OceanPal Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2023
- None.
- None.
Insights
Upon examining OceanPal Inc.'s financial performance, several key points emerge. The marginal increase in time charter revenues from $5.7 million in Q4 2022 to $5.8 million in Q4 2023 indicates a relatively stable market position. However, the reported net loss of $2.8 million to common stockholders for Q4 2023, compared to a net loss of $3.0 million in the same period the previous year, suggests a slight improvement in cost management or operational efficiency. The year-end figures are more concerning, with a significant increase in the net loss to common stockholders from $2.7 million in 2022 to $6.7 million in 2023. This deterioration could potentially alarm investors and impact the company's stock performance negatively.
Another point of interest is the fleet employment profile, which provides insight into the company's operational strategy. The mix of Panamax and Capesize vessels, along with varying charter rates and durations, reflects the company's approach to market volatility. The employment of vessels on time charters with a range of reputable charterers such as Louis Dreyfus Company and Oldendorff Carriers suggests a diversified client base, which can be a stabilizing factor for revenue streams.
However, the presence of vessels currently without active charterparties could be a red flag, indicating potential revenue gaps. Investors should monitor the company's ability to secure new charters promptly to mitigate the impact of these gaps. Additionally, the company's reliance on the Baltic Panamax Index for compensation during excess periods could expose it to market fluctuations, adding an element of unpredictability to future earnings.
In the context of the maritime shipping industry, the details of OceanPal Inc.'s fleet employment profile are important for understanding the company's market positioning. The gross rates per day for Panamax and Capesize vessels are within industry norms, reflecting current market conditions. The commission rates of 5% are standard practice, indicating no deviation from industry customs.
The staggered delivery and redelivery dates across the fleet suggest an attempt to mitigate the risk of market cyclicality. By spreading out the contracts, OceanPal Inc. appears to be strategically positioning itself to handle market downturns and take advantage of upswings. This strategy could potentially buffer the company against short-term market volatility.
It is also noteworthy that certain charters include clauses that tie compensation to the Baltic Panamax Index, which is a common index used in the industry to benchmark rates for Panamax vessels. This index-linked compensation could be beneficial in a rising market but detrimental if the index falls. Stakeholders should note that such mechanisms, while providing some protection against rate volatility, also introduce an element of risk.
The financial results of OceanPal Inc. need to be contextualized within the broader market trends. The shipping industry has been experiencing fluctuations due to geopolitical tensions, trade policies and global economic shifts. The company's performance must be analyzed against these external factors to understand its true market standing.
While the slight increase in time charter revenues may seem positive, the larger net loss to common stockholders year-over-year is indicative of underlying challenges. These could range from increased operational costs, such as fuel prices or regulatory compliance expenses, to decreased charter rates due to oversupply in the market. Understanding these dynamics is essential for stakeholders to gauge the company's future resilience and growth potential.
With the shipping industry being capital-intensive, the reported net losses could impact OceanPal Inc.'s ability to invest in fleet expansion or modernization, which in turn could affect its competitiveness. Long-term contracts with fixed rates can provide stability, but they also limit the company's ability to capitalize on spot market rate increases. Investors should consider these aspects when evaluating the company's future revenue potential and risk profile.
