Imperial Petroleum Inc. Q1 FY2025 earnings call

• The first quarter was affected by geopolitical factors like U.S. tariffs, sanctions on tankers involved in Russian oil, and USD port fees on Chinese-built vessels, causing tanker rate volatility. • The quarter started soft but picked up in March, and the company has remained profitable since the fourth quarter of 2021. • Fleet employment: 7 out of 13 ships are under time charter, with 3 handysized dry bulk carriers on short-term time charters and 4 product tankers on time charters expiring from May 2025 to August 2027. • Dry bulk fleet expansion: Will add 7 ships by Q3, with these vessels typically on short-term time charters to avoid bunker costs and minimize idle time. • Cash position: Ended Q1 '25 with nearly $227 million in cash and is debt-free.

In Q1 '25, Imperial Petroleum generated revenues of $32.1 million and a net income of $11.3 million. Compared to Q4 '24, revenue increased by $5.9 million (22.5%) and net income by $7.4 million (almost 190%). Regarding product tankers, there was improved performance in Q1, with the addition of the product tanker Clean Imperial in January 2025. For the dry bulk segment, Imperial Petroleum will add up to 7 ships by the beginning of Q3, including 5 supramaxes and 2 kamsarmaxes, which will increase the fleet size by 60% in both the number of ships and deadweight capacity. Revenue in Q1 '25 was 22% lower than the same period in 2024 due to lower market rates, with approximately 55% of Q1 '25 revenues generated in March when the market gained momentum.

• Expect that every $2,000 increase in daily time charter rates for the newly added dry bulk ships will contribute an additional $5 million to annual operating cash flow. • Monitor the duration of trade tariffs and further OPEC plus output increases as key market factors influencing the company's performance.

• Geopolitical uncertainties such as U.S. tariffs, sanctions on Russian oil tankers, and trade retaliations pose risks as they can disrupt shipping demand. • The situation in the Red Sea Gulf of Aden could negatively affect clean product tankers if it reopens following the ceasefire agreement. • Trade disruptions from tariffs can have a long-term negative impact on the shipping market by affecting goods demand.