Energy Select Sector

Russell 2000

The Diluter

Comparable Companies - IMPP

No discretionary insider trades were reported in the last 12 months. WEXFORD CAPITAL LP is a top institutional holder with a 4.36% stake. Short interest is 15.0% of float with 3.0 days to cover as of 2025-11-28.

Filing to update percentage of shares owned to reflect dilution from a registered offering and warrant exercises. The reporting persons acquire securities for investment purposes and may engage in discussions regarding extraordinary corporate transactions.

Filing for C3is Inc. to update percentage of shares owned to reflect dilution from a registered offering and warrant exercises. The reporting person intends to review its investment on a continuing basis.

Filing to report beneficial ownership of shares held by Wexford Funds. The securities were acquired in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Harry N. Vafias

Ifigeneia (Fenia) Sakellari

John Kostoyannis

George Xiradakis

Harry N. Vafias demonstrates a long and active career in the shipping industry, marked by the founding and leadership of multiple Nasdaq-listed companies including Stealth Maritime Corp, StealthGas Inc., Imperial Petroleum Inc., and C3is Inc. His tenure at StealthGas saw significant financial growth, including record net income and voyage revenues, coupled with a strategic deleveraging policy that led to a net-debt free status. He has also overseen substantial capital market activities, raising hundreds of millions for StealthGas. His leadership is characterized by a willingness to spin off assets into new entities to optimize market positioning, as seen with Imperial Petroleum and C3is Inc. While C3is Inc. has faced challenges such as Nasdaq delisting risks, Vafias's overall track record indicates a focus on fleet expansion and financial stability through debt reduction and strategic capital deployment. His public persona is that of an award-winning, hands-on leader who prioritizes loyalty and honesty within his organizations.

Chief Executive Officer, President & Chairman

Ifigeneia (Fenia) Sakellari brings 19 years of finance experience to her role as Interim CFO and Secretary at Imperial Petroleum. Her career includes a significant tenure as a Finance Officer at StealthGas Inc. and prior experience in credit departments and private equity at Piraeus Bank. While public records do not offer specific, quantifiable performance metrics directly attributable to her individual contributions in these roles, her extensive background in finance and her continued involvement with Vafias-affiliated companies suggest a consistent professional trajectory within the maritime finance sector.

Interim Chief Financial Officer & Secretary

John Kostoyannis brings extensive experience in shipbroking and maritime governance to the Imperial Petroleum board. His long tenure as Managing Director of Allied Shipbroking Inc. since 1991, a company specializing in shipbroking services, highlights his deep operational knowledge in the sector. Concurrently, his role as an Independent Director at StealthGas Inc. since 2010 and C3is Inc. since 2023 demonstrates his consistent involvement in the strategic oversight of publicly traded shipping entities. While specific quantifiable performance metrics directly attributable to his individual board roles are not publicly available, his sustained presence in key leadership positions across multiple companies within the Vafias Group's ecosystem underscores his established reputation and expertise in the shipping industry.

Class II Director

George Xiradakis is a highly respected figure in shipping finance, evidenced by his long tenure as Founder and Managing Director of XRTC Business Consultants Ltd since 1999. Under his leadership, XRTC earned the 'Financier of the Year 2010' award for pioneering a bilateral loan with a Chinese bank, demonstrating his expertise in facilitating significant capital events within the maritime sector, particularly with Asian financial institutions. His advisory roles with major banks like China Development Bank and his prior experience at Credit Lyonnais and NATIXIS underscore his deep understanding of shipping finance. Xiradakis's public persona is that of a thought leader and commentator, actively involved in numerous shipping associations and recognized with awards for public service. His provenance is firmly rooted in financial advisory and strategic development within the global shipping industry.

Facilitation of Bilateral Loan (XRTC Business Consultants)

Class I Director

Ardmore operates as an integrated shipping company focused on modern, fuel-efficient, mid-size product and chemical tankers, utilizing a mix of spot market charters and fixed-rate contracts to optimize cash flow.

Provides seaborne transportation for refined petroleum products, edible oils, and chemicals globally.

Teekay Tankers owns and operates crude oil and refined product tankers, employing a chartering strategy that seeks to capture upside in the spot market while using fixed-rate charters to reduce downside risk.

Owns and operates crude oil and refined product tankers, providing commercial management and operational services.

TORM operates as an integrated platform owning and operating a fleet of product tankers (LR2, LR1, MR), focusing on the transportation of refined oil products with a high degree of in-house control over operations and commercial management.

