Ardmore Shipping Corporation Announces Financial Results For The Three and Nine Months Ended September 30, 2024
Ardmore Shipping (NYSE: ASC) reported strong financial results for Q3 2024, with net income of $23.3 million ($0.55 per share), up from $20.3 million ($0.49 per share) in Q3 2023. The company's MR Eco-Design tankers earned an average spot TCE rate of $28,481 per day, while chemical tankers earned $21,604 per day. For Q4 2024, approximately 50% of revenue days are fixed at $25,000 per day for MR Eco-Design tankers and $25,150 per day for chemical tankers. The Board declared a quarterly dividend of $0.18 per share. The company maintains strong liquidity with $268.5 million available, including $47.6 million in cash.
Ardmore Shipping (NYSE: ASC) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un reddito netto di 23,3 milioni di dollari (0,55 dollari per azione), in crescita rispetto ai 20,3 milioni di dollari (0,49 dollari per azione) nel terzo trimestre del 2023. I tankers MR Eco-Design della compagnia hanno guadagnato una media di 28.481 dollari al giorno come tariffa spot TCE, mentre i tankers chimici hanno guadagnato 21.604 dollari al giorno. Per il quarto trimestre del 2024, circa il 50% dei giorni di fatturato sono fissi a 25.000 dollari al giorno per i tankers MR Eco-Design e a 25.150 dollari al giorno per i tankers chimici. Il Consiglio ha dichiarato un dividendo trimestrale di 0,18 dollari per azione. L'azienda mantiene una forte liquidità con 268,5 milioni di dollari disponibili, di cui 47,6 milioni in contante.
Ardmore Shipping (NYSE: ASC) informó sobre sólidos resultados financieros para el tercer trimestre de 2024, con un ingreso neto de 23,3 millones de dólares (0,55 dólares por acción), frente a 20,3 millones de dólares (0,49 dólares por acción) en el tercer trimestre de 2023. Los tanqueros MR Eco-Design de la empresa ganaron una tarifa TCE promedio de 28.481 dólares por día, mientras que los tanqueros químicos ganaron 21.604 dólares por día. Para el cuarto trimestre de 2024, aproximadamente el 50% de los días de ingresos están fijados en 25.000 dólares por día para los tanqueros MR Eco-Design y 25.150 dólares por día para los tanqueros químicos. La Junta declaró un dividendo trimestral de 0,18 dólares por acción. La compañía mantiene una fuerte liquidez con 268,5 millones de dólares disponibles, incluidos 47,6 millones en efectivo.
아드모어 쉬핑 (NYSE: ASC)은 2024년 3분기 강력한 재무 결과를 보고했으며, 순이익은 2,330만 달러(주당 0.55달러)로 2023년 3분기 2,030만 달러(주당 0.49달러)에서 증가하였습니다. 회사의 MR 에코 디자인 탱커는 평균 28,481달러의 TCE 요금을 벌었고, 화학 탱커는 하루 21,604달러를 벌었습니다. 2024년 4분기에는 MR 에코 디자인 탱커에 대해 하루 25,000달러, 화학 탱커에 대해 하루 25,150달러로 약 50%의 수익 일수가 고정되어 있습니다. 이사회는 주당 0.18달러의 분기 배당금을 선언했습니다. 회사는 47.6백만 달러의 현금을 포함하여 2억 6,850만 달러의 강력한 유동성을 유지하고 있습니다.
Ardmore Shipping (NYSE: ASC) a annoncé de solides résultats financiers pour le troisième trimestre de 2024, avec un bénéfice net de 23,3 millions de dollars (0,55 dollar par action), en hausse par rapport à 20,3 millions de dollars (0,49 dollar par action) au troisième trimestre de 2023. Les navires MR Eco-Design de l'entreprise ont généré un tarif TCE moyen de 28 481 dollars par jour, tandis que les navires-citernes chimiques ont gagné 21 604 dollars par jour. Pour le quatrième trimestre de 2024, environ 50 % des jours de revenus sont fixés à 25 000 dollars par jour pour les navires MR Eco-Design et à 25 150 dollars par jour pour les navires-citernes chimiques. Le Conseil a déclaré un dividende trimestriel de 0,18 dollar par action. L'entreprise maintient une forte liquidité avec 268,5 millions de dollars disponibles, dont 47,6 millions de dollars en espèces.
