Ardmore Shipping Corporation Announces Financial Results For The Three Months Ended March 31, 2025
- Strong liquidity position of $253.9 million
- Q2 2025 rates showing improvement with MR tankers at $22,100/day and chemical tankers at $19,500/day
- Low debt exposure with only $20.5 million drawn from revolving facilities
- Successful internal promotion of key executives indicating strong succession planning
- Significant earnings decline: Q1 2025 earnings of $5.6M vs $38.4M in Q1 2024
- Substantial dividend reduction to $0.05 from previous quarters
- Lower TCE rates year-over-year
- Decreased revenue: $74.0M in Q1 2025 vs $106.3M in Q1 2024
Insights
Ardmore reports 85% YoY profit decline to $5.6M, maintains solid $254M liquidity position while TCE rates show early Q2 recovery.
Ardmore Shipping's Q1 2025 results reveal a significant cooling from the exceptional tanker markets of early 2024, with net income dropping 85% to
Revenue fell
Despite the earnings decline, Ardmore's balance sheet remains exceptionally strong with
There are signs of sequential market improvement, with Q2 fixtures showing MR tanker rates rising to approximately
The company has announced orderly leadership transitions, with Robert Gaina becoming COO in January 2026 and John Russell assuming the CFO role in July 2025—both internal promotions suggesting strategic continuity. Management highlights Ardmore's strategic advantages from its modern fleet capable of carrying both oil products and chemicals interchangeably, providing operational flexibility in an environment with the "oldest global fleet in decades."
Highlights and Recent Activity
- Reported Adjusted earnings and net income attributable to common stockholders of
$5.6 million $0.14 $38.4 million $0.93 $0.92 - 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 May 7, 2025, of
$0.05 - MR tankers earned an average TCE rate of
$20,942 $14,975 50% of total revenue days currently fixed for the second quarter of 2025, the average TCE rate is approximately$22,100 60% of revenue days fixed for the second quarter of 2025, the average TCE rate for chemical tankers is approximately$19,500 - The Company is pleased to announce that, effective January 1, 2026, Mr. Robert Gaina (currently Senior Vice President, Commercial) will assume the role of Chief Operating Officer concurrent with Mr. Mark Cameron's long-planned retirement. Mr. Cameron has been a member of Ardmore's management since the Company was founded in 2010, and he has been instrumental in building the Company's technical management foundations and strategic operating activities. Mr. Gaina has served Ardmore for ten years in multiple commercial and operational leadership roles following a seagoing career, including sailing as Master Mariner on product and chemical tankers. He holds a Global Executive MBA from Erasmus University, Rotterdam School of Management, and a B.S. from the Maritime Academy in Constanza. As Chief Operating Officer, Mr. Gaina will be responsible for the Company's fully integrated chartering, commercial operations, and technical management activities.
As anticipated during last year's appointment of Mr. Bart Kelleher as the Company's President, the Company has conducted a process for a replacement to Mr. Kelleher in his role as the Company's Chief Financial Officer and announces that Mr. John Russell will be appointed as Chief Financial Officer effective July 1, 2025, and will continue to report to Mr. Kelleher. Mr. Russell has served as the Company's Finance Director since joining Ardmore in 2018 and has been responsible for key financial functions, including treasury, financing, and financial analysis. Mr. Russell is a Chartered Accountant and holds an M.S. in Financial Services from University of Limerick and a B.S. in Finance from University College Cork.
Gernot Ruppelt, Chief Executive Officer, commented, "We are extremely grateful for Mark's many years of service and his countless valuable contributions in developing our technical and operating platform. And, as a colleague, he certainly will be missed. At the same time, we are pleased to see two highly talented team members, Robert and John, step into their expanded leadership roles and take on added responsibility as Ardmore's new COO and CFO, respectively. Once again, Ardmore has been able to promote from within, building on the individuals' long standing performance records and the Company's strong and dynamic culture."
- Mr. Ruppelt further commented on current market conditions and Ardmore's positioning:
"Ardmore's deliberate strategic choices in past and present have ensured the Company is well prepared for an increasingly complex global environment. And our consistent focus on low breakeven levels, tight cost management and maximizing TCE results have put Ardmore in a unique position to perform under a wide range of market scenarios.
Broader freight levels have remained resilient, and OPEC production increases should continue to boost already strong refining margins. At the same time, the industry is facing the oldest global fleet in decades. With Ardmore's modern, highly efficient fleet of Korean and Japanese-built tankers, we continue to capture a broad range of oil product flows and interchangeably chemical cargos. In addition, our nimble operating philosophy enables us to capture value through opportunistic chartering activity. Meanwhile, we continue to address all our capital allocation priorities in a dynamic manner.
In an ever-evolving macro environment, our strong balance sheet, our quality fleet and operating performance as well as deliberate strategic choices focused on generating long-term shareholder value will remain at the very core of our business philosophy."
Summary of Recent and First Quarter 2025 Events
Fleet
Fleet Operations and Employment
As of March 31, 2025, the Company had 26 vessels in operation (including four chartered-in vessels), consisting of 20 MR tankers (16 owned Eco-Design and four chartered-in Eco-Mod) ranging in size from 45,000 deadweight tonnes ("dwt") to 49,999 dwt and six owned Eco-Design IMO 2 product/chemical tankers ranging in size from 25,000 dwt to 37,800 dwt.
