Imperial Petroleum Inc.

Imperial Petroleum reported Q1 2026 revenue of $61.7 million, up 92% year over year and 21% sequentially, with net income of $28 million and basic EPS of $0.60, versus $11.3 million and $0.32 in Q1 2025. Operating income was $26.5 million, up $18.7 million or 240% from Q1 2025, and EBITDA was $34.4 million. Net revenues were about $49 million, versus $21.6 million in Q1 2025, and operating cash flow was $36.5 million. Cash and time deposits were about $213 million at March 31, 2026, rising to about $221 million to date. Management did not provide formal quarterly or full-year financial guidance, but said it expects to continue enhancing cash through core operations while funding about $130 million of vessel commitments for 7 vessels, with about $52 million due by the end of Q3 2026 and the remaining $78 million due by the end of 2026 or early 2027.

Harry Vafias said the quarter validated the company’s fleet-expansion strategy, noting that the larger fleet allowed Imperial Petroleum to capitalize on favorable tanker and drybulk markets. His tone was upbeat and confident, emphasizing that geopolitical turmoil, especially in the Middle East, drove tanker rates higher and that the company successfully captured those conditions. He also stressed that the business remains continuously profitable, debt-free, and supported by a sizable fleet with additional vessels still to be delivered.

Ifigeneia Sakellari said Q1 2026 was the company’s second-highest profitability ever, driven by strong market rates and an 8-vessel fleet increase versus the prior year period. She cited product tanker daily rates rising to about $56,000 and Suezmax rates to more than $260,000 at the end of Q1, with voyage costs of $12.8 million and running costs of $11.3 million. She also noted free cash including time deposits of $213 million, operating cash flow of $36.5 million, cash to date of about $221 million, and capital commitments of about $130 million for 7 vessels. She said net income margin climbed to 45%, average TCE was about $43,000 per day for tankers and about $16,000 for drybulk, and estimated cash flow breakeven at $8,500 per day for tankers and $6,500 for drybulk.

There was no analyst Q&A segment in the transcript, so no specific external questions or pushback were addressed. Management instead focused on commentary about how tanker rates may react if the Strait of Hormuz reopens, the potential impact of any end to the Russia-Ukraine conflict, and the uncertainty around how long the Middle East conflict-driven rate spike will last. They also discussed share repurchases, having bought back 855,769 shares for about $3.8 million by May 21.