Imperial Petroleum (IMPP) 8 May 232023 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q1 2023 Imperial Petroleum Results Call. At this time, all participants are in listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please not that today's conference is being recorded.

to conference like speaker to now Mr. would hand over the you I of Petroleum. Vafias, Imperial Harry CEO Please sir. go ahead,

Good morning, Imperial everybody, today will for Vafias, the be and CEO is thank you quarter the financial Interim conference for Ms. XXXX discussing Sakellari, call CFO, with our of and Petroleum. our Harry first I'm me joining who us performance.

by Securities statements affect In we'd harbor performance. the the essence, fact you all of as the safe disclaimer Before uncertainties risks Act. this slide defined contain to attention like our company's our forward-looking made such and presentation we to Private potentially involve some And the we it's we may presentation. raise commence that clear investors that forward-looking like -- and Reform our our of two in discussion, investors Litigation number may read which statements

denominated amounts quote In stated otherwise addition, we call, we'd will all U.S. like this to unless explicitly during that in dollars. monetary state are

Starting a from highlights. summary company's performance slide of our three as

the XXXX Petroleum. Imperial The first for possible best turnout quarter had

record we million, our income period the with net ended of outstanding a fleet performance of an almost for As a size. $XX

our in per EPS or earnings close price. $X.XX, share came Our is which to share current at

a with capital debt. Imperial million with of our outstanding a pay past cash is to XXXX, the standpoint. In now performance return of equity year in all in a that strategic XX% We deployed busy an be conjunction the short for of structure. with debt quarters, March annual cannot our about a $XX from unnoticed. region agenda XX-months XXXX trailing based Imperial generate we company return aside Setting Petroleum our flexible to free on commenced on left Petroleum the order

reaching Striving company carriers, spin-off we handysize our we ships. XX two CCIS. two Furthermore, for carriers of called a bulk a proposed bulk separate the acquired of at fleet of total more growth, dry

requirement. XX the split XXXX, regain on the order we to with Finally, for affected compliance in price stock X XX, April bid reverse minimum NASDAQ

to driving to perhaps debt Our company capital provide their spin-off in unencumbered order of has who to allow more shareholders, to is our just are and a owns investment our NASDAQ, a and an structure financial fleet shareholders. with to strategic expand to us granted which free has taken initiatives assurance flexibility terms diversify compliance enjoy in regain performance with action

positive share We company. valuation true assist of trade recover remain the a at deep reflect will NAV, realistically to continue the solid price discount our at profitability to but to our and

employment, summary On four, we our as provide slide under our of of drybulk charter time employment. a fleet are evident carriers all

Suezmax of and spot the a rates the year As ago. our Aframax in conclusion market. for all charters, reflected all to tankers well. in they're compared as market upward rates performance strong, be Magic This tankers, is continues our tankers for particularly when product operating Indeed, legacy XX trend following spot the to on Wand's prevailing

about XXX%. maintained demand in per evidently owners. ‘XX of the in rates partners for are Russian, along this marking ‘XX Our Change was charter Ukrainian in with conflict and high QX which firm daily QX a voyages equivalent the to longer the have are $XX,XXX trade levels, oil following $XX,XXX day, made climb haul, rise time favorable

and to facilitated growth is China, per demand mostly has will grow in-domestic market. will day ore Global this which back by by be restrictions. by spite in the no caused crisis, the X This This held about In rise global slide year. longer volatility recent tanker of forecasted million COVID five, barrels demand. to give some the the that Western reviewing we're recession On Banking is economic market.

