Ardmore Shipping Corporation Announces Financial Results For The Three and Six Months Ended June 30, 2025
Highlights and Recent Activity
- Reported Adjusted earnings and net income attributable to common stockholders of
$9.0 million for the three months endedJune 30, 2025 , or$0.22 earnings per basic and diluted share, compared to Adjusted earnings of$47.6 million and net income attributable to common stockholders of$61.8 million , or$1.14 Adjusted earnings per basic share and$1.13 Adjusted earnings per diluted share for the three months endedJune 30, 2024 . (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section. The major driver of the variance between Adjusted earnings and net income attributable to common stockholders for the three months endedJune 30, 2024 , was a$12.3 million gain from the sale of the Ardmore Seafarer inApril 2024 ) - Reported Adjusted earnings and net income attributable to common stockholders of
$14.6 million for the six months endedJune 30, 2025 , or$0.36 earnings per basic and diluted share, compared to Adjusted earnings of$86.0 million and net income attributable to common stockholders of$100.2 million , or$2.07 Adjusted earnings per basic share and$2.05 Adjusted earnings per diluted share for the six months endedJune 30, 2024 . (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section. The major driver of the variance between Adjusted earnings and net income attributable to common stockholders for the six months endedJune 30, 2024 , was a$12.3 million gain from the sale of the Ardmore Seafarer inApril 2024 ) - Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, the Board of Directors declared a cash dividend on
July 30, 2025 , of$0.07 per common share for the quarter endedJune 30, 2025 . The dividend will be paid onSeptember 12, 2025 , to all shareholders of record onAugust 29, 2025 . - MR Eco-Design tankers earned an average spot TCE rate of
$23,441 per day for the three months endedJune 30, 2025 . Chemical tankers earned an average spot TCE rate of$20,409 per day for the three months endedJune 30, 2025 . Based on approximately 50% of total revenue days currently fixed for the third quarter of 2025, the average spot TCE rate is approximately$25,450 per day for MR Eco-Design tankers; based on approximately 65% of revenue days fixed for the third quarter of 2025, the average spot TCE rate for chemical tankers is approximately$21,650 per day. - The Company agreed to acquire three modern, high-quality, Korean-built MR tankers in two separate transactions for an aggregate purchase price of
$103.9 million ; one 2020-built scrubber-installed vessel for$38.3 million and two 2017-built vessels for$32.8 million each. Deliveries of these vessels are expected to be completed during the quarter endingSeptember 30, 2025 and will be financed by cash on hand and revolving credit facilities, maintaining a modest leverage level while lowering average fleet age. - The Company closed a
$350 million revolving credit facility with top-tier banks and secured by 20 of Ardmore's owned vessels. The facility has a margin of 1.8% and matures in 2031. - While predominately trading its tankers in the spot market, the Company committed one of its 25,000-ton chemical tankers to a three-year time-charter-out contract at
$19,250 per day to a top-tier chemical producer. Furthermore, the Company executed two tactical MR charters out, thereby increasing MR fixed rate coverage to four vessels at an average rate of$22,500 per day with varying durations between six to 12 months.
"Earnings have continued to strengthen through the first half of 2025 and into the third quarter. Ardmore has executed a series of well-timed transactions and initiatives that further enhance our strong performance and earnings power. We agreed to acquire three modern, high-quality Korean-built MR tankers with near-term delivery, and we refinanced our bank debt at favorable terms with top-tier lenders. In addition, we selectively locked in quality time charter-out contracts for a portion of our existing fleet, thereby securing attractive near-term and multi-year returns. Furthermore, our previously announced tank coating upgrades have now been completed on the majority of our chemical tankers, delivering early wins by accessing an even wider cargo slate. This has resulted in premium returns for our chemical fleet, and it matches our focused strategy to interchangeably leverage product and chemical markets.
Guided by Ardmore's strong governance and consistent approach to capital allocation, enabled by our high-performing organization and our robust balance sheet, Ardmore continues to decisively deliver on its strategy to create long-term value through market cycles."
