Filed Pursuant to Rule 424(b)(3)
Registration Nos. 333-263593 and 333-263725
PROSPECTUS SUPPLEMENT NO. 3
(TO PROSPECTUS DATED MAY 1, 2024)
Imperial Petroleum Inc.
This is a supplement (“Prospectus Supplement”) to the prospectus, dated May 1, 2024 (“Prospectus”), of Imperial Petroleum Inc. (the “Company”), which forms a part of the Company’s Registration Statement on Form F-1 (Registration Nos. 333-263593 and 333-263725), as amended or supplemented from time to time. This Prospectus Supplement is being filed to update and supplement the information included in the Prospectus with the information contained in our Report on Form 6-K, furnished to the U.S. Securities and Exchange Commission on August 28, 2024 (the “Form 6-K”). Accordingly, we have attached the Form 6-K to this Prospectus Supplement.
This Prospectus Supplement should be read in conjunction with, and delivered with, the Prospectus and is qualified by reference to the Prospectus except to the extent that the information in this Prospectus Supplement supersedes the information contained in the Prospectus. This Prospectus Supplement is not complete without, and may not be delivered or utilized except in connection with, the Prospectus, including any amendments or supplements to it.
Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 9 of the Prospectus for a discussion of information that should be considered in connection with an investment in our securities.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is August 28, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2024
Commission File Number 001-41095
IMPERIAL PETROLEUM INC.
(Translation of registrant’s name into English)
331 Kifissias Avenue Erithrea 14561 Athens, Greece
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached to this report on Form 6-K as Exhibit 99.1 is a copy of the press release of Imperial Petroleum Inc. dated August 27, 2024, announcing its financial and operating results for the three and six months ended June 30, 2024.
EXHIBIT INDEX
| 99.1 | Imperial Petroleum Inc. Press Release dated August 27, 2024 |
*****
This report on Form 6-K (other than the section titled “CEO Harry Vafias Commented”) is hereby incorporated by reference into the Company’s Registration Statement on Form F 3 (Reg. No. 333-268663), Post Effective Amendment No. 1 to Form F-1 on Form F-3 Registration Statement (Reg. No. 333-266031) and Registration Statements on Form S-8 (Reg. Nos. 333-275745 and 333-278813), including the prospectuses contained therein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 28, 2024
| IMPERIAL PETROLEUM INC. | ||
| By: | /s/ Ifigenia Sakellari | |
| Name: | Ifigenia Sakellari | |
| Title: | Chief Financial Officer | |
Exhibit 99.1
IMPERIAL PETROLEUM INC.
IMPERIAL PETROLEUM INC. REPORTS SECOND QUARTER AND SIX MONTHS 2024 FINANCIAL AND OPERATING RESULTS
ATHENS, GREECE, August 27, 2024 - 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 second quarter and six months ended June 30, 2024.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
| • | Fleet operational utilization of 80.9% in Q2 24’- a stable performance when compared to the 80.6% utilization achieved in Q1 24’. In Q2 23’ our operational utilization was lower in the order of 75.4%. |
| • | 79.5% of fleet calendar days equivalent to 744 days in Q2 24’ were dedicated to spot activity. |
| • | Delivery from an affiliated entity of the handysize drybulk carrier, the Neptulus (2012 built), on August 24, 2024 |
| • | Revenues of $47.0 million in Q2 24’ compared to $41.2 million in Q1 24’ equivalent to a 14.1% rise- and $59.0 million of revenues in Q2 23’. |
| • | Net income of $19.5 million in Q2 24’- our second best performance thus far- up by $2.8 million when compared to Q1 24’ and $2.7 million when compared to Q2 23’. |
| • | Cash and cash equivalents including time deposits of $129.8 million as of June 30, 2024. |
| • | Receipt of $39 million due from C3is Inc on July 15th 2024, an amount owed from the sale of the aframax tanker Afrapearl II, thus enabling our current cash balance to climb at almost $190 million. |
| • | An aggregate of 4.3 million common shares were issued upon the exercise of Class E Warrants in the second quarter and the third quarter to date. |
Second Quarter 2024 Results:
| • |
|
| • | Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2024 were $17.1 million and $6.5 million, respectively, compared to $19.3 million and $7.0 million, respectively, for the three months ended June 30, 2023. The $2.2 million decrease in voyage expenses is mainly attributed to a decline in our daily port expenses by approximately $2,200 due to decreased transit through Suez Canal, partially offset by an increase in our daily bunker costs by approximately $800. The $0.5 million decrease in vessels’ operating expenses was primarily due to the decrease of our fleet by an average of 1.5 vessels. |