Transportation of refined oil products, including gasoline, diesel, and jet fuel, globally.

NAT is an international tanker company focusing solely on owning, operating, and chartering Suezmax crude oil tankers, employing a homogeneous fleet strategy known as the 'Nordic American System'.

Owning and operating Suezmax tankers for the transportation of crude oil globally.

Other than our vessels, we do not own any material property. We lease office space from an affiliated company of Stealth Maritime.

The management team at Imperial Petroleum presents a paradox. The board is exceptionally well-suited for the Cyclical Operator archetype, and the CEO has a proven track record of successfully navigating the shipping cycle and generating shareholder value at a sister company. However, the current strategy at IMPP is fundamentally misaligned with through-cycle value creation. The team is executing an aggressive, pro-cyclical 'growth at any cost' plan, funded by massive shareholder dilution that has destroyed per-share value. While the operational goal of building a larger, more diversified fleet is being met, the capital allocation strategy is poor, and the incentive structure fails to discipline this behavior. This team possesses the expertise to be exceptional, but their current actions are not in the best interest of long-term shareholders.

The company faces significant regulatory risks from the International Maritime Organization (IMO), the European Union (EU), and the US Coast Guard (USCG). Key regulations include the EU Emissions Trading System (ETS) for maritime shipping (phased in starting 2024), the Energy Efficiency Existing Ship Index (EEXI), and the Carbon Intensity Indicator (CII). Compliance may require significant financial expenditures for vessel retrofits or the purchase of carbon allowances. The company is also subject to the US Oil Pollution Act of 1990 (OPA) and the Vessel Incidental Discharge Act (VIDA).

The company reported approximately 74 full-time employees.

The company discloses compliance with the International Code for the Construction and Equipment of Ships carrying Dangerous Chemicals in Bulk (IBC Code) for chemical tankers. It also mentions adherence to data privacy requirements such as the European General Data Protection Regulation (GDPR).

This narrative is built upon a foundation of declining revenues, which fell 22.4% year-over-year in H1 2025 to $68.4 million due to normalized tanker rates, despite the 56% expansion of the fleet size.

The investment strategy is explicitly focused on 'Capacity Expansion.' According to the P14 Innovation Dossier, the company contracted to acquire seven Japanese-built drybulk carriers to increase fleet capacity. The Q2 2025 transcript confirms the delivery of these seven ships, increasing the fleet size by 56% to 19 vessels. Management stated in the Q1 2025 call that they have 'capital commitments for new dry bulk ships' totaling $129 million.

The asset base is composed almost entirely of vessels. The 2024 Annual Report discloses an impairment loss of $9.0 million recognized in 2023. As of December 31, 2024, management noted that the book value of four out of eleven vessels was higher than their market value, but no impairment was recorded as undiscounted cash flows exceeded carrying values. The auditor did not identify asset impairment as a Critical Audit Matter (CAM).

The reinvestment is directed entirely into CapEx for fleet expansion, as detailed in the P14 Innovation Dossier. The high IncrROIC suggests that the returns from adding these new vessels to the fleet are substantial, likely because the company is acquiring assets that generate cash flow immediately in a market where rates, while down, still exceed operational breakevens.

Price / Tangible Book Value

EV / Normalized EBITDA

EV / EBITDA

EV/EBITDA

P/Tangible Book

EV/Normalized EBITDA

Extensive experience in tanker and gas shipping industry since 1999. Former roles at Seascope and Braemar. Former Head of Operations and Chartering at Stealth Maritime. B.A. in Management Science and Masters in Shipping, Trade and Transport.

Managing Director at Allied Shipbroking Inc. Former roles in prominent shipbroking houses in London and Piraeus. Member of Hellenic Shipbrokers Association. Degree in Shipping and Economics.

Founder and Managing Director of XRTC Business Consultants Ltd. Financial and advisor consultant for Greek shipping. Former shipping finance consultant for NATIXIS. Various leadership roles in shipping associations.

19 years of finance experience. Finance officer at StealthGas since 2015. Former roles at Piraeus Bank in credit departments and private equity. B.Sc. from LSE and M.Sc. from SDA Bocconi.

Ifigeneia Sakellari

Flawless Management Inc.

