Imperial Petroleum Inc (IMPP) 2024 Q3 法說會逐字稿

Good morning, everyone, and thank you all for joining us for our third-quarter nine months '24 conference call. I'm Harry Vafias, the CEO of Imperial Petroleum. And joining me today is Fenia Sakellari, who will be discussing our financial performance.

大家早安，感謝大家參加我們第三季 9 個月的 24 小時電話會議。我是哈利‧瓦菲亞斯，帝國石油公司的執行長。今天加入我的是 Fenia Sakellari，她將討論我們的財務表現。

Before we commence our discussion, I'd like all of you to read the Safe Harbor disclaimer on slide 2. In essence, it's made clear that this presentation may contain some forward-looking statements as defined by the Private Securities Litigation Reform Act. We raised the attention of our investors to the fact that such forward-looking statements are based upon the current beliefs and expectations of Imperial Petroleum and are subject to risks and uncertainties, which could cause future results to differ materially from these forward-looking statements. In addition, before we commence our discussion, we'd like to clarify that during this call, we will quote all monetary amounts, unless explicitly stated, all in US dollars.

在我們開始討論之前，我希望大家先閱讀投影片 2 上的安全港免責聲明。從本質上講，可以明確的是，本簡報可能包含《私人證券訴訟改革法案》所定義的一些前瞻性陳述。我們提請投資者註意這樣一個事實，即此類前瞻性陳述基於帝國石油公司當前的信念和預期，並受到風險和不確定性的影響，這可能導致未來結果與這些前瞻性陳述存在重大差異。此外，在我們開始討論之前，我們想澄清一下，在這次電話會議中，除非明確說明，否則我們將引用所有貨幣金額，全部以美元為單位。

Turning to slide 3. We're summarizing our operational and financial highlights for the third quarter and nine months '24. The third quarter of this year was quite satisfactory in terms of profit when taking into consideration that market deteriorated in comparison to the first half of this year. Indeed, prevailing rates for both product and Suezmax tankers declined in Q3 '24, mostly driven by seasonal factors and geopolitical uncertainties, thus creating an unexciting market environment.

轉到投影片 3。我們正在總結 2024 年第三季和九個月的營運和財務亮點。考慮到市場較上半年惡化，今年第三季的利潤還算令人滿意。事實上，成品油輪和蘇伊士型油輪的現行運價在 2024 年第三季均有所下降，主要是受到季節性因素和地緣政治不確定性的推動，從而造成了一個令人興奮的市場環境。

Market weakness is evidenced by our low quarterly operational utilization of 65.6%, which was further burdened by a dry docking of a product tanker and a minor incidence of our product tanker, the Magic Wand. The vessel remained idle for the whole quarter.

我們季度營運利用率低至 65.6%，證明了市場疲軟，一艘成品油輪的干塢和我們的成品油輪 Magic Wand 的小事故進一步加重了這一負擔。該船整個季度都處於閒置狀態。

Within this market of declining rates, we did manage to end the quarter with close to $11 million of profit. Our daily time charter equivalent of 22,000 declined compared to the previous quarter by 37%. Nevertheless, remain at same levels compared to the same period of last year.

在這個利率不斷下降的市場中，我們確實在本季末實現了接近 1,100 萬美元的利潤。我們的日期租船量為 22,000 艘，與上一季相比下降了 37%。儘管如此，與去年同期相比仍保持在同一水平。

Actually, when excluding noncash items, our profitability improved compared to Q3 '23 by $6.4 million, equivalent to a rise of 142%. What we deem as remarkable is our solid liquidity position as we ended the third quarter with about $200 million in cash, while our operating cash flow for the nine months period of '24 amounted to $68 million. Our zero-debt position lowers our breakeven and assist us to maintain profitability even when the market weakens further.

實際上，在排除非現金項目時，我們的獲利能力比 23 年第三季提高了 640 萬美元，相當於成長了 142%。我們認為值得注意的是我們穩健的流動性狀況，第三季結束時我們擁有約 2 億美元的現金，而 2024 年 9 個月期間的營運現金流達 6,800 萬美元。我們的零債務狀況降低了我們的損益平衡點，並幫助我們即使在市場進一步疲軟時也能保持獲利能力。

On slide 4, we are providing a summary of our current fleet employment. Almost half of our fleet is under time charter employment. As customarily, our three handysize bulk carriers are under short-term charters, while two of our product tankers are under time charter employment up until January '25 and August '27, respectively.