| • | Drydocking costs for the three months ended June 30, 2024 and 2023 were nil and $0.7 million, respectively. During three months ended June 30, 2023 one of our Handysize drybulk carriers the Eco Glorieuse underwent drydocking. |
| • | General and administrative costs for the three months ended June 30, 2024 and 2023 were $1.5 million and $1.5 million, respectively. |
| • | Depreciation for the three months ended June 30, 2024 and 2023 was $4.2 million and $4.6 million, respectively. The change is attributable to the decrease in the average number of our vessels. |
| • | Other operating income for the three months ended June 30, 2024 was $1.9 million and related to the collection of a claim in in connection with repairs undertaken in prior years. |
| • | Net loss on sale of vessel for the three months ended June 30, 2024 was $1.6 million and related to the sale of the Aframax tanker Gstaad Grace II to a third party. |
| • | Impairment loss for the three months ended June 30, 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, at the time of the spin off, compared to one year before when these vessels were acquired resulted in the incurrence of the impairment loss. |
| • | Interest and finance costs for the three months ended June 30, 2024 and 2023 were $0.006 million and $0.5 million, respectively. During the three months ended June 30, 2023 the Company repaid all of its outstanding debt whereas there is no debt during the three months ended June 30, 2024. The $0.5 million charges for the three months ended June 30, 2023 relate mainly to the full amortization of loan related charges following the repayment of the Company’s outstanding debt. |
| • | Interest income for the three months ended June 30, 2024 and 2023 was $2.0 million and $0.9 million, respectively. The increase is mainly attributed to the $0.8 million of accrued interest income – related party for the three months ended June 30, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana) which was collected in July 2024. |
| • | As a result of the above, for the three months ended June 30, 2024, the Company reported net income of $19.5 million, compared to net income of $16.8 million for the three months ended June 30, 2023. Dividends paid on Series A Preferred Shares amounted to $0.4 million for the three months ended June 30, 2024. The weighted average number of shares of common stock outstanding, basic, for the three months ended June 30, 2024 was 28.0 million. Earnings per share, basic and diluted, for the three months ended June 30, 2024 amounted to $0.64 and $0.56, respectively, compared to earnings per share, basic and diluted, of $0.91 and $0.73, respectively for the three months ended June 30, 2023. |
| • | Adjusted net income1 was $22.2 million corresponding to an Adjusted EPS1, basic of $0.73 for the three months ended June 30, 2024 compared to an Adjusted net income of $26.6 million corresponding to an Adjusted EPS, basic, of $1.46 for the same period of last year. |
| • | EBITDA1 for the three months ended June 30, 2024 amounted to $21.8 million, while Adjusted EBITDA1 for the three months ended June 30, 2024 amounted to $24.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. |
| • | An average of 10.3 vessels were owned by the Company during the three months ended June 30, 2024 compared to 11.8 vessels for the same period of 2023. |
Six Months 2024 Results:
| • | Revenues for the six months ended June 30, 2024 amounted to $88.2 million, a decrease of $36.3 million, or 29.2%, compared to revenues of $124.5 million for the six months ended June 30, 2023, primarily due to a year to date decline of daily suezmax freight rates by almost 25%. |
| • | Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2024 were $30.6 million and $12.5 million, respectively, compared to $36.1 million and $13.9 million, respectively, for the six months ended June 30, 2023. The $5.5 million decrease in voyage expenses is mainly attributed to decreased port expenses by approximately $3.0 million due to decreased transit through Suez Canal and decreased voyage commissions by approximately $1.1 in conjunction with lower freight rates. The $1.4 million decrease in vessels’ operating expenses was primarily due to the decrease in the average number of vessels in our fleet. |
| • |
|
| • | General and administrative costs for the six months ended June 30, 2024 and 2023 were $2.7 million and $2.5 million, respectively. This change is mainly attributed to the increase in stock-based compensation costs, partly offset by a reduction in reporting expenses due to the spin-off of C3is Inc. which was completed in June 2023. |
| • | Depreciation for the six months ended June 30, 2024 was $8.2 million, a $0.5 million decrease from $8.7 million for the same period of last year, due to the decrease in the average number of our vessels. |
| • | Other operating income for the six months ended June 30, 2024 was $1.9 million and related to the collection of a claim in connection with repairs undertaken in prior years. |