Summary of Recent and Second Quarter 2025 Events
Fleet
Fleet Operations and Employment
As of
MR Tankers (45,000 dwt – 49,999 dwt)
Below is a summary of the average daily MR Tanker TCE rates earned during the second quarter of 2025 and thus far in the third quarter of 2025, together with the corresponding percentage of currently fixed total revenue days for the third quarter:
|
|
Number of |
2Q 2025 |
3Q 2025 |
|
|
|
|
|
TCE |
% Fixed |
|
MR Eco-Design |
16 |
|
|
50 % |
|
MR Eco-Mod |
4 |
|
|
35 % |
|
MR Combined |
20 |
|
|
50 % |
Product / Chemical Tankers (IMO 2: 25,000 dwt – 37,800 dwt)
Below is a summary of the average daily Chemical Tanker TCE rates earned during the second quarter of 2025 and thus far in the third quarter of 2025, together with the corresponding percentage of currently fixed total revenue days for the third quarter:
|
|
Number of |
2Q 2025 |
3Q 2025 |
|
|
|
|
|
TCE |
% Fixed |
|
Chemical Tankers |
6 |
|
|
65 % |
Drydocking
The Company had 194 drydocking days in the second quarter of 2025. The Company is currently scheduled to have approximately 110 drydocking days in the third quarter of 2025.
Fleet
The Company agreed to acquire three modern, high-quality, Korean-built MR tankers in two separate transactions, for an aggregate purchase price of
While predominately trading its tankers in the spot market, the Company committed one of its 25,000-ton chemical tankers to a three-year time-charter-out contract at
Financing
In
Dividend on Common Shares
Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, as calculated for dividends (see Adjusted earnings (for purposes of dividend calculations) in the Non-GAAP Measures section), the Board of Directors declared a cash dividend on
Geopolitical Conflicts
The ongoing
Geopolitical tensions have increased since commencement of the Israel-Hamas conflict in
Geopolitical and Economic Uncertainty
In recent months, governments have taken actions to implement new or increased tariffs on foreign imports. These activities have resulted in tariffs being levied on various goods and commodities, which may trigger an escalation of trade wars. These actions have been disruptive to global markets, resulting in significant volatility in stock and commodity prices and an increase in general global economic uncertainty, including the risk of economic recessions. As a result of this rapidly changing and unpredictable geopolitical climate, the shipping industry is experiencing uncertainty as to future vessel demand, trade routes, rates and operating costs.
Results for the Three Months Ended
The Company reported net income attributable to common stockholders of
Results for the Six Months Ended
The Company reported net income attributable to common stockholders of
Management's Discussion and Analysis of Financial Results for the Three Months Ended
Revenue.
Revenue for the three months ended
The Company's average number of operating vessels was 26.0 for the three months ended
The Company had 1,975 spot revenue days for the three months ended
The Company had three product tankers employed under time charter as of
Voyage Expenses.
Voyage expenses were
TCE Rate.
The average TCE rate for the Company's fleet was
Vessel Operating Expenses.
Vessel operating expenses were
Charter Hire Costs.
Total charter hire expense was
Depreciation.
Depreciation expense for the three months ended
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the three months ended
General and Administrative Expenses: Corporate.
Corporate-related general and administrative expenses for the three months ended
General and Administrative Expenses: Commercial and Chartering.
Commercial and chartering expenses are the expenses attributable to Ardmore's chartering and commercial operations departments in connection with its spot trading activities. Commercial and chartering expenses for the three months ended
Gain on Vessel Sold.
The Company did not sell any vessels during the three months ended
Interest Expense and Finance Costs.
Interest expense and finance costs for the three months ended
The current flexibility of the Company's revolving facilities, with only
Gain on Extinguishment of Finance Leases.
The Company recorded no gain or loss on extinguishment of finance leases during the three months ended
Liquidity
As of
Conference Call
The Company plans to host a conference call on
- By dialing 800‑836‑8184 (
U.S. ) or 646-357-8785 (International) and referencing "Ardmore Shipping ." - By accessing the live webcast at Ardmore's website at www.ardmoreshipping.com.
Participants should dial into the call 10 minutes before the scheduled time.
