HAMILTON, Bermuda, July 31,
2024 /PRNewswire/ -- Ardmore Shipping Corporation
(NYSE: ASC) ("Ardmore", the "Company" or "we") today announced
results for the three and six months ended June 30, 2024.
Highlights and Recent Activity
- Reported net income of $61.8
million for the three months ended June 30, 2024, or $1.48 earnings per basic share and $1.47 earnings per diluted share, compared to net
income of $23.7 million, or
$0.57 earnings per basic and diluted
share for the three months ended June 30,
2023. We reported Adjusted earnings of $47.6 million for the three months ended
June 30, 2024, or $1.14 Adjusted earnings per basic share and
$1.13 Adjusted earnings per diluted
share, compared to Adjusted earnings of $23.7 million for the three months ended
June 30, 2023, or $0.57 Adjusted earnings per basic and diluted
share. (See reconciliation of net income to Adjusted earnings in
the Non-GAAP Measures section with the main driver of the variance
being the gain on the sale of the Ardmore Seafarer of
$12.3 million.)
- Reported net income of $100.2
million for the six months ended June
30, 2024, or $2.41 earnings
per basic share and $2.39 earnings
per diluted share, compared to net income of $66.9 million, or $1.63 earnings per basic and $1.60 earnings per diluted share, for the six
months ended June 30, 2023. We
reported Adjusted earnings of $86.0
million for the six months ended June
30, 2024, or $2.07 Adjusted
earnings per basic share and $2.05
Adjusted earnings per diluted share, compared to Adjusted earnings
of $66.9 million for the six months
ended June 30, 2023, or $1.63 Adjusted earnings per basic share and
$1.60 Adjusted earnings per diluted
share. (See reconciliation of net income to Adjusted earnings in
the Non-GAAP Measures section with the main driver of the variance
being the gain on the sale of the Ardmore Seafarer of
$12.3 million.)
- 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 31, 2024, of
$0.38 per common share for the
quarter ended June 30, 2024. The
dividend will be paid on September 13,
2024, to all shareholders of record on August 30, 2024.
- MR Eco-Design tankers earned an average spot TCE rate of
$41,385 per day for the three months
ended June 30, 2024. Chemical tankers
earned an average TCE rate of $30,330
per day for the three months ended June 30,
2024. Based on approximately 45% total revenue days
currently fixed for the third quarter of 2024, the average spot TCE
rate is approximately $33,700 per day
for MR Eco-Design tankers; based on approximately 50% of revenue
days fixed for the third quarter of 2024, the average TCE rate for
chemical tankers is approximately $26,400 per day.
- On July 8, 2024, the Company
announced that Founder and CEO Anthony
Gurnee has informed the Board of Directors (the "Board") of
his intention to retire from his executive and board positions
later this year. Following a comprehensive succession process, the
Board appointed current executive and Chief Commercial Officer
Gernot Ruppelt as the Company's new
CEO, and expanded current CFO Bart
Kelleher's position to take on the additional role of
President, with the leadership transition to take effect from
September 16, 2024 at the Company's
upcoming quarterly Board meeting. This transition represents the
culmination of leadership succession planning that has been
long-established and extensively discussed at the board and
management levels. Following his retirement from the Company,
current CEO Anthony Gurnee will
remain available to Ardmore as an advisor during the transition
period. In connection with their promotions, both Ruppelt and
Kelleher will be joining the Board of Directors of the
Company.
- In June 2024, the Company
exercised its purchase options for both the Ardmore Seawolf
and Ardmore Seahawk, which
were under sale-leaseback arrangements.
Anthony Gurnee, the Company's
Chief Executive Officer, commented:
"Market conditions and charter rates continue to be
exceptionally robust during an otherwise seasonally slow point in
the year, a result of limited newbuildings delivering, an aging
fleet, and steady oil demand growth providing a robust baseline. In
addition, a number of geopolitical factors, most notably the
re-routing related to the Russia-Ukraine conflict, is further supporting these
strong market conditions.
Ardmore's high-quality, recently upgraded, and spot-exposed
fleet is enabling the Company to fully exploit these conditions.
Following our significant drydocking and upgrade program last year
and early this year, our fleet is now enjoying increased revenue
days and enhanced earnings potential. In addition to which, our
proactive balance sheet management and comprehensive cost controls
have reduced our breakevens, thus further enhancing cash flow,
earnings and our dividend payout.
As I work closely with my Board and Company colleagues to
ensure a seamless leadership transition at Ardmore, I take great
pride in the extraordinary quality of the team we have assembled at
all levels of the organization, as well as a shared vision for the
future and an unwavering commitment to performance and progress. It
is a testament to the Board's dedication to good governance and
professional development that we have within our ranks the best
possible leaders for the years ahead. With Gernot and Bart
providing proven leadership and continuity, I believe that Ardmore
has never been better positioned to succeed than it is
now."
Summary of Recent and Second Quarter 2024 Events
Fleet
Fleet Operations and Employment
As of June 30, 2024, the Company had 26 vessels in
operation (including four chartered-in vessels), consisting of 20
MR tankers ranging from 45,000 deadweight tonnes ("dwt") to 49,999
dwt (16 Eco-Design and four Eco-Mod) and six Eco-Design IMO 2
product/chemical tankers ranging from 25,000 dwt to 37,800 dwt.