在投影片 4 上，我們提供了目前車隊使用情況的摘要。我們將近一半的船隊採用定期租船方式。按照慣例，我們的三艘靈便型散裝貨船採用短期租船合同，而我們的兩艘成品油輪則採用定期租船合同，分別截至 25 年 1 月和 27 年 8 月。

Overall, looking at the market, spot rates for product tankers have declined when compared to the first half of '24. The typical seasonal decline in rates was this year compounded by uncertainty over demand, refinery runs, US elections, and OPEC decisions.

整體而言，從市場來看，成品油輪的即期運價與 24 年上半年相比有所下降。今年，典型的季節性利率下降因需求、煉油廠運作、美國大選和歐佩克決定的不確定性而變得更加複雜。

As of the end of Q3 '24, market spot rates for product tankers were 57% lower than in Q2 '24. While for Suezmax, spot rates declined compared to the previous quarter was in the order of 30%. We currently see a cautious upward trend in product tanker rates, driven by increased cargo flows as we enter into the winter season.

截至 2024 年第三季末，成品油輪的市場即期運價比 24 年第二季低 57%。而蘇伊士型油輪的即期運價較上一季下降了 30% 左右。目前，由於進入冬季，貨流量增加，成品油輪運價呈現謹慎上升趨勢。

On slide 5, we're reviewing the tanker market. After a strong -- after the strong market witnessed in the first half of the year, tanker rates have slipped since the start of the third quarter due to seasonal factors. Indeed, global oil demand growth slowed in the third quarter relative to Q2 '24, while global tanker tonne mile demand fell 4.8% this quarter. The third quarter of 2014 was affected by various typical factors, the most crucial of them being the slump in Chinese oil imports, which decreased 730,000 barrels per day due to the deterioration of the Chinese property crisis and the adoption of non-oil transport fuels.

在幻燈片 5 上，我們正​​在回顧油輪市場。在經歷了上半年的強勁市場之後，由於季節性因素，油輪運價自第三季初開始出現下滑。事實上，與 2024 年第二季相比，第三季全球石油需求成長放緩，而本季全球油輪噸英里需求下降了 4.8%。2014年第三季受到各種典型因素的影響，其中最關鍵的是中國石油進口量大幅下降，由於中國房地產危機的惡化和非石油運輸燃料的採用，進口量減少了73萬桶/日。

Moreover, we witnessed low Middle East crude exports due to the seasonally high domestic consumption in the region along with reduced refinery runs. Also, the dark fleet has become larger and more efficient than last year. As a result, Russian premiums have gone down, and some of the largest mainstream owners previously involved in legal Russian business have reduced their Russian activities and returned to the normal market. This has put increased pressure also on the freights of the normal market.

此外，由於該地區國內消費季節性高漲以及煉油廠開工量減少，中東原油出口量較低。而且，黑暗艦隊比去年變得更大、更有效率。結果，俄羅斯保費下降，一些以前參與合法俄羅斯業務的最大主流船東減少了在俄羅斯的活動並恢復了正常市場。這也給正常市場的貨運帶來了更大的壓力。

In Q4 '24, we have not seen any material improvement in rates. However, expectations are that the seasonal effect of, and the end of the refinery maintenance season will eventually push the market up also this winter, but we don't expect to reach the same rates as last year. Going forward, OPEC has pledged to move forward with this voluntary cut unwind, which is anticipated that this would boost cargo flows by 3 million barrels per day in '25, thus raising tanker rates.

在 24 年第 4 季度，我們沒有看到費率有任何實質改善。然而，預計季節性影響以及煉油廠維護季節的結束最終將推動今年冬季市場上漲，但我們預計不會達到與去年相同的水平。展望未來，歐佩克已承諾繼續推進自願減產，預計將在 25 年將貨物流量增加 300 萬桶/日，從而提高油輪運價。

On slide 6, we comment upon tanker market fundamentals. The tanker fleet is seeing a record low-growth rate in '24 with escalating deliveries expected in '25 and '26. It's worth noting that the newbuilding additions in the coming years are less than the long-run average growth rate of about 6.5%. Both MRs and Suezmax have an aging fleet. It is expected that about 20% of the product tanker fleet will be above 20 years of age by '26, while 15% of the Suezmax is above 15 years of age.

