Imperial Petroleum Inc. The Smallest Of The Four Vafias Group Shipping Co’s Reports Fourth Quarter Net Income Of $14m

Imperial Petroleum Inc., reported its fourth quarter and 2022 full year results.

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’.

EBITDA 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 – 1.5 times higher than our current market cap.

For 12M 22’ we generated a Net Income of $29.5 million which is equivalent to 36% 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 27,792,113 shares and raised net proceeds of $ 7,383,775.

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 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 be 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 2,145 %, 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 $257million 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.
Source: Imperial Petroleum