HAMILTON, Bermuda, May 9, 2023
/PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC)
("Ardmore", the "Company" or "we") today announced results for the
three months ended March 31, 2023.
Highlights and Recent Activity
- Reported net income of $43.3
million for the three months ended March 31, 2023, or $1.06 earnings per basic share and $1.04 earnings per diluted share, compared to a
net loss of $7.9 million, or
$0.23 loss per basic and diluted
share, for the three months ended March 31,
2022. Adjusted for certain costs (see Adjusted earnings /
(loss) in the Non-GAAP Measures section), we reported Adjusted
earnings of $43.3 million, or
$1.06 Adjusted earnings per basic
share and $1.04 Adjusted earnings per
diluted share, for the three months ended March 31, 2023, compared to an Adjusted loss of
$0.9 million, or $0.03 Adjusted loss per basic and diluted share,
for the three months ended March 31,
2022.
- MR Eco-Design tankers earned an average spot TCE rate of
$37,506 per day for the three months
ended March 31, 2023. Chemical
tankers earned an average TCE rate of $27,984 per day for the three months ended
March 31, 2023. Based on
approximately 50% total revenue days currently fixed for the second
quarter of 2023, the average spot TCE rate is approximately
$34,000 per day for MR Eco-Design
tankers; based on approximately 50% of revenue days fixed for the
second quarter of 2023, the average TCE rate for chemical tankers
is approximately $33,600 per
day.
- Consistent with the Company's capital allocation policy, the
Board of Directors declared a cash dividend on May 9, 2023, of $0.35 per common share for the quarter ended
March 31, 2023, based on Ardmore's
current policy of paying out dividends on its shares of common
stock equal to a third of Adjusted Earnings. The dividend will be
paid on June 15, 2023, to all
shareholders of record on May 31,
2023.
- On March 3, 2023, the Company
announced that its Board of Directors has formed a Sustainability
Committee to oversee and advise on matters related to corporate
sustainability, including environmental, social and energy
transition matters. The Sustainability Committee is chaired by Dr.
Kirsi Tikka, and also includes
Mats Berglund and Helen Tveitan de Jong.
Anthony Gurnee, the Company's
Chief Executive Officer, commented:
"The very positive trends that drove product tanker strength
in late 2022 have been sustained, with the charter market remaining
very firm throughout the first quarter and up to the present. The
combination of supportive underlying fundamentals and the
substantial increase in tonne-mile demand resulting from the
re-ordering of refined product trade flows has created pronounced
market tightness and volatility that Ardmore continues to benefit
from.
With our robust balance sheet, low breakeven levels, and high
operating leverage to this strong charter market, we are generating
a materially heightened level of free cash flow, enabling us to
simultaneously pursue all of our capital allocation priorities:
continued investment in performance-enhancing technology across our
fleet; ongoing debt reduction; maintaining our capacity for
well-timed, accretive growth; and the payment of an attractive
quarterly dividend with an annualized yield of approximately
10%.
Additionally, in keeping with our long-term focus on progress
and performance, our Board of Directors has recently formed a
Sustainability Committee to oversee and advise on environmental,
social, and energy transition matters, thus ensuring that the
Company benefits from our Board's expertise in this critical area
with regard to our long-term strategy."
Summary of Recent and First Quarter 2023 Events
Fleet
Fleet Operations and Employment
As of March 31, 2023, the Company had 26 vessels in
operation (including four chartered-in vessels), including 20 MR
tankers ranging from 45,000 deadweight tonnes (Dwt) to 49,999 Dwt
(15 Eco-Design and five Eco-Mod) and six Eco-Design IMO 2
product/chemical tankers ranging from 25,000 Dwt to 37,800 Dwt. The
Company also commercially manages one of Carl Büttner's 24,000 Dwt
chemical tankers.
MR Tankers (45,000 Dwt – 49,999 Dwt)
At the end of the first quarter of 2023, the Company had 20 MR
tankers in operation, all of which were trading in the spot market.
The MR tankers earned an average TCE rate of $35,685 per day in the first quarter of 2023. In
the first quarter of 2023, the Company's 15 MR Eco-Design tankers
earned an average TCE rate of $37,506
and the Company's six MR Eco-Mod tankers earned an average TCE rate
of $30,932 per day.
In the second quarter of 2023, the Company expects to have all
revenue days for its MR tankers employed in the spot market. As of
May 9, 2023, the Company had fixed
approximately 50% of its total MR revenue days for the second
quarter of 2023 at an average TCE rate of approximately
$32,700 per day which includes MR
Eco-Design tankers at $34,000 per day
and MR Eco-Mod tankers at $30,000 per
day.