Ardmore Shipping (NYSE: ASC) berichtete über starke Finanzergebnisse für das 3. Quartal 2024 mit einem Nettogewinn von 23,3 Millionen USD (0,55 USD pro Aktie), ein Anstieg gegenüber 20,3 Millionen USD (0,49 USD pro Aktie) im 3. Quartal 2023. Die MR Eco-Design-Tanker des Unternehmens erzielten eine durchschnittliche Spot-TCE-Rate von 28.481 USD pro Tag, während die chemischen Tanker 21.604 USD pro Tag verdienten. Für das 4. Quartal 2024 sind ungefähr 50 % der Umsatztage zu 25.000 USD pro Tag für MR Eco-Design-Tanker und 25.150 USD pro Tag für chemische Tanker festgelegt. Der Vorstand erklärte eine vierteljährliche Dividende von 0,18 USD pro Aktie. Das Unternehmen hält eine starke Liquidität mit 268,5 Millionen USD, einschließlich 47,6 Millionen USD in bar.
- Net income increased to $23.3M in Q3 2024 from $20.3M in Q3 2023
- Strong TCE rates: MR Eco-Design tankers at $28,481/day, Chemical tankers at $21,604/day
- Robust liquidity position of $268.5M
- Revenue increased by $9.2M to $96.1M compared to Q3 2023
- Interest expenses decreased by $1.9M to $1.1M in Q3 2024
- Charter hire costs increased by $1.8M to $5.9M in Q3 2024
- General and administrative expenses increased by $1.2M to $6.3M
- Voyage expenses increased by $4.0M to $34.6M
Insights
A strong Q3 2024 performance with
Key financial metrics show robust operational performance:
- Revenue increased by
$9.2 million to$96.1 million - Average TCE rate improved to
$26,628 per day - Strong liquidity position with
$268.5 million available - Reduced interest expenses by
$1.9 million through strategic debt management
The company's variable dividend policy remains strong, declaring
The product and chemical tanker markets show robust fundamentals with positive rate developments. MR Eco-Design tankers achieved
Fleet deployment remains optimized with
Highlights and Recent Activity
- Reported net income and Adjusted earnings of
$23.3 million $0.55 $20.3 million $0.49 - Reported net income of
$123.5 million $2.96 $2.93 $87.3 million $2.12 $2.09 $109.3 million $2.62 $2.60 $87.3 million $2.12 $2.09 $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 November 6, 2024, of
$0.18 - MR Eco-Design tankers earned an average spot TCE rate of
$28,481 $21,604 50% of total revenue days currently fixed for the fourth quarter of 2024, the average spot TCE rate is approximately$25,000 55% of revenue days fixed for the fourth quarter of 2024, the average TCE rate for chemical tankers is approximately$25,150
Gernot Ruppelt, the Company's Chief Executive Officer, commented:
"Strong fundamentals combined with geopolitical factors have continued to raise product and chemical tanker charter rates, up on a year-over-year basis, against the backdrop of typical third quarter seasonality. Ardmore is well-positioned to capture further market upside as conditions are beginning to accelerate in the early stages of the winter season.
Our focus remains consistent: maximizing our TCE performance, tightly managing our costs, and lowering our breakeven level. Our strong performance has enabled us to sustain our momentum in pursuing all our capital allocation priorities, and in turn, strengthen our earnings capacity for a wide range of market conditions. We continue returning capital to our shareholders through a consistent quarterly dividend, investing in our existing fleet to enhance performance and reduce emissions, while reducing debt to lower our breakeven.
We believe that Ardmore's commitment to these priorities positions us strongly to continue building value for our shareholders through operational and financial efficiency across market cycles."
Summary of Recent and Third Quarter 2024 Events
Fleet
Fleet Operations and Employment
As of September 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 third 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
In the fourth quarter of 2024, the Company expects to have
Product / Chemical Tankers (IMO 2: 25,000 dwt – 37,800 dwt)
At the end of the third 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 third quarter of 2024, the Company's six Eco-Design product / chemical vessels earned an average TCE rate of
In the fourth 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 November 6, 2024, the Company had fixed approximately
Drydocking
The Company had no drydocking days in the third quarter of 2024. The Company does not currently have any drydocking days scheduled in the fourth 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 November 6, 2024 of
Preferred Stock Redemption
On November 4, 2024, the Company delivered a notice of redemption with respect to 10,000 shares of its Series A Preferred Stock at a redemption value of
Leadership Transition
As previously announced on July 8, 2024, Ardmore Founder and CEO Anthony Gurnee retired from his executive and board positions effective September 16, 2024. The Board of Directors 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. The leadership transition took effect at the Company's quarterly Board meeting on September 16, 2024.
