Imperial Petroleum Inc. Reports Fourth Quarter and Twelve Months 2021 Financial and Operating Results
ATHENS, Greece, March 29, 2022 (GLOBE NEWSWIRE) -- IMPERIAL PETROLEUM INC. (NASDAQ: IMPP) (the “Company”), a ship-owning company providing petroleum product and crude oil seaborne transportation services, announced today its unaudited financial and operating results for the fourth quarter and twelve months ended December 31, 2021. These financial results were based on the accounts of Imperial Petroleum Inc. and its wholly owned subsidiaries which were prepared using the historical carrying costs of the assets and the liabilities of the subsidiaries from their dates of incorporation.
OPERATIONAL AND FINANCIAL HIGHLIGHTS1
As of March 28, 2022, we had raised $27 million in total net proceeds, after underwriting discounts, from our first public offering in February 2022 and $64 million in total net proceeds, after underwriting discounts, from our second public offering in March 2022.
In March 2022, we entered into agreements to acquire two MR product tankers from a related party for an aggregate price of $31 million; the first vessel was delivered on March 28, 2022 and the second will be delivered by the end of May 2022.
Declaration of a dividend on our 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock ($0.546875 per preferred share) payable on March 30, 2022 to holders of record on March 25, 2022.
Fleet operational utilization of 92.9% in Q4 21’ compared to 97.0% in the same period of the previous year; the weak spot market led to a rise in commercial off-hire days.
Revenues of $4.0 million in Q4 21’, marking a decrease of $1.6 million compared to Q4 20’ due to the sharp drop in both time charter and spot rates.
Net loss of $1.5 million for Q4 21’ corresponding to a loss per share of $0.34.
EBITDA1 of $0.8 million in Q4 21’.
For 12M 2021, EBITDA1 came in at $5.2 million, while net loss amounted to $3.6 million.
Fourth Quarter 2021 Results:
Revenues for the three months ended December 31, 2021 amounted to $4.0 million, a decrease of $1.6 million, or 28.6%, compared to revenues of $5.6 million for the three months ended December 31, 2020, mainly due to the weakening of the tanker market.
Voyage expenses and vessels’ operating expenses for the three months ended December 31, 2021 were $0.9 million and $1.8 million, respectively, compared to $1.2 million and $1.8 million, respectively, for the three months ended December 31, 2020. The $0.3 million decrease in voyage expenses is mainly due the decrease of spot days by 24 days (27.9%) offset by voyage costs of $0.8 million incurred due to the ballasting of our product tanker Clean Thrasher to its new period employment. Vessels’ operating expenses remained stable.
General and administrative expenses for the three months ended December 31, 2021 and 2020 were $0.3 million and $0.1 million, respectively. This $0.2 million increase compared to the same period of last year reflects costs associated with the spin-off of Imperial Petroleum Inc. from StealthGas Inc.
As a result of the above, for the three months ended December 31, 2021, the Company reported a net loss of $1.5 million, compared to a net income of $0.2 million for the three months ended December 31, 2020. The weighted average number of shares outstanding for the three months ended December 31, 2021 was 4.8 million.
Loss per share, basic and diluted2, for the three months ended December 31, 2021 amounted to $0.34. EBITDA for the three months ended December 31, 2021 amounted to $0.8 million. Reconciliations of EBITDA to Net Loss are set forth below.
An average of 4.0 vessels were owned by the Company during the three months ended December 31, 2021 and 2020.
Twelve Months 2021 Results:
Revenues for the twelve months ended December 31, 2021, amounted to $17.4 million, a decrease of $2.9 million, or 14.3%, compared to revenues of $20.3 million for the twelve months ended December 31, 2020, primarily due to lower revenues stemming from our vessels operating in the spot market, as rates for tankers were weaker in 2021 when compared to 2020.
Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2021 were $3.6 million and $7.4 million, respectively, compared to $3.2 million and $7.2 million for the twelve months ended December 31, 2020. The $0.4 million increase in voyage expenses, despite the decline of spot days is attributable to the increase of voyage costs, particularly bunker costs. The $0.2 million increase in vessels’ operating expenses, was primarily due to an increase in crew charges related to the COVID-19 pandemic such as crew medical and crew change costs.
General and administrative expenses for the twelve months ended December 31, 2021 were $0.6 million and $0.2 million, respectively. This $0.4 million increase compared to the same period of last year is mainly due to additional one-off charges related to the spin-off of Imperial Petroleum Inc. from StealthGas Inc.
Drydocking costs for the twelve months ended December 31, 2021 and 2020 were $0.01 million and $0.9 million, respectively. The costs for the twelve months ended December 31, 2020 mainly related to the drydocking of our aframax tanker.
Depreciation for each of the twelve months ended December 31, 2021 and 2020 was $8.7 million.
As a result of the above, the Company reported a net loss for the twelve months ended December 31, 2021 of $3.6 million, compared to a net loss of $0.4 million for the twelve months ended December 31, 2020. The weighted average number of shares outstanding for the twelve months ended December 31, 2021 was 4.8 million. Loss per share2 for the twelve months ended December 31, 2021 amounted to $0.79.
EBITDA for the twelve months ended December 31, 2021 amounted to $5.2 million. Reconciliations of EBITDA to Net Loss are set forth below. An average of 4 vessels were owned by the Company during the twelve months ended December 31, 2021 and 2020.
As of December 31, 2021, cash and cash equivalents amounted to $3.4 million and total debt amounted to $28.0 million. During the twelve months ended December 31, 2021 no debt repayments occurred.
CEO Harry Vafias Commented
Since becoming an independent public company, Imperial Petroleum has had an outstanding course. The daily share trading volume has stunned all of us and investors expressed their trust in our Company’s vision by helping us raise about $90 million of new equity.
We are truly indebted and obliged to our investors, and grateful for their trust and confidence in Imperial Petroleum. Our core strategy is growth as evident from the acquisition of two product tankers. We will focus on expanding our fleet further and endeavour to convert shareholders’ expectations into reality.
Conference Call details:
On March 29, 2022 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.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +18778709135 (US Toll Free Dial In) or 08002796619 (UK Toll Free Dial In).
Access Code: 8576259
In case of any problems with the above numbers, please dial +16467413167 (US Toll Dial In), +44 (0) 2071 928338 (Standard International Dial In).
Access Code: 8576259
A telephonic replay of the conference call will be available until April 5, 2022 by dialing +1 (866) 331-1332 (US Local Dial In), +44 (0) 3333009785 (Standard International Dial In).
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 product and crude oil seaborne transportation services. The Company owns four M.R. product tankers and one Aframax oil tanker with a total capacity of 305,804 deadweight tons (dwt) and has acquired one more product tanker with expected delivery by the end of May 2022. 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 dry dockings, 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
Company Contact:
Fenia Sakellaris
IMPERIAL PETROLEUM INC.
00-30-210-6250-001
E-mail: fs@ImperialPetro.com
Fleet Data:
The following key indicators highlight the Company’s operating performance during the periods ended December 31, 2020 and December 31, 2021.
