Imperial Petroleum Inc. Q4 FY2024 earnings call

• Market conditions in Q4 2024 were atypical with softness in the tanker market due to geopolitical tensions, mild winter, etc. - Operational utilization in Q4 was 86% with increased time charter coverage; 12-month operational utilization was 78.3%. - Fleet grew to 12 vessels with the delivery of Clean Imperial in Jan 2025. - Financials: Softer market conditions led to lower Q4 revenues but higher operating income due to solid operational utilization. 12-month results were satisfactory with a profit of $50 million and operating cash flow of $78 million. - Tanker spot rates softened in 2024 but saw some recovery post-refinery maintenance season. - Oil demand expected to grow steadily, driven by emerging economies and Chinese oil demand recovery, though Yuan depreciation might impact crude imports in short-term. - Geopolitical events like sanctions and trade tariffs could impact oil tanker trade and rates.

For Q4 2024, revenues were close to $26 million, operating income was close to $5 million, and net income was in the order of $3.9 million (sharply undermined by a $3.3 million foreign exchange loss). For the 12-month period, the company ended with a hefty profit of about $50 million and an annual operating cash flow close to $78 million. Operational utilization in Q4 was 86%, attributed to increased time charter coverage. For the 12-month period, operational utilization was 78.3%, with about 69% of fleet calendar days dedicated to spot activity and almost 29% to time charter activity. The tanker fleet totaled 12 vessels after taking delivery of the product tanker Clean Imperial in early January 2025.

• Upcoming vessel deliveries in Q2 2025 and related vessel payments in the second half of 2025. - Key focus on materializing fleet growth plans, sustaining profitable momentum, and seeking opportunities to enhance the company.

• Geopolitical tensions such as Red Sea disruptions, sanctions on the dark fleet, and U.S. trade tariffs on China, Canada, and Mexico could materially impact the global energy trade and oil tanker markets. - Yuan depreciation raising the cost of imports might affect crude import volumes in the short-term. - Aging fleet vs newbuilding deliveries, where number of vessels above 20 years of age outweighs newbuilding deliveries, but still limits oversupply risk to some extent.