till the imports, In OPEC+ second-half which refinery this, of crude April record announced in an expected to production measure impact and the to in hit a year the short of the support in of activity rates of that China precautionary had and the XXXX, Arabia from supporting run. market. as May intensify the the end Saudi cuts XXXX. other has is addition in oil beginning that In members This voluntary the will stability

and changes However, the fleet along weakness expect with trade growth share base is little arbitrage, a in the not to we market. flow Atlantic East and do lasting noticeable long

as Are to various global events is to make the by market is and impacted future tanker evident that difficult performance. predictions

ahead. has and a of X%, freight demand oil slower demand firm conditions favorable perhaps of about high in while utilization rates present high experts Since periods higher continuation for pace grown However, or by a oil XXXX followed In the volatility the and broader some very tanker growth. market. global other in the peak outlook Overall tail a in to late anticipated this positive demand XXXXs market. shortfall have words, and creates X% for there's long the and have is a supply to a

market. On on focusing tanker product slide six, we're the

year basin for this The while patterns. growth beyond year, be demand due the outlook Aframax and been to exceed and tanker trading fleet remain mostly the segment market book X% will seaborne and order product haul Suezmax crude positive have supported the expect tanker tanker this longer by tanker We this for will Intra small demand. XX%. Product Atlantic to growth

markets. tanker during tankers oil the as side, markets but imposed dirty start oil especially sanctions trade trade market on first the healthy patterns enjoying an a freight year, quarter, significant to continue of were result and The rates flows strong show the on extremely strong changes comment to a to be driver the also Briefly the and clean product main the Russian in cargoes the coming in levels too. behind

recovery the Russian coming of to also and Black to lockdown started their continues significantly from Sea. the oil imports, China of increase out quantities Euros large and of erosion crude buy India the Baltic

buyers to outlets came major nations restrictions resulting in and except led products the products February new as cap effect is dirt In [Indiscernible] addition, find which in Russian ton and on GX of oil increase Turkey miles. both are X, of for the oil Russian to these majority clean into having

QX the but the historically Suez, strong with not Atlantic did rates trade dirty highest side, on On also kind levels sides enjoyed owners very a of market dirty paid see the Aframax that the Atlantic market a high of relatively especially East experienced, the and the of the solid segment saw Atlantic. and the market picks both had stable their there.

similar. volatility for On clean more others we the out saw but side, the East of quarter than of Suez, West quite the turned Suez

now I’ll you Sakellari’s our a provide of Ms. performance. will to summary on pass financial

and fleet ‘XX, good net morning $XX Harry, for quarters off. the vessels and to of profitability the quarter revenue first generate and about XX to of you, is our Thank impressive managed The took everyone. to income million that the of In encouraging follow. fact

days conditions with favor XX% days market We with an operations, ended activity. and and to profitable or the spot sound evidently our and fleet of spot be XXX of utilization hire off operational this a dates to technical proved quarter Both days XX% of decision. six dedicated very

statement average increase ’XX, for seven, a income ‘XX, million, our QX due at on by our rates ‘XX an to of revenues quarter $XX.X the million, increase in at further of compared to slide and in the up first market of came QX vessels. compared $XX.X Looking six fleet to by

cost in days daily to ‘XX. the Voyage by $XXX, compared due X,XXX% increase the rise is QX that $XX.X by $X,XXX, and million, costs spot bunker increased to by in

$X.X expansion, of decreased to joined we similar our by OpEx operation our the costs Our handysize not of carriers the ‘XX of fully fourth the remains compared as number vessels solely the ‘XX quarter had million results. in fleet and second attributed expect our fleet quarter end drybulk the stable. We rise two OpEx reflected in to the ’XX of our do of when cost in QX therefore, daily towards running a was

we EBITDA million of ‘XX. higher is that a than generated above in strong Basically, million $XX X,XXX% QX or $XX.X

to million Our high an the EPS $X.XX of net was the XXXX. effective adjusted on XX, fleet, as based corresponding on outstanding for of April number profit shares of an all-time $XX.X reverse result

for XX%. margin in was the of order quarter profit the Our

on to eight. Moving slide

three XXXX. a the sheet take us the at Let for of look months balance

our one had we of deposits. March, cash million repay within debt further cash company Imperial assets we with the April, another and including $XXX to million unencumbered all free deployed Petroleum a while free repay zero As debt. now earlier financing. base is utilized our of full, loans, in XX, we of from to of about March flow Within million $XX XXXX, $XX time stemming outstanding obligations

