IMPPP - Imperial Petroleum Series A Preferred: Still Solid But Downgrading To 'Hold' After Recent Rally

2024-05-14 08:41:36 ET

Summary

• Greece-based tanker and dry bulk vessel operator Imperial Petroleum commands a best-in-class balance sheet with plenty of cash and no debt.
• Last year, the company generated almost $80 million in cash flow from operations and both the tanker and dry bulk shipping markets continue to exhibit strength.
• With the dividend covered multiple times by the company's strong cash flow, Imperial Petroleum's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares continue to look solid.
• However, the recent share price rally has resulted in the annualized yield now being roughly in line with several much larger players in the shipping space.
• Consequently, I am downgrading the company's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares from "Buy" to "Hold".

Note:

I have covered Imperial Petroleum Inc. ( IMPP )( IMPPP ) previously, so investors should view this as an update to my earlier articles on the company. ...

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