Imperial Petroleum Inc.

Good morning, everyone, and thank you all for joining us for our Q2 and six months 2026 conference call of Imperial Petroleum. I'm Harry Vafias, the CEO of the company, and joining me on the call today is Ms. Sakellari, who will be discussing our financial performance. Before we commence our discussion, we'd like you all to read the safe harbor disclaimer on slide two. In short, today's presentation includes forward-looking statements under the Private Securities Litigation Reform Act. These statements reflect Imperial Petroleum's current expectations and beliefs. However, they are naturally subject to risks and uncertainties, meaning our actual future results could differ materially from what we discussed today. We would also like to clarify that all monetary values referenced on the call are U.S. dollars, except where explicitly noted. On slide three, we summarize our key operational and financial highlights for Q2. The second quarter of 2026 was yet another milestone for our company, characterized by record financial results in terms of revenue, strategic fleet optimization, and a commitment to a commercial strategy that continues to drive company value. Indeed, we are extremely pleased to report an all-time high quarterly revenue of $87.1 million for Q2, representing a remarkable 41.2% sequential growth from Q1 2026, and a impressive 140% increase year-over-year. This revenue improvement brought upon our vigorous fleet expansion, along with strong markets for both tankers and bulkers, fueled the second-best quarterly net income in our history, at $34.8 million, up 172% compared to Q2 2025. Furthermore, our performance for the first six months of 26 has been exceptional, Nent income for the six months reached $62.8 million, which already exceeds our total net profitability for the entire 12 months of 2025, i.e. $50 million. In addition, our earnings per share for the six months is solid and about a quarter of our current share price. This profitability directly enhanced our liquidity, driving cash and cash deposits up to $245.2 million as of June 30th, However, our current cash base has increased further and is now around $260 million. We strive to utilize our fleet as efficiently as possible. Operational utilization for the second quarter stood at 73.5%. While lower than previous quarters, this temporary utilization decline was a strategic choice. Technical off-hire accounted for 10.7% of the total fleet calendar days as we successfully managed a concentrated schedule of six dry dockings. The completion of these dry dockings now ensures our fleet operates at maximum efficiency and safety moving forward. We have another seven dry dockings to complete up until the end of the year. Moreover, we have been also very active on fleet management from a commercial perspective. We continued on our already announced fleet expansion. On April the 3rd, we took delivery of the dry bulk carrier, the AECO Crossfire, In the beginning of August, we completed the sale of the 2007-built tanker Suez Enchanted for a profit in excess of $30 million, not bad for a nearly 20-year-old ship. And in addition, on August 21st, we took delivery of the hand-sized Bulker Outrider. Our fleet now counts 21 vessels, and we have four additional vessels, three hand-sized Bulkers, and one product tanker to be delivered until the end of the year. Thus, in a short period of time, we'll be operating a sizable fleet of 25 vessels. On slide 4, we are providing a summary of our current fleet employment. About 57% of our fleet is currently under time charter. As customarily, the majority of our dry bulk vessels are on short time charters. The commercial strategy we currently follow for our dry bulk vessels provides healthy cash flow while minimizing idle time and voyage costs. Rates for the dry sector have been firm throughout the second quarter, allowing us to enjoy solid returns from our chartering strategy. In terms of tankers, we employ five product tankers and one Suezmax tanker in the spot market, while two of our product tankers are under time-chartered employment ranging from short to medium term. On slide five, we