MR Tankers (45,000 dwt – 49,999 dwt)
At the end of the second quarter of 2024, the Company had 20 MR
tankers in operation, all of which were trading in either the spot
market or on time charters. The MR tankers earned an average TCE
rate of $40,652 per day in the second
quarter of 2024. In the second quarter of 2024, the Company's 16 MR
Eco-Design tankers earned an average TCE rate of $41,385 and the Company's four MR Eco-Mod tankers
earned an average TCE rate of $36,987
per day.
In the third quarter of 2024, the Company expects to have 95% of
its revenue days for its MR tankers employed in the spot market
with the remaining 5% of revenue days subject to time charters. As
of July 31, 2024, the Company had
fixed approximately 45% of its total spot MR revenue days for
the third quarter of 2024 at an average spot TCE rate of
approximately $34,300 per day, which
includes MR Eco-Design tankers at $33,700 per day and MR Eco-Mod tankers at
$38,600 per day.
Product / Chemical Tankers (IMO 2: 25,000 dwt –
37,800 dwt)
At the end of the second quarter of 2024, the Company had six
Eco-Design IMO 2 product / chemical tankers in operation, all of
which were trading in the spot market. During the second quarter of
2024, the Company's six Eco-Design product / chemical vessels
earned an average TCE rate of $30,330
per day.
In the third quarter of 2024, the Company expects to have all
revenue days for its Eco-Design IMO 2 product / chemical
tankers employed in the spot market. As of July 31, 2024, the Company had fixed
approximately 50% of its Eco-Design IMO 2 product / chemical
tankers revenue days for the third quarter of 2024 at an
average TCE rate of approximately $26,400 per day.
Drydocking
The Company had 54 drydocking days in the second quarter of
2024. The Company is currently scheduled to have no drydocking days
in the third quarter of 2024.
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 July 31, 2024
of $0.38 per common share for the quarter ended
June 30, 2024. The dividend will be paid
on September 13, 2024, to all shareholders of record
on August 30, 2024.
Leadership Transition
On July 8, 2024, Ardmore announced
that Founder and CEO Anthony Gurnee had informed the
Board of his intention to retire from his executive and board
positions later this year. Following a comprehensive succession
process, the Board appointed current executive and Chief Commercial
Officer Gernot Ruppelt as the Company's new CEO, and
expanded current CFO Bart Kelleher's position to take on the
additional role of President, with the leadership transition to
take effect from September 16, 2024 at the Company's
upcoming quarterly Board meeting.
This transition represents the culmination of leadership
succession planning that has been long-established and extensively
discussed at the board and management levels. Following his
retirement from the Company, current CEO Anthony Gurnee will remain available to Ardmore
as an advisor during the transition period. In connection with
their promotions, both Ruppelt and Kelleher will be joining the
Board of Directors of the Company.
Sale of stake in e1 Marine
In May 2024, Ardmore sold its
stake in e1 Marine for $1.65 million
and realized a modest gain of $0.5
million after investing in the company three years ago. e1
Marine has advanced the development and marketing of
methanol-to-hydrogen reformer technology for marine applications,
and as a result, needs further capital to scale its business.
With our focus as a product and chemical tanker company, and guided
by our capital allocation policy, we believe it is prudent to take
this course of action and let other investors in e1 Marine, who
have an aligned strategy and access to capital for this type of
investment, drive this next stage of the company's growth.
Separately, as Ardmore remains an investor in Element 1 Corp.,
it continues to have exposure to any future growth of e1 Marine's
business.
Fleet
In April 2024, Ardmore delivered
the 2010-built Ardmore Seafarer to its buyer and, in a separate
transaction, took delivery of the previously announced acquisition
of a 2017 Korean-built MR product tanker, the Ardmore
Gibraltar.
In June 2024, Ardmore exercised
its purchase options for both the Ardmore Seawolf and
Ardmore Seahawk, which were
under sale-leaseback arrangements.
Publication of 2023 Sustainability Report
On June 13, 2024, the Company
published its 2023 Sustainability Report, highlighting its progress
towards a more sustainable future. In 2023, the Company reached new
heights in both operating performance and sustainability. Ardmore
continues to believe that consistent superior operating performance
is a key driver of long-term value in its business, and Ardmore is
committed to driving its sustainability agenda forward. The
Sustainability Report is available on the Ardmore website at
www.ardmoreshipping.com/about/progress/
Geopolitical Conflicts
The ongoing Russia-Ukraine war has disrupted energy supply
chains, caused instability and significant volatility in the global
economy and resulted in economic sanctions by several nations. The
ongoing conflict has contributed significantly to related increases
in spot tanker rates.
Geopolitical tensions have increased since commencement of the
Israel-Hamas war in October 2023.
Since mid-December 2023, Houthi
rebels in Yemen have carried out
numerous attacks on vessels in the Red Sea area. As a result of
these attacks, many shipping companies have routed their vessels
away from the Red Sea, which has affected trading patterns, rates
and expenses. Further escalation or expansion of hostilities of
such crisis could continue to affect the price of crude oil and the
oil industry, the tanker industry and demand for the Company's
services.
Results for the Three Months Ended June 30, 2024 and 2023
The Company reported net income of $61.8
million for the three months ended June 30, 2024,
or $1.48 earnings per basic share and
$1.47 earnings per diluted share, as
compared to net income of $23.7
million, or $0.57 earnings per
basic and diluted share for the three months ended
June 30, 2023.
Results for the Six Months Ended June 30, 2024 and
2023
The Company reported net income of $100.2
million for the six months ended June
30, 2024, or $2.41 earnings
per basic share and $2.39 earnings
per diluted share, as compared to net income of $66.9 million, or $1.63 earnings per basic share and $1.60 earnings per diluted share for the six
months ended June 30, 2023.
