Imperial Petroleum Stock Falls On Mixed Q3 Earnings Report: Retail’s Undecided

Revenue rose 12% year-over-year (YoY) to $33 million during the quarter but fell short of Wall Street expectations of $35.8 million.

Stocktwits Inc

First Published Dec 2, 2024, 11:43 PM IST | Last Updated Dec 2, 2024, 11:43 PM IST

Shares of Imperial Petroleum Inc ($IMPP), a company that provides petroleum products, crude oil and dry bulk seaborne transportation services, fell over 3% on Monday after the company reported mixed third-quarter results.

Revenue rose 12% year-over-year (YoY) to $33 million during the quarter but fell short of Wall Street expectations of $35.8 million. The rise in revenue was primarily due to an increase in voyage days by 19.5% (145 days) attributed mainly to the rise of the firm’s average number of vessels along with improved revenue stemming from product tankers.

Adjusted earnings per share came in at $0.32 versus an analyst estimate of $0.26. Net income fell to $10.06 million during the quarter compared to $12.12 million in the same quarter a year ago.

Imperial Petroleum’s fleet operational utilization stood at 65.6% during the quarter versus 70.5% in Q3 of 2023.

CEO Harry Vafias acknowledged that the market was volatile and weak during the third quarter and that it still remains an unknown how future geopolitical tensions will affect the tanker and broader shipping market overall. However, he expressed optimism on the firm’s financials.

“Since the beginning of the year we have generated a net profit of close to $46 million with a fleet of about 10 vessels. Apart from our ongoing profitability, our financial strength is shown by our cash of about $200 million in conjunction with zero leverage,” he said.

Retail investors on Stocktwits expressed mixed opinions on the stock.

IMPP shares have gained over 12% since the beginning of the year, significantly underperforming the benchmark indices.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

For more reliable and latest news