Imperial Petroleum, a Nasdaq-listed owner of tankers and bulkers, notched up its most profitable quarter by far in the first three months of 2023, boosted by a bigger fleet in favourable markets.
The outfit posted net income of $35.7m between January and March, compared with a mere $220,000 in the same period of 2022 and $13.8m in the fourth quarter of last year.
As the size of the company’s fleet more than doubled year-on-year from five to 12 vessels, market rates surged — particularly for the company’s eight tankers.
As a result, Imperial Petroleum revenue jumped to $65.4m in the first quarter from $5.1m in the same period of 2022. This far outweighed a sixfold rise in interest and finance costs to $1.35m over the same period.
“We are pleased that our strategies are paying off,” chief executive Harry Vafias commented on Monday.
Boosted by cash flow from ongoing operations, Vafias has already cut the company’s exposure to rising interest rates by paying back the entirety of the company’s bank debt of about $70m.
Despite the improved results, the company still had to proceed on 28 April to a 1-for-15 reverse stock split, in an effort to regain compliance with the Nasdaq minimum bid price requirement.
Imperial Petroleum has made use of equity raises to finance a large part of its fleet expansion.
“In terms of financial strategy, we paid down all our debt and have stopped issuing new shares,” Vafias said.
“Without a doubt we are well positioned to benefit from good market conditions that seem will last.”
The company, itself a spin-off of Vafias LPG carrier vehicle StealthGas, announced last month plans to spin off two of its dry bulk carriers under a new company called C3is Inc.
