Imperial Petroleum Inc. Q2 FY2025 earnings call

• Fleet expansion: Within Q2 2025, took delivery of seven dry bulk ships, expanding fleet by ~56% to 19 non-Chinese-built vessels. Majority of dry bulk deliveries were at end of Q2 2025, so didn't fully contribute to bottom line yet.
• Profitability: Q2 2025 profit was $12.8 million, improved vs Q1 2025 mainly due to increased tanker time charter coverage. Despite weak seasonal period for tankers, profitability improved.
• Fleet value: Fleet book value increased by ~55% to ~$350 million against previous quarter.
• Liquidity: Entered first half of 2025 with $212.2 million in cash and cash equivalents, maintained positive working capital and sufficient quarterly cash flow generation.
• Net asset value: Based on June 30 financials and fleet market values, net asset value per share was about $13.5, almost four times current market price.
• Fleet deployment: ~80% of fleet under time charter; tankers had four vessels in spot market and five under time charter employment.
• Market rates: Daily rates for tankers and bulk carriers strengthened compared to first half of 2025; tanker rates lower than 2022-2024 peak but still robust vs ten-year average; dry bulk trade showed signs of rebounding since July 2025 with 2% year-on-year volume increase.

In Q2 2025, Imperial Petroleum Inc. generated a profit of $12.8 million, corresponding to an earnings per share of $0.36. For the six months, EBITDA was $31.8 million, operating cash flow was $42 million, and net income was $24.1 million with an EPS of $0.67. The fleet expanded by about 56% in Q2 2025 with the delivery of seven dry bulk ships, increasing the fleet book value by about 55% to $350 million. About 80% of the fleet is under time charter. For tankers, in Q2 2025, average daily spot rates for product tankers were lower than the same period in 2024, but time charter coverage increased. For dry bulk, trade showed signs of rebounding with 2% year-on-year volume increase since July 2025. Revenue in Q2 2025 was $36.3 million, a $22.8 million decline from Q2 2024 due to lower market rates. Voyage costs were $6.4 million lower in Q2 2025 than Q2 2024.

• Management hopes to take advantage of favorable market rates in the second half of 2025, utilize the fleet at full speed, and produce even better results.
• Anticipate leveraging the positive market conditions in the latter part of 2025 to optimize fleet utilization and drive improved financial performance.

• Geopolitical events: Turbulent market in Q2 2025 due to Israel-Iran War caused spike in tanker rates and affected market sentiment.
• Trade policy risks: Ongoing negotiations on trade tariffs like China-U.S. discussions cause trade frictions impacting market sentiment.
• Sanctions: Expanded sanctions on Russia and Iran could alter trade partners, creating trade disruptions and rate volatility.
• Red Sea transits: Low Red Sea transits remain a factor, with any vessel rerouting back from Red Sea in near term unlikely, affecting dry bulk ton mile growth.
• Regulatory and environmental pressures: Intensifying regulatory and environmental pressures could intensify demolition activity for older tonnage, shrinking vessel supply.