Imperial Petroleum NASDAQ: IMPP reported sharply higher first-quarter 2026 results, with management saying the company benefited from a larger fleet and a surge in tanker rates tied to geopolitical disruptions in the Middle East.
Chief Executive Officer Harry Vafias said the quarter marked the company’s “second-best quarterly performance” in its history, with revenue of $61.7 million and net income of $28 million. Basic earnings per share were $0.60.
Vafias said revenue rose 21% from the fourth quarter of 2025 and about 92% from the first quarter of 2025. Operating income was $26.5 million, up $12.8 million from the prior quarter and $18.7 million from the year-earlier period.
Tanker Rates Surge After Middle East Disruption
Management attributed much of the quarter’s strength to firm shipping markets, particularly in tankers. Vafias said tensions in the Middle East that began near the end of February and the closing of the Strait of Hormuz “tightened the tanker market, causing tanker rates to boom.”
The company’s daily net revenue from tankers increased to about $43,000 per day in the first quarter, compared with $27,000 per day in the fourth quarter of 2025. Dry bulk daily net revenue also improved to about $16,000 per day.
Vafias said Imperial employed six MR product tankers and two Suezmax vessels in the spot market, achieving average daily rates of about $29,000 per day for MR vessels and close to $95,000 per day for Suezmax vessels. One MR product tanker is employed under a period charter through September 2027.
He said tanker markets had already been strong before the U.S.-Iran-Israel conflict, supported by added OPEC supply, the return of Venezuelan cargoes and long-haul product tanker trades from the Atlantic to the Pacific. The Strait of Hormuz blockage then drove oil trade disruptions, longer voyages, supply shortages and higher risk premiums. Vafias said Suezmax rates were above $250,000 per day at the end of the quarter.
Dry Bulk Market Remains Firm
Imperial also benefited from stronger dry bulk conditions. Vafias said the positive trend seen in the fourth quarter of 2025 continued through the first quarter of 2026, supported by global shipment growth, Panama Canal congestion and rising coal demand.
He said the BDI Supramax time charter index was up 40.3% year over year at the end of the first quarter, while the BDI Handysize index was up 36.7%. Rates for dry bulk vessels have since moved closer to $20,000 per day, according to management, largely because gas supply shortages have increased demand for coal.
On the demand side, Vafias said iron ore departures to China were up about 4% in the first quarter, Guinean bauxite exports to China rose 18% year over year and wheat trade increased 18% year over year. He also noted concern that the Iran conflict could affect the global economy and dry bulk demand.
Fleet Expansion Drives Revenue Growth
Imperial’s fleet operational utilization was 88.7% in the quarter, down slightly from the fourth quarter of 2025 because of increased ballasting activity as vessels traveled to their next employment. Tanker utilization was 87.8%, while dry bulk utilization was 89.5%.
About 59% of total fleet calendar days in the quarter were tied to time charter activity, with roughly 40% allocated to spot activity. Vafias said approximately 48% of the current fleet is under time charter.
The company took delivery of the dry bulk vessel Post Marvel in early January 2026 and the Handysize dry bulk vessel Eco Crossfire in April 2026, bringing its fleet on the water to 21 vessels. Management said five more vessels are scheduled for delivery.
CFO Details Earnings and Cash Position
Interim Chief Financial Officer Ifigeneia Sakellari said first-quarter revenue growth was driven by higher market rates for product and Suezmax tankers, as well as an increase of eight vessels in the fleet compared with the year-earlier period.
Sakellari said product tanker rates were close to $26,000 per day and Suezmax tanker rates were close to $47,000 per day at the end of the first quarter of 2025. By the end of the first quarter of 2026, product tanker rates had climbed to about $56,000 per day, while Suezmax rates exceeded $260,000 per day following the Middle East conflict.
Voyage costs totaled $12.8 million, up $2.3 million from the first quarter of 2025, reflecting a roughly 25% increase in spot days and higher port expenses from more Suez Canal transits, mainly for Suezmax tankers. Net revenue was about $49 million, up 127% from $21.6 million a year earlier.
Operating expenses rose as the company expanded its fleet. Running costs were $11.3 million, up $4.1 million, which Sakellari attributed to an average increase of eight vessels between the two periods. EBITDA was $34.4 million.
Debt-Free Balance Sheet and Buybacks
Imperial ended March with $213 million in cash, cash equivalents and time deposits, compared with $179 million at the end of 2025. Sakellari said cash to date was in the region of $221 million. The company remains debt-free.
Capital commitments for seven vessels, including two recently delivered and five scheduled for delivery through the third quarter of 2026, total about $130 million. Sakellari said roughly $52 million is expected to be paid through the end of the third quarter of 2026, with the remaining $78 million due by the end of 2026 or early 2027.
The company also highlighted its share repurchase activity. Vafias said Imperial had repurchased 855,769 common shares through May 21 for an aggregate amount of about $3.8 million.
Sakellari said management estimated Imperial’s net asset value per share at close to $13, based on recent fleet market values, first-quarter financials and the number of shares outstanding at the end of the quarter. She said the company’s share price was about $5, implying a discount of more than 60%, compared with an average price-to-net-asset-value discount of about 20% for industry peers.
Looking ahead, management said the main uncertainty remains the U.S.-Iran-Israel conflict and how tanker markets will react if the Strait of Hormuz reopens for trade. Sakellari also cited uncertainty around the “dark fleet” if the Russia-Ukraine conflict ends.
Vafias closed the call by saying Imperial’s expansion strategy is “paying off,” pointing to the company’s larger fleet, liquidity above $220 million, continued profitability and debt-free balance sheet.
About Imperial Petroleum NASDAQ: IMPP
Imperial Petroleum Inc provides international seaborne transportation services to oil producers, refineries, and commodities traders. It carries refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals, crude oils, iron ore, coal and grains, and minor bulks, such as bauxite, phosphate, and fertilizers. As of April 1, 2024, the company owned and operated a fleet of six medium range refined petroleum product tankers; one Aframax tanker; two suezmax tankers; and two handysize drybulk carriers with a total capacity of 791,000 deadweight tons.
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