| • | Net loss on sale of vessel for the six months ended June 30, 2024 was $1.6 million and related to the sale of the Aframax tanker Gstaad Grace II to a third party. |
| • | Impairment loss for the six months period ended June 30, 2023 stood at $9.0 million, and related to the spin-off of two of four drybulk carriers to C3is Inc. The decline of drybulk vessels’ fair values, at the time of the spin off, compared to one year before when these vessels were acquired resulted in the incurrence of impairment loss. |
| • | Interest and finance costs for the six months ended June 30, 2024 and 2023 were $0.008 million and $1.8 million, respectively. The $1.8 million of costs for the six months ended June 30, 2023 relate mainly to $1.3 million of interest charges incurred up to the full repayment of all outstanding loans concluded in April 2023 along with the full amortization of $0.5 million of loan related charges following the repayment of the Company’s outstanding debt. |
| • | Interest income for the six months ended June 30, 2024 and 2023 was $3.8 million and $2.1 million, respectively. The increase is mainly attributed to 1.5mil of accrued interest income – related party for the six months ended June 30, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana) which was receivable by July 2024. |
| • | As a result of the above, the Company reported net income for the six months ended June 30, 2024 of $36.2 million, compared to a net income of $52.6 million for the six months ended June 30, 2023. The weighted average number of shares outstanding, basic, for the six months ended June 30, 2024 was 27.8 million. Earnings per share, basic and diluted, for the six months ended June 30, 2024 amounted to $1.20 and $1.06, respectively compared to earnings per share, basic and diluted, of $3.17 and $2.78 for the six months ended June 30, 2023. |
| • | Adjusted Net Income was $39.7 million corresponding to an Adjusted EPS, basic of $1.32 for the six months ended June 30, 2024 compared to adjusted net income of $62.6 million, or $3.79 EPS, basic, for the same period of last year. |
| • | EBITDA for the six months ended June 30, 2024 amounted to $40.6 million while Adjusted EBITDA for the six months ended June 30, 2024 amounted to $44.1 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. |
| • | An average of 10.1 vessels were owned by the Company during the six months ended June 30, 2024 compared to 10.9 vessels for the same period of 2023. |
| • | As of June 30, 2024, cash and cash equivalents including time deposits amounted to $129.8 million and total debt amounted to nil. |
| 1 | EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release. |
Fleet Employment Table
As of August 27, 2024, the profile and deployment of our fleet is the following:
| Name | Year Built |
Country Built |
Vessel Size (dwt) |
Vessel Type |
Employment Status |
Expiration of Charter(1) | ||||||||||||||
| Tankers |
||||||||||||||||||||
| Magic Wand |
2008 | Korea | 47,000 | MR product tanker | Spot | |||||||||||||||
| Clean Thrasher |
2008 | Korea | 47,000 | MR product tanker | Spot | |||||||||||||||
| Clean Sanctuary (ex. Falcon Maryam) |
2009 | Korea | 46,000 | MR product tanker | Spot | |||||||||||||||
| Clean Nirvana |
2008 | Korea | 50,000 | MR product tanker | Spot | |||||||||||||||
| Clean Justice |
2011 | Japan | 46,000 | MR product tanker | Time Charter | August 2027 | ||||||||||||||
| Aquadisiac |
2008 | Korea | 51,000 | MR product tanker | Spot | |||||||||||||||
| Suez Enchanted |
2007 | Korea | 160,000 | Suezmax tanker | Spot | |||||||||||||||
| Suez Protopia |
2008 | Korea | 160,000 | Suezmax tanker | Spot | |||||||||||||||
| Drybulk Carriers |
||||||||||||||||||||
| Eco Wildfire |
2013 | Japan | 33,000 | Handysize drybulk | Time Charter | August 2024 | ||||||||||||||
| Glorieuse |
2012 | Japan | 38,000 | Handysize drybulk | Time Charter | September 2024 | ||||||||||||||
| Neptulus |
2012 | Japan | 33,000 | Handysize drybulk | Time Charter | August 2024 | ||||||||||||||
| Fleet Total |
711,000 dwt | |||||||||||||||||||
| (1) | Earliest date charters could expire. |
CEO Harry Vafias Commented
In Q2 24 we managed to turn a typically weak seasonal period to our second most profitable quarter thus far, as we generated a net profit of $19.5 million. Our excellent performance was mostly leveraged by our product tankers that were strategically situated West of Suez where market for these vessels remained tight. We enjoy recurring profitable quarters a very strong cash base which currently stands close to $190 million and as we repeatedly stress, zero leverage. This gives us plenty of flexibility to grow further. We remain significantly undervalued as our market capitalization is even lower than our cash but are confident that gradually we will see an appreciation to our share price, driven by our recurring strong results.
