Harry Vafias for Imperial Petroleum: 2024 commenced ‘quite favorably’

Greek Harry N. Vafias of Imperial Petroleum remains positive as the year 2024 commenced ‘quite favorably,’ as the chief executive comments describing the company’s first quarter financial results.

The Nasdaq-listed company, controlled by Harry Vafias, said net income in the first quarter was $16.7m, down from $35.7m in 2023.

The net income of $16.7m for the first quarter of this year, is almost 160% higher than our profitability in the last quarter of 2023, says its chief executive Vafias, adding that this result “fills us with optimism.”

Meanwhile, the company reported a drop in the revenue for the quarter primarily due to an average year on year decline in tanker market spot rates by 38%.

Revenues dropped to $41.2m, a decrease of $24.2m, or 37%, compared to revenues of $65.4m for the same period in the year before.

It is noted that during the period ended March 31, 2023 tanker market rates were at peak levels mainly due to the sharp effect of the Russian Ukraine conflict on tanker rates which normalized in the following quarters.

Meanwhile, Ebitda for the three months ended March 31, 2024 amounted to $18.9m, while Adjusted Ebitda for the quarter amounted to $19.8m.

The company’s chief executive Vafias explained that the market continues to be governed by turbulence which directs longer haul voyages and is sustaining charter rates at firm levels.

The financial health of Imperial Petroleum is “undisputable with large cash pile and no bank debt”, he says, forecasting that the priority now is to focus on the growth of the company.

The company also confirmed the sale of its 2009-built aframax tanker Gstaad Grace II for $42m. The vessel was delivered to its new owners on April 26, 2024.