Imperial Petroleum nears fleet expansion goal with US$130M deal

In a recent filing, the US-listed shipowner disclosed an agreement with Brave Maritime, a company owned by the Vafias family, to acquire seven Japanese-built bulk carriers. The vessels – five Supramaxes and two Kamsarmaxes – are valued at approximately US$129.0M.

The shipping company expects to receive the ships between December 2024 and May 2025. The acquisition will be funded through cash on hand, with the option to complete payments up to one year from each vessel’s purchase agreement.

Upon delivery, Imperial Petroleum’s fleet will total 19 vessels, including 10 bulk carriers and nine tankers. Currently, the company operates six MR product tankers, two Suezmax tankers and three Handysize bulk carriers, with a combined capacity of 711,000 dwt. Additionally, an MR tanker is set for delivery in late 2024.

Chief executive of Imperial Petroleum, Harry Vafias previously stated the company is targeting an optimal fleet size of 20 to 25 vessels – a target now within reach.

Notably, Brave Maritime has actively invested in secondhand bulk carriers since 2022, strategically capitalising on a price correction following the boom period of the market.

Strong cash position

Imperial Petroleum’s strong cash reserves, nearing US$190.0M, give the company "plenty of flexibility for further growth," as Mr Vafias highlighted in the company’s Q2 earnings report. In addition to its solid cash base, the shipowner has reduced its debt to zero, further strengthening its financial position.

For Q2 2024, net income surged to US$19.5M, representing the company’s second-best quarterly performance and a US$2.7M increase compared with the same period in 2023. This growth occurred despite what was characterised as a "typically weak seasonal period" in the earnings report.

However, revenues declined to US$47.0M, down from US$59.0M in Q2 2023, mainly due to an 11.7% drop in voyage days.

Imperial Petroleum operates most of its tankers in the spot market, while preferring time charters for its bulk carriers.

Vafias’ broader shipping interests

Beyond Imperial Petroleum, Harry Vafias also oversees StealthGas and C3is Inc, both publicly listed on US exchanges. The Vafias family remains a significant player in Greek shipping through its privately held companies, Stealth Maritime and Brave Maritime.