Geopolitical Conflicts
The ongoing
Geopolitical tensions have increased since commencement of the Israel-Hamas war in October 2023. Since mid-December 2023, Houthi rebels in
Results for the Three Months Ended September 30, 2024 and 2023
The Company reported net income of
Results for the Nine Months Ended September 30, 2024 and 2023
The Company reported net income of
Management's Discussion and Analysis of Financial Results for the Three Months Ended September 30, 2024 and 2023
Revenue. Revenue for the three months ended September 30, 2024 was
The Company's average number of operating vessels was 26.0 for the three months ended September 30, 2024, consistent with 26.0 for the three months ended September 30, 2023.
The Company had 2,279 spot revenue days for the three months ended September 30, 2024, as compared to 2,185 for the three months ended September 30, 2023. The Company had 25 vessels employed directly in the spot market as of September 30, 2024 compared with 26 vessels as of September 30, 2023. Increases in spot rates during the three months ended September 30, 2024 resulted in an increase in revenue of
The Company had one product tanker employed under time charters as of September 30, 2024 as compared to none as of September 30, 2023. There were 92 revenue days derived from time charters for the three months ended September 30, 2024, as compared to none for the three months ended September 30, 2023. The increase in revenue days for time-chartered vessels resulted in an increase in revenue 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 September 30, 2024 was
Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended September 30, 2024 was
General and Administrative Expenses: Corporate. Corporate-related general and administrative expenses for the three months ended September 30, 2024 were
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 September 30, 2024 were
Unrealized losses on Derivatives. The Company had an insignificant amount of unrealized losses on derivatives for the three months ended September 30, 2024, as compared to no unrealized gains or losses for the three months ended September 30, 2023.
Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended September 30, 2024 were
Liquidity
As of September 30, 2024, the Company had
Conference Call
The Company plans to host a conference call on November 6, 2024, at 10:00 a.m. Eastern Time to discuss its financial results for the quarter ended September 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 November 13, 2024 at 888-660-6345 or 646-517-4150. Enter the passcode 17491 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 | ||||
As of | ||||
In thousands of | September 30, 2024 | December 31, 2023 | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 47,574 | 46,805 | ||
Receivables, net of allowance for bad debts of | 65,079 | 56,234 | ||
Prepaid expenses and other assets | 3,901 | 4,348 | ||
Advances and deposits | 4,635 | 6,833 | ||
Inventories | 11,574 | 12,558 | ||
Total current assets | 132,763 | 126,778 | ||
Non-current assets | ||||
Investments and other assets, net | 9,690 | 11,186 | ||
Vessels and vessel equipment, net | 550,416 | 524,044 | ||
Deferred drydock expenditures, net | 14,512 | 12,022 | ||
Advances for ballast water treatment and scrubber systems | 4,840 | 9,587 | ||
Deferred finance fees, net | 3,003 | 2,835 | ||
Operating lease, right-of-use asset | 7,589 | 4,499 | ||
Total non-current assets | 590,050 | 564,173 | ||
TOTAL ASSETS | 722,813 | 690,951 | ||
LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | ||||
Current liabilities | ||||
Accounts payable | 7,251 | 2,016 | ||
Accrued expenses and other liabilities | 17,763 | 18,265 | ||
Deferred revenue | 2,792 | 347 | ||
Accrued interest on debt and finance leases | — | 939 | ||
Current portion of long-term debt | 2,517 | 6,436 | ||
Current portion of finance lease obligations | — | 2,029 | ||