Product / Chemical Tankers (IMO 2: 25,000 Dwt –
37,800 Dwt)
At the end of the first quarter of 2023, the Company had six
Eco-Design IMO 2 product / chemical tankers in operation, all of
which were trading in the spot market. During the first quarter of
2023, the Company's six Eco-Design product / chemical vessels
earned an average TCE rate of $27,984
per day.
In the second quarter of 2023, the Company expects to have all
revenue days for its Eco-Design IMO 2 product / chemical
tankers employed in the spot market. As of May 9, 2023, the Company had fixed approximately
50% of its Eco-Design IMO 2 product / chemical tankers
revenue days for the second quarter of 2023 at an average TCE
rate of approximately $33,600 per
day.
Drydocking
The Company had eight drydock days in the first quarter of 2023.
The Company expects to have eight drydock days in the second
quarter of 2023.
Dividend
Consistent with the Company's capital allocation policy, the
Board of Directors declared a cash dividend on May 9, 2023, of $0.35 per common share
for the quarter ended March 31, 2023, based on the Company's
current 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 dividend will
be paid on June 15, 2023, to all shareholders of record
on May 31, 2023.
Formation of Sustainability Committee
On March 3, 2023, the Company
announced that its Board of Directors has formed a Sustainability
Committee to oversee and advise on matters related to corporate
sustainability, including environmental, social and energy
transition matters. The Sustainability Committee is chaired
by Dr. Kirsi Tikka, and also
includes Mats Berglund and
Helen Tveitan de Jong.
The formation of the Sustainability Committee is aimed at
ensuring that the Company's business strategies and activities
prioritize critical ESG matters that are expected to have
significant, long-term impacts on the Company's performance and on
the product and chemical tanker industry as a whole.
COVID-19 and Conflict in Ukraine
Please see "Item 3. Key Information--Risk Factors" in the
Company's Annual Report on Form 20-F for information about risks to
the Company relating to the Covid-19 pandemic and the conflict in
Ukraine. The extent to which the
pandemic may impact Ardmore's results of operations and financial
condition, including possible impairments, depends on future
developments, which are uncertain and cannot be predicted. The
conflict in Ukraine 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.
Results for the Three Months Ended March 31, 2023
and 2022
The Company reported net income of $43.3
million for the three months ended March 31, 2023,
or $1.06 earnings per basic share and
$1.04 earnings per diluted share, as
compared to a net loss of $7.9
million, or $0.23 loss per
basic and diluted share for the three months ended
March 31, 2022.
Management's Discussion and Analysis of Financial Results for
the Three Months Ended March 31, 2023 and 2022
Revenue. Revenue for the three months ended
March 31, 2023 was $118.2
million, an increase of $54.8
million from $63.4 million for
the three months ended March 31, 2022.
The Company's average number of operating vessels was 26.7 for
the three months ended March 31, 2023, generally
consistent with 27.0 for the three months ended
March 31, 2022.
The Company had 2,386 spot revenue days for the
three months ended March 31, 2023, as compared to
2,126 for the three months ended March 31, 2022. The
Company had 26 vessels employed directly in the spot market as of
March 31, 2023 and 2022. The increase in spot
revenue days resulted in an increase in revenue of
$7.3 million, while changes in spot
rates resulted in an increase in revenue of $51.6 million for the three months ended
March 31, 2023, as compared to the three months ended
March 31, 2022.
The Company had no product tankers employed under time charter
as of March 31, 2023, as compared to four as of
March 31, 2022. There were no revenue days derived from
time charters for the three months ended March 31, 2023,
as compared to 262 for the three months ended
March 31, 2022. The decrease in revenue days for
time-chartered vessels resulted in a decrease in revenue
of $4.1 million.
Voyage Expenses. Voyage expenses were $36.6 million for the three months ended
March 31, 2023, an increase of $9.5 million from $27.1
million for the three months ended March 31, 2022.
An increase in bunker prices resulted in an increase of
$5.9 million and an increase in spot
revenue days resulted in an increase in bunker consumption, port
and agency expenses plus commission costs of $3.6 million for the three months ended
March 31, 2023 compared with the three months ended
March 31, 2022.
TCE Rate. The average TCE rate for the Company's
fleet was $33,958 per day for the
three months ended March 31, 2023, an increase of
$18,803 per day from $15,155 per day for the three months ended
March 31, 2022. The increase in average TCE rate was
primarily the result of higher spot rates for the three months
ended March 31, 2023, as compared to the three months
ended March 31, 2022, which was partially offset by an
increase in bunker prices. 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 we record revenue under U.S. GAAP.