ATHENS, Greece, April 11, 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
For the year ended December 31, 2023, the Company reported time charter revenues of
Fleet Employment Profile (As of April 10, 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 | 1,2 | ||||
| 2004 73,630 | CHINA RESOURCE CHARTERTING LIMITED | 14-Apr-24 | 13-Jul-24 | 3,4 | ||||||
| 2 | CALIPSO | A | OLDENDORFF CARRIERS DENMARK APS | 28-Sep-23 | 05-Nov-23 | |||||
| 2005 73,691 | COFCO INTERNATIONAL FREIGHT(S) PTE. LTD. | 05-Nov-23 | 24-Feb-2024 | |||||||
| HMM CO., LTD. | 24-Feb-2024 | 28-Mar-2024 | ||||||||
| COFCO INTERNATIONAL FREIGHT SA | 06-Apr-2024 | 05-Jul-2024 | ||||||||
| 3 | MELIA | ASL BULK SHIPPING LIMITED | 26-Aug-23 | 09-Nov-23 | ||||||
| 2005 76,225 | FORTUNE OCEAN MARINE PTE. LTD. | 09-Nov-23 | 12-Dec-23 | |||||||
| LOUIS DREYFUS COMPANY FREIGHT ASIA PTE LTD | 12-Dec-23 | 06-Feb-2024 | ||||||||
| ASL BULK SHIPPING LIMITED | 06-Feb-24 | 25-Apr-24 | 5,6 | |||||||
| 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 | 05-May-24 – 05-Jul-24 | |||||||
| 5 | BALTIMORE | RICHLAND BULK PTE. LTD. | 27-Sep-23 | 18-Nov-23 | ||||||
| 2005 177,243 | RICHLAND BULK PTE. LTD. | 18-Nov-23 | 20-Apr-24 – 15-May-24 | 7 | ||||||
* 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 will compensate the Owners at a rate of
2 Currently without an active charterparty.
3 Estimated delivery date to the Charterers.
4 Redelivery date on an estimated time charter trip duration of about 90 days.
5 Redelivery date on an estimated time charter trip duration of about 79 days.
6 For redelivery of the vessel south of Hong Kong, including Hong Kong, the gross rate will be
7 Based on latest information
| Summary of Selected Financial & Other Data | |||||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| STATEMENT OF OPERATIONS DATA (in thousands of US Dollars) | |||||||||||||||
| Time charter revenues | $ | 5,808 | $ | 5,724 | $ | 18,957 | $ | 19,085 | |||||||
| Voyage expenses | 637 | 2,891 | 1,940 | 3,680 | |||||||||||
| Vessel operating expenses | 1,552 | 2,234 | 10,421 | 6,880 | |||||||||||
| Net income/(loss) and comprehensive income/(loss) | 58 | (2,488 | ) | (1,977 | ) | (326 | ) | ||||||||
| Net loss and comprehensive loss attributed to common stockholders | (2,842 | ) | (2,995 | ) | (6,707 | ) | (2,674 | ) | |||||||
| FLEET DATA | |||||||||||||||
| Average number of vessels | 5.0 | 4.0 | 4.9 | 3.3 | |||||||||||
| Number of vessels | 5.0 | 4.0 | 5.0 | 4.0 | |||||||||||
| Weighted average age of vessels | 18.8 | 17.7 | 18.8 | 17.7 | |||||||||||
| Ownership days | 460 | 368 | 1,787 | 1,197 | |||||||||||
| Available days | 460 | 368 | 1,707 | 1,154 | |||||||||||
| Operating days | 459 | 357 | 1,691 | 1,117 | |||||||||||
| Fleet utilization | 99.8 | % | 97.0 | % | 99.1 | % | 96.8 | % | |||||||
| AVERAGE DAILY RESULTS (in US Dollars) | |||||||||||||||
| Time charter equivalent (TCE) rate (1) | $ | 11,241 | $ | 7,698 | $ | 9,969 | $ | 13,349 | |||||||
| Daily vessel operating expenses (2) | $ | 3,374 | $ | 6,071 | $ | 5,832 | $ | 5,748 | |||||||
Non-GAAP Measures
- 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.
