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Imperial Petroleum, Inc. (IMPP)
NASDAQ:IMPP
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Imperial Petroleum
(NASDAQ:IMPP)
Rating:72Outperform
Price Target:―
Positive Factors
Cash Position
IMPP ended with $227.4M in cash and no debt, which is anticipated to fund the acquisitions of seven dry bulk ships.
Financial Performance
IMPP reported better results than expected due to the use of short-term tanker spot contracts to take advantage of periodic spikes in rates.
Operating Efficiency
Operating costs per ship were lower than expected, contributing to reduced overall operating expenses.
Negative Factors
Market Demand
The decrease in demand from China for dry bulk and oil has led to sharply lower shipping rates.
Revenue
Revenue declined year-over-year as market rates were stronger last year due to higher demand for dry bulk and tanker cargoes.
Time Charter Rates
Imperial Petroleum's time charter equivalent rates were significantly below forecasts, impacting revenue negatively.
Imperial Petroleum (IMPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.56M
Dividend YieldN/A
Average Volume (3M)327.59K
Price to Earnings (P/E)2.2
Beta (1Y)0.36
Revenue Growth-19.73%
EPS Growth-95.29%
CountryUS
Employees74
SectorEnergy
Sector Strength53
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.34
Shares Outstanding34,415,234
10 Day Avg. Volume242,532
30 Day Avg. Volume327,594
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.25
Price to Sales (P/S)0.00
P/FCF Ratio4.18
Enterprise Value/Market Cap0.26
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.49
Enterprise Value/Ebitda0.10
Forecast
1Y Price Target
$5.50Price Target Upside79.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Imperial Petroleum 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 Earnings Call Summary
Earnings Call Date:May 23, 2025
(Q1-2025)
| % Change Since: 23.79%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook with some strong financial improvements and strategic expansions counterbalanced by declines in year-over-year revenue and geopolitical uncertainties. The company demonstrates resilience and strategic growth, but market volatility remains a concern.Q1-2025 Updates
Positive Updates
Improved Financial Performance
Revenue increased by $5.9 million (22.5%) and net income rose by $7.4 million (190%) compared to Q4 '24. The company remains profitable and debt-free.
Strong Cash Position
Imperial Petroleum ended Q1 '25 with a cash base of close to $227 million, which is about three times higher than the current market cap.
Fleet Expansion
The company is adding 7 ships by the beginning of Q3, increasing fleet size by 60%, with a total of 19 ships, including 10 bulk carriers and 9 tankers.
Positive Market Conditions
OPEC's announcement to increase output and U.S.-China tariff rollback contributed positively to market conditions, boosting tanker rates.
Negative Updates
Decline in Revenue Compared to Previous Year
Revenues in Q1 '25 were $32.1 million, marking a 22% decline compared to the same period in 2024 due to lower market rates.
Market Volatility and Geopolitical Uncertainty
Ongoing geopolitical factors, including U.S. tariffs, sanctions on tankers involved in Russian oil, and trade disruptions, added uncertainty to the market.
Company Guidance
In the Q1 '25 conference call, Imperial Petroleum reported revenue of $32.1 million and a net income of $11.3 million, reflecting a 22.5% increase in revenue and a 190% rise in net income compared to Q4 '24. Despite a challenging market with softer average rates for Suezmax and product tankers down by about 25% from last year, the company remained profitable and debt-free, boasting a cash reserve of nearly $227 million. The fleet's expansion includes adding seven new dry bulk ships, increasing the fleet size by 60% to 19 ships. The company's strong performance is underpinned by strategic time charter employment, operational cost management, and opportunities arising from geopolitical events, such as sanctions and trade tariffs. The management anticipates further positive impacts from OPEC's increased output and a potential reopening of the Red Sea Gulf of Aden.Imperial Petroleum Financial Statement Overview
Summary
Imperial Petroleum demonstrates strong profitability and financial stability, with high profit margins and a robust balance sheet featuring a high equity ratio and minimal debt. However, the decline in revenue and free cash flow poses a challenge.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 | 50.40M | 73.37M | 32.64M | -2.34M | 367.66K |
| EBITDA | 67.55M | 88.58M | 43.41M | 5.18M | 8.25M |
| Net Income | 50.16M | 71.13M | 29.51M | -3.64M | -394.00K |
Balance Sheet | |||||
| Total Assets | 449.51M | 376.83M | 366.58M | 128.47M | 138.12M |
| Cash, Cash Equivalents and Short-Term Investments | 206.73M | 124.03M | 118.90M | 3.39M | 6.45M |
| Total Debt | 78.76K | 0.00 | 69.96M | 27.84M | 0.00 |
| 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 | -106.65M | 12.29M | -186.68M | -142.60K | -728.00K |
| Financing Cash Flow | 4.81M | -57.40M | 196.95M | -6.37M | -9.33M |
Imperial Petroleum Technical Analysis
Positive
3.07
Price Trends
2.90
Positive
2.70
Positive
3.04
Positive
Market Momentum
0.03
Positive
49.87
Neutral
15.58
Positive
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 3.07 is below the 20-day moving average (MA) of 3.20, above the 50-day MA of 2.90, and above the 200-day MA of 3.04, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 15.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMPP.
Imperial Petroleum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $102.56M | 2.22 | 11.07% | ― | -19.73% | -95.29% | |
62 Neutral | $56.31M | 3.24 | 15.47% | ― | 28.49% | 6115.63% | |
54 Neutral | $60.06M | 21.29 | 6.10% | 1.88% | -80.46% | -51.76% | |
53 Neutral | $128.27M | 8.65 | 3.93% | ― | -4.20% | -96.92% | |
52 Neutral | C$2.90B | -1.03 | -3.46% | 6.07% | 3.01% | -47.13% |
* Energy Sector Average
Performance Comparison
IMPP
Imperial Petroleum
3.07
-0.58
-15.89%
AMPY
Amplify Energy
3.37
-3.55
-51.30%
PVL
Permianville Royalty
1.82
0.70
62.50%
PED
Pedevco
0.62
-0.35
-36.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.