Arethusa Properties Ltd

Imperial Petroleum Inc. is a Marshall Islands company that provides seaborne transportation services for refined petroleum products and drybulk commodities. The company was incorporated on May 14, 2021, by StealthGas Inc. and completed its spin-off from StealthGas on December 21, 2021. The company operates a fleet of tankers and drybulk carriers, which are managed commercially and technically by Stealth Maritime Corporation S.A., a related party. The company's business is focused on the international shipping industry, specifically the transportation of crude oil, refined petroleum products, and drybulk cargo.

Held WACC (11.2%) and Terminal Multiple (5.5x) constant, and solved for the Year 5 operating margin required to justify the current market enterprise value.

Balance Sheet - Supplemental

Balance Sheet

Cash Flow Statement - Supplemental

Cash Flow Statement

Income Statement - Supplemental

Income Statement

Ratios

Valuation

Historical Ratios & Multiples - IMPP

The tanker market remains supported by geopolitical tensions and trade inefficiencies, with spot rates for Suezmax tankers averaging 30,000 per day. However, the industry is seeing a surge in newbuild orders, with peers like Ardmore Shipping and Teekay Tankers increasing capital plans, signaling a potential supply glut in 2026.

Imperial Petroleum is relevant now because it has just completed a massive 56% fleet expansion and is trading at a multi-year low valuation multiple of 0.3x Tangible Book, despite being debt-free with 206.7M in cash.

Full integration of the seven drybulk carriers delivered in Q2 2025. This addresses market concerns about the company's ability to generate cash flow from its expanded asset base and validates the shift toward a more diversified, time-charter-heavy model.

OPEC+ unwinding of production cuts. This macro event is expected to increase global seaborne crude volumes, providing a tailwind for the company's Suezmax and product tanker rates.

Lower-for-longer cyclical downturn in freight rates. A structural oversupply of vessels or a global economic slowdown could push rates below the company's 9,000 daily breakeven, leading to operational losses and potential asset impairments.

Persistent shareholder dilution. Management may continue to issue equity to fund further acquisitions or related-party transactions, eroding per-share value even if absolute profits grow.

Imperial Petroleum Inc. operates a fleet of 19 vessels as of FY2025 Q2, reflecting a significant expansion. The fleet comprises 7 MR (Medium Range) refined petroleum product tankers, 2 Suezmax crude oil tankers, and 10 dry bulk carriers. The dry bulk fleet includes 3 Handysize carriers and 7 newly acquired Japanese-built dry bulk carriers (5 Supramax and 2 Kamsarmax), which were delivered by May 2025. The total cargo carrying capacity of this combined fleet is 1,194,000 deadweight tons (dwt).

Compass Maritime reported a 47,000 DWT MR product tanker at $21.75 million.

Four-year-old Suezmax sisterships (157,000 dwt) were sold for $78 million each.

A 2010-built (15-year-old) Suezmax tanker, 'Advantage Summer', was sold for $40.4 million.

A 2020-built, 39,870-dwt Handysize bulk carrier ('Aries Sakura') was sold for between $25.5 million and $26.2 million.

A 2012-built, 56,000 dwt Supramax was sold for $17.5 million.

A 2017-built, 82,000 DWT Kamsarmax ('Kazahaya') was acquired for $27.5 million.

Three 2012-2013 built, 82,000 DWT Kamsarmaxes were sold enbloc for $45 million, implying $15 million per vessel.

Cash & Equivalents

Accounts Receivable

Imperial Petroleum Inc.'s inventory, primarily consisting of bunkers and lubricants, is classified as a commodity. The inventory's health is robust, evidenced by a strong turnover rate of approximately 11.19 times per year, indicating that it is actively used and not prone to obsolescence. This high liquidity supports a favorable recovery rate in an orderly liquidation. The base case recovery rate of 75.0% is considered realistic, balancing the fungible nature and good turnover with the inherent discounts associated with a bulk liquidation. The high and low cases provide a credible range, reflecting optimal market conditions versus a distressed sale scenario, respectively, for this essential operational commodity.

Inventory

Other Current Assets

**Primary Transaction Comps:**
- Sale of 'Gstaad Grace II', a 2009-built Aframax tanker (113,000 DWT), for $42 million. ($371.68/DWT)
- Acquisition of 'Neptulus', a 2012-built Handysize drybulk carrier (33,000 DWT), and 'Clean Imperial', a 2009-built MR product tanker (40,000 DWT), for a combined $40 million. ($547.95/DWT (blended))
- Acquisition of seven Japanese-built dry bulk carriers (5 Supramax, 2 Kamsarmax, 443,000 DWT total) for a capital commitment of $129 million. ($291.20/DWT (blended))

**Replacement/Scrap Data:**
Published valuation guidelines and new construction costs for various vessel types indicate a wide range, but for a conservative orderly liquidation, recent transaction comparables are prioritized. The company's 20-F report mentions an estimated scrap value of $350 per light weight ton for depreciation purposes, which serves as a very low-end floor for valuation.