Conference Call details:
On August 27, 2024 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.
Online Registration:
Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.
https://register.vevent.com/register/BI4888ca9812574a5fb23bfdfa933b77d6
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 products, crude oil and drybulk seaborne transportation services. The Company owns a total of twelve vessels, eleven vessels in the water - six M.R. product tankers, two suezmax tankers and three handysize drybulk carriers - with a total capacity of 711,000 deadweight tons (dwt), and one M.R product tanker of 40,000 dwt capacity, that will be delivered in the fourth quarter of 2024. 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, 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 any lingering 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 drydockings, 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, performance of counterparty to our vessel sale agreement, 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.
E-mail: [email protected]
Fleet Data:
The following key indicators highlight the Company’s operating performance during the periods ended June 30, 2023 and June 30, 2024.
| FLEET DATA |
Q2 2023 | Q2 2024 | 6M 2023 | 6M 2024 | ||||||||||||
| Average number of vessels (1) |
11.8 | 10.3 | 10.9 | 10.1 | ||||||||||||
| Period end number of owned vessels in fleet |
10 | 10 | 10 | 10 | ||||||||||||
| Total calendar days for fleet (2) |
1,072 | 936 | 1,981 | 1,831 | ||||||||||||
| Total voyage days for fleet (3) |
1,044 | 922 | 1,947 | 1,800 | ||||||||||||
| Fleet utilization (4) |
97.4 | % | 98.5 | % | 98.3 | % | 98.3 | % | ||||||||
| Total charter days for fleet (5) |
310 | 178 | 718 | 385 | ||||||||||||
| Total spot market days for fleet (6) |
734 | 744 | 1,229 | 1,415 | ||||||||||||
| Fleet operational utilization (7) |
75.4 | % | 80.9 | % | 79.8 | % | 80.7 | % | ||||||||
| 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 Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:
Adjusted net income represents net income before impairment loss, net loss on sale of vessel and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net loss on sale of vessel and share based compensation.
Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.
EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.
| (Expressed in United States Dollars, |
Second Quarter Ended June 30th, |
Six Months Period Ended June 30th, |
||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||
| Net Income - Adjusted Net Income |
||||||||||||||||
| Net income |
16,826,485 | 19,524,438 | 52,550,587 | 36,179,042 | ||||||||||||
| Plus net loss on sale of vessel |
— | 1,589,702 | — | 1,589,702 | ||||||||||||
| Plus impairment loss |
8,996,023 | — | 8,996,023 | — | ||||||||||||
| Plus share based compensation |
789,648 | 1,036,562 | 1,091,189 | 1,895,372 | ||||||||||||
| Adjusted Net Income |
26,612,156 | 22,150,702 | 62,637,799 | 39,664,116 | ||||||||||||
| Net income - EBITDA |
||||||||||||||||
| Net income |
16,826,485 | 19,524,438 | 52,550,587 | 36,179,042 | ||||||||||||
| Plus interest and finance costs |
459,166 | 5,797 | 1,810,769 | 8,227 | ||||||||||||
| Less interest income |
(851,930 | ) | (1,987,726 | ) | (2,131,146 | ) | (3,773,604 | ) | ||||||||
| Plus depreciation |
4,601,209 | 4,208,008 | 8,690,061 | 8,235,069 | ||||||||||||
| EBITDA |
21,034,930 | 21,750,517 | 60,920,271 | 40,648,734 | ||||||||||||
| Net income - Adjusted EBITDA |
||||||||||||||||
| Net income |
16,826,485 | 19,524,438 | 52,550,587 | 36,179,042 | ||||||||||||
| Plus net loss on sale of vessel |