Vessel Operating Expenses. Vessel operating
expenses were $14.9 million for the
three months ended March 31, 2023, a decrease
of $1.7 million from $16.6 million for the
three months ended March 31, 2022. This decrease was
primarily attributable to the completion of the sales of the
Ardmore Sealeader in the second quarter of 2022, and the
Ardmore Sealifter and Ardmore Sealancer in the third
quarter of 2022. In addition, the decrease also 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 $5.5 million for the
three months ended March 31, 2023, an increase of
$3.4 million from $2.1 million for the three months ended
March 31, 2022. This increase is the result of the
Company having four vessels chartered-in as of
March 31, 2023, compared to two vessels chartered-in as
of March 31, 2022. Total charter hire expense for the
three months ended March 31, 2023 was comprised of an
operating expense component of $2.9
million and a vessel lease expense component of $2.6 million.
Depreciation. Depreciation expense for the
three months ended March 31, 2023 was $6.9 million, a decrease of $0.9 million from $7.8
million for the three months ended March 31, 2022.
$0.8 million of this decrease is as a
result of the sale of one vessel in June
2022, and two additional vessels in July 2022, and $0.1
million is attributable to the change in the scrap value of
each vessel from $300 per lightweight
ton ("lwt") to $400 per lwt during
the first quarter of 2023.
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the
three months ended March 31, 2023 was $1.0 million, a decrease of $0.2 million from $1.2
million for the three months ended March 31, 2022.
The deferred costs of drydockings 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 March 31, 2023 were $5.1 million, an increase of $0.6 million from $4.5
million for the three months ended March 31, 2022.
The increase in costs was primarily due to the post lock-down
increase in travel-related costs during the three months ended
March 31, 2023, compared to the three months ended
March 31, 2022.
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 March 31, 2023 were $1.2
million, an increase of $0.3
million from $0.9 million for
the three months ended March 31, 2022. The increase in
costs was primarily due to the post lock-down increase in
travel-related costs during the three months ended
March 31, 2023, compared to the three months ended
March 31, 2022.
Unrealized (Losses) / Gains on Derivatives: We had
no unrealized gains or losses on derivatives for the three months
ended March 31, 2023, as compared to an unrealized gain
of $0.6 million for the three months
ended March 31, 2022.
Interest Expense and Finance Costs. Interest
expense and finance costs for the three months ended
March 31, 2023 were $2.9
million, a decrease of $1.2
million from $4.1 million for
the three months ended March 31, 2022. The decrease in
costs was primarily due to lower average outstanding balances on
the Company's revolving credit facility during the three months
ended March 31, 2023 (with no amounts
drawn as of March 31, 2023), as well as lower aggregate
outstanding obligations following the refinancing of nine vessels
completed during the second half of 2022. Amortization of deferred
finance fees for the three months ended
March 31, 2023 was $0.3
million, generally consistent with $0.4 million for the three months ended
March 31, 2022.
Liquidity
As of March 31, 2023, the Company had $243.4 million in liquidity available, with cash
and cash equivalents of $52.6 million
(December 31, 2022: $50.6
million) and amounts available and undrawn under its
revolving credit facilities of $190.8
million (December 31, 2022:
$170.0 million). The following debt
and lease liabilities (net of deferred finance fees) were
outstanding as of the dates indicated:
|
|
|
|
|
|
|
|
|
As of
|
In thousands of U.S.
Dollars
|
|
March 31, 2023
|
|
December 31, 2022
|
Cash and cash
equivalents
|
|
$
|
52,553
|
|
$
|
50,569
|
|
|
|
|
|
|
|
Finance
leases
|
|
|
45,057
|
|
|
45,500
|
Senior Debt
|
|
|
99,879
|
|
|
103,112
|
Revolving Credit
Facilities
|
|
|
—
|
|
|
25,684
|
Total
debt
|
|
|
144,936
|
|
|
174,296
|
|
|
|
|
|
|
|
Total net
debt
|
|
$
|
92,383
|
|
$
|
123,727
|
Conference Call
The Company plans to host a conference call on May 9, 2023, at 10:00 a.m. Eastern Time to
discuss its results for the quarter ended March 31, 2023.
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 844–492–3728 (U.S.) or 412–542–4189 (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 May
16, 2023 at 877–344–7529 or 412–317–0088. Enter the passcode
3126595 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 at
|
In thousands of U.S.
