Company’s vessels will be primarily employed on short term time and voyage charters following the completion of their current employments.
Forward Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
(See financial tables attached)
| OCEANPAL INC. | ||||||
| FINANCIAL TABLES | ||||||
| Expressed in thousands of U.S. Dollars, except for share and per share data | ||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME | ||||||
| Three months ended March 31, | ||||||
| 2024 | 2023 | |||||
| (unaudited) | (unaudited) | |||||
| REVENUES: | ||||||
| Time charter revenues | $ | 5,687 | $ | 3,888 | ||
| EXPENSES: | ||||||
| Voyage expenses | 591 | 572 | ||||
| Vessel operating expenses | 2,721 | 2,551 | ||||
| Depreciation and amortization of deferred charges | 1,883 | 1,893 | ||||
| General and administrative expenses | 1,635 | 1,225 | ||||
| Management fees to related parties | 315 | 291 | ||||
| Other operating (income)/loss | (15 | ) | 3 | |||
| Operating loss | $ | (1,443 | ) | $ | (2,647 | ) |
| Change in fair value of warrants’ liability | - | 3,578 | ||||
| Finance costs | - | (911 | ) | |||
| Loss on equity method investment | (5 | ) | - | |||
| Other income | 7 | - | ||||
| Interest income | 135 | 68 | ||||
| Net (loss)/income and comprehensive (loss)/income | $ | (1,306 | ) | $ | 88 | |
| Less: Deemed dividend upon redemption of Series D preferred stock | (2 | ) | - | |||
| Less: Dividends on Series C preferred stock | (150 | ) | (269 | ) | ||
| Less: Dividends on Series D preferred stock | (240 | ) | (291 | ) | ||
| Loss attributed to common stockholders | $ | (1,698 | ) | $ | (472 | ) |
| Loss per common share, basic | $ | (0.23 | ) | $ | (0.51 | ) |
| Loss per common share, diluted | $ | (0.23 | ) | $ | (0.51 | ) |
| Weighted average number of common shares, basic | 7,451,314 | 925,866 | ||||
| Weighted average number of common shares, diluted | 7,451,314 | 925,866 | ||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||
| (in thousands of U.S. Dollars) | ||||
| March 31, 2024 | December 31, 2023* | |||
| ASSETS | (unaudited) | |||
| Cash and cash equivalents | $ | 15,411 | $ | 14,841 |
| Other current assets | 5,742 | 5,203 | ||
| Vessels, net | 69,546 | 71,100 | ||
| Other non-current assets | 3,378 | 3,701 | ||
| Total assets | $ | 94,077 | $ | 94,845 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Liabilities | $ | 2,511 | $ | 2,286 |
| Total stockholders' equity | 91,566 | 92,559 | ||
| Total liabilities and stockholders' equity | $ | 94,077 | $ | 94,845 |
*The balance sheet data have been derived from the audited consolidated financial statements at that date.
| OTHER FINANCIAL DATA | ||||||
| Three months ended March 31, | ||||||
| 2024 | 2023 | |||||
| (unaudited) | (unaudited) | |||||
| Net cash provided by/(used in) by operating activities | $ | 920 | $ | (265 | ) | |
| Net cash used in investing activities | $ | - | $ | (4,057 | ) | |
| Net cash (used in)/provided by financing activities | $ | (350 | ) | $ | 14,225 | |
FAQ
What were OceanPal's Q1 2024 revenues?
What was OceanPal's net loss in Q1 2024?
How did OceanPal's fleet utilization change in Q1 2024?
What is the average age of OceanPal's fleet?
How did OceanPal's TCE rate change in Q1 2024?