If you are unable to participate at this time, an audio replay of the call will be available through
About Ardmore Shipping Corporation
Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,000 deadweight tons. Ardmore provides, through its modern, fuel-efficient fleet of mid-size tankers, seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.
Ardmore's core strategy is to continue to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships and maintain its cost advantage in assets, operations and overhead, while creating synergies and economies of scale as the company grows. Ardmore provides its services to customers through voyage charters and time charters, and enjoys close working relationships with key commercial and technical management partners.
Ardmore's Energy Transition Plan ("ETP") focusses on three key areas: transition technologies, transition projects, and sustainable (non-fossil fuel) cargos. The ETP is an extension of Ardmore's strategy, building on its core strengths of tanker chartering, shipping operations, technical and operational fuel efficiency improvements, technical management, construction supervision, project management, investment analysis, and ship finance.
|
|
||||
|
|
|
As of |
||
|
In thousands of |
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
49,479 |
|
46,988 |
|
Receivables, net of allowance for bad debts of |
|
52,790 |
|
60,871 |
|
Prepaid expenses and other assets |
|
4,775 |
|
4,298 |
|
Advances and deposits |
|
3,086 |
|
3,084 |
|
Inventories |
|
9,997 |
|
11,308 |
|
Total current assets |
|
120,127 |
|
126,549 |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Investments and other assets, net |
|
5,028 |
|
5,236 |
|
Vessels and vessel equipment, net |
|
542,486 |
|
545,594 |
|
Deferred drydock expenditures, net |
|
22,921 |
|
14,252 |
|
Advances for ballast water treatment and scrubber systems |
|
3,738 |
|
4,845 |
|
Deposit for vessel acquisition |
|
3,837 |
|
— |
|
Deferred finance fees, net |
|
2,205 |
|
2,746 |
|
Operating lease, right-of-use asset |
|
3,477 |
|
5,577 |
|
Total non-current assets |
|
583,692 |
|
578,250 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
703,819 |
|
704,799 |
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
8,659 |
|
6,070 |
|
Accrued expenses and other liabilities |
|
17,686 |
|
18,313 |
|
Deferred revenue |
|
2,532 |
|
482 |
|
Current portion of operating lease obligations |
|
2,059 |
|
4,965 |
|
Total current liabilities |
|
30,936 |
|
29,830 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Non-current portion of long-term debt |
|
25,000 |
|
38,796 |
|
Non-current portion of operating lease obligations |
|
1,577 |
|
476 |
|
Other non-current liabilities |
|
273 |
|
273 |
|
Total non-current liabilities |
|
26,850 |
|
39,545 |
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
57,786 |
|
69,375 |
|
|
|
|
|
|
|
Redeemable Preferred Stock |
|
|
|
|
|
Cumulative Series A 8.5% redeemable preferred stock |
|
27,782 |
|
27,782 |
|
Total redeemable preferred stock |
|
27,782 |
|
27,782 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Common stock |
|
443 |
|
440 |
|
Additional paid in capital |
|
477,098 |
|
475,812 |
|
|
|
(33,524) |
|
(33,524) |
|
Retained earnings |
|
174,234 |
|
164,914 |
|
Total stockholders' equity |
|
618,251 |
|
607,642 |
|
|
|
|
|
|
|
Total redeemable preferred stock and stockholders' equity |
|
646,033 |
|
635,424 |
|
|
|
|
|
|
|
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY |
|
703,819 |
|