Dollars, except as indicated
|
|
March 31, 2023
|
|
December 31, 2022
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
52,553
|
|
50,569
|
Receivables, net of
allowance for bad debts of $2.3 million (2022: $2.2
million)
|
|
68,936
|
|
79,843
|
Prepaid expenses and
other assets
|
|
4,860
|
|
4,521
|
Advances and
deposits
|
|
1,532
|
|
2,160
|
Inventories
|
|
14,537
|
|
15,718
|
Current portion of
derivative assets
|
|
2,513
|
|
4,927
|
Total current
assets
|
|
144,931
|
|
157,738
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Investments and other
assets, net
|
|
11,699
|
|
11,219
|
Vessels and vessel
equipment, net
|
|
526,865
|
|
531,378
|
Deferred drydock
expenditures, net
|
|
5,049
|
|
4,716
|
Advances for ballast
water treatment and scrubber systems
|
|
8,172
|
|
5,530
|
Deferred finance fees,
net
|
|
2,568
|
|
2,717
|
Operating lease,
right-of-use asset
|
|
9,100
|
|
10,561
|
Total non-current
assets
|
|
563,453
|
|
566,121
|
|
|
|
|
|
TOTAL
ASSETS
|
|
708,384
|
|
723,859
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
3,320
|
|
8,814
|
Accrued expenses and
other liabilities
|
|
17,426
|
|
20,890
|
Deferred
revenue
|
|
480
|
|
1,220
|
Accrued interest on
debt and finance leases
|
|
930
|
|
863
|
Current portion of
long-term debt
|
|
13,216
|
|
12,927
|
Current portion of
finance lease obligations
|
|
1,815
|
|
1,857
|
Current portion of
operating lease obligations
|
|
6,630
|
|
6,358
|
Total current
liabilities
|
|
43,817
|
|
52,929
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Non-current portion of
long-term debt
|
|
86,663
|
|
115,869
|
Non-current portion of
finance lease obligations
|
|
43,242
|
|
43,643
|
Non-current portion of
operating lease obligations
|
|
2,242
|
|
3,969
|
Other non-current
liabilities
|
|
1,007
|
|
1,007
|
Total non-current
liabilities
|
|
133,154
|
|
164,488
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
176,971
|
|
217,417
|
|
|
|
|
|
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
|
|
430
|
|
426
|
Additional paid in
capital
|
|
468,730
|
|
468,006
|
Accumulated other
comprehensive income
|
|
745
|
|
1,468
|
Treasury
stock
|
|
(15,636)
|
|
(15,636)
|
Retained
earnings
|
|
40,101
|
|
15,135
|
Total stockholders'
equity
|
|
494,370
|
|
469,399
|
|
|
|
|
|
Total redeemable
preferred stock and stockholders' equity
|
|
531,413
|
|
506,442
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
708,384
|
|
723,859
|
Ardmore Shipping
Corporation
Unaudited Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
Three Months
Ended
|
In thousands of U.S.
Dollars except per share and share data
|
|
March 31, 2023
|
|
March 31, 2022
|
Revenue, net
|
|
118,233
|
|
63,368
|
|
|
|
|
|
Voyage
expenses
|
|
(36,563)
|
|
(27,076)
|
Vessel operating
expenses
|
|
(14,937)
|
|
(16,587)
|
Time
charter-in
|
|
|
|
|
Operating expense
component
|
|
(2,865)
|
|
(1,105)
|
Vessel lease expense
component
|
|
(2,636)
|
|
(1,017)
|
Depreciation
|
|
(6,942)
|
|
(7,790)
|
Amortization of
deferred drydock expenditures
|
|
(1,007)
|
|
(1,197)
|
General and
administrative expenses
|
|
|
|
|
Corporate
|
|
(5,060)
|
|
(4,468)
|
Commercial and
chartering
|
|
(1,171)
|
|
(891)
|
Unrealized (losses) /
gains on derivatives
|
|
(31)
|
|
604
|
Interest expense and
finance costs
|
|
(2,864)
|
|
(4,138)
|
Interest
income
|
|
239
|
|
10
|
Loss on vessels
sold
|
|
—
|
|
(6,917)
|
|
|
|
|
|
Income / (loss)
before taxes
|
|
44,396
|
|
(7,204)
|
|
|
|
|
|
Income tax
|
|
(57)
|
|
(34)
|
(Loss) / profit from
equity method investments
|
|
(249)
|
|
236
|
|
|
|
|
|
Net Income /
(Loss)
|
|
44,090
|
|
(7,002)
|
|
|
|
|
|
Preferred
dividend
|
|
(838)
|
|
(848)
|
|
|
|
|
|
Net Income / (Loss)
attributable to common stockholders
|
|
43,252
|
|
(7,850)
|
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per
share, basic
|
|
1.06
|
|
(0.23)
|
Earnings / (Loss) per
share, diluted
|
|
1.04
|
|
(0.23)
|
|
|
|
|
|
Adjusted earnings /
(loss) (1)
|
|
43,252
|
|
(933)
|
Adjusted earnings /
(loss) per share, basic
|
|
1.06
|
|
(0.03)
|
Adjusted earnings /
(loss) per share, diluted
|
|
1.04
|
|
(0.03)
|
|
|
|
|
|
Weighted average number
of shares outstanding, basic
|
|
40,722,735
|
|
34,429,106
|
Weighted average number
of shares outstanding, diluted
|
|
41,679,650
|
|
34,429,106
|
|
|
|
|
|
(1) Adjusted
earnings / (loss) 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
|
|
|
|
|
|
|
|
Three Months
Ended
|
In thousands of U.S.
