This Shipping Company Holds More Cash Than Its Market Cap: Retail Sees Immense Value Despite Disappointing Earnings

Shares of Imperial Petroleum (IMPP) declined over 3% on Thursday after the company’s fourth-quarter earnings fell short of Wall Street estimates.

Revenue fell 12.4% year-over-year (YoY) to $26.2 million during the quarter, falling short of a Wall Street estimate of $37 million, according to FinChat data. The decline in revenue was primarily driven by a decrease in the spot market rates.

Adjusted earnings per share (EPS) came in at $0.12 versus an analyst estimate of $0.26. Net income declined 39% YoY to $3.92 million.

CEO Harry Vafias noted that market conditions in 2024 were somewhat softer than 2023 when tanker rates oscillated around all time high levels.

“Nevertheless, our debt free fleet of eleven vessels managed to generate $50 million of profit and maintain an enviable cash base of $207 million. In the period ahead, our key focus is to materialize our already announced fleet growth plans and sustain our profitable momentum,” he said.

During the fourth quarter, the company witnessed an almost 180% increase in time charter days compared to the same quarter a year ago, as two of its product tankers and one newly acquired bulk carrier were under time charter employment for the whole period.

Drydocking costs fell to $0.2 million in Q4 compared to $2.5 million a year ago. Interest income stood at $2.3 million as compared to $2 million in the fourth quarter of 2023 while the firm reported a foreign exchange loss of $3.3 million compared to a gain of $1.4 million in the same quarter a year ago.

As of Dec. 31, 2024, the company’s cash and cash equivalents, including time deposits, amounted to $206.7 million, while total bank debt amounted to nil. Interestingly, this is more than double the firm’s market capitalization.

A Stocktwits user questioned why the company is not considering going private despite holding much more cash than its entire market capitalization.

Another user sees immense value in the firm.

IMPP shares have fallen below 14% in 2025 and have lost over 9% in the past year.

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