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Imperial Petroleum, Inc. (IMPP)
NASDAQ:IMPP
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Imperial Petroleum, Inc.
(NASDAQ:IMPP)
74Outperform
Positive Factors
Earnings Performance
Higher interest income and an unrealized foreign exchange gain led to 3Q24 EPS of $0.27, above the $0.26 forecast despite a decline in EPS y/y.
Financial Position
Imperial Petroleum, Inc. has a strong cash position with $206.7M and no debt, which can support ship acquisitions.
Share Value
Despite lower-than-expected earnings, reduced share dilution led to a higher book value per share than estimated.
Negative Factors
Market Demand
The decrease in demand from China for dry bulk and oil has led to sharply lower shipping rates.
Operating Expenses
Total operating expenses of $27.0M, up 47.1% y/y, exceeded the $26.3M forecast due to downtime, leading to lower operating income.
Revenue Impact
Imperial Petroleum's time charter equivalent rates were significantly below forecasts, impacting revenue negatively.
Imperial Petroleum, Inc. (IMPP) vs. S&P 500 (SPY)
Market Cap
$78.56M
Dividend YieldN/A
Average Volume (3M)157.15K
Price to Earnings (P/E)1.7
Beta (1Y)0.63
Revenue Growth-19.73%
EPS Growth-95.29%
CountryUS
Employees74
SectorEnergy
Sector Strength50
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.54
Shares Outstanding30,331,661
10 Day Avg. Volume149,850
30 Day Avg. Volume157,148
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.47
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.50Price Target Upside112.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Imperial Petroleum, Inc. Business Overview & Revenue Model
Company DescriptionImperial Petroleum, Inc. (IMPP) is a shipping company that operates in the marine transportation sector, focusing primarily on the transportation of petroleum products and other liquid cargoes. The company manages a fleet of vessels that are deployed across various routes worldwide, offering logistics services essential for global energy distribution.
How the Company Makes MoneyImperial Petroleum, Inc. makes money by providing marine transportation services to oil and gas companies, refineries, and other industrial entities that require the movement of liquid cargoes. The company earns revenue primarily through the chartering of its vessels, which can be contracted on a time charter or spot charter basis. Time charters involve leasing vessels for a fixed period, providing steady and predictable income, while spot charters are typically shorter-term agreements that allow the company to capitalize on fluctuating market rates. Additionally, IMPP may engage in strategic partnerships with other shipping companies or stakeholders in the oil and gas industry to optimize fleet utilization and expand market reach. Factors such as global oil demand, fuel prices, and regulatory changes in maritime shipping can significantly influence the company's earnings.
Imperial Petroleum, Inc. Financial Statement Overview
Summary
Imperial Petroleum demonstrates strong financial performance with high profitability and operational efficiency. The robust balance sheet with minimal debt enhances stability. However, recent revenue and free cash flow declines present potential challenges.Income Statement
Imperial Petroleum has shown strong revenue growth over the years with a significant increase in gross profit and net income. The 2024 annual report shows a gross profit margin of 45.7% and a net profit margin of 34.0%, indicating strong profitability. However, the revenue decreased from 2023 to 2024, suggesting a potential challenge in maintaining growth. EBIT and EBITDA margins are also healthy, supporting operational efficiency.75
Positive
Balance Sheet
The company exhibits a robust balance sheet with a high equity ratio of 93.6% in 2024, indicating strong financial stability and low reliance on debt. The return on equity (ROE) is impressive at 11.9%, showcasing effective use of equity to generate profits. The debt-to-equity ratio is negligible due to low total debt, reducing financial risk.80
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow from 2023 to 2024, with a free cash flow growth rate of -94.1%. The operating cash flow to net income ratio is favorable at 1.55, indicating strong cash generation relative to income. However, the decrease in free cash flow poses a potential liquidity concern.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 147.48M | 183.73M | 97.02M | 17.36M | 20.30M | Gross Profit |
| 67.39M | 73.37M | 32.64M | -2.34M | 367.66K | EBIT |
| 44.14M | 66.02M | 29.82M | -3.49M | -355.30K | EBITDA |
| 62.72M | 88.59M | 43.41M | 5.18M | 8.25M | Net Income Common Stockholders |
| 50.16M | 71.13M | 29.51M | -3.78M | -403.77K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 206.73M | 124.03M | 118.90M | 3.39M | 6.45M | Total Assets |
| 449.51M | 376.83M | 366.58M | 128.47M | 138.12M | Total Debt |
| 78.76K | 0.00 | 69.96M | 27.84M | 0.00 | Net Debt |
| -79.70M | -91.93M | 19.06M | 24.45M | -6.45M | Total Liabilities |
| 28.84M | 14.53M | 84.17M | 31.72M | 4.06M | Stockholders Equity |
| 420.67M | 362.31M | 282.41M | 96.75M | 134.06M |
| Cash Flow | Free Cash Flow | |||
| 3.02M | 51.39M | -77.78M | 5.10M | 8.14M | Operating Cash Flow |
| 77.70M | 79.53M | 40.90M | 5.24M | 8.87M | Investing Cash Flow |
| -94.65M | 12.29M | -186.68M | -142.60K | -728.00K | Financing Cash Flow |
| 4.81M | -57.40M | 196.95M | -6.37M | -9.33M |
Imperial Petroleum, Inc. Technical Analysis
Positive
2.59
Price Trends
2.52
Positive
2.76
Negative
3.31
Negative
Market Momentum
-0.01
Negative
61.85
Neutral
87.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMPP, the sentiment is Positive. The current price of 2.59 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.52, and below the 200-day MA of 3.31, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMPP.