Current portion of operating lease obligations | 6,860 | 3,807 | ||
Total current liabilities | 37,183 | 33,839 | ||
Non-current liabilities | ||||
Non-current portion of long-term debt | 20,000 | 39,590 | ||
Non-current portion of finance lease obligations | — | 41,614 | ||
Non-current portion of operating lease obligations | 635 | 510 | ||
Other non-current liabilities | 954 | 954 | ||
Total non-current liabilities | 21,589 | 82,668 | ||
TOTAL LIABILITIES | 58,772 | 116,507 | ||
Redeemable Preferred Stock | ||||
Cumulative Series A | 37,043 | 37,043 | ||
Total redeemable preferred stock | 37,043 | 37,043 | ||
Stockholders' equity | ||||
Common stock | 440 | 433 | ||
Additional paid in capital | 474,805 | 471,216 | ||
Treasury stock | (15,636) | (15,636) | ||
Retained earnings | 167,389 | 81,388 | ||
Total stockholders' equity | 626,998 | 537,401 | ||
Total redeemable preferred stock and stockholders' equity | 664,041 | 574,444 | ||
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | 722,813 | 690,951 | ||
Ardmore Shipping Corporation | ||||||||
Three Months Ended | Nine Months Ended | |||||||
In thousands of | September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||
Revenue, net | 96,118 | 86,940 | 323,745 | 297,099 | ||||
Voyage expenses | (34,574) | (30,640) | (99,842) | (98,735) | ||||
Vessel operating expenses | (13,970) | (14,427) | (45,114) | (44,622) | ||||
Time charter-in | ||||||||
Operating expense component | (3,082) | (2,115) | (8,812) | (7,229) | ||||
Vessel lease expense component | (2,835) | (1,946) | (8,109) | (6,652) | ||||
Depreciation | (7,833) | (6,928) | (22,414) | (20,683) | ||||
Amortization of deferred drydock | (997) | (733) | (2,692) | (2,635) | ||||
General and administrative expenses | ||||||||
Corporate | (6,274) | (5,081) | (16,648) | (14,902) | ||||
Commercial and chartering | (1,212) | (1,087) | (3,296) | (3,310) | ||||
Unrealized losses on derivatives | (26) | — | (26) | (31) | ||||
Interest expense and finance costs | (1,103) | (2,998) | (5,673) | (8,687) | ||||
Gain on extinguishment | — | — | 1,432 | — | ||||
Interest income | 226 | 418 | 1,382 | 1,263 | ||||
Gain on vessel sold | — | — | 12,322 | — | ||||
Income before taxes | 24,438 | 21,403 | 126,255 | 90,876 | ||||
Income tax | (74) | (50) | (203) | (347) | ||||
(Loss) / gain from equity method | (220) | (150) | 19 | (730) | ||||
Net Income | 24,144 | 21,203 | 126,071 | 89,799 | ||||
Preferred dividends | (857) | (857) | (2,552) | (2,543) | ||||
Net Income attributable to common | 23,287 | 20,346 | 123,519 | 87,256 | ||||
Earnings per share, basic | 0.55 | 0.49 | 2.96 | 2.12 | ||||
Earnings per share, diluted | 0.55 | 0.49 | 2.93 | 2.09 | ||||
Adjusted earnings (1) | 23,287 | 20,346 | 109,264 | 87,256 | ||||
Adjusted earnings per share, basic | 0.55 | 0.49 | 2.62 | 2.12 | ||||
Adjusted earnings per share, diluted | 0.55 | 0.49 | 2.60 | 2.09 | ||||
Weighted average number of shares | 42,135,165 | 41,296,128 | 41,663,882 | 41,072,686 | ||||
Weighted average number of shares | 42,362,193 | 41,754,259 | 42,096,610 | 41,742,364 | ||||
___________________ | |
(1) | Adjusted earnings is a non-GAAP measure and is defined and reconciled under the "Non-GAAP Measures" section. |
Ardmore Shipping Corporation | ||||
Nine Months Ended | ||||
In thousands of | September 30, 2024 | September 30, 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | 126,071 | 89,799 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 22,414 | 20,683 | ||
Amortization of deferred drydock expenditures | 2,692 | 2,635 | ||
Share-based compensation | 3,596 | 2,401 | ||
Gain on vessel sold | (12,322) | — | ||
Amortization of deferred finance fees | 862 | 913 | ||
Gain on extinguishment | (1,432) | — | ||
Unrealized losses on derivatives | 26 | 31 | ||
Operating lease ROU - lease liability, net | 88 | 12 | ||
(Profit) / loss from equity method investments | (19) | 730 | ||
Deferred drydock payments | (5,796) | (5,654) | ||