are discussing the evolution of market rates for both tankers and dry bulk vessels. In Q2, market rates remained firm for both tankers and bulkers. Rates for MR tankers peaked in April and eased by the end of May as the Atlantic arbitrage window narrowed. Currently, MR rates are reasonably firm Thank you very much. The rates for the dry bulk ships were higher than Q2-25 and Q1-26. Longer haul voyages, partially due to the rate of formose disruption along with the improvement of fundamental data from China. Profitability increase of steel mills, increased bauxite exports, imports from Guinea, and rebound of coal trade boosted both freight rates and asset values. On slide six, we are reviewing the tanker market. Q2 was firm for both Suez Maxis and product tankers. Both vessel types were affected Thank you very much. Thank you very much. The U.S. Gulf Far East CPP Cargoes As an effect, Atlantic rates improved. We did witness a weaker activity east of Suez as the regional refineries were in shortage of Middle East crude, hence had less CPP to export. Long-term prospects for both Suez Max and product tankers mostly depend on the Strait of Hormuz status. Should the Strait of Hormuz remain closed for a prolonged period, the markets will be short of cargoes and rates might suffer. In addition, very soon Houthi attacks in the Red Sea have caused further structural changes in trade patterns. A potential reopening of the state of Hormuz will affect restocking volumes, which is anticipated to sustain a strong tanker market for a period in excess of 12 months. In terms of tanker market fundamentals, total order book for Suez Max Vessel stands at 30.8%, with 31% of the fleet above 20 years of age. For the MR tankers, total order book stands at 16%, while 26% of the fleet is above 20 years of age. As evident, we don't have We do have an aging fleet for both Suez Maxis and product tankers, but rate hikes in recent years have facilitated the operation of older tonnage instead of recycling. In addition, new orders for all sizes of tankers are being placed every single week. On slide seven, we are discussing the dry bulk market. Q2 was a strong quarter for the dry bulk sector. Indeed, the BDI average for Q2 was close to 2,750, which is the best quarter since the fourth quarter of 2021. Overall, the dry bulk sector, unlike the tanker market, has remained rather insulated from the Middle East conflict, but has greatly benefited from longer routings. At this point, we need to mention that Imperial Petroleum has won dry bulk vessels stranded in the Strait of Hormuz since the end of May 26. Commodity fundamentals, although mixed, also support longer routes. Iron ore departures to China increased in Q2 by 3% year-on-year, driven mostly by a rise in portside inventories and weak domestic mining output. Gini and Buxit exports to China rose 12% year-on-year, as the government imposed an export cap which is close to 150 million tons. This will mostly affect long-term trade for Cape-sized vessels, and any replacement volume required will now be imported from shorter routes, which is a benefit for smaller dry-bulk ships. Coal trade, especially thermal coal, marked a strong rebound in Q2. Thermal coal demand decreased, so as to compensate for the lost Middle East LNG supplies, and was sustained against firmer demand stemming from India. Since April, Chinese coal demand rebounded ahead of the summer as news around El Niño added pressure on power demand. Smaller and mid-sized bulkers were supported by grains and mine or bulk demand as Brasilia's soya bean exports were up 10% compared to 2025. Looking ahead, the Middle East conflict assists dry black vessels on longer haul voyages and increased thermal coal trading. However, high oil prices and freights Add pressure on commodity traders, thus creating trade risks. The current order book for the handy-sized dry bulk vessels is low, around 6.5%, with 18% of the fleet above 20 years of age. Relatively low at 12.8% is also the order book for Panamax-Camsomax vessels, with 20.5% of the fleet being above 20 years of age. I now pass the floor to Mrs. Sakellari to summarize our financial performance.

