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OceanPal Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2022; Declares a Cash Dividend of $0.01 Per Share

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OceanPal Inc. (NASDAQ: OP) reported a net income of $648,000 for Q2 2022, with revenues from time charters totaling $4.6 million. The net income attributed to common stockholders was $157,000. For the first half of 2022, the company recorded a net income of $1.1 million but reported a net loss attributed to common stockholders of $277,000, despite time charter revenues of $8.3 million. A cash dividend of $0.01 per share will be distributed to shareholders on August 31, 2022. The fleet's average utilization was strong at 98% for Q2.

Positive
  • Net income of $648,000 in Q2 2022.
  • Time charter revenues increased to $4.6 million for Q2.
  • Strong fleet utilization at 98% in Q2.
  • Declared a cash dividend of $0.01 per share.
Negative
  • Net loss attributed to common stockholders of $277,000 for the first half of 2022.

ATHENS, Greece, Aug. 02, 2022 (GLOBE NEWSWIRE) -- OceanPal Inc. (NASDAQ: OP) (the “Company”), a global shipping company specializing in the ownership of vessels, today reported net income of $648 thousand and net income attributed to common stockholders of $157 thousand for the second quarter of 2022. Time charter revenues for the same period were $4.6 million.

Net income for the six months ended June 30, 2022 amounted to $1.1 million and net loss attributed to common stockholders amounted to $277 thousand. Time charter revenues for the same period were $8.3 million.

Dividend Declaration

The Company declared a cash dividend on its common stock of $0.01 per share for the second quarter ended June 30, 2022. The cash dividend will be payable on or about August 31, 2022 to all common shareholders of record as of August 12, 2022. The Company has 29.83 million shares of common stock issued and outstanding. Holders of the Company’s Class A Warrants as of August 12, 2022 will also receive a cash payment in the amount of $0.01 for each common share that such holder would be entitled to receive upon exercise of their Class A Warrants. As of August 1, 2022 there are Class A Warrants exercisable for an aggregate of 14.47 million common shares.

 Fleet Employment Profile (As of August 2, 2022)
 OceanPal Inc.’s fleet is employed as follows:        
 VesselSister
Ships*
Gross Rate
(USD Per Day)
Com** CharterersDelivery
Date to
Charterers***
Redelivery Date to
Owners****
Notes
 BUILT DWT        
           
 2 Panamax Bulk Carriers
1PROTEFSA

$10,6505.00% Reachy International (HK) Co., Limited08-Feb-2104-Jun-221 
         
 2004 73,630$9,250/$9,5005.00% Xianglong Shipping Co Ltd.19-Jul-2219-Aug-222 
2CALIPSOA$24,5005.00% Tongli Shipping Pte. Ltd.10-Mar-202226-Jun-22  
         
 2005 73,691$19,6005.00% ETG Commodities Ltd.02-Jul-2202-Oct-22  
 2 Capesize Bulk Carriers
3SALT LAKE CITY $13,0005.00% C Transport Maritime Ltd., Bermuda09-Jan-2109-Jun-22  
          
 2005 171,810 $29,7505.00% Koch Shipping Pte. Ltd.09-Jun-2209-Oct-22 – 09-Jan-23  
4BALTIMORE -- ---3 
 2005 177,243        
* Each dry bulk carrier is a "sister ship", or closely similar, to other dry bulk carriers that have the same letter.
** Total commission percentage paid to third parties.
*** The vessels were contributed to the Company following a spin-off transaction effected on November 29, 2021.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers' option, but subject to the terms, conditions, and exceptions of the particular charterparty.

1 Vessel on scheduled drydocking from June 7, 2022 to July 17, 2022

2 Agreed charter hire rate is subject to re-delivery port of the vessel

3 Expected date of delivery to the Company in the third quarter of 2022


   
Summary of Selected Financial & Other Data (unaudited)  
   Three months ended
June 30, 2022
Six months ended
June 30, 2022

       
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)  
 Time charter revenues$4,566 $8,246
 Voyage expenses 390  597
 Vessel operating expenses 1,651  2,936
 Net income and comprehensive income 648  1,062
 Net income/(loss) attributed to common stockholders 157  (277)
FLEET DATA      
 Average number of vessels 3  3
 Number of vessels 3  3
 Weighted average age of vessels 17.2  17.2
 Ownership days 273  543
 Available days 246  516
 Operating days 241  498
 Fleet utilization 98%  96.5%
AVERAGE DAILY RESULTS     
 Time charter equivalent (TCE) rate (1)$16,976 $14,824
 Daily vessel operating expenses (2)$6,048 $5,407

Non-GAAP Measures

(1) Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.

(2) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

About the Company

OceanPal Inc. is a global provider of shipping transportation services through its ownership of vessels. The Company’s vessels currently transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes and it is expected that the Company’s vessels will be primarily employed on short term time and voyage charters following the completion of their current employments.

Forward Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations, personnel, and on the demand for seaborne transportation of bulk products; the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

(See financial tables attached)

 OCEANPAL INC.
 FINANCIAL TABLES
 Expressed in thousands of U.S. Dollars, except share and per share data
        
 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
       
   Three months ended
June 30, 2022
 Six months ended
June 30, 2022
 
REVENUES:      
 Time charter revenues$4,566  $8,246
EXPENSES:      
 Voyage expenses 390   597
 Vessel operating expenses 1,651   2,936
 Depreciation 1,018   2,024
 General and administrative expenses 666   1,224
 Management fees to related parties 201   411
 Other operating income (8)   (8)
 Operating income$648  $1,062
        
Net income and comprehensive income$648  $1,062
Dividends on series C preferred shares (271)   (471)
Dividends on class A warrants (144)   (868)
Undistributed earnings on class A warrants (76)   -
Net income/(loss) attributed to common stockholders157  $(277)
Earnings/(Loss) per common share, basic 0.01   (0.01)
Earnings/(Loss) per common share, diluted$0.01  $(0.01)
Weighted average number of common shares, basic 29,829,092   25,691,205
Weighted average number of common shares, diluted 29,829,092   25,691,205


CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
     
  June 30,
2022
 December
31, 2021*
ASSETS (unaudited)  
     
Cash and cash equivalents$10,989$1,673
Other current assets 2,844 1,527
Advances for vessel acquisitions 4,400 -
Vessels, net 44,082 45,728
Other non-current assets 810 152
Total assets $63,125$49,080
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities$2,207$931
Total stockholders' equity 60,918 48,149
Total liabilities and stockholders' equity $63,125$49,080

*The balance sheet data have been derived from the audited consolidated financial statements at that date.

OTHER FINANCIAL DATA (unaudited)  
  Three months ended
June 30, 2022
 Six months ended
June 30, 2022
     
Net cash provided by operating activities$362$2,374
Net cash used in investing activities$(4,778)$(4,778)
Net cash (used in)/provided by financing activities$(2,906)$11,720

FAQ

What were OceanPal's Q2 2022 earnings results?

OceanPal reported a net income of $648,000 for Q2 2022 and time charter revenues of $4.6 million.

How much dividend did OceanPal declare for Q2 2022?

OceanPal declared a cash dividend of $0.01 per share for the second quarter.

What was OceanPal's fleet utilization rate in Q2 2022?

The fleet utilization rate for OceanPal in Q2 2022 was 98%.

What were the time charter revenues for the first half of 2022?

OceanPal's time charter revenues for the first half of 2022 amounted to $8.3 million.

What is the net loss attributed to common stockholders for OceanPal in H1 2022?

The net loss attributed to common stockholders for OceanPal in the first half of 2022 was $277,000.

OceanPal Inc.

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