704,799 |
|
|
||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
In thousands of |
|
|
|
|
|
|
|
|
|
Revenue, net |
|
72,046 |
|
121,325 |
|
146,042 |
|
227,626 |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(25,177) |
|
(34,720) |
|
(56,209) |
|
(65,267) |
|
Vessel operating expenses |
|
(15,424) |
|
(16,223) |
|
(30,620) |
|
(31,143) |
|
Time charter-in |
|
|
|
|
|
|
|
|
|
Operating expense component |
|
(2,984) |
|
(2,895) |
|
(6,023) |
|
(5,731) |
|
Vessel lease expense component |
|
(2,745) |
|
(2,664) |
|
(5,541) |
|
(5,274) |
|
Depreciation |
|
(7,900) |
|
(7,605) |
|
(15,553) |
|
(14,581) |
|
Amortization of deferred drydock expenditures |
|
(1,255) |
|
(939) |
|
(2,178) |
|
(1,694) |
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
Corporate |
|
(4,831) |
|
(5,307) |
|
(9,780) |
|
(10,374) |
|
Commercial and chartering |
|
(1,252) |
|
(1,021) |
|
(2,489) |
|
(2,084) |
|
Interest expense and finance costs |
|
(1,043) |
|
(2,044) |
|
(1,978) |
|
(4,571) |
|
Gain on extinguishment of finance leases |
|
— |
|
1,432 |
|
— |
|
1,432 |
|
Interest income |
|
306 |
|
612 |
|
414 |
|
1,156 |
|
Gain on vessel sold |
|
— |
|
12,322 |
|
— |
|
12,322 |
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
9,741 |
|
62,273 |
|
16,085 |
|
101,817 |
|
|
|
|
|
|
|
|
|
|
|
Income tax |
|
(39) |
|
(49) |
|
(65) |
|
(128) |
|
(Loss) / gain from equity method investments |
|
(103) |
|
468 |
|
(167) |
|
239 |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
9,599 |
|
62,692 |
|
15,853 |
|
101,928 |
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends |
|
(636) |
|
(848) |
|
(1,265) |
|
(1,695) |
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to common stockholders |
|
8,963 |
|
61,844 |
|
14,588 |
|
100,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
0.22 |
|
1.48 |
|
0.36 |
|
2.41 |
|
Earnings per share, diluted |
|
0.22 |
|
1.47 |
|
0.36 |
|
2.39 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (1) |
|
8,963 |
|
47,589 |
|
14,588 |
|
85,978 |
|
Adjusted earnings per share, basic |
|
0.22 |
|
1.14 |
|
0.36 |
|
2.07 |
|
Adjusted earnings per share, diluted |
|
0.22 |
|
1.13 |
|
0.36 |
|
2.05 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding, basic |
|
40,630,651 |
|
41,747,977 |
|
40,551,803 |
|
41,559,932 |
|
Weighted average number of shares outstanding, diluted |
|
40,689,775 |
|
42,010,724 |
|
40,665,703 |
|
41,981,667 |
|
|
|
|
|
|
|
|
|
|
|
_____________________ |
|
|
(1) |
Adjusted earnings is a non-GAAP measure and is defined and reconciled under the "Non-GAAP Measures" section. |
|
|
||||
|
|
|
Six Months Ended |
||
|
In thousands of |
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
15,853 |
|
101,928 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation |
|
15,553 |
|
14,581 |
|
Amortization of deferred drydock expenditures |
|
2,178 |
|
1,694 |
|
Share-based compensation |
|
1,288 |
|
1,699 |
|
Gain on vessel sold |
|
— |
|
(12,322) |
|
Amortization of deferred finance fees |
|
541 |
|
585 |
|
Gain on extinguishment of finance leases |
|
— |
|
(1,432) |
|
Operating lease ROU - lease liability, net |
|
294 |
|
17 |
|
Loss / (profit) from equity method investments |
|
167 |
|
(239) |
|
Deferred drydock payments |
|
(5,477) |
|
(3,759) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Receivables |
|
8,084 |
|
(18,936) |
|
Prepaid expenses and other assets |
|
(476) |
|
(229) |
|
Advances and deposits |
|
(2) |
|
4,879 |
|
Inventories |
|
1,311 |
|
(650) |
|
Accounts payable |