Management's Discussion and Analysis of Financial Results for
the Three Months Ended June 30, 2024
and 2023
Revenue. Revenue for the three months ended
June 30, 2024 was $121.3
million, an increase of $29.4
million from $91.9 million for
the three months ended June 30, 2023.
The Company's average number of operating vessels was 26.0 for
the three months ended June 30, 2024, consistent with
26.0 for the three months ended June 30, 2023.
The Company had 2,093 spot revenue days for the
three months ended June 30, 2024, as compared to
2,295 for the three months ended June 30, 2023. The
Company had 24 vessels employed directly in the spot market as of
June 30, 2024 compared with 26 vessels as of
June 30, 2023. Increases in spot rates during the three
months ended June 30, 2024 resulted in an increase in
revenue of $30.0 million, while the
decrease in spot revenue days resulted in a decrease in revenue of
$7.9 million for the three months
ended June 30, 2024, as compared to the three months
ended June 30, 2023.
The Company had two product tankers employed under time charters
as of June 30, 2024 as compared to none as of
June 30, 2023. There were 186 revenue days derived from
time charters for the three months ended June 30, 2024,
as compared to none for the three months ended
June 30, 2023. The increase in revenue days for
time-chartered vessels resulted in an increase in revenue
of $7.3 million for the three months ended
June 30, 2024.
Voyage Expenses. Voyage expenses were $34.7 million for the three months ended
June 30, 2024, an increase of $3.2
million from $31.5 million for
the three months ended June 30, 2023. The net increase is
primarily due to a $4.1 million
increase in port and agency expenses plus commission costs,
partially offset by a $0.9 million
decrease from lower bunker prices.
TCE Rate. The average TCE rate for the Company's
fleet was $37,762 per day for the
three months ended June 30, 2024, an increase of
$11,221 per day from $26,541 per day for the three months ended
June 30, 2023. TCE rates represent net revenues (a
non-GAAP measure representing revenue less voyage expenses) divided
by revenue days. Net revenue utilized to calculate TCE is
determined on a discharge-to-discharge basis, which is different
from how the Company records revenue under U.S. GAAP.
Vessel Operating Expenses. Vessel operating
expenses were $16.2 million for the
three months ended June 30, 2024, an increase of
$0.9 million from $15.3 million for the three months ended
June 30, 2023. The increase reflects the timing of vessel
operating expenses between quarters. Vessel operating expenses, by
their nature, are prone to fluctuations between periods.
Charter Hire Costs. Total charter hire
expense was $5.6 million for the
three months ended June 30, 2024, an increase of
$1.3 million from $4.3 million for the three months ended
June 30, 2023. This increase is as a result of
higher charter hire rates during the three months ended
June 30, 2024 compared to the three months ended
June 30, 2023. Total charter hire expense for the three
months ended June 30, 2024 was comprised of an operating
expense component of $2.9 million and
a vessel lease expense component of $2.7
million.
Depreciation. Depreciation expense for the
three months ended June 30, 2024 was $7.6 million, an increase of $0.8 million from $6.8
million for the three months ended June 30, 2023.
This increase is primarily attributable to the purchase of the
Ardmore Gibraltar in April
2024 and the Ardmore Seafarer being classified as
held for sale in February 2024 and
subsequently sold in April 2024.
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the
three months ended June 30, 2024 was $0.9 million, consistent with $0.9 million for the three months ended
June 30, 2023. Deferred drydocking costs for a given
vessel are amortized on a straight-line basis to the next scheduled
drydocking of the vessel.
General and Administrative Expenses: Corporate.
Corporate-related general and administrative expenses for the three
months ended June 30, 2024 were
$5.3 million, an increase of
$0.5 million from $4.8 million for the three months ended
June 30, 2023. This increase is
primarily due to the timing of recognizing variable-based
compensation expense.
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 June 30, 2024 were $1.0
million, generally consistent with $1.1 million for the three months ended
June 30, 2023.
Gain on Vessel Sold. Gain on vessel sold for the
three months ended June 30, 2024 was $12.3 million, compared to $0 for the three months ended
June 30, 2023. This relates to the sale of the Ardmore
Seafarer in April 2024.
Interest Expense and Finance Costs. Interest
expense and finance costs for the three months ended
June 30, 2024 were $2.0
million, a decrease of $0.8
million from $2.8 million for
the three months ended June 30, 2023. The decrease in
costs was primarily due to the conversion of the Company's term
loan into a fully revolving facility with 50% of the term loan
being converted to a revolving facility during the three months
ended June 30, 2023 and the remaining
50% being converted during the three months ended March 31, 2024. The current flexibility of
the Company's revolving facilities, with only $44.2 million drawn down as of
June 30, 2024, has minimized the impact on the Company of
the elevated interest rate environment. Amortization of deferred
finance fees for the three months ended
June 30, 2024 was $0.3
million, consistent with $0.3
million for the three months ended
June 30, 2023.
Gain on Extinguishment. Gain on extinguishment for
the three months ended June 30, 2024 was $1.4 million, an increase of $1.4 million from $0 for the three months ended
June 30, 2023. As a result of the early prepayment of the
finance lease related to the exercises of the vessel purchase
options for the Ardmore Seawolf and Ardmore Seahawk, the Company recorded a gain
on extinguishment of $1.4 million for
the three months ended June 30, 2024.
The Company recorded no corresponding gain or loss on
extinguishment for the three months ended June 30, 2023.