Imperial Petroleum, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $78.56M | 1.68 | 12.81% | ― | -19.73% | -95.29% | |
62 Neutral | $49.10M | 2.70 | 16.18% | ― | 28.49% | 6115.63% | |
55 Neutral | $7.03B | 3.43 | -6.29% | 6.02% | -0.15% | -51.34% | |
54 Neutral | $47.85M | 16.96 | 5.90% | 4.55% | -80.46% | -51.76% | |
52 Neutral | $98.82M | 8.25 | 2.97% | ― | -4.20% | -96.92% |
* Energy Sector Average
Performance Comparison
IMPP
Imperial Petroleum, Inc.
2.62
-0.81
-23.62%
AMPY
Amplify Energy
2.39
-4.94
-67.39%
PVL
Permianville Royalty
1.45
-0.12
-7.64%
PED
Pedevco
0.54
-0.43
-44.33%
Imperial Petroleum, Inc. Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -11.90% | Next Earnings Date: Jun 17, 2025
Earnings Call Sentiment Neutral
The call highlighted strong operational performance, fleet growth, and a robust financial position despite facing challenges such as declining market rates and foreign exchange losses. The company's strong profitability and cash reserves are notable positives.Highlights
Strong Operational Utilization
Achieved an operational utilization rate of 86% in Q4 2024, attributed to increased time charter coverage.
Fleet Growth
Increased fleet size with the delivery of the product tanker Clean Imperial, bringing the total fleet to 12 vessels.
Annual Profitability
Ended 2024 with a profit of approximately $50 million and an operating cash flow close to $78 million.
Debt-Free Capital Structure
Maintained a debt-free status, facilitating robust cash flow generation.
Cash Reserves
A hefty cash base of close to $207 million, with a 67% increase in available cash placed under time deposits.
Lowlights
Decline in Market Rates
Revenues for Q4 2024 were $26.2 million, marking a $3.5 million decline compared to the same period in 2023, due to lower market rates.
Foreign Exchange Loss
Incurred a $3.3 million foreign exchange loss due to the strengthening of the U.S. dollar.
Weaker Market Conditions
The second half of 2024 saw softer market conditions with a decline in daily rates for tankers.
Company Guidance
During the Q4 and full-year 2024 conference call, Imperial Petroleum reported on its operational and financial performance amidst atypical market conditions. The company achieved an operational utilization rate of 86% for Q4 and 78.3% for the entire year, with 29% of fleet days dedicated to time charter activity. Despite softer market conditions impacting quarterly revenues, which totaled $26 million, the company maintained strong operating income of nearly $5 million and a net income of $3.9 million. Annual results were robust, with a net income of $50 million and operating cash flow approximating $78 million. The fleet expanded to 12 vessels following the addition of the Clean Imperial tanker. Imperial Petroleum highlighted a debt-free balance sheet and a stable cash base of $207 million, signaling a 67% increase in available cash over the year. Looking forward, the company aims to capitalize on growth opportunities and sustain profitability in 2025, with anticipated oil demand growth driven by emerging economies and a recovering Chinese market.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.