The current asset base of Imperial Petroleum Inc. consists of a diversified fleet of 19 vessels, comprising 7 MR (Medium Range) refined petroleum product tankers, 2 Suezmax crude oil tankers, 3 Handysize drybulk carriers, 5 Supramax drybulk carriers, and 2 Kamsarmax drybulk carriers. This fleet configuration reflects the company's strategic expansion, with seven new Japanese-built drybulk carriers (5 Supramax and 2 Kamsarmax, totaling approximately 443,000 DWT) having been delivered by May 2025, increasing the total fleet size from 12 to 19 vessels and the total cargo carrying capacity to 1,194,000 DWT.

Net PP&E

Long-Term Inv.

Accounts Payable

Current Debt

Deferred Revenue

Other Current Liabilities

EX-99.1

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Imperial Petroleum Inc. Declares Dividend On Series A Preferred Shares

Imperial Petroleum price target raised to $6 from $5.50 at Maxim

Market/Sector Move +6.76%

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SECURITIES AND EXCHANGE COMMISSION

IMPERIAL PETROLEUM INC. ANNOUNCES THE SALE OF ITS AFRAMAX TANKER

Earnings Report: EPS Surprise N/A, Revenue Surprise N/A

CUSIP No:

Market/Sector Move +6.33%

Market/Sector Move -7.60%

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Imperial Petroleum is a debt-free shipping operator trading at a 66% discount to its net liquidation value of 11.69 per share. While the market is fixated on historical dilution, our analysis suggests a cyclical inflection as the company integrates a 56% fleet expansion into a stabilizing rate environment, creating a massive mean-reversion opportunity.

Executive Summary

The primary value driver is the successful scaling of the fleet to 19 vessels, which provides significant operational leverage as the company integrates seven new drybulk carriers. This growth is protected by a fortress balance sheet with zero bank debt and 187.4M in net cash, ensuring the company can survive a cyclical trough while trading at a deep discount to its tangible asset value.<ul><li>Driver: Fleet scale and operational leverage</li><li>Catalyst: Integration of seven recently delivered drybulk carriers</li><li>Protection: Debt-free balance sheet with 187.4M in net cash</li></ul>Our variant perception is that the market is extrapolating current trough earnings and historical dilution into perpetuity, incorrectly pricing the stock as a broken business. In contrast, our analysis of the company's 187.4M net cash position and the 56% increase in fleet capacity suggests a cyclical inflection is imminent, creating a classic mean-reversion opportunity where the market is ignoring a net liquidation value of 11.69 per share.This is a mid-term, cyclical trade designed to capture the upside from a trough valuation to a mid-cycle normalization, not a long-term compounder investment.

Core Investment Rationale

Imperial Petroleum provides international seaborne transportation services for refined petroleum products, crude oil, and drybulk commodities. The company operates a fleet of 19 vessels, including MR product tankers, Suezmax tankers, and various drybulk carriers. Strategy is focused on maximizing utilization through a mix of time charters and spot market exposure. Currently, 80% of the fleet is under time charter, providing predictable cash flows. The company maintains a low-cost operational structure with daily vessel operating expenses of 6,938, which is significantly below the daily cash flow breakeven of approximately 9,000.The core assets consist of 19 vessels with a total capacity of approximately 1.2 million deadweight tons (dwt). This includes 7 MR product tankers, 2 Suezmax tankers, and 10 drybulk carriers (Handysize, Supramax, and Kamsarmax). These assets are highly liquid in the global shipping market. The fleet's scale provides operational leverage, as the company can spread fixed management costs across a larger number of revenue-generating days. The net PP&E is valued at 343.1M on the balance sheet, but recent transaction comparables suggest an orderly liquidation value for the fleet of 417.9M.The shipping industry is highly fragmented and competitive. Imperial Petroleum is a small-cap operator compared to peers like Teekay Tankers (1.87B market cap) and Ardmore Shipping (436.5M market cap). Competition is based on price, vessel age, and manager reputation. While the company lacks a structural moat, its debt-free status and 206.7M cash reserve provide a competitive advantage in terms of financial flexibility compared to more levered peers during market downturns.Since its spin-off from StealthGas in late 2021, Imperial Petroleum has navigated a full business cycle marked by extreme volatility. During the 2022-2023 peak, the company generated 71.1M in net income as tanker rates surged following geopolitical disruptions. Management utilized this period to aggressively expand the fleet from 4 to 19 vessels, but funded this growth through massive equity issuance, resulting in a 166.9% annualized share count growth rate. This pro-cyclical dilution has been the defining historical narrative, causing the stock to trade at a persistent discount to its net asset value despite achieving a debt-free balance sheet in early 2023.