在幻燈片 6 中，我們評論了油輪市場的基本面。油輪船隊 24 年增長率創歷史新低，預計 25 年和 26 年交付量將持續增加。值得注意的是，未來幾年的新造船增量將低於約6.5%的長期平均成長率。MR 型油輪和蘇伊士型油輪都擁有老化的船隊。預計到 26 年，約 20% 的成品油輪船齡將超過 20 年，而 15% 的蘇伊士型油輪船齡將超過 15 年。

Depending on how geopolitical tensions and supply cuts will affect the market in the long run, strong fundamentals create the expectation that the tanker up cycle might last for the forthcoming years as capacity remains constrained. In addition, taking into account the high newbuilding prices, it's also expected that the new tanker orders will remain limited. On the dry bulk market, Q3 '24 earnings for handysize bulkers remained fairly flat, mostly affected by the slowdown of the Chinese economy.

從長遠來看，地緣政治緊張局勢和供應削減將如何影響市場，強勁的基本面使人們預期，由於運力仍然受到限制，油輪上漲週期可能會在未來幾年持續。此外，考慮到新造船價格較高，預計新油輪訂單仍將有限。在乾散貨市場，靈便型散裝貨船 24 年第 3 季的獲利仍然相當平穩，主要受到中國經濟放緩的影響。

Chinese steel production was weak in Q3 '24, marking an 8% year-on-year decline. However, there was an 18% year-on-year growth in Chinese steel exports. Looking ahead, two primary risks to dry bulk demand are the unwinding of extra tonne miles and a Chinese economic slowdown, potentially worsened by US tariffs.

2024 年第三季中國鋼鐵產量疲軟，年減 8%。然而，中國鋼材出口較去年同期成長18%。展望未來，乾散貨需求面臨的兩個主要風險是噸航程增加和中國經濟放緩（美國關稅可能加劇這一風險）。

I'll now pass the floor to Mr. Sakellari in order to summarize our financial performance.

現在請 Sakellari 先生總結我們的財務表現。

Hello. Let us discuss our financial performance in Q3 '24 compared to the same period of last year. As mentioned earlier on, we marked a sound profitability amidst an unfavorable and uncertain market environment.

你好。讓我們討論一下我們 24 年第三季的財務表現與去年同期的比較。如同前面所提到的，我們在不利和不確定的市場環境中實現了良好的獲利能力。

Looking at our income statement for Q3 '24 on slide 7, revenues came in at $33 million in Q3 '24 compared to $29.4 million, a 12.2% increase compared to Q3 '23 due to an increase of our average fleet by 1.3 vessels and better performance of our product tanker as 3 of our product tankers underwent dry docking in the third quarter of 2023, thus incurring significant idle time due to technical reasons.

查看幻燈片7 上24 年第3 季的損益表，24 年第3 季的營收為3,300 萬美元，而2,940 萬美元，與23 年第3 季相比成長了12.2%，因為我們的平均船隊增加了1.3 艘及更多船舶我們的成品油輪性能受到影響，因為我們的 3 艘成品油輪於 2023 年第三季度進行乾船塢，因技術原因導致大量閒置時間。

As mentioned earlier on this quarter, our time was hindered by the dry docking of one of our product tankers, along with the minor instance of one -- another product tanker, both events adding to idle time and undermining revenue. Voyage costs amounted to $13 million, increased by $0.4 million compared to the same period of last year due to expenses incurred in connection with the EU emission allowances in order to meet our obligation arising from the CO2 emissions as a result of the new EU regulations entered into force starting from January 1, 2024.

正如本季早些時候提到的，我們的時間因一艘成品油輪的干塢以及另一艘成品油輪的小事而受到阻礙，這兩件事都增加了閒置時間並損害了收入。航程成本為 1,300 萬美元，較去年同期增加 40 萬美元，這是由於我們為了履行歐盟新法規實施後的二氧化碳排放義務而產生的與歐盟排放配額相關的費用自2024年1月1日起生效。

Running costs amounted to $7.2 million, increased by $1.1 million due to the increase of our fleet. EBITDA for the third quarter of 2024 came in at $12.2 million, while net income at $10.1 million corresponding to an EPS of $0.29. On an adjusted basis, that is excluding noncash items, our adjusted net income for the period was $10.9 million, marking a 142% increase compared to Q3 '23. For nine months, EBITDA came in at $52.8 million and adjusted net income, excluding noncash items, at $50.6 million.