Liquidity
As of June 30, 2024, the Company had $254.8 million in liquidity available, with cash
and cash equivalents of $47.4 million
(December 31, 2023: $46.8
million) and amounts available and undrawn under its
revolving credit facilities of $207.4
million (December 31, 2023:
$221.2 million). In April 2024, the Company paid the remaining
$34.4 million for the purchase of the
Ardmore Gibraltar, in addition to $8.4 million which it previously paid as a
deposit. In April 2024, the Company
received $27.1 million for the sale
of the Ardmore Seafarer. In June
2024, the Company paid $41.0
million to complete the purchases of the Ardmore
Seawolf and Ardmore
Seahawk, which were under sale-leaseback
arrangements.
Conference Call
The Company plans to host a conference call on July 31, 2024, at 10:00 a.m. Eastern Time to
discuss its financial results for the quarter ended
June 30, 2024. All interested parties are invited to
listen to the live conference call and review the related slide
presentation by choosing from the following options:
- 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 August
7, 2024 at 888-660-6345 or 646-517-4150. Enter the passcode
88347 to access the audio replay. A recording of the webcast, with
associated slides, will also be available on the Company's website.
The information provided on the teleconference is only accurate at
the time of the conference call, and the Company takes no
responsibility for providing updated information.
About Ardmore Shipping Corporation
Ardmore owns and operates a fleet of MR product and chemical
tankers ranging from 25,000 to 50,000 deadweight tonnes. 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.
|
Ardmore Shipping
Corporation
Unaudited Condensed Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
As of
|
|
In thousands of U.S. Dollars, except as
indicated
|
|
June 30, 2024
|
|
December 31, 2023
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
47,396
|
|
46,805
|
|
Receivables, net of
allowance for bad debts of $2.0 million (2023: $1.6
million)
|
|
75,168
|
|
56,234
|
|
Prepaid expenses and
other assets
|
|
4,576
|
|
4,348
|
|
Advances and
deposits
|
|
2,029
|
|
6,833
|
|
Inventories
|
|
13,208
|
|
12,558
|
|
Total current assets
|
|
142,377
|
|
126,778
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Investments and other
assets, net
|
|
9,950
|
|
11,186
|
|
Vessels and vessel
equipment, net
|
|
557,592
|
|
524,044
|
|
Deferred drydock
expenditures, net
|
|
15,130
|
|
12,022
|
|
Advances for ballast
water treatment and scrubber systems
|
|
4,187
|
|
9,587
|
|
Deferred finance fees,
net
|
|
3,280
|
|
2,835
|
|
Operating lease,
right-of-use asset
|
|
9,514
|
|
4,499
|
|
Total non-current assets
|
|
599,653
|
|
564,173
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
742,030
|
|
690,951
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE PREFERRED STOCK AND
EQUITY
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts
payable
|
|
13,402
|
|
2,016
|
|
Accrued expenses and
other liabilities
|
|
18,745
|
|
18,265
|
|
Deferred
revenue
|
|
—
|
|
347
|
|
Accrued interest on
debt and finance leases
|
|
646
|
|
939
|
|
Current portion of
long-term debt
|
|
—
|
|
6,436
|
|
Current portion of
finance lease obligations
|
|
—
|
|
2,029
|
|
Current portion of
operating lease obligations
|
|
7,887
|
|
3,807
|
|
Total current liabilities
|
|
40,680
|
|
33,839
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Non-current portion of
long-term debt
|
|
44,176
|
|
39,590
|
|
Non-current portion of
finance lease obligations
|
|
—
|
|
41,614
|
|
Non-current portion of
operating lease obligations
|
|
1,462
|
|
510
|
|
Other non-current
liabilities
|
|
954
|
|
954
|
|
Total non-current liabilities
|
|
46,592
|
|
82,668
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
87,272
|
|
116,507
|
|
|
|
|
|
|
Redeemable Preferred Stock
|
|
|
|
|
|
Cumulative Series A
8.5% redeemable preferred stock
|
|
37,043
|
|
37,043
|
|
Total redeemable preferred
stock
|
|
37,043
|
|
37,043
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
Common stock
|
|
439
|
|
433
|
|
Additional paid in
capital
|
|
472,910
|
|
471,216
|
|
Treasury
stock
|
|
(15,636)
|
|
(15,636)
|
|
Retained
earnings
|
|
160,002
|
|
81,388
|
|
Total stockholders' equity
|
|
617,715
|
|
537,401
|
|
|
|
|
|
|
Total redeemable preferred stock and stockholders'
equity
|
|
654,758
|
|
574,444
|
|
|
|
|
|
|
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND
EQUITY
|
|
742,030
|
|
690,951
|
|
Ardmore Shipping