|
(1,230) |
|
9,902 |
|
Accrued expenses and other liabilities |
|
(3,118) |
|
509 |
|
Deferred revenue |
|
2,050 |
|
(347) |
|
Accrued interest |
|
474 |
|
(292) |
|
Net cash provided by operating activities |
|
37,490 |
|
97,588 |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
Proceeds from sale of vessels |
|
— |
|
26,829 |
|
Payments for acquisition of vessels and vessel equipment, including deposits |
|
(14,593) |
|
(56,794) |
|
Payments for other non-current assets |
|
(70) |
|
(269) |
|
Proceeds from equity investments |
|
— |
|
1,650 |
|
Net cash (used in) investing activities |
|
(14,663) |
|
(28,584) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
Proceeds from revolving facilities |
|
50,000 |
|
29,050 |
|
Repayments of long term debt |
|
— |
|
(1,678) |
|
Repayments on revolving facilities |
|
(63,796) |
|
(30,000) |
|
Repayments of finance leases |
|
— |
|
(42,262) |
|
Payments for deferred finance fees |
|
— |
|
(200) |
|
Payment of common share dividends |
|
(5,268) |
|
(21,618) |
|
Payment of preferred share dividends |
|
(1,272) |
|
(1,705) |
|
Net cash (used in) financing activities |
|
(20,336) |
|
(68,413) |
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
2,491 |
|
591 |
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the year |
|
46,988 |
|
46,805 |
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the year |
|
49,479 |
|
47,396 |
|
|
||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
In thousands of |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
|
19,633 |
|
58,495 |
|
35,380 |
|
107,753 |
|
Adjusted EBITDAR (1) |
|
22,378 |
|
61,158 |
|
40,921 |
|
113,026 |
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Design Tankers Spot TCE |
|
23,441 |
|
41,385 |
|
22,410 |
|
40,029 |
|
|
|
|
|
|
|
|
|
|
|
Fleet TCE per day (2) |
|
22,468 |
|
37,762 |
|
21,521 |
|
36,295 |
|
|
|
|
|
|
|
|
|
|
|
Fleet operating expenses per day (3) |
|
7,018 |
|
7,120 |
|
6,998 |
|
7,049 |
|
Technical management fees per day (4) |
|
527 |
|
464 |
|
530 |
|
490 |
|
|
|
7,545 |
|
7,584 |
|
7,528 |
|
7,539 |
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Design Tankers |
|
|
|
|
|
|
|
|
|
TCE per day (2) |
|
23,441 |
|
41,385 |
|
22,410 |
|
40,029 |
|
Vessel operating expenses per day (5) |
|
7,634 |
|
7,502 |
|
7,634 |
|
7,526 |
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Mod Tankers |
|
|
|
|
|
|
|
|
|
TCE per day (2) |
|
21,826 |
|
36,987 |
|
20,988 |
|
37,689 |
|
Vessel operating expenses per day |
|
— |
|
— |
|
— |
|
6,691 |
|
|
|
|
|
|
|
|
|
|
|
Prod/Chem Eco-Design Tankers (25k |
|
|
|
|
|
|
|
|
|
TCE per day (2) |
|
20,409 |
|
30,330 |
|
18,406 |
|
27,580 |
|
Vessel operating expenses per day (5) |
|
7,309 |
|
7,702 |
|
7,247 |
|
7,648 |
|
|
|
|
|
|
|
|
|
|
|
FLEET |
|
|
|
|
|
|
|
|
|
Average number of operating vessels |
|
26.0 |
|
26.0 |
|
26.0 |
|
26.0 |
|
______________________ |
|
|
(1) |
Adjusted EBITDA and Adjusted EBITDAR are non-GAAP measures and are defined and reconciled to the most directly comparable |
|
(2) |
Time Charter Equivalent ("TCE") rate, a non-GAAP measure, represents net revenues (a non-GAAP measure representing revenues less voyage expenses) divided by revenue days. Revenue days are the total number of calendar days the vessels are in the Company's possession less off-hire days generally associated with drydocking or repairs and idle days associated with repositioning of vessels held for sale. Net revenue utilized to calculate the TCE rate is determined on a discharge to discharge basis, which is different from how the Company records revenue under |