Changes in operating assets and liabilities: | ||||
Receivables | (8,846) | 29,052 | ||
Prepaid expenses and other assets | 446 | (541) | ||
Advances and deposits | 2,273 | 357 | ||
Inventories | 983 | 823 | ||
Accounts payable | 5,234 | (153) | ||
Accrued expenses and other liabilities | (308) | (313) | ||
Deferred revenue | 2,445 | 391 | ||
Accrued interest | (939) | (300) | ||
Net cash provided by operating activities | 137,468 | 140,866 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of vessels | 26,829 | — | ||
Payments for acquisition of vessels and vessel equipment, including deposits | (58,056) | (12,079) | ||
Advances for ballast water treatment and scrubber systems | — | (5,353) | ||
Payments for other non-current assets | (304) | (69) | ||
Proceeds / payments for equity investments | 1,650 | (1,142) | ||
Net cash (used in) investing activities | (29,881) | (18,643) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from revolving facilities | 68,585 | — | ||
Repayments of long term debt | (1,678) | (77,480) | ||
Repayments on revolving facilities | (91,194) | — | ||
Repayments of finance leases | (42,262) | (1,463) | ||
Payments for deferred finance fees | (200) | — | ||
Payment of common share dividends | (37,517) | (40,546) | ||
Payment of preferred share dividends | (2,552) | (2,543) | ||
Net cash (used in) financing activities | (106,818) | (122,032) | ||
Net increase in cash and cash equivalents | 769 | 191 | ||
Cash and cash equivalents at the beginning of the year | 46,805 | 50,569 | ||
Cash and cash equivalents at the end of the period | 47,574 | 50,760 | ||
Ardmore Shipping Corporation | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
In thousands of | ||||||||
Adjusted EBITDA (1) | 34,171 | 31,644 | 141,924 | 121,649 | ||||
Adjusted EBITDAR (1) | 37,006 | 33,590 | 150,033 | 128,301 | ||||
AVERAGE DAILY DATA | ||||||||
MR Eco-Design Tankers Spot TCE | 28,481 | 25,932 | 35,623 | 30,503 | ||||
Fleet TCE per day (2) | 26,628 | 26,347 | 32,821 | 29,114 | ||||
Fleet operating expenses per day (3) | 6,425 | 6,439 | 6,785 | 6,609 | ||||
Technical management fees per day (4) | 435 | 445 | 472 | 480 | ||||
6,860 | 6,884 | 7,257 | 7,089 | |||||
MR Eco-Design Tankers | ||||||||
TCE per day (2) | 28,481 | 25,932 | 35,623 | 30,503 | ||||
Vessel operating expenses per day (5) | 6,816 | 6,904 | 7,214 | 7,187 | ||||
MR Eco-Mod Tankers | ||||||||
TCE per day (2) | 25,726 | 36,362 | 34,140 | 31,144 | ||||
Vessel operating expenses per day | — | 6,936 | 6,085 | 6,943 | ||||
Prod/Chem Eco-Design Tankers (25k | ||||||||
TCE per day (2) | 21,604 | 20,023 | 25,604 | 24,198 | ||||
Vessel operating expenses per day (5) | 7,029 | 6,827 | 7,440 | 6,870 | ||||
FLEET | ||||||||
Average number of operating vessels | 26.0 | 26.0 | 26.0 | 26.2 | ||||
___________________ | |
(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 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 |
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 | ||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||
Number of Vessels in Operation (at period end)(2) | 26 | 26 | 26 | 26 | |||||
Fleet Average Age | 10.9 | 10.2 | 10.9 | 10.2 | |||||
CO2 Emissions Generated in Metric Tonnes | 103,847 | 106,724 | 421,812 | 420,298 | |||||
Distance Travelled (Nautical Miles) | 371,867 | 411,092 | 1,520,781 | 1,538,072 | |||||
Fuel Consumed in Metric Tonnes | 33,091 | 33,780 | 134,168 | 133,010 | |||||
Cargo Heating and Tank Cleaning Emissions | |||||||||
Fuel Consumed in Metric Tonnes | 562 | 255 | 3,457 | 1,771 | |||||
% of Total Fuel Consumed | 1.70 % | 0.75 % | 2.58 % | 1.33 % | |||||
Annual Efficiency Ratio (AER) for the period(3) | |||||||||
Fleet | 6.21g / tm | 5.80g / tm | 6.19g / tm | 6.10g / tm | |||||
MR Eco-Design | 5.80g / tm | 5.54g / tm | 5.86g / tm | 5.69g / tm | |||||
MR Eco-Mod | 6.22g / tm | 5.80g / tm | 5.74g / tm | 6.22g / tm | |||||
Chemical | 8.48g / tm | 7.16g / tm | 8.49g / tm | 7.76g / tm | |||||