FLEET DATA | Q4 2020 | Q4 2021 | 12M 2020 | 12M 2021 |
Average number of vessels (1) | 4.00 | 4.00 | 4.00 | 4.00 |
Period end number of owned vessels in fleet | 4 | 4 | 4 | 4 |
Total calendar days for fleet (2) | 368 | 368 | 1,464 | 1,460 |
Total voyage days for fleet (3) | 368 | 368 | 1,417 | 1,428 |
Fleet utilization (4) | 100.0% | 100.0% | 96.8% | 97.8% |
Total charter days for fleet (5) | 282 | 306 | 1,061 | 1,127 |
Total spot market days for fleet (6) | 86 | 62 | 356 | 301 |
Fleet operational utilization (7) | 97.0% | 92.9% | 95.7% | 90.5% |
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 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 | Three Months Period | Twelve Months Period | ||||
2020 | 2021 | 2020 | 2021 | |||
Net loss – EBITDA | ||||||
Net loss | 159,946 | (1,482,949) | (393,761) | (3,639,979) | ||
Plus interest and finance costs | - | 137,905 | 10,008 | 145,013 | ||
Less interest income | (120) | (973) | (108) | (980) | ||
Plus depreciation | 2,168,666 | 2,168,666 | 8,643,920 | 8,674,663 | ||
EBITDA | 2,328,492 | 822,649 | 8,260,059 | 5,178,717 | ||
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Operations
(Expressed in United States Dollars, except for number of shares)
Three Month Periods | Twelve Month Periods | |||||||||
2020 | 2021 | 2020 | 2021 | |||||||
Revenues | ||||||||||
Revenues | 5,572,172 | 4,006,614 | 20,302,052 | 17,362,669 | ||||||
Expenses | ||||||||||
Voyage expenses | 1,111,882 | 869,377 | 2,944,071 | 3,366,223 | ||||||
Voyage expenses - related party | 66,592 | 51,640 | 250,241 | 218,192 | ||||||
Vessels' operating expenses | 1,788,888 | 1,776,524 | 7,112,094 | 7,346,527 | ||||||
Vessels' operating expenses - related party | 15,000 | 20,500 | 48,500 | 86,500 | ||||||
Drydocking costs | 54,656 | 14,380 | 935,565 | 14,380 | ||||||
Management fees | 132,940 | 132,940 | 503,355 | 527,425 | ||||||
General and administrative expenses | 61,942 | 322,985 | 219,717 | 614,786 | ||||||
Depreciation | 2,168,666 | 2,168,666 | 8,643,920 | 8,674,663 | ||||||
Total expenses | 5,400,566 | 5,357,012 | 20,657,463 | 20,848,696 | ||||||
Income/(Loss) from operations | 171,606 | (1,350,398) | (355,411) | (3,486,027) | ||||||
Other (expenses)/income | ||||||||||
Interest and finance costs | - | (137,905) | (10,008) | (145,013) | ||||||
Interest income | 120 | 973 | 108 | 980 | ||||||
Foreign exchange (loss)/gain | (11,780) | 4,381 | (28,450) | (9,919) | ||||||
Other expenses, net | (11,660) | (132,551) | (38,350) | (153,952) | ||||||
Net income/(loss) | 159,946 | (1,482,949) | (393,761) | (3,639,979) | ||||||
Earnings per share3 | ||||||||||
- Basic & Diluted | 0.03 | (0.34) | (0.08) | (0.79) | ||||||
Weighted average number of shares | ||||||||||
- Basic & Diluted | 4,775,272 | 4,775,272 | 4,775,272 | 4,775,272 | ||||||
Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
December 31, | December 31, | ||||||
2020 | 2021 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | 6,451,524 | 3,389,834 | |||||
Restricted cash | 1,165,031 | 451,225 | |||||
Receivable from related party | -- | 355,023 | |||||
Trade and other receivables | 665,875 | 1,400,275 | |||||
Other current assets | 173,930 | -- | |||||
Inventories | 835,997 | 258,846 | |||||
Advances and prepayments | 139,601 | 150,544 | |||||
Total current assets | 9,431,958 | 6,005,747 | |||||
Non current assets | |||||||
Vessels, net | 128,689,447 | 119,962,984 | |||||
Restricted cash | 2,500,000 | ||||||
Total non current assets | 128,689,447 | 122,462,984 | |||||
Total assets | 138,121,405 | 128,468,731 | |||||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Trade accounts payable | 1,192,965 | 1,430,251 | |||||