|
(3) |
Fleet operating expenses per day are routine operating expenses and comprise crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. These amounts do not include expenditures related to vessel upgrades and enhancements or other non-routine expenditures, which were expensed during the period. |
|
(4) |
Technical management fees are fees paid to |
|
(5) |
Vessel operating expenses per day include technical management fees. |
|
(6) |
As a result of selling the Ardmore Seafarer in |
CO2 Emissions Reporting(1)
In
On
|
|
|
Three Months Ended |
|
Twelve months ended |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Vessels in Operation (at period end)(2) |
|
26 |
|
26 |
|
26 |
|
26 |
|
|
Fleet Average Age |
|
11.6 |
|
10.6 |
|
11.6 |
|
10.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CO2 Emissions Generated in Metric Tons |
|
91,260 |
|
107,740 |
|
394,356 |
|
424,690 |
|
|
Distance Travelled (Nautical Miles) |
|
340,894 |
|
394,261 |
|
1,437,131 |
|
1,560,006 |
|
|
Fuel Consumed in Metric Tons |
|
29,356 |
|
34,318 |
|
125,857 |
|
134,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and Tank Cleaning Emissions |
|
|
|
|
|
|
|
|
|
|
Fuel Consumed in Metric Tons |
|
495 |
|
1,196 |
|
2,412 |
|
3,150 |
|
|
% of Total Fuel Consumed |
|
1.69 % |
|
3.49 % |
|
1.92 % |
|
2.34 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency Ratio (AER) for the period(3) |
|
|
|
|
|
|
|
|
|
|
Fleet |
|
5.98g / tm |
|
6.08g / tm |
|
6.13g / tm |
|
6.07g / tm |
|
|
MR Eco-Design |
|
5.87g / tm |
|
5.79g / tm |
|
5.82g / tm |
|
5.80g / tm |
|
|
MR Eco-Mod |
|
5.83g / tm |
|
5.39g / tm |
|
5.91g / tm |
|
5.80g / tm |
|
|
Chemical |
|
6.96g / tm |
|
8.37g / tm |
|
7.89g / tm |
|
7.92g / tm |
|
|
Chemical (Less Cargo Heating & Tank Cleaning)(4) |
|
6.02g / tm |
|
7.74g / tm |
|
7.60g / tm |
|
7.39g / tm |
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency Operational Indicator (EEOI) for the |
|
|
|
|
|
|
|
|
|
|
Fleet |
|
11.95g / ctm |
|
11.53g / ctm |
|
12.53g / ctm |
|
12.40g / ctm |
|
|
MR Eco-Design |
|
12.38g / ctm |
|
10.95g / ctm |
|
12.02g / ctm |
|
11.94g / ctm |
|
|
MR Eco-Mod |
|
11.10g / ctm |
|
11.55g / ctm |
|
13.33g / ctm |
|
12.41g / ctm |
|
|
Chemical |
|
11.36g / ctm |
|
13.76g / ctm |
|
14.00g / ctm |
|
14.00g / ctm |
|
|
Chemical (Less Cargo Heating & Tank Cleaning)(4) |
|
9.83g / ctm |
|
12.73g / ctm |
|
13.48g / ctm |
|
13.06g / ctm |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wind Strength (% greater than 4 on BF) |
|
44.63 % |
|
43.41 % |
|
47.61 % |
|
47.10 % |
|
|
% |
|
1.27 % |
|
1.46 % |
|
3.09 % |
|
2.82 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
tm = ton-mile |
|
|
|
|
|
|
|
|
|
|
ctm = cargo ton-mile |
|
|
|
|
|
|
|
|
|
Ardmore Performance
It should be noted that results vary quarter to quarter depending on ship activity, ballast / laden ratio, cargo carried, weather, waiting time, time in port, and vessel speed. However, analysis is also presented on a trailing 12-month basis to provide a more accurate assessment of Ardmore's progress over a longer period and to mitigate seasonality. From a weather perspective rougher weather (based on Beaufort Scale wind force rating being greater than 4 BF) will generally have a mitigating impact on the ability to optimize fuel consumption, while idle time will impact ships metrics as they will still require power to run but will not be moving.