as the capitalization. much was Our as flow from almost market $XX operating fleet quarter quarter, generated we million, a single our cash cash operation, the for in so

of interest QX As to-date, for -- cash costs utilize our are to upon fully high we against are the the on close hedging $XX commit ‘XX, high environment then in million, generated our cash rate excess Yields will only region million and the $X.X continue to period. we interest deposits. of and time income, starts finance

present In our slide financial position. nine, the we solid on snapshot efforts financial placing

healthy Going our $XX may expand high forward, and a annual Funds Difficulty] repayment and flow both cash savings, balance financial $XX our liquidity [Technical Full quite to fleet We good lead and million. as million investments. principal earlier, of in further. will the be mentioned to enjoy region is asset cash debt interest almost sector. of directed that to

is provision strong charter X,XXX. Imperial most following basis is capable debt proved return order Looking full the and our results the repayment, that mathematical returns. vessel to impressive [$XX,XXX] at equity is cash reaching our on our last breakeven be profitability A is equivalent continue Petroleum company QX about fast a impressive and produce XX flow (ph). time months per our What that daily daily to ‘XX, XX%. grow trailing in of came may proof

crisis to our which question XXXX, anticipated duration of of Our base from OPEC market and this recession banking second-half oil this is that considerations and is One increase a supply recent will is how in going market. out oil strong and demand will still Moreover, the global the but affect forward unsure. extent the of affect will the the play stem conditions mostly segment.

the company to are XXXX. five place our drydocking capital of obligations on take to specific, Moving remainder in going only scheduled forward

with but Petroleum be make returns. in finally a XX, track words share our of impressive hope the which once successful we a points will outlined simply should company price. reflected Concluding that proven slide our company's our budget a expansion, more We record fleet short, presentation has immediate that that strong Imperial

examined. will for period At remarks this stage, summarize concluding Vafias, CEO the our our Harry Mr.

revenues the in first XXXX of resulted quarter record in profitability. performance and Our

net are tanker and are on efficiently about of Commercially, average pleased strategies $XX increase, year. last of a off. generated X,XXX% marking an the an in of produce quarter to higher of to single million, ships We net compared fleet paying $XX same income EBITDA we XX of XXXX utilized in period million and is income the capitalize extremely our about the the that market XX,XXX% strong first than quarter

two of a separate of spin-off CXis. a called our dry proposed vessels we Strategically, to company

terms that from positioned have of good paid financial all shares. our we debt down to Without a our doubt, seem the are market strategy, conditions benefit In and new issuing stopped last to going forward. well we

now presentation the the have and your questions. end floor to for reached We open the would of like

floor. So the operator please open

Instructions] sir. [Operator Thank you,

of We will take total not a more. XX question,

We the proceed [Indiscernible]. come are the now to Jason first question. our Please ask question. of question And with line your going from

Hello, hi. Can you hear me? Hello?

Jason. Hi,

evening, you or afternoon wherever good are. Hi,

are the I States world. want social the really So see about management a the than online, has in more Yahoo I they Reddit, to degree, what and a shares? here of investor I've perception is negative the prevalent about whatever. wants your really a want United Whatnot, invested been common stocks now reassurance you an been commentary websites of media, Marketplace, is guys to style and community a over, give here company, bit ever, been guess elsewhere guess, to And I that certain what since some in hear we stuff investors? ever, ride. statement. investment than little really year And to And future know the about from in started, guys you guess probably more trusting definitive I and And for about management dilution to in

a The company got a criticism and a no say. company in year just I lot assets with year -- XX. company grew the with to grew free need we release company for issue of we The of from fairly, small four debt ships last now, We assets in over of really very million debt would from don't money have shares press We a to plenty no just debt. said the and excess $XXX assets. an to any that in with more and few