Business & Situation

<ul><li>Bull Case: The company trades at a massive discount to its net liquidation value of 11.69 per share and holds 187.4M in net cash. The integration of 7 new drybulk carriers will drive significant cash flow growth as 80% of the fleet is now secured under time charters.</li><li>Bear Case: Management has a history of extreme shareholder dilution, with share count growing at a 166.9% CAGR. Related-party transactions with Vafias-affiliated entities for vessel acquisitions raise significant corporate governance concerns.</li></ul>The market views Imperial Petroleum as a 'value trap' where any operational success is immediately offset by dilutive equity raises. Investors are focused on the 166.9% share count growth and the 22.4% YoY revenue decline in the first half of 2025, leading to a de-rating of the stock to a 0.3x price-to-tangible-book multiple. This narrative is reinforced by the company's status as a small-cap operator in a cyclical industry that is perceived to be approaching a supply-side peak due to accelerating peer CapEx.The tanker market remains supported by geopolitical tensions and trade inefficiencies, with spot rates for Suezmax tankers averaging 30,000 per day. However, the industry is seeing a surge in newbuild orders, with peers like Ardmore Shipping and Teekay Tankers increasing capital plans, signaling a potential supply glut in 2026.Our differentiated view is that the market is extrapolating trough conditions indefinitely, while we see signs of a cyclical inflection. While revenue declined 22.4% YoY, the company generated 77.7M in operating cash flow over the TTM, and the 56% increase in fleet capacity has not yet been fully reflected in earnings. The valuation is at a historical trough multiple of 0.3x Tangible Book, which is significantly below the 5-year average. We believe the debt-free balance sheet and 206.7M cash position provide a floor that the market is currently ignoring due to governance fears.The debate centers on whether asset growth can eventually outpace dilution. With the fleet expansion now largely complete at 19 vessels and 80% of capacity under time charter, the company has reached a scale where it can generate significant free cash flow without further equity raises. The current price of 3.84 offers a massive margin of safety against a liquidation value of 11.69.Our analytical edge is a more granular analysis of industry supply-side discipline and the company's specific chartering strategy, which suggests the coming upcycle for drybulk and the stability of the time-charter tanker portfolio will be stronger than the market is currently pricing into trough multiples.

Core Thesis

CEO Harry N. Vafias has a proven track record of navigating shipping cycles, having led StealthGas to record net income of 70M in 2024 and achieving a net-debt free status through the repayment of 350M in debt since 2023.Capital allocation skill is mixed; while management has successfully built a debt-free, 19-vessel fleet, it has done so through extreme dilution, issuing 185.1M in stock while only repurchasing 8.5M. This has resulted in a negative net yield of 269.1% over the analysis period.Management is candid about market conditions, accurately forecasting the Q3 2024 seasonal softness, but communication regarding the cessation of dilution remains vague, which is the primary source of investor skepticism.<ul><li>Board Independence: 66.7% (2 of 3 directors)</li><li>Chairman/CEO Roles: Combined</li><li>Chairman Tenure: 4 Years</li><li>Insider Ownership: 29.6%</li><li>Shareholder Rights: Classified Board, Plurality Voting, 80% Supermajority for Director Removal</li></ul>The stewardship verdict is net neutral. While the aggressive dilution is a major negative for minority shareholders, the operational execution in building a debt-free, cash-generative fleet is superior. The CEO's high 29.6% ownership stake provides some alignment, but the history of related-party transactions requires a significant valuation discount.

