Imperial Petroleum Inc. Reports Fourth Quarter and Twelve Months 2023 Financial and Operating Results
ATHENS, Greece, Feb. 13, 2024 (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 and twelve months ended December 31, 2023.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
-- Fleet operational utilization of 68.5% in Q4 23' mainly due to vessel
repositioning for commercial reasons and the drydocking of two vessels.
-- 76% of fleet calendar days equivalent to 629 days in Q4 23' were
dedicated to spot activity.
-- Revenues of $29.9 million in Q4 23' compared to $37.9 million in Q4 22'
mainly due to a lower average number of vessels and softer market
conditions, particularly in the East.
-- Net Income of $6.5 million in Q4 23' compared to net income of $13.8
million in Q4 22'.
-- Revenues of $183.7 million in 12M 23', an $86.7 million or 89.4% increase
compared to 12M 22', due to the improved market conditions for the
majority of the year and a larger fleet by approximately three vessels.
-- Net Income of $71.1 million in 12M 23' marking a 141% increase compared
to the net income of $29.5 million in 12M 22'.
-- Cash and cash equivalents and time deposits, of $124 million as of
December 31, 2023- which is about 50% higher than our current market
capitalization.
-- Under the $10 million share buyback program announced on September 7,
2023, the Company has repurchased to date a total of 4,251,881 common
shares for a total amount of approximately $8.4 million.
-- As a means to further enhance shareholders value, the Company repurchased
5.8 million of outstanding warrants within Q4 22'.
Fourth Quarter 2023 Results:
-- Revenues for the three months ended December 31, 2023 amounted to $29.9
million, a decrease of $8.0 million, or 21.1%, compared to revenues of
$37.9 million for the three months ended December 31, 2022, primarily due
to a lower average number of vessels and softer market conditions in the
East market, leading to higher idle and repositioning time.
-- Voyage expenses and vessels' operating expenses for the three months
ended December 31, 2023 were $13.8 million and $5.7 million, respectively,
compared to $10.5 million and $6.4 million, respectively, for the three
months ended December 31, 2022. The $3.3 million increase in voyage
expenses is mainly due to an increase in bunker costs as a result of a
65% increase in spot days and an $0.8 million increase of port expenses
as a result of an increase in port tariffs. The $0.7 million decrease in
vessels' operating expenses was primarily due to the decrease of average
number of vessels by approximately one vessel.
-- Drydocking costs for the three months ended December 31, 2023 and 2022
were $2.5 million and $1.9 million, respectively. During the three months
ended December 31, 2023 one of our suezmax tankers and one of our
handysize dry vessels underwent drydocking at higher costs compared to
the costs incurred by the two vessels that underwent drydocking during
the same period of prior year.
-- General and administrative costs for the three months ended December 31,
2023 and 2022 were $1.2 million and $0.9 million, respectively. This
change is mainly attributed to the increase in stock-based compensation
costs, partly offset by a reduction in reporting expenses.
-- Depreciation for the three months ended December 31, 2023 and 2022 was
$3.5 million and $4.0 million, respectively. The change is attributable
to the decrease in the average number of our vessels.
-- Interest and finance costs for the three months ended December 31, 2023
and 2022 were $0.01 million and $0.9 million, respectively. There was no
debt outstanding during the three months ended December 31, 2023.
-- Interest income for the three months ended December 31, 2023 and 2022 was
$2.0 million and $0.8 million, respectively. The increase is mainly
attributed to a higher amount of funds placed under time deposits at
improved rates as well as to the $0.7 million of accrued interest income
-- related party as of December 31, 2023 in connection with the $38.7
million of the selling price of the Aframax tanker Afrapearl II (ex.
Stealth Berana) which is receivable by July 2024.