All if know any unencumbered, of doesn't give this our I so fleet to what comfort is don't will. shareholders,

think from for I Speakers] know or what in whether future, waiting and I [meet] would like to with verbal [Multiples whatnot, We've that In of just starts common compensation the good I sort sir. I give (ph) see when declaration management that of a been to been move would impact will we’ve performance you actually it market. shares. for, company? waiting compensated a management but of there's some in kind being don't shareholders the think the

you, And we discussing Thank is exactly that Jason. board that I speak. the think as

overall. Excellent, impressive keep sir. guys and Well, you are numbers job I a these fantastic I -- again, beyond I it have think done up. mean

Thank you.

Yes.

going to now next question the ask are line from We with Edward your Humphreys. question. come proceed of our The question. Please

Hello?

Hi, Edward.

by to all be the the I lot you've hear off kind company you are how start and just operations really a here by that don't sheet question. there. or the saying Hi, diluted to it's grown the much Harry. Thanks and hearsay I of want impressive undervalued for to-date. balance that healthy and of taking want how

have the global unique And advantage both phenomenal now. markets in doing and of we're it's taking say, think job let's the So guys I commendable. right public very you I situation been think the

off, there. I just just want hit piggyback I kind to Jason the it on think right head of

even of could profits. let's XX% I so common just of revenues, put this point. get with mean, thinking shares profits would just put company We're if the itself is about everyone think there, very kind same. impressed I say a million out you or quarter's one the management into X share price buyback, or at the the I

of to course to company? would multiple that reiterated region. net value, generate the were is resell to times returns mean, close you've the the If asset $XX shares you which to closer guys I substantial those

what And doing. been the put guys job then of towards fleet this be course that have could growing you terrific and continuing

with So and just valuing the a benefit wanted management think definitely what truly guys I of that If company here I difference in you could the the advantage it the take is tremendous reiterate on and opportunity definitely I think price arbitrage, clear get that have here. benefit kind market to has could company shareholders? and of at what we the that,

it of you, the definitely you, it's our will be board. with meeting next Edward, Thank the discussed Thank whole board be appreciated. at members

Take Harry. care. you, Thank

question. now Please And are comes Tribco We to proceed going from your the next question with Partners. the Randall Thomas ask our line from question.

hear Hello. me? Can you

Hi, Thomas.

Hi.

help have degree never amount semi-retired, a an first you note have to a to banker because congratulations seen just the spectacular you this incredibly your to quarter to is that company of undervaluation Investor XX-years, was I will hedge and equivalent to of a team on company. Relations want you market ever profit First your a of smaller reported good story the clubs, investment management and publicly of held funds compelling what quarter. on make suggestion I'm the all, retain present investor is compelling firm that an story. only capitalization of My I in the the I'm Friday. of

aware the of on are they you believe that I do and can of naked you of very job all all company, vicious are of most operators that but marketplace we going a tremendous operating sellers. the as the sure short And know. shenanigans I'm be Now for in your

as one other long buyback consider. that is convince something for as But and floor the that, stock. two, would company good The I the to you're going the shareholders a this community. suggestion you that present have know to the about put of investment on clearly long-term certainly managing to a you're firm a you number And number

company this do will fine. I think just

what on congratulations done company. many this with again, you've So

much, you very Thank Thomas.

