Imperial Petroleum reported second-quarter 2026 revenue of $87.1 million, a company all-time high that represented a 41.2% increase from first quarter and a 139.9% jump from a year earlier. Net income came in at $34.8 million, the firm's second-best result in its history, while basic earnings per share of $0.75 edged out Wall Street's consensus forecast of $0.73 by roughly 2.7%.
Operating income for the quarter rose 26% from the prior period to $33.4 million, with EBITDA reaching $41.2 million — a 142% increase. Net revenues after voyage costs totaled $64.978 million, up 154% from $25.644 million a year ago. For the first half, cumulative net income was $62.8 million, already exceeding the full-year 2025 total of $50.0 million.
The company operates an average of 21 vessels in the quarter, up from 14.1 in the same period last year, with the fleet expected to expand to 25 by year-end. Delivery of the drybulk carrier Eco Crossfire came on April 3, followed by the sale of tanker Suez Enchanted on August 7 and the addition of drybulk carrier Outrider on August 21. The fleet achieved an operational utilization rate of 73.5%, split between time-charter employment at roughly 50% and spot-market operations at 39%.
Tanker market rates provided a major tailwind. Suezmax time charter equivalent rates averaged $145,014 per day during the quarter, occasionally climbing above $200,000, with the latest level near $151,500. Medium-range product tanker rates averaged $30,566 per day, rising to approximately $35,770 in subsequent weeks. In drybulk, the Baltic Dry Index averaged near 2,750, while Supramax rates climbed to $19,150 per day from $15,692 in the first quarter, and Kamsarmax rates reached $22,035 per day.
Favorable conditions were partly underpinned by geopolitical disruptions in key shipping lanes, including Middle East tensions and Houthi attacks in the Red Sea. Commodity trade flows also strengthened, with iron ore shipments to China rising 3% year-over-year in the second quarter, Guinean bauxite exports to China increasing 12%, and Brazilian soybean exports up 10% compared with 2025.
Industry supply-demand fundamentals appear supportive across segments. Orderbook ratios stand at 30.8% for Suezmax tankers and 16% for MR tankers, while 31.8% of the Suezmax fleet and 26% of the MR fleet are over 20 years old. In drybulk, Handysize orderbooks represent just 6.5% of the existing fleet and Panamax/Kamsarmax orderbooks sit at 12.8%, with older-vessel shares at 18% and 20.5% respectively.
Imperial's balance sheet remains among the strongest in the sector. Cash and equivalents, including time deposits, grew to $245.2 million as of June 30 — up 37% from $179.1 million at year-end 2025 — with the total expected to reach approximately $260 million. Total debt stands at zero, liabilities-to-total-assets ratio is 9%, and stockholders' equity rose to $586.8 million. The sale of Suez Enchanted generated a net gain of roughly $32 million.
Looking ahead, analysts project full-year 2026 earnings per share of $3.04, up from $1.68 in the trailing twelve months, with revenue expected to grow 67%. The company's product tanker Clean Justice carries a time charter security arrangement extending through September 2027.
