Imperial Petroleum (US:IMPP)2025-04-29 20:53Fleet Capacity and Utilization - As of April 15, 2025, the total cargo carrying capacity of the combined fleet will be 1,194,000 dwt after the delivery of contracted vessels [366]. - In the year ended December 31, 2023, the fleet's total operational utilization was 75.1%, with 66.4% of calendar days operated in the spot market [371]. - The average number of vessels increased from 7.0 in 2022 to 10.0 in 2023, and further to 10.39 in 2024 [379]. - Total voyage days for the fleet rose from 2,464 in 2022 to 3,481 in 2023, and projected to reach 3,700 in 2024 [379]. - The fleet's operational utilization is expected to vary based on market conditions, with a focus on maximizing spot market exposure during favorable periods [372]. Financial Performance - Voyage revenues increased from $97.02 million in 2022 to $183.73 million in 2023, with a projected revenue of $147.48 million in 2024 [381]. - Revenues for the year ended December 31, 2024 were $147.5 million, a decrease of $36.2 million or 19.7% compared to $183.7 million in 2023, primarily due to softer market spot rates [406]. - Net income for the year ended December 31, 2024 was $50.2 million, down from $71.1 million in 2023, reflecting a decrease of $20.9 million or 29.4% [417]. - Net income for the year ended December 31, 2023, was $71.1 million, up from $29.5 million in 2022, reflecting improved profitability [428]. Operating Expenses - The total daily operating expenses increased from $7,119 in 2022 to $8,377 in 2023, reflecting rising operational costs [379]. - Voyage expenses rose from $33.81 million in 2022 to $62.53 million in 2023, with an expected decrease to $52.02 million in 2024 [381]. - General and administrative expenses increased by $3.1 million or 172.2% to $4.9 million for the year ended December 31, 2023, primarily due to a rise in stock-based compensation costs [425]. - Vessel operating expenses increased to $26.4 million in 2024 from $25.6 million in 2023, an increase of $0.8 million or 3.1% due to fleet size increase [408]. - Dry docking costs significantly decreased to $1.7 million in 2024 from $6.6 million in 2023, reflecting fewer vessels undergoing dry docking [409]. Charter Rates and Revenues - The adjusted average charter rate increased from $25,654 in 2022 to $34,816 in 2023, before decreasing to $25,799 in 2024 [379]. - Charter equivalent revenues grew from $63.21 million in 2022 to $121.19 million in 2023, with a forecast of $95.46 million in 2024 [381]. - Average daily spot market rates for standard product tankers decreased to $22,000 in 2024 from $33,000 in 2023, and for standard suezmax tankers decreased to $30,000 from $60,000 [406]. Debt and Cash Position - As of December 31, 2024, the company had no outstanding bank debt after repaying $70 million in the first half of 2023 [391]. - Cash and cash equivalents as of December 31, 2024, totaled $206.7 million, with $29.1 million raised in gross proceeds from equity offerings during 2023 [430]. - The company had no outstanding bank debt as of December 31, 2024, after repaying $70.0 million in the first half of 2023 [682]. Future Plans and Acquisitions - The company plans to evaluate vessel purchase opportunities to expand the fleet and enhance earnings and cash flow [374]. - The company expects to acquire seven drybulk carriers for a total purchase price of $129 million, with payment anticipated in the third quarter of 2025 [432]. - The company had contracts to acquire five supramax drybulk carriers and two kamsarmax drybulk carriers, with deliveries expected in 2025 [366]. Market Conditions and Trends - Crude tanker deadweight tonnage (dwt) demand rose by 6.6% in 2022 and is estimated to increase by 6.7% in 2023, while product tanker demand is expected to grow by around 10% in 2023 [455]. - The Baltic Dry Index (BDI) fluctuated between a low of 965 and a high of 3,369 in 2022, with a notable high of 3,346 in December 2023 [459]. - The crude tanker trading fleet is estimated to have increased by 2.0% in 2023, while the product tanker fleet grew by approximately 0.5% [455]. Currency and Inflation Impact - Approximately 11.8% of the company's expenses were incurred in currencies other than U.S. dollars in 2024 [683]. - The company does not hedge foreign currency exposures as the amounts involved are not economically significant [683]. - Inflation had a moderate impact on expenses, particularly in 2022, with milder effects in 2023 and 2024 [389].