Dollars
|
|
March 31, 2023
|
|
March 31, 2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
|
44,090
|
|
(7,002)
|
Adjustments to
reconcile net income / (loss) to net cash provided by / (used in)
operating activities:
|
|
|
|
|
Depreciation
|
|
6,942
|
|
7,790
|
Amortization of
deferred drydock expenditures
|
|
1,007
|
|
1,197
|
Share-based
compensation
|
|
729
|
|
571
|
Loss on vessels
sold
|
|
—
|
|
6,917
|
Amortization of
deferred finance fees
|
|
302
|
|
366
|
Unrealized losses /
(gains) on derivatives
|
|
31
|
|
(604)
|
Foreign
exchange
|
|
6
|
|
10
|
Loss / (profit) from
equity method investments
|
|
249
|
|
(250)
|
Deferred drydock
payments
|
|
(1,659)
|
|
(520)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
|
10,905
|
|
(7,320)
|
Prepaid expenses and
other assets
|
|
(339)
|
|
(303)
|
Advances and
deposits
|
|
628
|
|
786
|
Inventories
|
|
1,181
|
|
(3,989)
|
Accounts
payable
|
|
(3,451)
|
|
(2,074)
|
Accrued expenses and
other liabilities
|
|
(3,126)
|
|
(72)
|
Deferred
revenue
|
|
(740)
|
|
(1,210)
|
Accrued
interest
|
|
67
|
|
34
|
Net cash provided by
/ (used in) operating activities
|
|
56,822
|
|
(5,673)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Payments for
acquisition of vessels and vessel equipment
|
|
(2,557)
|
|
73
|
Advances for ballast
water treatment and scrubber systems
|
|
(2,854)
|
|
(200)
|
Payments for other
non-current assets
|
|
(21)
|
|
(39)
|
Payments for equity
investments
|
|
(750)
|
|
(113)
|
Net cash (used in)
investing activities
|
|
(6,182)
|
|
(279)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from long-term
debt
|
|
—
|
|
13,320
|
Repayments of long-term
debt
|
|
(29,041)
|
|
(3,513)
|
Repayments of finance
leases
|
|
(472)
|
|
(5,316)
|
Payment of common share
dividend
|
|
(18,286)
|
|
—
|
Payment of preferred
share dividend
|
|
(857)
|
|
(742)
|
Net cash (used in) /
provided by financing activities
|
|
(48,656)
|
|
3,749
|
|
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents
|
|
1,984
|
|
(2,203)
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
50,569
|
|
55,449
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
52,553
|
|
53,246
|
Ardmore Shipping
Corporation
Unaudited Other
Operating Data
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31, 2023
|
|
March 31, 2022
|
In thousands of U.S.