Corporation
Unaudited Condensed Consolidated Statements
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
In thousands of U.S. Dollars except per
share and share data
|
|
June 30, 2024
|
|
June 30, 2023
|
|
June 30, 2024
|
|
June 30, 2023
|
|
Revenue, net
|
|
121,325
|
|
91,927
|
|
227,626
|
|
210,160
|
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
(34,720)
|
|
(31,532)
|
|
(65,267)
|
|
(68,095)
|
|
Vessel operating
expenses
|
|
(16,223)
|
|
(15,258)
|
|
(31,143)
|
|
(30,195)
|
|
Time
charter-in
|
|
|
|
|
|
|
|
|
|
Operating expense
component
|
|
(2,895)
|
|
(2,249)
|
|
(5,731)
|
|
(5,114)
|
|
Vessel lease expense
component
|
|
(2,664)
|
|
(2,070)
|
|
(5,274)
|
|
(4,706)
|
|
Depreciation
|
|
(7,605)
|
|
(6,814)
|
|
(14,581)
|
|
(13,756)
|
|
Amortization of
deferred drydock expenditures
|
|
(939)
|
|
(895)
|
|
(1,694)
|
|
(1,902)
|
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
(5,307)
|
|
(4,760)
|
|
(10,374)
|
|
(9,820)
|
|
Commercial and
chartering
|
|
(1,021)
|
|
(1,052)
|
|
(2,084)
|
|
(2,224)
|
|
Unrealized losses on
derivatives
|
|
—
|
|
—
|
|
—
|
|
(31)
|
|
Interest expense and
finance costs
|
|
(2,044)
|
|
(2,825)
|
|
(4,571)
|
|
(5,689)
|
|
Gain on
extinguishment
|
|
1,432
|
|
—
|
|
1,432
|
|
—
|
|
Interest
income
|
|
612
|
|
606
|
|
1,156
|
|
845
|
|
Gain on vessel
sold
|
|
12,322
|
|
—
|
|
12,322
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
62,273
|
|
25,078
|
|
101,817
|
|
69,473
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(49)
|
|
(240)
|
|
(128)
|
|
(297)
|
|
Gain / (loss) from
equity method
investments
|
|
468
|
|
(331)
|
|
239
|
|
(580)
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
62,692
|
|
24,507
|
|
101,928
|
|
68,596
|
|
|
|
|
|
|
|
|
|
|
Preferred
dividends
|
|
(848)
|
|
(848)
|
|
(1,695)
|
|
(1,686)
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to common
stockholders
|
|
61,844
|
|
23,659
|
|
100,233
|
|
66,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
1.48
|
|
0.57
|
|
2.41
|
|
1.63
|
|
Earnings per share,
diluted
|
|
1.47
|
|
0.57
|
|
2.39
|
|
1.60
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(1)
|
|
47,589
|
|
23,659
|
|
85,978
|
|
66,910
|
|
Adjusted earnings per
share, basic
|
|
1.14
|
|
0.57
|
|
2.07
|
|
1.63
|
|
Adjusted earnings per
share, diluted
|
|
1.13
|
|
0.57
|
|
2.05
|
|
1.60
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares
outstanding, basic
|
|
41,747,977
|
|
41,192,894
|
|
41,559,932
|
|
40,959,113
|
|
Weighted average number
of shares
outstanding, diluted
|
|
42,010,724
|
|
41,706,251
|
|
41,981,667
|
|
41,692,820
|
|
____________________
|
|
(1)
|
Adjusted earnings is a
non-GAAP measure and is defined and reconciled under the "Non-GAAP
Measures" section.
|
|
Ardmore Shipping
Corporation
Unaudited Condensed Consolidated Statements
of Cash Flows
|
|
|
|
|
|
|
|
Six Months Ended
|
|
In thousands of U.S. Dollars
|
|
June 30, 2024
|
|
June 30, 2023
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
101,928
|
|
68,596
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
14,581
|
|
13,756
|
|
Amortization of
deferred drydock expenditures
|
|
1,694
|
|
1,902
|
|
Share-based
compensation
|
|
1,699
|
|
1,585
|
|
Gain on vessel
sold
|
|
(12,322)
|
|
—
|
|
Amortization of
deferred finance fees
|
|
585
|
|
589
|
|
Gain on
extinguishment
|
|
(1,432)
|
|
—
|
|
Unrealized losses on
derivatives
|
|
—
|
|
31
|
|
Operating lease ROU -
lease liability, net
|
|
17
|
|
5
|
|
(Profit) / loss from
equity method investments
|
|
(239)
|
|
580
|
|
Deferred drydock
payments
|
|
(3,759)
|
|
(2,711)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Receivables
|
|
(18,936)
|
|
16,783
|
|
Prepaid expenses and
other assets
|
|
(229)
|
|
71
|
|
Advances and
deposits
|
|
4,879
|
|
15
|
|
Inventories
|
|
(650)
|
|
1,500
|
|
Accounts
payable
|
|
9,902
|
|
(267)
|
|
Accrued expenses and
other liabilities
|
|
509
|
|
(2,390)
|
|
Deferred
revenue
|
|
(347)
|
|
(1,220)
|
|
Accrued
interest
|
|
(292)
|
|
74
|
|
Net cash provided by operating
activities
|
|
97,588
|
|
98,899
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
|
|
Proceeds from sale of
vessels
|
|
26,829
|
|
—
|
|
Payments for
acquisition of vessels and vessel equipment, including
deposits
|
|
(56,794)
|
|
(3,259)
|
|
Advances for ballast
water treatment and scrubber systems
|
|
—
|
|
(7,987)
|
|
Payments for other
non-current assets
|
|
(269)
|
|
(53)
|
|
Payments for equity
investments
|
|
1,650
|
|
(875)
|
|
Net cash (used in) investing
activities
|
|
(28,584)
|
|