- 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 continuing impacts of the COVID-19 pandemic, 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 Russia-Ukraine conflict 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 INCOME/ (LOSS) | |||||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| REVENUES: | |||||||||||||||
| Time charter revenues | $ | 5,808 | $ | 5,724 | $ | 18,957 | $ | 19,085 | |||||||
| EXPENSES: | |||||||||||||||
| Voyage expenses | 637 | 2,891 | 1,940 | 3,680 | |||||||||||
| Vessel operating expenses | 1,552 | 2,234 | 10,421 | 6,880 | |||||||||||
| Depreciation and amortization of deferred charges | 1,902 | 1,701 | 7,670 | 4,896 | |||||||||||
| General and administrative expenses | 1,378 | 1,122 | 5,281 | 3,083 | |||||||||||
| Management fees to related parties | 315 | 258 | 1,236 | 878 | |||||||||||
| Other operating loss/(income) | 119 | 6 | 131 | (6 | ) | ||||||||||
| Operating loss | $ | (95 | ) | $ | (2,488 | ) | $ | (7,722 | ) | $ | (326 | ) | |||
| Change in fair value of warrants’ liability | - | - | 6,222 | - | |||||||||||
| Finance costs | - | - | (909 | ) | - | ||||||||||
| Gain from equity method investment | 6 | - | 2 | - | |||||||||||
| Other income/(expenses) | 8 | - | (74 | ) | - | ||||||||||
| Interest income | 139 | - | 504 | - | |||||||||||
| Net income/(loss) and comprehensive income/(loss) | $ | 58 | $ | (2,488 | ) | $ | (1,977 | ) | $ | (326 | ) | ||||
| Less: Deemed dividend upon redemption of Series C preferred stock | (2,549 | ) | - | (2,549 | ) | - | |||||||||
| Less: Deemed dividend upon redemption of Series D preferred stock | - | (134 | ) | (154 | ) | (134 | ) | ||||||||
| Less: Dividends on Series C preferred stock | (110 | ) | (239 | ) | (991 | ) | (950 | ) | |||||||
| Less: Dividends on Series D preferred stock | (241 | ) | (135 | ) | (1,036 | ) | (252 | ) | |||||||
| Less: Dividends on class A warrants | - | - | - | (1,012 | ) | ||||||||||
| Loss attributed to common stockholders | $ | (2,842 | ) | $ | (2,996 | ) | $ | (6,707 | ) | $ | (2,674 | ) | |||
| Loss per common share, basic* | $ | (0.42 | ) | $ | (13.89 | ) | $ | (2.02 | ) | $ | (17.18 | ) | |||
| Loss per common share, diluted* | $ | (0.42 | ) | $ | (13.89 | ) | $ | (3.83 | ) | $ | (17.18 | ) | |||
| Weighted average number of common shares, basic* | 6,813,696 | 215,677 | 3,315,519 | 155,655 | |||||||||||
| Weighted average number of common shares, diluted* | 6,813,696 | 215,677 | 3,372,207 | 155,655 | |||||||||||
* Financial information adjusted to give effect to the 1-for-20 reverse stock split that became effective on June 8, 2023.
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||
| (in thousands of U.S. Dollars) | |||||
| December 31, 2023 | December 31, 2022** | ||||
| ASSETS | (unaudited) | ||||
| Cash and cash equivalents | $ | 14,841 | $ | 8,454 | |
| Other current assets | 5,203 | 5,717 | |||
| Vessels, net | 71,100 | 63,672 | |||
| Other non-current assets | 3,701 | 1,175 | |||
| Total assets | $ | 94,845 | $ | 79,018 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Liabilities | $ | 2,286 | $ | 2,459 | |
| Total stockholders' equity | 92,559 | 76,559 | |||
| Total liabilities and stockholders' equity | $ | 94,845 | $ | 79,018 | |
**The balance sheet data have been derived from the audited consolidated financial statements at that date.
| OTHER FINANCIAL DATA | ||||||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Net cash provided by/(used in) by operating activities | $ | 130 | $ | (1,310 | ) | $ | 815 | $ | 1,513 | |||
| Net cash used in investing activities | $ | (265 | ) | $ | (96 | ) | $ | (6,011 | ) | $ | (5,094 | ) |
| Net cash (used in)/provided by financing activities | $ | (547 | ) | $ | (404 | ) | $ | 11,583 | $ | 10,362 | ||
FAQ
What were OceanPal Inc.'s time charter revenues for the fourth quarter of 2023?
What was the net income for OceanPal Inc. in the fourth quarter of 2023?
What was the net loss attributed to common stockholders for OceanPal Inc. in the fourth quarter of 2023?
What were OceanPal Inc.'s time charter revenues for the year ended December 31, 2023?
What was the net loss for OceanPal Inc. for the year ended December 31, 2023?
What was the net loss attributed to common stockholders for OceanPal Inc. for the year ended December 31, 2023?
What does the fleet employment profile of OceanPal Inc. show?