|
__________________ |
|
|
1 |
Ardmore's emissions data is based on the reporting tools and information reasonably available to Ardmore and its applicable third-party technical managers for Ardmore's owned fleet. Management assesses such data and may adjust and restate the data to reflect latest information. It is expected that the shipping industry will continue to refine the performance measures for emissions and efficiency over time. AER and EEOI metrics are impacted by external factors such as charter speed, vessel orders and weather, in conjunction with overall market factors such as cargo load sizes and fleet utilization rate. As such, variance in performance can be found in the reported emissions between two periods for the same vessel and between vessels of a similar size and type. Furthermore, other companies may report slight variations (e.g. some shipping companies report CO2 in tons per kilometer as opposed to CO2 in tons per nautical mile) and consequently it is not always practical to directly compare emissions from different companies. The figures reported above represent Ardmore's initial findings; the Company is committed to improving the methodology and transparency of its emissions reporting in line with industry best practices. Accordingly, the above results may vary as the methodology and performance measures set out by the industry evolve. |
|
2 |
Includes time-chartered out and time-chartered in vessels. |
|
3 |
Annual Efficiency Ratio ("AER") is a measure of carbon efficiency using the parameters of fuel consumption, distance travelled, and design deadweight tonnage ("DWT"). AER is reported in unit grams of CO2 per ton-mile (gCO2/dwt-nm). It is calculated by dividing (i) mass of fuel consumed by type converted to metric tons of CO2 by (ii) DWT multiplied by distance travelled in nautical miles. A lower AER reflects better carbon efficiency. |
|
4 |
The AER and EEOI figures are presented including the impact of cargo heating and tank cleaning operations unless stated. |
|
5 |
Energy Efficiency Operational Indicator ("EEOI") is a tool for measuring CO2 gas emissions in a given time period per unit of transport work performed. It is calculated by dividing (i) mass of fuel consumed by type converted to metric tons of CO2 by (ii) cargo carried in tons multiplied by laden voyage distance in nautical miles. This calculation is performed as per IMO MEPC.1/Circ684. A lower EEOI reflects lower CO2 gas emissions in a given time period per unit of transport work performed. |
|
6 |
Idle time is the amount of time a vessel is waiting in port or awaiting the laycan or waiting in port/at sea unfixed. |
Non-GAAP Measures
EBITDA + vessel lease expense component (i.e., EBITDAR) and Adjusted EBITDAR
EBITDAR is defined as EBITDA (i.e., earnings before interest, unrealized gains/(losses) on interest rate derivatives, taxes, depreciation and amortization) plus the vessel lease expense component of total charter hire expense for chartered-in vessels. Adjusted EBITDAR is defined as EBITDAR before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels.
For the three months ended
Many companies in our industry report under IFRS; we therefore use EBITDAR and Adjusted EBITDAR as tools to compare our valuation with the valuation of these other companies in our industry. We do not use EBITDAR and Adjusted EBITDAR as measures of performance or liquidity. We present below reconciliations of net income / (loss) attributable to common stockholders to EBITDAR (which includes an adjustment for vessel lease operating expenses) and Adjusted EBITDAR.
EBITDAR and Adjusted EBITDAR, as presented, may not be directly comparable to similarly titled measures presented by other companies. In addition, EBITDAR and Adjusted EBITDAR should not be viewed as measures of overall performance since they exclude vessel rent, which is a normal, recurring cash operating expense related to our in-chartering of vessels that is necessary to operate our business. Accordingly, you are cautioned not to place undue reliance on this information.
EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings (for purposes of dividend calculations)
EBITDA, Adjusted EBITDA and Adjusted earnings are not measures prepared in accordance with
EBITDA, Adjusted EBITDA and Adjusted earnings are presented in this press release as the Company believes that they provide investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. EBITDA and Adjusted EBITDA increase the comparability of the Company's fundamental performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects between periods of interest expense, taxes, depreciation or amortization, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Company believes that including EBITDA, Adjusted EBITDA and Adjusted earnings as financial and operating measures assists investors in making investment decisions regarding the Company and its common stock.