Leadership & Governance

The valuation floor is derived from the historical trough Price-to-Tangible-Book multiple of 0.1x applied to the current tangible book value per share of 12.60.The base case assumes revenue stabilizes at 145M-155M as the 19-vessel fleet is fully utilized. Operating margins normalize at 23-25%, and the company avoids further major dilution. This results in a fair value of 14.32 per share.A sustained geopolitical super-cycle keeps tanker rates at 2023 levels, allowing the company to generate over 100M in annual FCF. Blue-Sky Potential is 22.59 per share.The bear case fair value of 7.07 is determined by the lower of the 'Fire Sale' Net Liquidation Value (11.39 after a 20% haircut) or the 'Severe Operational Decline' DCF of 7.07. This scenario assumes a collapse in freight rates and continued dilutive equity raises to fund operations.

Valuation Context

<ul><li>Full integration of the seven drybulk carriers delivered in Q2 2025. This addresses market concerns about the company's ability to generate cash flow from its expanded asset base and validates the shift toward a more diversified, time-charter-heavy model.</li><li>OPEC+ unwinding of production cuts. This macro event is expected to increase global seaborne crude volumes, providing a tailwind for the company's Suezmax and product tanker rates.</li></ul>Imperial Petroleum is relevant now because it has just completed a massive 56% fleet expansion and is trading at a multi-year low valuation multiple of 0.3x Tangible Book, despite being debt-free with 206.7M in cash.

Catalyst Path & Context

<ul><li>Lower-for-longer cyclical downturn in freight rates. A structural oversupply of vessels or a global economic slowdown could push rates below the company's 9,000 daily breakeven, leading to operational losses and potential asset impairments. Revenue has already declined 22.4% YoY in H1 2025, and peer CapEx is accelerating, which typically precedes a supply-driven downturn.</li><li>Persistent shareholder dilution. Management may continue to issue equity to fund further acquisitions or related-party transactions, eroding per-share value even if absolute profits grow. The company has a historical share count CAGR of 166.9% and recently priced a 60M offering in December 2025.</li></ul>

Primary Risks

<ul><li>Entry Target: Entry target set to current market price to capture immediate upside on a high-conviction thesis.</li><li>Stop Loss: Set the stop-loss below the 52-week low of 2.12. A break below this level would suggest the current downturn is structurally worse than anticipated, invalidating the mean-reversion thesis.</li><li>Position Size: Base conviction is Medium due to the high governance risks associated with historical dilution and related-party transactions. Position size is capped at 'Half' due to the risk of being early to the cycle turn and the structural risks inherent to the Cyclical Operator model.</li><li>Time Horizon: A 12-24 month horizon is required to capture the full earnings contribution of the expanded 19-vessel fleet and the normalization of the tanker market cycle.</li></ul><ul><li>Daily Time Charter Equivalent (TCE) rates for MR product tankers and Supramax drybulk carriers</li><li>Quarterly share count changes and any new equity offering announcements</li><li>Fleet utilization rates and technical off-hire days</li></ul>Evidence that the shipping cycle is not inflecting as expected, specifically if TCE rates fall below 9,000 per day for a sustained period, or if management announces another major dilutive equity raise exceeding 20% of the current float.

Actionable Parameters & Monitoring

Imperial Petroleum represents a classic cyclical mean-reversion opportunity where the market's focus on historical dilution has created a massive disconnect between the stock price and its tangible asset value. With a debt-free balance sheet, 187.4M in net cash, and a newly expanded 19-vessel fleet, the company is well-positioned to generate significant cash flow as rates normalize. We recommend a Buy with a valuation target of 11.09, representing 188.8% upside from current levels.

Final Conclusion

Driver

Integration of seven recently delivered drybulk carriers

Catalyst

Debt-free balance sheet with 187.4M in net cash

Protection

The company trades at a massive discount to its net liquidation value of 11.69 per share and holds 187.4M in net cash. The integration of 7 new drybulk carriers will drive significant cash flow growth as 80% of the fleet is now secured under time charters.

Bull Case

Management has a history of extreme shareholder dilution, with share count growing at a 166.9% CAGR. Related-party transactions with Vafias-affiliated entities for vessel acquisitions raise significant corporate governance concerns.

Bear Case

Imperial Petroleum is a debt-free shipping operator trading at a 66% discount to its net liquidation value of 11.69 per share. While the market is fixated on historical dilution, our analysis suggests a cyclical inflection as the company integrates a 56% fleet expansion into a stabilizing rate environment, creating a massive mean-reversion opportunity.

From Growth-at-all-costs to Profitability

Method	Implied Value	Weight	Weighted Value
DCF	$14.57	50%	$7.29
Comps	$4.88	30%	$1.46
NLV	$11.69	20%	$2.34
Total Weighted			$11.09

IMPP

Company Overview

Price History