Dollars except Fleet Data
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
54,751
|
|
12,460
|
Adjusted EBITDAR
(1)
|
|
57,387
|
|
13,477
|
|
|
|
|
|
AVERAGE DAILY
DATA
|
|
|
|
|
|
|
|
|
|
MR Eco-Design Tankers
Spot TCE per day (2)
|
|
37,506
|
|
16,513
|
|
|
|
|
|
Fleet TCE per day
(2)
|
|
33,958
|
|
15,155
|
|
|
|
|
|
Fleet operating
expenses per day (3)
|
|
6,830
|
|
6,445
|
Technical management
fees per day (4)
|
|
518
|
|
476
|
|
|
7,348
|
|
6,921
|
|
|
|
|
|
MR Eco-Design
Tankers
|
|
|
|
|
TCE per day
(2)
|
|
37,506
|
|
15,850
|
Vessel operating
expenses per day (5)
|
|
7,475
|
|
6,899
|
|
|
|
|
|
MR Eco-Mod
Tankers
|
|
|
|
|
TCE per day
(2)
|
|
30,932
|
|
14,945
|
Vessel operating
expenses per day (5)
|
|
7,107
|
|
6,861
|
|
|
|
|
|
Prod/Chem Eco-Design
Tankers (25k - 38k Dwt)
|
|
|
|
|
TCE per day
(2)
|
|
27,984
|
|
13,645
|
Vessel operating
expenses per day (5)
|
|
7,069
|
|
7,018
|
|
|
|
|
|
FLEET
|
|
|
|
|
Average number of
operating vessels
|
|
26.7
|
|
27.0
|
(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.
|
Ardmore Shipping
Corporation
Fleet Details at
March 31, 2023
(Expressed in
Millions of U.S. Dollars, other than per share
amount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Resale
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
Newbuilding
|
|
Depreciated
|
|
|
|
|
|
|
|
|
|
|
Eco
|
|
Price (1)
|
|
Replacement
|
Vessel
|
|
IMO
|
|
Built
|
|
Country
|
|
DWT
|
|
Specification
|
|
March 31, 2023
|
|
Value
(2)
|
Seahawk
|
|
IMO2/3
|
|
Nov-15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
36.45
|
Seawolf
|
|
IMO2/3
|
|
Aug-15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
36.05
|
Seafox
|
|
IMO2/3
|
|
Jun-15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
35.80
|
Sealion
|
|
IMO2/3
|
|
May-15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
35.65
|
Engineer
|
|
IMO2/3
|
|
Mar-14
|
|
S. Korea
|
|
49,420
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.49
|
Seavanguard
|
|
IMO2/3
|
|
Feb-14
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.31
|
Exporter
|
|
IMO2/3
|
|
Feb-14
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.35
|
Seavantage
|
|
IMO2/3
|
|
Jan-14
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.17
|
Encounter
|
|
IMO2/3
|
|
Jan-14
|
|
S. Korea
|
|
49,478
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.07
|
Explorer
|
|
IMO2/3
|
|
Jan-14
|
|
S. Korea
|
|
49,494
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.22
|
Endurance
|
|
IMO2/3
|
|
Dec-13
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
33.00
|
Enterprise
|
|
IMO2/3
|
|
Sep-13
|
|
S. Korea
|
|
49,453
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
32.58
|
Endeavour
|
|
IMO2/3
|
|
Jul-13
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
32.28
|
Seaventure
|
|
IMO2/3
|
|
Jun-13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
32.05
|
Seavaliant
|
|
IMO2/3
|
|
Feb-13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
50.00
|
|
$
|
31.55
|
Seafarer
|
|
-
|
|
Jun-10
|
|
Japan
|
|
49,999
|
|
Eco-Mod
|
|
$
|
50.00
|
|
$
|
26.25
|
Defender
|
|
IMO2
|
|
Feb-15
|
|
S. Korea
|
|
37,791
|
|
Eco-Design
|
|
$
|
42.50
|
|
$
|
29.90
|
Dauntless
|
|
IMO2
|
|
Feb-15
|
|
S. Korea
|
|
37,764
|
|
Eco-Design
|
|
$
|
42.50
|
|
$
|
29.85
|
Chippewa
|
|
IMO2
|
|
Nov-15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
36.50
|
|
$
|
26.44
|
Chinook
|
|
IMO2
|
|
Jul-15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
36.50
|
|
$
|
26.03
|
Cheyenne
|
|
IMO2
|
|
Mar-15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
36.50
|
|
$
|
25.62
|
Cherokee
|
|
IMO2
|
|
Jan-15
|
|
Japan
|
|
25,215
|
|
Eco-Design
|
|
$
|
36.50
|
|
$
|
25.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
694.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash / Debt / Work. Cap
/ Other Assets
|
|
$
|
(26.71)
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets) (3)
|
|
$
|
667.72
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
16.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ardmore Commercial
Management (5)
|
|
$
|
25.93
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets & Commercial Management) (3)
|
|
$
|
693.65
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
16.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Element 1
Corp. / e1 Marine (6)
|
|
$
|
11.27
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets, Commercial Management & Investments)
(3)
|
|
$
|
704.92
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)(6)
|
|
|
|
|
|
|
$
|
17.19
|
- Based on the average of two broker estimates of prompt resale
for a newbuild vessel of equivalent deadweight tonne at a yard in
South Korea as of March 31, 2023.