營運成本為 720 萬美元，由於機隊增加而增加了 110 萬美元。2024 年第三季的 EBITDA 為 1,220 萬美元，淨利為 1,010 萬美元，對應每股收益 0.29 美元。在調整後的基礎上，即不包括非現金項目，我們該期間調整後的淨利潤為 1,090 萬美元，與 23 年第三季相比增長了 142%。九個月來，EBITDA 為 5,280 萬美元，調整後淨利潤（不包括非現金項目）為 5,060 萬美元。

Moving on to slide 8. Let us take a look at our balance sheet for the nine months of 2024. We enjoyed high liquidity. As of September 30, 2024, our cash, including time deposits were in the order of $200 million. The majority of available cash is currently placed under time deposits yielding interest income. For the nine months '24 period, income from time deposits amounted to about $4.5 million, $2.1 million earned only in Q3 '24. We also enjoy a flexible capital structure governed by high liquidity, zero debt, minimum liabilities, placing us in an advantageous position to weather any market conditions.

繼續看投影片 8。讓我們來看看 2024 年 9 個月的資產負債表。我們享有高流動性。截至 2024 年 9 月 30 日，我們的現金（包括定期存款）約為 2 億美元。目前大部分可用現金都存放在定期存款中，產生利息收入。在 2024 年 9 個月期間，定期存款收入約為 450 萬美元，僅在 24 年第三季就賺了 210 萬美元。我們也享有高流動性、零債務、最低負債的彈性資本結構，使我們處於適應任何市場條件的有利地位。

Proceeding to slide 9, we provide a snapshot of our strong fundamentals such as dynamic profitability as our net profit margin is in excess of 30%. We have a robust cash flow generation. In the nine months of 2024, we generated close to $68 million of operating cash flow. Going forward, the key considerations of future of geopolitical tensions and the impact they will have on the tanker and broader shipping market overall.

繼續看投影片 9，我們簡要介紹了我們強勁的基本面，例如動態獲利能力，因為我們的淨利潤率超過 30%。我們擁有強勁的現金流。2024 年的 9 個月中，我們產生了近 6,800 萬美元的營運現金流。展望未來，未來地緣政治緊張局勢的關鍵考慮因素及其對油輪和更廣泛的航運市場的影響。

Concluding our presentation with slide 10, we summarize yet once more Imperial Petroleum strengths. We feel that our strong financial performance and recurring profitable quarters is a solid proof of our argumentation as to why we believe Imperial Petroleum is worth investing in.

我們以幻燈片 10 來結束我們的演示，再次總結了帝國石油公司的優勢。我們認為，我們強勁的財務表現和持續獲利的季度有力地證明了我們為何相信帝國石油值得投資。

At this stage, our CEO, Mr. Harry Vafias, will summarize our concluding remarks for the period examined.

在此階段，我們的執行長 Harry Vafias 先生將總結我們對所審查期間的結論性意見。

In spite of an unexciting and seasonally weak quarter, Imperial Petroleum was yet again profitable. Our adjusted net income this quarter was up 141% compared to Q3 '23, and our cost increased by about 60% compared to the end of the same quarter last year. Since the beginning of the year, we have generated a net profit of close to $46 million with a fleet of only 10 vessels. Apart from our ongoing profitability, our financial strength is shown by our cash of about $200 million in conjunction with zero leverage. Market was volatile and weak during Q3 and still remains an unknown how future geopolitical tensions will affect the tanker and broader shipping markets overall.

儘管季度表現平淡且季節性疲軟，但帝國石油公司再次獲利。與 23 年第三季相比，我們本季調整後的淨利潤成長了 141%，與去年同季末相比，我們的成本成長了約 60%。自今年年初以來，我們僅擁有 10 艘船的船隊就創造了近 4,600 萬美元的淨利潤。除了我們持續的獲利能力之外，我們約 2 億美元的現金以及零槓桿也體現了我們的財務實力。第三季市場波動疲軟，未來地緣政治緊張局勢將如何影響油輪和更廣泛的整體航運市場仍然未知。

We would like to thank you for joining us today at our conference call and for your interest and trust in our company, and we look forward to having you with us again at our next conference call for our fourth-quarter results. Thank you very much.

我們要感謝您今天參加我們的電話會議，感謝您對我們公司的興趣和信任，我們期待您再次參加我們的下一次電話會議，以了解我們的第四季度業績。非常感謝。