Payable to related party | 1,473,000 | 1,119,055 | |||||
Accrued and other liabilities | 390,923 | 486,674 | |||||
Customer deposits | 868,000 | 368,000 | |||||
Deferred income | 134,594 | 482,321 | |||||
Current portion of long-term debt | -- | 4,747,616 | |||||
Total current liabilities | 4,059,482 | 8,633,917 | |||||
Non current liabilities | |||||||
Long-term debt | -- | 23,088,971 | |||||
Total non current liabilities | -- | 23,088,971 | |||||
Total liabilities | 4,059,482 | 31,722,888 | |||||
Commitments and contingencies | -- | -- | |||||
Stockholders' equity | |||||||
Former Parent Company investment | 134,061,923 | -- | |||||
Capital stock | -- | 47,753 | |||||
Preferred stock | -- | 7,959 | |||||
Additional paid-in capital | -- | 97,161,688 | |||||
Accumulated deficit | -- | (471,557) | |||||
Total stockholders' equity | 134,061,923 | 96,745,843 | |||||
Total liabilities and stockholders' equity | 138,121,405 | 128,468,731 | |||||
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
Twelve Month Periods Ended | |||||||||
2020 | 2021 | ||||||||
Cash flows from operating activities | |||||||||
Net loss for the year | (393,761) | (3,639,979) | |||||||
Adjustments to reconcile net loss to net cash | |||||||||
provided by operating activities: | |||||||||
Depreciation | 8,643,920 | 8,674,663 | |||||||
Amortization of deferred finance charges | -- | 32,587 | |||||||
Changes in operating assets and liabilities: | |||||||||
(Increase)/decrease in | |||||||||
Trade and other receivables | (484,710) | (734,400) | |||||||
Other current assets | (173,930) | 173,930 | |||||||
Inventories | (704,521) | 577,151 | |||||||
Advances and prepayments | (59,317) | (10,943) | |||||||
Increase/(decrease) in | |||||||||
Trade accounts payable | 618,057 | 289,086 | |||||||
Balances with related parties | 1,473,000 | (708,968) | |||||||
Accrued liabilities | 172,655 | 238,351 | |||||||
Deferred income | (223,798) | 347,727 | |||||||
Net cash provided by operating activities | 8,867,595 | 5,239,205 | |||||||
Cash flows from investing activities | |||||||||
Vessel improvements | (728,000) | (142,600) | |||||||
Net cash used in investing activities | (728,000) | (142,600) | |||||||
Cash flows from financing activities | |||||||||
Net transfers to former Parent Company | (9,225,887) | (7,792,798) | |||||||
Dividends paid to former Parent Company | -- | (25,752,729) | |||||||
Deferred finance charges paid | -- | (196,000) | |||||||
Customer deposits paid | (100,000) | (500,000) | |||||||
Dividends paid on preferred shares | -- | (130,574) | |||||||
Proceeds from long-term debt | -- | 28,000,000 | |||||||
Net cash used in financing activities | (9,325,887) | (6,372,101) | |||||||
Net decrease in cash, cash equivalents and restricted cash | (1,186,292) | (1,275,496) | |||||||
Cash, cash equivalents and restricted cash at beginning of year | 8,802,847 | 7,616,555 | |||||||
Cash, cash equivalents and restricted cash at end of year | 7,616,555 | 6,341,059 | |||||||
Cash breakdown | |||||||||
Cash and cash equivalents | 6,451,524 | 3,389,834 | |||||||
Restricted cash, current | 1,165,031 | 451,225 | |||||||
Restricted cash, non current | -- | 2,500,000 | |||||||
Total cash, cash equivalents and restricted cash shown in the statements | 7,616,555 | 6,341,059 | |||||||
_______________________________________________________________________
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.
2 The reported loss per common share calculations give retroactive effect to the issuance of the common shares as of January 1, 2020.
3 The reported loss per common share calculations give retroactive effect to the issuance of the common shares as of January 1, 2020.