-- As a result of the above, for the three months ended December 31, 2023,
the Company reported net income of $6.5 million, compared to net income
of $13.8 million for the three months ended December 31, 2022. Dividends
on Series A Preferred Shares and Series C Preferred Shares amounted to
$0.4 million and $0.03 million, respectively, for the three months ended
December 31, 2023. Deemed dividend resulting from the conversion of the
Series C Preferred Shares into 6,932,043 common shares amounted to $6.5
million and represents the difference between the fair value of the
6,932,043 shares at the conversion date and the net book value of the
Series C Convertible Preferred Stock. This non-cash deemed dividend has
been deducted from our net income for the determination of the net
income/(loss) available to common shareholders in the earnings/(loss) per
share ("EPS") calculations for the three month period ended December 31,
2023. The weighted average number of shares of common stock outstanding,
basic, for the three months ended December 31, 2023 was 23.6 million.
Following the deduction of the $6.5 million non-cash deemed dividend,
loss per share, basic, for the three months ended December 31, 2023,
amounted to $0.02, compared to earnings per share, basic, of $1.05 for
the three months ended December 31, 2022.
-- Adjusted net income was $7.2 million corresponding, following the $6.5
million deduction of the non-cash deemed dividend, to an Adjusted EPS,
basic of $0.01 for the three months ended December 31, 2023 compared to
an Adjusted net income of $13.9 million corresponding to an Adjusted EPS,
basic, of $1.06 for the same period of last year.
-- EBITDA for the three months ended December 31, 2023 amounted to $8.0
million, while Adjusted EBITDA for the three months ended December 31,
2023 amounted to $8.7 million. Reconciliations of Adjusted Net Income,
EBITDA and Adjusted EBITDA to Net Income are set forth below.
-- An average of 9.00 vessels were owned by the Company during the three
months ended December 31, 2023 compared to 9.79 vessels for the same
period of 2022.
Twelve Months 2023 Results:
-- Revenues for the twelve months ended December 31, 2023 amounted to $183.7
million, an increase of $86.7 million, or 89.4%, compared to revenues of
$97.0 million for the twelve months ended December 31, 2022, primarily
due to the increase in our average number of vessels by approximately
three vessels and stronger market conditions prevailing during the
majority of the year 2023.
-- Voyage expenses and vessels' operating expenses for the twelve months
ended December 31, 2023 were $62.5 million and $25.6 million,
respectively, compared to $33.8 million and $16.4 million, respectively,
for the twelve months ended December 31, 2022. The $28.7 million increase
in voyage expenses is mainly due to the increase in the spot days of our
fleet by 1,307 days (117.1%). The $9.2 million increase in vessels'
operating expenses was primarily due to the increase in the average
number of vessels in our fleet by approximately three vessels.
-- Drydocking costs for the twelve months ended December 31, 2023 and 2022
were $6.6 million and $1.9 million, respectively. This increase is due to
the fact that during the twelve months ended December 31, 2023 three of
our product tankers, one of our suezmax tankers and two of our drybulk
carriers underwent drydocking, while during the twelve months ended
December 31, 2022 one of our suezmax vessels and one of our drybulk
carriers underwent drydocking.
-- General and administrative costs for the twelve months ended December 31,
2023 and 2022 were $4.9 million and $1.8 million, respectively. This
increase is mainly attributed to a $2.3 million increase in stock-based
compensation costs along with an increase in reporting costs mainly
related to our spin off project.
-- Depreciation for the twelve months ended December 31, 2023 was $15.6
million, a $3.3 million increase from $12.3 million for the same period
of last year, due to the increase in the average number of our vessels.
-- Impairment loss for the twelve months ended December 31, 2023 stood at
$9.0 million, and related to the spin-off of two of our drybulk carriers
to C3is Inc. The decline of drybulk vessels' fair values compared to the
values prevailing when these vessels were acquired, resulted in the
incurrence of impairment loss.
-- Gain on sale of vessel for the twelve months ended December 31, 2023 was
$8.2 million, which was due to the sale of the Aframax tanker Afrapearl
II (ex. Stealth Berana) to C3is Inc., a related party.
-- Interest and finance costs for the twelve months ended December 31, 2023
and 2022 were $1.8 million and $1.6 million, respectively. The $1.8
million of costs for the twelve months ended December 31, 2023 relate
mainly to $1.3 million of interest charges incurred up to the full
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