— | 1,589,702 | — | 1,589,702 | ||||||||||||
| Plus impairment loss |
8,996,023 | — | 8,996,023 | — | ||||||||||||
| Plus share based compensation |
789,648 | 1,036,562 | 1,091,189 | 1,895,372 | ||||||||||||
| Plus interest and finance costs |
459,166 | 5,797 | 1,810,769 | 8,227 | ||||||||||||
| Less interest income |
(851,930 | ) | (1,987,726 | ) | (2,131,146 | ) | (3,773,604 | ) | ||||||||
| Plus depreciation |
4,601,209 | 4,208,008 | 8,690,061 | 8,235,069 | ||||||||||||
| Adjusted EBITDA |
30,820,601 | 24,376,781 | 71,007,483 | 44,133,808 | ||||||||||||
| EPS |
||||||||||||||||
| Numerator |
||||||||||||||||
| Net income |
16,826,485 | 19,524,438 | 52,550,587 | 36,179,042 | ||||||||||||
| Less: Cumulative dividends on preferred shares |
(620,246 | ) | (435,246 | ) | (1,055,494 | ) | (870,492 | ) | ||||||||
| Less: Undistributed earnings allocated to non-vested shares |
(856,309 | ) | (1,137,477 | ) | (977,828 | ) | (1,985,920 | ) | ||||||||
| Net income attributable to common shareholders, basic |
15,349,930 | 17,951,715 | 50,517,265 | 33,322,630 | ||||||||||||
| Denominator |
||||||||||||||||
| Weighted average number of shares |
16,816,597 | 27,965,872 | 15,940,369 | 27,789,766 | ||||||||||||
| EPS - Basic |
0.91 | 0.64 | 3.17 | 1.20 | ||||||||||||
| Adjusted EPS |
||||||||||||||||
| Numerator |
||||||||||||||||
| Adjusted net income |
26,612,156 | 22,150,702 | 62,637,799 | 39,664,116 | ||||||||||||
| Less: Cumulative dividends on preferred shares |
(620,246 | ) | (435,246 | ) | (1,055,494 | ) | (870,492 | ) | ||||||||
| Less: Undistributed earnings allocated to non-vested shares |
(1,373,366 | ) | (1,293,969 | ) | (1,169,371 | ) | (2,181,937 | ) | ||||||||
| Adjusted net income attributable to common shareholders, basic |
24,618,544 | 20,421,487 | 60,412,934 | 36,611,687 | ||||||||||||
| Denominator |
||||||||||||||||
| Weighted average number of shares |
16,816,597 | 27,965,872 | 15,940,369 | 27,789,766 | ||||||||||||
| Adjusted EPS |
1.46 | 0.73 | 3.79 | 1.32 | ||||||||||||
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except for number of shares)
| Quarters Ended June 30, | Six Month Periods Ended June 30, |
|||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||
| Revenues |
||||||||||||||||
| Revenues |
59,044,221 | 47,041,881 | 124,465,322 | 88,245,162 | ||||||||||||
| Expenses |
||||||||||||||||
| Voyage expenses |
18,522,418 | 16,524,695 | 34,600,245 | 29,488,302 | ||||||||||||
| Voyage expenses - related party |
736,269 | 587,970 | 1,546,799 | 1,102,384 | ||||||||||||
| Vessels’ operating expenses |
6,885,309 | 6,389,255 | 13,761,185 | 12,340,816 | ||||||||||||
| Vessels’ operating expenses - related party |
89,333 | 77,500 | 154,333 | 159,500 | ||||||||||||
| Drydocking costs |
696,934 | — | 1,318,310 | 625,457 | ||||||||||||
| Management fees – related party |
473,880 | 411,840 | 871,640 | 805,640 | ||||||||||||
| General and administrative expenses |
1,487,436 | 1,476,204 | 2,466,405 | 2,683,372 | ||||||||||||
| Depreciation |
4,601,209 | 4,208,008 | 8,690,061 | 8,235,069 | ||||||||||||
| Other operating income |
— | (1,900,000 | ) | — | (1,900,000 | ) | ||||||||||
| Impairment loss |
8,996,023 | — | 8,996,023 | — | ||||||||||||
| Net loss on sale of vessel |
— | 1,589,702 | — | 1,589,702 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
42,448,811 | 29,359,174 | 72,405,001 | 55,130,242 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from operations |
16,555,410 | 17,676,707 | 52,060,321 | 33,114,920 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other (expenses)/income |
||||||||||||||||
| Interest and finance costs |