Thank you, Harriet. Good morning to all. In Q226, Imperial Petroleum marked a record performance in terms of quarterly revenues and the second best performance of all times in terms of profitability. Geopolitical tensions around the globe persist, thus creating volatility in the shipping markets, affecting trading routes and freight rates. In Q226, rates for both tankers and dry bulk carriers were strong, leading to a spike in our revenues. Looking at our income statement for Q2-26 on slide 8, revenues came in at 87.1 million in Q2-26, marking a 140% increase compared to revenues generated in the same period of 25. Indeed, our daily fleet revenue in Q2-66 was in excess of 50,000 compared to 29,000 daily revenue in Q2-25. This increase is mainly due to an noticeable increase in market rates for both products as well as mass tankers, along with the increase of our fleet by an average of 6.9 vessels. As at the end of Q2-25, rates for Proton tankers were close to 29,000 per day, while daily rates for Suez Max tankers were close to 38,000. As at the end of Q2-26, with ongoing geopolitical tensions in the Middle East and the Red Sea, daily rates for Proton tankers climbed to about 31,000, while daily rates for Suez Max tankers surged in excess of 145,000. Voyage costs amounted to $22.1 million, a $14.4 million higher than in Q2-25. This increase is attributed to higher number of spot days by about 58% in conjunction with increased banker prices. Indeed, the average Brent crude oil price per barrel for Q2-26 was about $97, while for Q2-25 the average Brent crude oil price per barrel was about $67. In addition to this, in Q226, we had somewhat increased ballasting activity, particularly for the vessels that underwent, within the quarter, the scheduled dry docking. Our net revenues for the quarter came in at about 65 million, marking a 154% increase between the two periods. Running costs amounted to 14.4 million, increased by 6 million due to the increase of our fleet by an average of 6.9 vessels between the two periods. Dry docking costs were quite high, in the order of 7.5 million, As in Q2-26, we underwent six dry dockings. As we have already mentioned, we have another seven dry dockings to complete up to the end of 26. EBITDA for the second quarter of 26 came in at 41.2 million, while NAIT income at 34.8 million, corresponding to a basic average per share of 75 cents versus 12.8 million, corresponding to an EPS of 36 cents in Q2-25. For six months 26, Net income came in at 62.8 million, corresponding to an EPS of 1.34, with EPS for the last 12 months being close to 2, which is an outstanding yield, especially when compared to our share price levels. Moving on to slide 9, let us take a look at our balance sheet for 6 months 26. As of June 30, 26, our free cash, including type deposits, was 245 million. Our cash to date is in the region of 260 million. As mentioned, our existing liquidity and most important, cash flow generation remains no bust as in 6 months 26 we generated an operating cash flow of 78 million. Our recent and upcoming venture deliveries continue to enhance our fleet book value. We maintain a flexible capital structure as we are debt-free, thus face zero interest rate and finance pressures, and highly liquid, pleasant and advantageous position against our peers, particularly in the event of softer market conditions. Proceeding to slide 10, we provide the summary of our equity, profitability, and market considerations going forward. As mentioned, we are highly liquid, maintain a solid balance sheet, and continue to translate our strategic fleet expansion to profitability and growth. Yet, we still remain undervalued when looking at our share price levels. In Q2-26, our average time charter equivalent per fleet voyage day was close to 71,500 for our tankers and about 15,100 for our drive-by fleet. This compares favorable to our cash flow break-even levels estimated at 8,500 per day for tankers and 6,500 per day for dry bulk vessels. In terms of market considerations, the focal point is the U.S.-Iran-Israel conflict which appears to fall in a stable course and seems that we'll have a longer than expected duration. Recent Houthi attacks in the Red Sea add on to the geopolitical uncertainty that distorts the market. In this environment, it's not yet visible how tanker and dry bulk market will be affected in the medium term. In any event, EPR Petroleum is shielded from all angles to navigate any market conditions that may arise. At this stage, our CEO, Mr. Harry Vafias, will summarize our concluding remarks for the period examined.

Our exceptional second quarter and first half of 26 demonstrate the power of our commercial strategy and disciplined execution. By securing record revenues of 87.1 million for Q2, expanding our fleet toward a 25-vessel target, While remaining debt-free, we have driven net income for the first six months to a remarkable $62.8 million, already surpassing our total profitability for the entirety of 2025, backed by a solid balance sheet with cash to date in the order of approximately $260 million and a feed value anticipated to increase with our upcoming vessel additions. We are well equipped to navigate shifting geopolitical landscapes, and Imperial Petroleum is in a prime position to produce strong results while holding a flawless balance sheet and a track record of creating value through the company's growth in strategic asset management. We'd like to thank you all for joining us at our call today and for your interest and trust in our company and we look forward to having you again with us at our next call for our Q3 26 results. Thank you.