Chemical (Less Cargo Heating & Tank Cleaning)(4) | 8.39g / tm | 7.00g / tm | 7.83g / tm | 7.32g / tm | |||||
Energy Efficiency Operational Indicator (EEOI) | |||||||||
Fleet | 12.38g / ctm | 12.21g / ctm | 12.44g / ctm | 13.37g / ctm | |||||
MR Eco-Design | 11.51g / ctm | 12.44g / ctm | 11.70g / ctm | 13.27g / ctm | |||||
MR Eco-Mod | 14.34g / ctm | 10.96g / ctm | 13.39g / ctm | 13.04g / ctm | |||||
Chemical | 14.78g / ctm | 12.86g / ctm | 14.39g / ctm | 14.12g / ctm | |||||
Chemical (Less Cargo Heating & Tank Cleaning)(4) | 14.62g / ctm | 12.58g / ctm | 13.27g / ctm | 13.33g / ctm | |||||
Wind Strength (% greater than 4 on BF) | 46.34 % | 47.89 % | 46.69 % | 49.09 % | |||||
% Idle Time(6) | 3.46 % | 3.79 % | 2.70 % | 3.96 % | |||||
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
___________________ |
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 September 30, 2024, we recognized total charter hire expense of
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 September 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
Reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted EBITDAR | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
In thousands of | ||||||||
Net income | 24,144 | 21,203 | 126,071 | 89,799 | ||||
Interest income | (226) | (418) | (1,382) | (1,263) | ||||
Interest expense and finance costs | 1,103 | 2,998 | 5,673 | 8,687 | ||||
Income tax | 74 | 50 | 203 | 347 | ||||
Unrealized losses on derivatives | 26 | — | 26 | 31 | ||||
Depreciation | 7,833 | 6,928 | 22,414 | 20,683 | ||||
Amortization of deferred drydock | 997 | 733 | 2,692 | 2,635 | ||||
EBITDA | 33,951 | 31,494 | 155,697 | 120,919 | ||||
Gain on vessel sold | — | — | (12,322) | — | ||||
Gain on extinguishment | — | — | (1,432) | — | ||||
Gain on sale of e1 Marine LLC | — | — | (501) | — | ||||
Loss from equity method | 220 | 150 | 482 | 730 | ||||
ADJUSTED EBITDA | 34,171 | 31,644 | 141,924 | 121,649 | ||||
Plus: Vessel lease expense | 2,835 | 1,946 | 8,109 | 6,652 | ||||
ADJUSTED EBITDAR | 37,006 | 33,590 | 150,033 | 128,301 | ||||
Reconciliation of net income attributable to common stockholders to Adjusted earnings | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
In thousands of | ||||||||
Net income attributable to common stockholders | 23,287 | 20,346 | 123,519 | 87,256 | ||||
Gain on vessel sold | — | — | (12,322) | — | ||||
Gain on extinguishment | — | — | (1,432) | — | ||||
Gain on sale of e1 Marine LLC | — | — | (501) | — | ||||
Adjusted earnings | 23,287 | 20,346 | 109,264 | 87,256 | ||||
Adjusted earnings per share, basic | 0.55 | 0.49 | 2.62 | 2.12 | ||||
Adjusted earnings per share, diluted | 0.55 | 0.49 | 2.60 | 2.09 | ||||
Weighted average number of shares outstanding, basic | 42,135,165 | 41,296,128 | 41,663,882 | 41,072,686 | ||||
Weighted average number of shares outstanding, | 42,362,193 | 41,754,259 | 42,096,610 | 41,742,364 | ||||
Adjusted earnings for purposes of dividend calculation | ||||||||
Three Months Ended | ||||||||
September 30, 2024 | ||||||||
In thousands of | ||||||||
Adjusted earnings | 23,287 | |||||||
Unrealized losses | 26 | |||||||
Adjusted earnings for purposes of dividend calculation | 23,313 | |||||||
Dividend to be paid | 7,771 | |||||||
Dividend Per Share (DPS) | 0.18 | |||||||
Number of shares outstanding as of November 6, 2024 | 42,011,443 | |||||||
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; the Company's continued investment in its existing fleet, fleet expansion and vessel and business acquisitions; seasonality; the Company's business strategies, initiatives and sustainability agenda, and related future outcomes; the Company's leadership transition; 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. Leon Berman | Mr. Bryan Degnan |
The IGB Group | The IGB Group |
45 Broadway, Suite 1150 | 45 Broadway, Suite 1150 |
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
FAQ
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