(459,166 | ) | (5,797 | ) | (1,810,769 | ) | (8,227 | ) | ||||||||
| Interest income |
851,930 | 1,221,907 | 2,131,146 | 2,257,168 | ||||||||||||
| Interest income – related party |
— | 765,819 | — | 1,516,436 | ||||||||||||
| Dividend income from related party |
20,833 | 189,584 | 20,833 | 379,167 | ||||||||||||
| Foreign exchange (loss)/gain |
(142,522 | ) | (323,782 | ) | 149,056 | (1,080,422 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other income, net |
271,075 | 1,847,731 | 490,266 | 3,064,122 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
16,826,485 | 19,524,438 | 52,550,587 | 36,179,042 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per share1 |
||||||||||||||||
| - Basic |
0.91 | 0.64 | 3.17 | 1.20 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| - Diluted |
0.73 | 0.56 | 2.78 | 1.06 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of shares |
||||||||||||||||
| -Basic |
16,816,597 | 27,965,872 | 15,940,369 | 27,789,766 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| -Diluted |
21,366,486 | 32,069,815 | 18,304,134 | 31,515,129 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Imperial Petroleum Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
| December 31, | June 30, | |||||||
| 2023 | 2024 | |||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
91,927,512 | 69,738,832 | ||||||
| Time deposits |
32,099,810 | 60,012,100 | ||||||
| Receivables from related parties |
37,906,821 | 39,552,371 | ||||||
| Trade and other receivables |
13,498,813 | 18,538,547 | ||||||
| Other current assets |
302,773 | 637,833 | ||||||
| Inventories |
7,291,123 | 8,706,419 | ||||||
| Advances and prepayments |
161,937 | 604,824 | ||||||
|
|
|
|
|
|||||
| Total current assets |
183,188,789 | 197,790,926 | ||||||
|
|
|
|
|
|||||
| Non current assets |
||||||||
| Operating lease right-of-use asset |
— | 114,912 | ||||||
| Vessels, net |
180,847,252 | 201,878,424 | ||||||
| Investment in related party |
12,798,500 | 12,796,417 | ||||||
|
|
|
|
|
|||||
| Total non current assets |
193,645,752 | 214,789,753 | ||||||
|
|
|
|
|
|||||
| Total assets |
376,834,541 | 412,580,679 | ||||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities |
||||||||
| Trade accounts payable |
8,277,118 | 5,568,261 | ||||||
| Payable to related parties |
2,324,334 | 3,476,164 | ||||||
| Accrued liabilities |
3,008,500 | 3,208,264 | ||||||
| Operating lease liability, current portion |
— | 72,704 | ||||||
| Deferred income |
919,116 | 1,408,181 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
14,529,068 | 13,733,574 | ||||||
|
|
|
|
|
|||||
| Non current liabilities |
||||||||
| Operating lease liability, non-current portion |
— | 42,208 | ||||||
|
|
|
|
|
|||||
| Total non current liabilities |
— | 42,208 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
14,529,068 | 13,775,782 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity |
||||||||
| Capital stock |
332,573 | 345,835 | ||||||
| Preferred Stock, Series A |
7,959 | 7,959 | ||||||
| Preferred Stock, Series B |
160 | 160 | ||||||
| Treasury stock |
(5,885,727 | ) | (8,390,225 | ) | ||||
| Additional paid-in capital |
270,242,635 | 273,924,745 | ||||||
| Retained earnings |
97,607,873 | 132,916,423 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
362,305,473 | 398,804,897 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
376,834,541 | 412,580,679 | ||||||
|
|
|
|
|
|||||
Imperial Petroleum Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars
| Six Month Periods Ended June 30, |
||||||||
| 2023 | 2024 | |||||||
| Cash flows from operating activities |
||||||||
| Net income for the period |
