Imperial Petroleum, Inc. Q2 FY2024 earnings call

• In Q2 ‘24, leveraged strong rates and efficient fleet utilization, particularly product tankers West of Suez, to generate $20 million profit, second best quarterly performance. - Operational utilization was 81% with 80% of fleet calendar days in spot activity. - In May 2024, acquired a handysize drybulk carrier and a product tanker, with delivery of handysize drybulk carrier on Aug 24, 2022, and product tanker to be delivered end of 2024. - High liquidity: cash as of end of June ‘24 was $130 million, currently ~$190 million, debt-free balance sheet. - One MR tanker, Clean Justice, fixed on 3-year time charter securing ~$30 million in revenues.

In Q2 ‘24, Imperial Petroleum generated a profit of about $20 million. Revenues in Q2 ‘24 were $47 million, down 20.3% from Q2 ‘23. EBITDA for Q2 ‘24 was $21.8 million and net income was $19.5 million. For product tankers, rates were higher in the first-half of 2024, especially towards the end of Q2 ‘24 due to firmer activity in the Atlantic Basin from higher U.S. exports. Suezmax rates were lower in the first-half of 2024 compared to the same period last year, but still at fair levels historically. The dry bulk market outlook is positive with handysize drybulk carrier earnings in Q4 ‘24 60% above long-term averages.

• Expect Q3 ‘24 to be soft due to summer market conditions. - Anticipate firm market strategy for crude tankers in winter season if geopolitical tensions remain. - Global oil demand expected to grow by 2.3 million bbl per day year-over-year in second-half of 2024, driven by U.S., China, with India leading global demand growth ahead.

• Russia-Ukraine conflict continues to impact European energy sources with long-lasting effects. - Red Sea diversions likely to last beyond 2024, affecting Suez Canal transits (down ~50% in 2024 vs 2023 for product tankers). - Houthi attacks threatening Red Sea shipping, increasing ton-mile distances and freight rates but also uncertainty.