- Depreciated Replacement Value ("DRV") is based on estimated
resale price for a newbuild vessel depreciated for the age of each
vessel (assuming an estimated useful life of 25 years on a
straight-line basis and assuming a residual scrap value of
$400 per tonne, which is in line with
Ardmore's depreciation policy). The Company's estimates of DRV
assume that its vessels are all in good and seaworthy condition
without the need for repair and, if inspected, that they would be
certified in class without notations of any kind. Vessel values are
highly volatile and, as such, the Company's estimates of DRV may
not be indicative of the current or future value of its vessels, or
prices that the Company could achieve if it were to sell them.
- Depreciated Replacement Value ("DRV") and DRV per share are
non-GAAP measures. Management believes that many investors use DRV
as a reference point in assessing valuation of fleets of ships and
similar assets.
- DRV / Share calculated using 40,998,294 shares outstanding as
of March 31, 2023.
- Ardmore Commercial Management is management's estimate of the
value of Ardmore's commercial management and pooling business. The
estimate is based on industry standard commercial management and
pooling fees in determining revenue less Ardmore's commercial and
chartering overhead (as stated in Ardmore's Statement of
Operations) and applying an illustrative multiple to the resulting
net earnings of 7x. The multiple is illustrative only and may not
be indicative of the valuation multiple the Company could achieve
if it were to sell its commercial management and pooling business.
Revenue of this business is comprised of (i) commission (1.25% for
standard product tankers and 2.5% for chemical tankers) on gross
freight based on estimated current TCE rates grossed up for voyage
expenses and (ii) an administration fee of $300 per vessel per day. These rates may vary
over time.
- Valuation of investment in E1 Corp. and e1 Marine (a joint
venture with E1 Corp and Maritime Partners, LLC, of which the
Company owns 33%) are at cost.
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
|
|
|
|
March 31, 2023
|
|
March 31, 2022
|
|
March 31, 2023
|
|
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
Number of Vessels in
Operation (at period end)
|
|
26
|
|
26
|
|
26
|
|
26
|
|
Fleet Average
Age
|
|
9.7
|
|
8.7
|
|
9.7
|
|
8.7
|
|
|
|
|
|
|
|
|
|
|
|
CO2 Emissions Generated
in Metric Tonnes
|
|
99,986
|
|
95,034
|
|
409,021
|
|
404,129
|
|
Distance Travelled
(Miles)
|
|
351,018
|
|
355,693
|
|
1,464,959
|
|
1,546,879
|
|
Fuel Consumed in Metric
Tonnes
|
|
31,654
|
|
30,072
|
|
129,494
|
|
127,751
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and
Tank Cleaning Emissions
|
|
|
|
|
|
|
|
|
|
Fuel Consumed in Metric
Tonnes
|
|
544
|
|
1,202
|
|
2,932
|
|
3,747
|
|
% of Total Fuel
Consumed
|
|
1.72 %
|
|
3.85 %
|
|
2.26 %
|
|
2.93 %
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency
Ratio (AER) for the period(2)
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
6.36g / tm
|
|
5.98g / tm
|
|
6.23g / tm
|
|
5.83g / tm
|
|
MR
Eco-Design
|
|
5.85g / tm
|
|
5.98g / tm
|
|
5.82g / tm
|
|
5.62g / tm
|
|
MR Eco-Mod
|
|
6.67g / tm
|
|
5.78g / tm
|
|
6.38g / tm
|
|
5.83g / tm
|
|
Chemical
|
|
8.24g / tm
|
|
7.06g / tm
|
|
7.95g / tm
|
|
7.11g / tm
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(3)
|
|
7.60g / tm
|
|
6.54g / tm
|
|
7.09g / tm
|
|
6.66g / tm
|
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency
Operational Indicator (EEOI) for the period
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
13.72g / ctm
|
|
12.01g / ctm
|
|
13.00g / ctm
|
|
11.91g / ctm
|
|
MR
Eco-Design
|
|
13.32g / ctm
|
|
12.00g / ctm
|
|
12.60g / ctm
|
|
11.91g / ctm
|
|
MR Eco-Mod
|
|
13.96g / ctm
|
|
11.86g / ctm
|
|
13.62g / ctm
|
|
11.20g / ctm
|
|
Chemical
|
|
14.85g / ctm
|
|
12.22g / ctm
|
|
13.60g / ctm
|
|
12.86g / ctm
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(3)
|
|
14.43g / ctm
|
|
11.31g / ctm
|
|
12.05g / ctm
|
|
12.04g / ctm
|
|
|
|
|
|
|
|
|
|
|
|
Wind Strength (%
greater than 4 on BF)
|
|
53.90 %
|
|
48.90 %
|
|
48.78 %
|
|
45.85 %
|
|
% Idle Time
|
|
4.26 %
|
|
5.23 %
|
|
2.70 %
|
|
4.60 %
|
|
|
|
|
|
|
|
|
|
|
|
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's carbon emissions for the trailing 12-month period have
increased 1.2% to 409,021 metric tonnes of CO2, in comparison to
the same 12-month period of the prior year, primarily due to
increased vessel speeds, as a result of strong charter rates. Fleet
EEOI for the period increased 9.2% to 13.00 g / ctm, from 11.91 g /
ctm, while AER increased by 6.9% to 6.23 g / tm, from 5.83 g /
tm.