52,550,587 | 36,179,042 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation |
8,690,061 | 8,235,069 | ||||||
| Amortization of deferred finance charges |
474,039 | — | ||||||
| Non-cash lease expense |
31,349 | 35,086 | ||||||
| Share based compensation |
1,091,189 | 1,895,372 | ||||||
| Impairment loss |
8,996,023 | — | ||||||
| Net loss on sale of vessel |
— | 1,589,702 | ||||||
| Unrealized foreign exchange loss on time deposits |
— | 773,620 | ||||||
| Dividend income from related party |
(20,833 | ) | (379,167 | ) | ||||
| Changes in operating assets and liabilities: |
||||||||
| (Increase)/decrease in |
||||||||
| Trade and other receivables |
(3,360,823 | ) | (5,039,734 | ) | ||||
| Other current assets |
(136,130 | ) | (335,060 | ) | ||||
| Inventories |
(2,062,365 | ) | (1,415,296 | ) | ||||
| Changes in operating lease liabilities |
(31,349 | ) | (35,086 | ) | ||||
| Advances and prepayments |
(373,262 | ) | (442,887 | ) | ||||
| Due from related parties |
(42,042 | ) | (1,645,550 | ) | ||||
| Increase/(decrease) in |
||||||||
| Trade accounts payable |
500,001 | (1,861,518 | ) | |||||
| Due to related parties |
(2,709,982 | ) | 1,058,531 | |||||
| Accrued liabilities |
1,020,949 | 199,764 | ||||||
| Deferred income |
(801,066 | ) | 489,065 | |||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
63,816,346 | 39,300,953 | ||||||
|
|
|
|
|
|||||
| Cash flows from investing activities |
||||||||
| Dividends income received |
— | 381,250 | ||||||
| Proceeds from sale of vessel, net |
— | 41,153,578 | ||||||
| Acquisition and improvement of vessels |
(26,284,405 | ) | (72,856,860 | ) | ||||
| Increase in bank time deposits |
(61,912,900 | ) | (91,715,140 | ) | ||||
| Maturity of bank time deposits |
68,000,000 | 63,029,230 | ) | |||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(20,197,305 | ) | (60,007,942 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from financing activities |
||||||||
| Proceeds from equity offerings |
12,095,253 | — | ||||||
| Proceeds from warrants exercise |
— | 1,800,000 | ||||||
| Stock issuance costs |
(198,587 | ) | — | |||||
| Stock repurchase |
— | (2,504,498 | ) | |||||
| Dividends paid on preferred shares |
(870,494 | ) | (777,193 | ) | ||||
| Loan repayments |
(70,438,500 | ) | — | |||||
| Cash retained by C3is Inc. at spin-off |
(5,000,000 | ) | — | |||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(64,412,328 | ) | (1,481,691 | ) | ||||
|
|
|
|
|
|||||
| Net decrease in cash and cash equivalents |
(20,793,287 | ) | (22,188,680 | ) | ||||
| Cash and cash equivalents at beginning of period |
57,506,919 | 91,927,512 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
36,713,632 | 69,738,832 | ||||||
|
|
|
|
|
|||||
| Cash breakdown |
||||||||
| Cash and cash equivalents |
36,713,632 | 69,738,832 | ||||||
|
|
|
|
|
|||||
| Total cash and cash equivalents shown in the statements of cash flows |
36,713,632 | 69,738,832 | ||||||
|
|
|
|
|
|||||
| Supplemental Cash Flow Information |
||||||||
| Interest paid |
1,735,054 | — | ||||||
| Non-cash investing activity - Vessels’ improvements included in liabilities |
322,527 | 11,981 | ||||||
| Non-cash investing activity – Dividend income from related party included in Investment in related party |
— | 160,417 | ||||||
| Non-cash financing activity – Dividends declared on Preferred Shares Series C included in Balances with related parties |
185,000 | — | ||||||
| Non-cash financing activity – Dividend on preferred series A included in payables to related parties |
— | 93,299 | ||||||
| Distribution of net assets of C3is Inc. to shareholders and warrantholders |
20,957,952 | — | ||||||