Imperial Petroleum Inc. reported third‑quarter 2025 results that included $41.4 million in revenue, a 25.5% year‑over‑year increase, and net income of $11.0 million, translating to earnings per share of $0.30. The company’s operating cash flow rose to $57.0 million, up from $42.0 million in the first half of the year, while its fleet expanded to 19 vessels—nine tankers and ten dry‑bulk carriers—with a total capacity of 1,195,000 deadweight tons.
Revenue growth was largely driven by the integration of seven newly delivered dry‑bulk vessels, which lifted utilization to 92.5% for dry‑bulk and 84.4% for tankers. The higher mix of dry‑bulk operations, which command stronger freight rates, contributed to the 25.5% revenue increase, offsetting the modest decline in tanker charter income that the company experienced in the second quarter.
Net income of $11.0 million and EPS of $0.30 beat analyst expectations by $0.20 and 0.24, respectively. The beat was largely a result of disciplined cost management, higher charter utilization, and a favorable mix shift toward dry‑bulk operations, which have higher margins than tankers. The company’s operating margin expanded as a result of these factors, even as the nine‑month net income of $35.0 million fell from $46.2 million in the same period a year earlier due to a lower proportion of high‑margin dry‑bulk revenue.
Operating cash flow of $57.0 million reflected strong cash conversion from charter income and improved working‑capital management. The figure represents a significant increase from the $42.0 million reported for the first half of 2025, underscoring the company’s ability to generate cash from its expanding fleet and efficient operations.
The company’s balance sheet remains debt‑free, with cash and cash equivalents of approximately $172 million after a $60 million capital raise completed on December 1, 2025. The cash cushion provides flexibility for further fleet expansion and supports the company’s strategy of adding 22–25 vessels over the next few years.
Management expressed confidence in the outlook for the fourth quarter, noting that market rates for both tanker and dry‑bulk segments remain solid. CEO Harry Vafias highlighted the company’s “debt‑free balance sheet” and the “quality built Japanese and Korean ships” as key assets that will support continued performance. The company’s guidance for the next quarter remains positive, with expectations that charter rates will hold and utilization will stay high.
Despite the strong operational results, the market reaction on December 11 was muted, with the stock closing down 4.46%. The decline is attributed to investor concerns over dilution from the recent capital raise, which, while providing cash for fleet expansion, temporarily reduced earnings per share and raised questions about shareholder value creation.
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