(12,174)
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
|
|
Proceeds from revolving
facilities
|
|
29,050
|
|
215
|
|
Repayments of long term
debt
|
|
(1,678)
|
|
(51,170)
|
|
Repayments on revolving
facilities
|
|
(30,000)
|
|
—
|
|
Repayments of finance
leases
|
|
(42,262)
|
|
(960)
|
|
Payments for deferred
finance fees
|
|
(200)
|
|
—
|
|
Payment of common share
dividends
|
|
(21,618)
|
|
(32,700)
|
|
Payment of preferred
share dividends
|
|
(1,705)
|
|
(1,705)
|
|
Net cash (used in) financing
activities
|
|
(68,413)
|
|
(86,320)
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
591
|
|
405
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
46,805
|
|
50,569
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the
period
|
|
47,396
|
|
50,974
|
|
Ardmore Shipping
Corporation
Unaudited Other Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2024
|
|
June 30, 2023
|
|
June 30, 2024
|
|
June 30, 2023
|
|
In thousands of U.S. Dollars except
Fleet Data
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
58,495
|
|
35,006
|
|
107,753
|
|
90,006
|
|
Adjusted EBITDAR (1)
|
|
61,158
|
|
37,076
|
|
113,026
|
|
94,712
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Design Tankers
Spot TCE
per day (2)
|
|
41,385
|
|
27,460
|
|
40,029
|
|
31,625
|
|
|
|
|
|
|
|
|
|
|
Fleet TCE per day
(2)
|
|
37,762
|
|
26,541
|
|
36,295
|
|
30,372
|
|
|
|
|
|
|
|
|
|
|
Fleet operating
expenses per day (3)
|
|
7,120
|
|
6,598
|
|
7,049
|
|
6,714
|
|
Technical management
fees per day (4)
|
|
464
|
|
443
|
|
490
|
|
480
|
|
|
7,584
|
|
7,041
|
|
7,539
|
|
7,194
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Design
Tankers
|
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
41,385
|
|
27,460
|
|
40,029
|
|
32,550
|
|
Vessel operating
expenses per day (5)
|
|
7,502
|
|
7,188
|
|
7,526
|
|
7,331
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Mod
Tankers
|
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
36,987
|
|
26,240
|
|
37,689
|
|
21,914
|
|
Vessel operating
expenses per day
(5)(6)
|
|
—
|
|
6,788
|
|
6,691
|
|
6,946
|
|
|
|
|
|
|
|
|
|
|
Prod/Chem Eco-Design
Tankers (25k
- 38k dwt)
|
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
30,330
|
|
24,555
|
|
27,580
|
|
26,256
|
|
Vessel operating
expenses per day (5)
|
|
7,702
|
|
6,717
|
|
7,648
|
|
6,892
|
|
|
|
|
|
|
|
|
|
|
FLEET
|
|
|
|
|
|
|
|
|
|
Average number of
operating vessels
|
|
26.0
|
|
26.0
|
|
26.0
|
|
26.3
|
|
______________________
|
|
(1)
|
Adjusted EBITDA and
Adjusted EBITDAR are non-GAAP measures and are defined and
reconciled to the most directly comparable U.S. GAAP measure under
the section of this release entitled "Non-GAAP
Measures."
|
|
(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 U.S. GAAP. Under discharge to discharge, revenues are
recognized beginning from the discharge of cargo from the prior
voyage to the anticipated discharge of cargo in the current voyage,
and voyage expenses are recognized as incurred.
|
|
(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 third-party technical managers.
|
|
(5)
|
Vessel operating
expenses per day include technical management fees.
|
|
(6)
|
As a result of selling
the Ardmore Seafarer, we no longer own MR Eco-Mod Tankers
and hence we have $0 vessel operating expenses per day for the
second quarter of 2024. The MR Eco-Mod TCE per day for the
second quarter of 2024 is derived from the vessels we have
chartered-in.
|
CO2 Emissions Reporting(1)
In April 2018, the International Maritime Organization's
("IMO") Marine Environment Protection Committee ("MEPC") adopted an
initial strategy for the reduction of greenhouse gas ("GHG")
emissions from ships, setting out a vision to reduce GHG emissions
from international shipping and phase them out as soon as possible.
Ardmore is committed to transparency and contributing to the
reduction of CO2 emissions in the Company's industry.
Ardmore's reporting methodology is in line with the framework set
out within the IMO's Data Collection System ("DCS") initiated in
2019.
On January 1, 2023, the BIMCO CII
Operations Clause for Time Charter Parties came into force. This
clause outlines that the charterer should take responsibility for a
ship's emissions. On this basis, Ardmore's GHG emissions analysis
has been updated to exclude the impact of ships time-chartered out
and to include the impact of ships time-chartered in. Previously
all vessels were included in Ardmore's analysis from the fleet
except for vessels commercially managed by Ardmore.
