Imperial Petroleum sustains ‘profitable momentum’ ahead of dry bulk expansion
Harry Vafias-led owner awaits delivery of seven bulkers in coming weeks from family-owned affiliate
Debt-free fleet generated $50m in profits last year as cash in the bank rose to $207m
IMPERIAL Petroleum, the Harry Vafias-led tanker and bulk carrier owner, has unveiled profitable results for last year just prior to a major expansion of its presence in the dry bulk market.
Last autumn, the company disclosed it has agreed to purchase seven bulk carriers — including five supramaxes and two kamsarmaxes — from privately-held Vafias family outfit Brave Maritime.
Imperial said that the seven Japan-built vessels, valued at about $129m at the time the deal was agreed, are now expected to be delivered between February and May this year.
“In the period ahead, our key focus is to materialise our already announced fleet growth plans, sustain our profitable momentum and, as always, seek opportunities to enhance the value of our company,” Vafias said.
The incoming bulkers will join an existing fleet that has reached nine tankers and three handysize bulkers.
The tanker side grew recently with the delivery of a seventh medium-range product tanker, the 2009-built Clean Imperial (IMO: 9376854) last month. There are also two suezmax crude tankers.
Vafias has previously identified the company’s high cash reserves and its debt-free balance sheet as providing “plenty of flexibility” for growth and has talked of an optimal fleet size for Imperial of up to about 25 vessels.
Cash and equivalents rose by almost 67% during last year to $206.7m with the company garnering $6.7m from time deposits alone.
Nasdaq-listed Imperial posted fourth-quarter net income of $3.9m, compared with $6.5m in 2023.
Vafias said that the company’s profit was partly undermined by a foreign exchange loss of $3.3m during the quarter.
Revenues for the fourth quarter decreased by 12.4% to $26.2m, primarily because of softer market conditions.
For the 12 months of 2024, revenues dipped by 19.7% to $147.5m, mainly because of lower spot rates for both product tankers and suezmaxes.
Nevertheless, Imperial posted net income of $50.2m for 2024, versus a $71.1m profit a year earlier.
Vafias hailed the “exceptional” result, especially as it was generated by “a small fleet,” he said.
“We continued to be consistent with profitability, cash flow generation and fleet growth across the quarters,” he said.