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 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.
3 The AER and EEOI figures are presented including
the impact of cargo heating and tank cleaning operations unless
stated.
4 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.
5 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)
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 March 31, 2023, we
recognized total charterhire expense of $5.5
million in respect of time charter-in vessels under
operating leases. The total expense includes (i) $2.6 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 / (Loss) and
Adjusted Earnings (for purposes of dividend
calculations)
EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) 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. Adjusted earnings / (loss) excludes certain items from net
income / (loss) 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 / (loss) 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 / (loss) 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 March 31, 2023, 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
|
|
|
March 31, 2023
|
|
March 31, 2022
|
In thousands of U.S.
Dollars
|
|
|
|
|
Net income /
(loss)
|
|
44,090
|
|
(7,002)
|
Interest
income
|
|
(239)
|
|
(10)
|
Interest expense and
finance costs
|
|
2,864
|
|
4,138
|
Income tax
|
|
57
|
|
34
|
Unrealized (gains) /
losses on derivatives
|
|
31
|
|
(604)
|
Depreciation
|
|
6,942
|
|
7,790
|
Amortization of
deferred drydock expenditures
|
|
1,007
|
|
1,197
|
EBITDA
|
|
54,752
|
|
5,543
|
Loss on vessels
sold
|
|
—
|
|
6,917
|
ADJUSTED
EBITDA
|
|
54,752
|
|
12,460
|
Plus: Vessel lease
expense component
|
|
2,636
|
|
1,017
|
ADJUSTED
EBITDAR
|
|
57,388
|
|
13,477
|
|
|
|
|
|
Reconciliation of
net income / (loss) attributable to common stockholders to Adjusted
earnings / (loss)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31, 2023
|
|
March 31, 2022
|
In thousands of U.S.
Dollars except per share data
|
|
|
|
|
Net income / (loss)
attributable to common stockholders
|
|
43,252
|
|
(7,850)
|
Loss on vessels
sold
|
|
—
|
|
6,917
|
Adjusted earnings /
(loss)
|
|
43,252
|
|
(933)
|
|
|
|
|
|
Adjusted earnings /
(loss) per share, basic
|
|
1.06
|
|
(0.03)
|
Adjusted earnings /
(loss) per share, diluted
|
|
1.04
|
|
(0.03)
|
|
|
|
|
|
Weighted average number
of shares outstanding, basic
|
|
40,722,735
|
|
34,429,106
|
Weighted average number
of shares outstanding, diluted
|
|
41,679,650
|
|
34,429,106
|
|
|
|
|
|
Adjusted earnings
for purposes of dividend calculation
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 31, 2023
|
|
|
In thousands of U.S.
Dollars except per share data
|
|
|
|
|
Adjusted
earnings
|
|
43,252
|
|
|
Unrealized
losses
|
|
31
|
|
|
Adjusted earnings for
dividend calculation
|
|
43,283
|
|
|
|
|
|
|
|
Dividend to be
paid
|
|
14,428
|
|
|
Dividend Per Share
(DPS)
|
|
0.35
|
|
|
|
|
|
|
|
Number of shares
outstanding as of May 9, 2023
|
|
41,183,425
|
|
|
Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, 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", "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; the effect of the COVID-19 pandemic and
Russia's invasion of the
Ukraine on the tanker market,
energy supply chains and the Company's business, financial
condition and the results of operation; expected employment of the
Company's vessels during the second quarter of 2023; management's
estimates of the Depreciated Replacement Value (DRV) of its vessels
and of 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; future
developments relating to the COVID-19 pandemic and Russia's invasion of the Ukraine (including related sanctions and
import bans); 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 political
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 second quarter of 2023
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,
2022, 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