For purposes solely of the quarterly common dividend calculation, Adjusted earnings represents the Company's Adjusted earnings for the quarter ended
These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to, financial measures prepared in accordance with
|
Reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted EBITDAR |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
In thousands of |
|
|
|
|
|
|
|
|
|
Net income |
|
9,599 |
|
62,692 |
|
15,853 |
|
101,928 |
|
Interest income |
|
(306) |
|
(612) |
|
(414) |
|
(1,156) |
|
Interest expense and finance costs |
|
1,043 |
|
2,044 |
|
1,978 |
|
4,571 |
|
Income tax |
|
39 |
|
49 |
|
65 |
|
128 |
|
Depreciation |
|
7,900 |
|
7,605 |
|
15,553 |
|
14,581 |
|
Amortization of deferred drydock expenditures |
|
1,255 |
|
939 |
|
2,178 |
|
1,694 |
|
EBITDA |
|
19,530 |
|
72,717 |
|
35,213 |
|
121,746 |
|
Gain on vessel sold |
|
— |
|
(12,322) |
|
— |
|
(12,322) |
|
Gain on extinguishment of finance leases |
|
— |
|
(1,432) |
|
— |
|
(1,432) |
|
Gain on sale of e1 |
|
— |
|
(501) |
|
— |
|
(501) |
|
Loss from equity method investments |
|
103 |
|
33 |
|
167 |
|
262 |
|
ADJUSTED EBITDA |
|
19,633 |
|
58,495 |
|
35,380 |
|
107,753 |
|
Plus: Vessel lease expense component |
|
2,745 |
|
2,664 |
|
5,541 |
|
5,274 |
|
ADJUSTED EBITDAR |
|
22,378 |
|
61,158 |
|
40,921 |
|
113,026 |
|
Reconciliation of net income attributable to common stockholders to Adjusted earnings |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
In thousands of |
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
8,963 |
|
61,844 |
|
14,588 |
|
100,233 |
|
Gain on vessel sold |
|
— |
|
(12,322) |
|
— |
|
(12,322) |
|
Gain on extinguishment of finance leases |
|
— |
|
(1,432) |
|
— |
|
(1,432) |
|
Gain on sale of e1 |
|
— |
|
(501) |
|
— |
|
(501) |
|
Adjusted earnings |
|
8,963 |
|
47,589 |
|
14,588 |
|
85,978 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share, basic |
|
0.22 |
|
1.14 |
|
0.36 |
|
2.07 |
|
Adjusted earnings per share, diluted |
|
0.22 |
|
1.13 |
|
0.36 |
|
2.05 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding, basic |
|
40,630,651 |
|
41,747,977 |
|
40,551,803 |
|
41,559,932 |
|
Weighted average number of shares outstanding, diluted |
|
40,689,775 |
|
42,010,724 |
|
40,665,703 |
|
41,981,667 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings for purposes of dividend calculation |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands of |
|
|
|
|
|
|
|
|
|
Adjusted earnings |
|
|
|
|
|
8,963 |
|
|
|
Unrealized gains |
|
|
|
|
|
— |
|
|
|
Adjusted earnings for purposes of dividend calculation |
|
|
|
|
|
8,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend to be paid |
|
|
|
|
|
2,988 |
|
|
|
Dividend Per Share (DPS) |
|
|
|
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding as of |
|
|
|
|
|
40,694,339 |
|
|
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, expectations, projections, strategies, beliefs about future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. 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", "intend", "estimate", "forecast", "project", "plan", "potential", "should", "may", "will", "expect" and similar expressions are among those that identify forward-looking statements.
Forward-looking statements in this press release include, among others, statements regarding: future operating or financial results, including future earnings and financial position; global and regional economic conditions and trends; shipping market trends and market fundamentals, including tanker demand and supply and future spot and charter rates; vessel acquisitions, and the timing and financing thereof; the potential effects of tariffs and other foreign policy activities on global markets, the shipping industry and the Company's operations; the potential effect of geopolitical conflicts, including the
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 strength of world economies and currencies; general market conditions, including fluctuations in spot and charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; changes in the projections of spot and time charter or pool trading of the Company's vessels; geopolitical conflicts, including future developments relating to the
Investor Relations Enquiries:
|
Mr. |
Mr. |
|
|
|
|
|
|
|
|
|
|
Tel: 212‑477‑8438 |
Tel: 646‑673‑9701 |
|
Fax: 212‑477‑8636 |
Fax: 212‑477‑8636 |
|
Email: lberman@igbir.com |
Email: bdegnan@igbir.com |
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