Your experience really counts.

and one that with companies. spread calls so from how companies ever late on doing has selective larger solid than Everybody the better to on realized now go cheaper on And YouTube exactly interviews one investors. are story. the and We through that how

and that thank So we the value [Technical the going Difficulty] hope stock value ahead. real But will gap between narrow the you. of

very you Thank much.

line questions from come We to proceed ask And question. of the going from are your Shepherd our next Black Scott Castle. the question. now Please with

Can hello. hear you me? Yes,

Scott. Hello,

the on Congratulations quarter.

might beat what stock And horse, with the dead it on you my phenomenal. Not buybacks, capital done considering, I'm dividend. the exploring you. dividends, stock a question to company was but give impressed think I besides company. other is capital? What have that you if really with that guys for little be that a buybacks can uses retaining Thank purposes the potential a with potentially? company insight or us on is

debt Yes. not I would fast. we mean be QX expected free that last in would year, we have so

the that was to really priority, think. capital haven't viable our the is we I board, market did, debt and down are the there to therefore, thing see we through because QX And So between the reducing do a the And roof. really that wait going if that interest as to the we of we or QX. explored or was zero the first management the uses the fleet and if difference continues in yet strong buyback should rates further expand opinion a should should be in

say these aspects page, making cash any I all discussion. that issuing The is three, are has think there So we're let's need free, shares. further company debt a two, more the same machine. not the we're become company on But

have have to of within all next think go on one, with. the option we news decided I So following we more quarter which concrete the

you. Thank Great.

questions now are question. our the to come of going Please from with We Imperial Petroleum. next Friedrich proceed your Jeff ask And next line question. the from

Yes. the CXis filing hi. SEC IN the for Hey document.

the of IMPPP you shares for now owns. the You part IMPP put that a that guys buyback in mentioned

accordingly of XXX% to the Of at is reverse going still course, it was reduced that split happen? amount by the by price, the shares

an so accounting us team and with to send it's through question. it email well I questions, Jeff. Sorry, back get as can go you. specific to our we'll we didn't the understand with If possible the

All the Well, right. right. -- All okay.

for you're It's please. easier email, an to send understand us asking Just what for.

I Well, just SEC question asking the was document. something regarding of Okay. a out

the -- CXis the Regarding SEC program?

possible it first Yes. on an I not email, so Speakers] for it's the understanding. if send will to repeat time [Multiple

Yes, totally it. you. yes, Okay. got Thank

Thank you, you. Jeff. Thank

We The Haberman of Ross our ask comes next from to question. are line question. going next proceed Investments. question with the from now Please RLH your

ago. morning. of the are same Because And Thanks rationale off? not them these you they tankers, carrier us to them? ship. taking you quarter. different off? I call. rationale? sort little give from you. Thank just the ask quick Very sort you And for spin my buying type a question. ships, which a purchase ones for they're which purchased couple of were are a of oil bulk Could you spinning nice months of for the us Good Could but now the wanted rationale yourself now a Could of us give the give why

Yes. Ross. you, Thank

think because is for quite the well, tanker simple, tanker doing I the it's gone market has so ballistic. prices assets

then some they shareholders, bulk they new shareholders in make either our market market. hold sell buying for are very this this our money get asset believe money, by it in an back if is booming instead We to of expensive, out, a believe is option if and valuation as dividend a of currently lot generating Such these the to the so spinning we carriers ships the and a find not shareholders? nice or an expensive. asset they not therefore which a going try stock two so don't our in which And bonus, because is can and market or

I trade begin to to When new may stock ask? is that if going

It's yet waiting legal the SEC from we're proceedings. not some finally

don't I unexpected goes June. of we beginning any well, think delays before it have

I guess. So very soon,

new it, continues your tanker which a the positive other ships. this just you saw ships quarter. And like we you follow-up of you're to possibly business realm of you just cash, Will Will the buy use to you within like did very use assuming non-tanker in or stick generate going sort manner question. one oil

you ship much sort And I to different aspect, went what -- off was shareholders of questions. negative thank of of that But see purchasing? for of do. the and you which one positive a think think less the the is I some into with that's were type surprised a aspects little taking bit very that a of you veered

Yes.

that when is last same exactly they're strategy. short was We Imperial the the were comments Petroleum. have tanker did think why by their investors StealthGas, which I because memory, a which a why company getting assets normal gas very year StealthGas, company veiling and mother off spined-out

saw some and this Of times took stock the out times, made nowhere. times, people highs course, X X their of Petroleum Imperial X who money that

