TOP Ships (TOPS) - 2022 Q4 - Annual Report

Financial Performance - Total revenues for 2022 reached $80.656 million, a significant increase from $56.367 million in 2021, representing a growth of approximately 43%[329] - EBITDA for 2022 was reported at $46.554 million, a substantial increase from $23.284 million in 2021, indicating a growth of approximately 100%[329] - Net income rose by $10.3 million, or 120%, from $8.6 million in 2021 to $18.9 million in 2022[349] - Operating income rose by 120% from $14.8 million in 2021 to $32.6 million in 2022[349] - Total charter revenues increased by $24.3 million, or 43%, from $56.4 million in 2021 to $80.7 million in 2022[349] Fleet and Operations - Fleet utilization in 2022 was 99.72%, showing a slight improvement from 96.93% in 2021[327] - The total number of vessels at the end of 2022 was 8, consistent with the previous year, while the average number of vessels remained stable at 8.0[327] - Total operating days for the fleet in 2022 were 2,893, an increase from 2,500 in 2021, representing a growth of about 16%[329] - Average daily Time Charter Equivalent (TCE) increased to $27,310 in 2022, up from $22,020 in 2021, reflecting a growth of about 24%[329] - Time charter equivalent revenues for 2022 were $79.008 million, up from $55.050 million in 2021, marking an increase of approximately 43%[329] Expenses and Costs - Vessel operating expenses for 2022 were $6,397 per day, up from $6,070 in 2021, reflecting an increase of about 5%[329] - Vessel operating expenses increased by $2.9 million, or 19%, from $15.7 million in 2021 to $18.6 million in 2022, attributed to larger vessels and increased average vessels employed[352] - Vessel depreciation increased by $5.6 million, or 73%, from $7.7 million in 2021 to $13.3 million in 2022, due to the employment of larger vessels[353] - Interest and finance costs surged by $7.4 million, or 105%, from $7.0 million in 2021 to $14.4 million in 2022, primarily due to increased loan balances and rising LIBOR rates[355] Cash Flow and Financing - Cash and cash equivalents increased from $6.4 million in 2021 to $24.5 million in 2022[365] - Net cash provided by operating activities increased by $17.3 million, or 108%, from $16.1 million in 2021 to $33.4 million in 2022[366] - Net cash used in investing activities for the year ended December 31, 2022 was $142.7 million, which included $216.7 million for advances for vessels under construction, offset by $71.7 million from the sale of vessels[369] - Net cash provided by financing activities for the year ended December 31, 2022 was $127.4 million, consisting of $165.2 million from long-term debt proceeds and $47.6 million from the issuance of Series F Shares[371] Market Conditions and Risks - The BDTI reached a high of 2,496 and a low of 679 in 2022, while the BCTI reached a high of 2,143 and a low of 543, indicating high volatility in charter rates[382] - The invasion of Ukraine has led to increased volatility in the tanker market, with short-term positive effects but uncertain long-term impacts on ton-mile demand[383] - Inflation has indirectly increased the base lending costs of loans, with LIBOR rising from 0.10% in January 2022 to 4.78% in December 2022, significantly affecting cash flow[386] Corporate Governance - The company has five shareholders of record as of March 27, 2023, holding an aggregate of 20,346,091 common shares, representing 100% of outstanding common shares[422] - The Chief Executive Officer is entitled to a cash payment of €10 million in the event of a change of control[409] - The Chief Operating Officer is entitled to receive a cash payment equal to three years' annual base salary in the event of a change of control[410] - The Chief Financial Officer is entitled to a cash payment equal to three years' annual base salary in the event of a change of control[412] - The Chief Technical Officer is also entitled to a cash payment equal to three years' annual base salary in the event of a change of control[413] Employment and Compensation - As of December 31, 2022, the company employed 170 sea-going employees, an increase from 146 in 2021 and 136 in 2020[418] - The total compensation paid to senior management and directors for the fiscal year ended December 31, 2022, was $0.4 million[407]