|
|
Three Months Ended
|
|
Twelve months ended
|
|
|
|
June 30, 2024
|
|
June 30, 2023
|
|
June 30, 2024
|
|
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Vessels in
Operation (at period end)(2)
|
|
26
|
|
26
|
|
26
|
|
26
|
|
|
Fleet Average
Age
|
|
10.6
|
|
9.9
|
|
10.6
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
CO2 Emissions Generated
in Metric Tonnes
|
|
107,740
|
|
102,078
|
|
424,690
|
|
416,097
|
|
|
Distance Travelled
(Nautical Miles)
|
|
394,261
|
|
378,476
|
|
1,560,006
|
|
1,501,018
|
|
|
Fuel Consumed in Metric
Tonnes
|
|
34,318
|
|
32,269
|
|
134,857
|
|
131,707
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and Tank Cleaning
Emissions
|
|
|
|
|
|
|
|
|
|
|
Fuel Consumed in Metric
Tonnes
|
|
1,196
|
|
453
|
|
3,150
|
|
2,296
|
|
|
% of Total Fuel
Consumed
|
|
3.49 %
|
|
1.40 %
|
|
2.34 %
|
|
1.74 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency Ratio (AER) for the
period(3)
|
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
6.08g / tm
|
|
6.03g / tm
|
|
6.07g / tm
|
|
6.18g / tm
|
|
|
MR
Eco-Design
|
|
5.79g / tm
|
|
5.52g / tm
|
|
5.79g / tm
|
|
5.73g / tm
|
|
|
MR Eco-Mod
|
|
5.39g / tm
|
|
6.39g / tm
|
|
5.73g / tm
|
|
6.37g / tm
|
|
|
Chemical
|
|
8.37g / tm
|
|
7.74g / tm
|
|
8.05g / tm
|
|
7.95g / tm
|
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(4)
|
|
7.74g / tm
|
|
7.23g / tm
|
|
7.48g / tm
|
|
7.45g / tm
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency Operational Indicator (EEOI) for
the
period(5)
|
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
11.53g / ctm
|
|
14.72g / ctm
|
|
12.40g / ctm
|
|
13.62g / ctm
|
|
|
MR
Eco-Design
|
|
10.95g / ctm
|
|
14.82g / ctm
|
|
11.89g / ctm
|
|
13.34g / ctm
|
|
|
MR Eco-Mod
|
|
11.55g / ctm
|
|
15.24g / ctm
|
|
12.64g / ctm
|
|
13.97g / ctm
|
|
|
Chemical
|
|
13.76g / ctm
|
|
13.95g / ctm
|
|
14.01g / ctm
|
|
14.15g / ctm
|
|
|
Chemical (Less
Cargo Heating & Tank Cleaning)(4)
|
|
12.73g / ctm
|
|
13.02g / ctm
|
|
13.02g / ctm
|
|
13.26g / ctm
|
|
|
|
|
|
|
|
|
|
|
|
|
Wind Strength (%
greater than 4 on BF)
|
|
43.41 %
|
|
46.03 %
|
|
47.10 %
|
|
48.99 %
|
|
|
% Idle
Time(6)
|
|
1.43 %
|
|
4.47 %
|
|
2.80 %
|
|
3.29 %
|
|
|
|
|
|
|
|
|
|
|
|
|
tm =
tonne-mile
|
|
|
|
|
|
|
|
|
|
|
ctm = cargo
tonne-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. Overall Ardmore
Shipping's carbon emissions for the trailing 12-month period have
increased by 2% from 416,097 metric tonnes to 424,690 metric tonnes
of CO2, primarily due to an increase in distance travelled. Fleet
EEOI for the period decreased from 13.62 g / ctm to 12.40 g / ctm,
primarily due to the increase in laden distance, while AER
decreased from 6.18 g / tm to 6.07 g / tm due to the impact of
longer voyages and less idle time. Ardmore seeks to achieve
continued improvements through a combination of technological
advancements and operational optimization.
|
______________________________
|
|
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 tonnes per
kilometer as opposed to CO2 in tonnes 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 tonnes 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 tonnes of CO2
by (ii) cargo carried in tonnes 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 June 30, 2024, we
recognized total charter hire expense of $5.6 million in respect of time charter-in
vessels under operating leases. The total expense includes (i)
$2.7 million in respect of the right
to use the leased assets (i.e., vessel lease expense component),
and (ii) $2.9 million in respect of
the costs of operating the vessels (i.e. operating expense
component). Under US GAAP, the expense related to the right to use
the leased assets (i.e. capital component) is treated as an
operating item on our consolidated statement of operations, and is
not added back in our calculation of EBITDA. The treatment of
operating lease expenses differs under US GAAP as compared to
international financial reporting standards ("IFRS"). Under IFRS,
the expense of an operating lease is presented in depreciation and
interest expense.
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 U.S. GAAP and are defined and
reconciled below. EBITDA is defined as earnings before interest,
unrealized gains/(losses) on interest rate derivatives, taxes,
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
before certain items that Ardmore believes are not representative
of its operating performance, including gain or loss on sale of
vessels, gain on extinguishment and profit/(loss) on equity method
investments. Adjusted earnings excludes certain items from net
income attributable to common stockholders, including gain or loss
on sale of vessels and write-off of deferred finance fees (i.e.,
loss on extinguishment) because they are considered to not be
representative of the Company's operating performance.
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 June 30,
2024, but excluding the impact of unrealized gains /
(losses) and certain non-recurring items.
These non-GAAP measures should not be considered in isolation
from, as substitutes for, or superior to, financial measures
prepared in accordance with U.S. GAAP. In addition, these non-GAAP
measures may not have a standardized meaning and therefore may not
be comparable to similar measures presented by other companies.