Petroleum class, again So we facing different are assets of them buying are we Imperial from out. criticism. the is we'll where And same point and again, a spin now

the spined-out, out So before, I and very hold we're of can a last thing. I you you the as understand with happened share, which it's and a look why mother Because what company, positive actually it think assets year or get sell. doing you'll separate said

the and the a lies very shares to have the us. with big is or not with So to shareholder a for This power and them. nice free shareholder authority sell decision the keep

you. Thank

the now question. We Lance Gad question. your ask from with proceed our line going Please to next the from And Foundation. question are Gad the of come

was hello. of how split Petroleum the [$XX.XX] StealthGas enormous? shares Why Yes, of have $XXX.XX. maybe Imperial a the -- I'm I was think $X.XX When the and it (ph) $X.XX. it allocated why out split, those I now was $XX it was -- basis that and curious, $XX.XX with see, let's was basis came Yes, $XX.XX about? was reverse and before reverse so number spun

the rules. delisted. we and would I say cannot But company continue value SEC trade I if the would zero. what according the not answer that. we the to do below This pink be $X, issue The would and slips accounting legal the that is be did be split and stock in if is a to can reverse

was do and could going our to the we thing give to only So company keep liquidity it the shareholders. some

Right.

to I to a understand market $X.XX, we can't before how I that NAV had, was the split, thing was at believe yet raise announced buy the good I the in to that do. company the were shares we ships, about question of reverse money other The $X.XX selling

right to Lance all it also absolutely total company we did why you're and withstand market with down very, zero, right, money with today company very conditions. buy that's but we any can strong makes doing debt stopped we a that the which and [Indiscernible], not absolutely only ships, You're the our repaid

today's sold And is what stock awful an But the we price lot we made today's a approximately in price. below at of even price quarter.

I to to couldn't, we So it seemed me that that? do would be absurd

forecast couldn't you we we market spot, foresee if lot there the Yes, you charter know of the to market can if your make our when QX. future, earnings. good, means going were making the money so good, couldn't lose we're you ships can in of all contracts a that Because not much money be lot were not is that on Spot or money. can is a time

paid risk So risk, it's it took and out. a we that

money. we happy. today's don't need any why are that's any So We money,

We no debt. strong. The is have company very

have price. anymore with programs We no the And NASDAQ move compliance ahead. we

you. Thank

is question. from going your next question are the question. ask our proceed Please We [Indiscernible]. next to And with now

Hi, Harry. hear me? you Can

Yes.

believe main Hi thing with trying there. understand or the share net below with so management own value, I why was to so much -- any common you no just do if far I'm price marketplace, opportunity asset the I'm shares? there's you curious, the

that don't you common shares? own we any told Who

be filings. would They SEC an

a booming share single (ph) when with stock bit the own a the [service] shares, And of my year to was common We think do honest a you, not I ago sell or friend. longer, owned. be the management exactly did good

made lot lease in at We of money, didn't. that showed one were that trading showed that a high could company. have very the So levels we shares the

if Why would if there be value, net a interest asset purchase not to -- is XX% there more no discount it's more? for

both we NAV. to don't absolutely companies the that but discount at two forget that are right, own You public trade

we moment, are stock have to But At buy so we obviously, I a with Gates. very not you. Bill today's manage I is good We fundamentals. the agree agree. our don't with own billions, the have So assets. carefully

Thank Okay. Harry. you,

Vafias to closing time the here. the will we the back Harry Mr. question-and-answer now remarks. conference for will Given you. I end Thank hand session constraints,

thank with to and trust call the company, look you for next and at having our again for and very second like joining much. us our call We'd you you quarter all at results. today conference patience conference to we your and interest Thank forward in for our us

gentlemen, you that concludes Thank for call. Ladies participating. conference and today's

may You now your you. disconnect lines. Thank