|
Reconciliation of net income to EBITDA, Adjusted
EBITDA and Adjusted EBITDAR
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2024
|
|
June 30, 2023
|
|
June 30, 2024
|
|
June 30, 2023
|
|
In thousands of U.S. Dollars
|
|
|
|
|
|
|
|
|
|
Net income
|
|
62,692
|
|
24,507
|
|
101,928
|
|
68,596
|
|
Interest
income
|
|
(612)
|
|
(606)
|
|
(1,156)
|
|
(845)
|
|
Interest expense and
finance costs
|
|
2,044
|
|
2,825
|
|
4,571
|
|
5,689
|
|
Income tax
|
|
49
|
|
240
|
|
128
|
|
297
|
|
Unrealized losses on
derivatives
|
|
—
|
|
—
|
|
—
|
|
31
|
|
Depreciation
|
|
7,605
|
|
6,814
|
|
14,581
|
|
13,756
|
|
Amortization of
deferred drydock
expenditures
|
|
939
|
|
895
|
|
1,694
|
|
1,902
|
|
EBITDA
|
|
72,717
|
|
34,675
|
|
121,746
|
|
89,426
|
|
Gain on vessel
sold
|
|
(12,322)
|
|
—
|
|
(12,322)
|
|
—
|
|
Gain on
extinguishment
|
|
(1,432)
|
|
—
|
|
(1,432)
|
|
—
|
|
Gain on sale of e1
Marine LLC
|
|
(501)
|
|
—
|
|
(501)
|
|
—
|
|
Loss from equity method
investments
|
|
33
|
|
331
|
|
262
|
|
580
|
|
ADJUSTED
EBITDA
|
|
58,495
|
|
35,006
|
|
107,753
|
|
90,006
|
|
Plus: Vessel lease
expense component
|
|
2,664
|
|
2,070
|
|
5,274
|
|
4,706
|
|
ADJUSTED EBITDAR
|
|
61,158
|
|
37,076
|
|
113,026
|
|
94,712
|
|
Reconciliation of net income attributable to common
stockholders to Adjusted earnings
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2024
|
|
June 30, 2023
|
|
June 30, 2024
|
|
June 30, 2023
|
|
In thousands of U.S. Dollars except per share
data
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders
|
|
61,844
|
|
23,659
|
|
100,233
|
|
66,910
|
|
Gain on vessel
sold
|
|
(12,322)
|
|
—
|
|
(12,322)
|
|
—
|
|
Gain on
extinguishment
|
|
(1,432)
|
|
—
|
|
(1,432)
|
|
—
|
|
Gain on sale of e1
Marine LLC
|
|
(501)
|
|
—
|
|
(501)
|
|
—
|
|
Adjusted earnings
|
|
47,589
|
|
23,659
|
|
85,978
|
|
66,910
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share, basic
|
|
1.14
|
|
0.57
|
|
2.07
|
|
1.63
|
|
Adjusted earnings per
share, diluted
|
|
1.13
|
|
0.57
|
|
2.05
|
|
1.60
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding,
basic
|
|
41,747,977
|
|
41,192,894
|
|
41,559,932
|
|
40,959,113
|
|
Weighted average number
of shares outstanding,
diluted
|
|
42,010,724
|
|
41,706,251
|
|
41,981,667
|
|
41,692,820
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings for purposes of dividend
calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
June 30, 2024
|
|
|
|
In thousands of U.S. Dollars except per share
data
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings
|
|
|
|
|
|
47,589
|
|
|
|
Unrealized
losses
|
|
|
|
|
|
—
|
|
|
|
Adjusted earnings for
purposes of dividend
calculation
|
|
|
|
|
|
47,589
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend to be
paid
|
|
|
|
|
|
15,863
|
|
|
|
Dividend Per Share (DPS)
|
|
|
|
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
outstanding as of July 31, 2024
|
|
|
|
|
|
41,841,669
|
|
|
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. In some cases, you can identify the
forward-looking statements by the use of words such as "believe",
"anticipate", "intends", "estimate", "forecast", "project", "plan",
"potential", "may", "expect", and similar expressions.
Forward looking statements in this press release include, among
others, statements regarding: future operating or financial
results, including future earnings; global and regional economic
conditions and trends; shipping market trends and market
fundamentals, including tanker demand and supply and future spot
and charter rates; fleet expansion and vessel and business
acquisitions; seasonality; the Company's business strategies,
initiatives and sustainability agenda, and related future outcomes;
the impact of the Company's leadership management transition; the
potential effect of the Russia-Ukraine war, the Israel-Hamas war and attacks
against merchant vessels in the Red Sea area on the shipping
industry and the Company; expected employment of the Company's
vessels and expected drydocking days during the third quarter of
2024; the value of the Company's commercial management and pooling
business; trends in the Company's performance as measured by energy
efficiency and emission-reduction metrics; the impact of energy
transition on the Company and the markets in which the Company
operates; expected continuation of refinement by the Company of
performance measures for emissions and efficiency; and the timing
and payment of quarterly dividends by the Company. The
forward-looking statements in this press release are based upon
various assumptions, including, without limitation, Ardmore
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 which 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. The Company
cautions readers of this release not to place undue reliance on
these forward-looking statements, which speak only as of their
dates. The Company undertakes no obligation to update or revise any
forward-looking statements. These forward-looking statements are
not guarantees of the Company's future performance, and actual
results and future developments may vary materially from those
projected in the forward-looking statements.
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 projections of spot and time
charter or pool trading of the Company's vessels; geopolitical
conflicts, including future developments relating to the
Russia-Ukraine war and the Israel-Hamas war; changes
in the Company's operating expenses, including bunker prices,
drydocking and insurance costs; general domestic and international
political conditions; potential disruption of shipping routes due
to accidents, piracy or other events; the market for the Company's
vessels; competition in the tanker industry; availability of
financing and refinancing; changes in governmental rules and
regulations or actions taken by regulatory authorities; the
Company's ability to charter vessels for remaining
revenue days during the third quarter of 2024 in the spot
market; vessel breakdowns and instances of off-hire; the Company's
operating results and capital requirements, and the declaration of
any future dividends by the Company's board of directors; and other
factors. Please see the Company's filings with the U.S. Securities
and Exchange Commission, including the Company's Form 20‑F for
the year ended December 31, 2023, for a more complete
discussion of these and other risks and uncertainties.
Investor Relations Enquiries:
|
Mr. Leon
Berman
|
Mr. Bryan
Degnan
|
|
The IGB
Group
|
The IGB
Group
|
|
45 Broadway, Suite
1150
|
45 Broadway, Suite
1150
|
|
New York, NY
10006
|
New York, NY
10006
|
|
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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SOURCE Ardmore Shipping Corporation