MR Tankers (45,000 dwt – 49,999 dwt)
At the end of the first quarter of 2025, the Company had 20 MR tankers in operation, all but one of which was trading in the spot market.
Below is a summary of the average daily MR Tanker TCE rates earned during the first quarter of 2025 and thus far in the second quarter of 2025, together with the corresponding percentage of currently fixed total revenue days for the second quarter:
Number of | 1Q 2025 | 2Q 2025 | ||
TCE | % Fixed | |||
MR Eco-Design | 16 | 50 % | ||
MR Eco-Mod | 4 | 50 % | ||
MR Combined | 20 | 50 % | ||
In March 2025, we time chartered-in and time chartered-out an MR tanker representing a spread of
Product / Chemical Tankers (IMO 2: 25,000 dwt – 37,800 dwt)
At the end of the first quarter of 2025, the Company had six Eco-Design IMO 2 product / chemical tankers in operation, all of which were trading in the spot market.
Below is a summary of the average daily Chemical Tanker TCE rates earned during the first quarter of 2025 and thus far in the second quarter of 2025, together with the corresponding percentage of currently fixed total revenue days for the second quarter:
Number of | 1Q 2025 | 2Q 2025 | ||
TCE | % Fixed | |||
Chemical Tankers | 6 | 60 % | ||
Drydocking
The Company had 212 drydocking days in the first quarter of 2025. The Company is currently scheduled to have approximately 177 drydocking days in the second quarter of 2025.
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 May 7, 2025 of
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
Geopolitical and Economic Uncertainty
In recent months, governments have taken actions to implement new or increased tariffs on foreign imports. These activities have resulted in tariffs being levied on various goods and commodities, which may trigger an escalation of trade wars. These actions have been disruptive to global markets, resulting in significant volatility in stock and commodity prices and an increase in general global economic uncertainty, including an increased risk of economic recessions. As a result of this rapidly changing and unpredictable geopolitical climate, the shipping industry is experiencing uncertainty as to future vessel demand, trade routes, rates and operating costs.
Results for the Three Months Ended March 31, 2025 and 2024
The Company reported net income attributable to common stockholders of
Management's Discussion and Analysis of Financial Results for the Three Months Ended March 31, 2025 and 2024
Revenue. Revenue for the three months ended March 31, 2025 was
The Company's average number of operating vessels was 26.0 for the three months ended March 31, 2025, consistent with 26.0 for the three months ended March 31, 2024.
The Company had 1,995 spot revenue days for the three months ended March 31, 2025, as compared to 2,214 for the three months ended March 31, 2024. The Company had 25 vessels employed directly in the spot market as of March 31, 2025 in line with 25 vessels as of March 31, 2024. Decreases in spot rates during the three months ended March 31, 2025 resulted in a decrease in revenue of
The Company had one product tanker employed under time charter as of March 31, 2025 as consistent with one as of March 31, 2024. There were 90 revenue days derived from time charters for the three months ended March 31, 2025, as compared to 29 revenue days for the three months ended March 31, 2024. 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 March 31, 2025 was
Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended March 31, 2025 was
General and Administrative Expenses: Corporate. Corporate-related general and administrative expenses for the three months ended March 31, 2025 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 March 31, 2025 were
Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended March 31, 2025 were
Liquidity
As of March 31, 2025, the Company had
Conference Call
The Company plans to host a conference call on May 7, 2025, at 10:00 a.m. Eastern Time to discuss its financial results for the quarter ended March 31, 2025. 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 May 14, 2025 at 888-660-6345 or 646-517-4150. Enter the passcode 70822 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 | March 31, 2025 | December 31, 2024 | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 47,447 | 46,988 | ||
Receivables, net of allowance for bad debts of | 47,741 | 60,871 | ||
Prepaid expenses and other assets | 5,056 | 4,298 | ||
Advances and deposits | 3,545 | 3,084 | ||
Inventories | 11,190 | 11,308 | ||
Total current assets | 114,979 | 126,549 | ||
Non-current assets | ||||
Investments and other assets, net | 5,164 | 5,236 | ||
Vessels and vessel equipment, net | 540,317 | 545,594 | ||
Deferred drydock expenditures, net | 17,048 | 14,252 | ||
Advances for ballast water treatment and scrubber systems | 6,803 | 4,845 | ||
Deferred finance fees, net | 2,477 | 2,746 | ||
Operating lease, right-of-use asset | 3,631 | 5,577 | ||
Total non-current assets | 575,440 | 578,250 | ||
TOTAL ASSETS | 690,419 | 704,799 | ||
LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | ||||
Current liabilities | ||||
Accounts payable | 9,734 | 6,070 | ||
Accrued expenses and other liabilities | 17,767 | 18,313 | ||
Deferred revenue | 197 | 482 | ||
Current portion of operating lease obligations | 3,162 | 4,965 | ||
Total current liabilities | 30,860 | 29,830 | ||
Non-current liabilities | ||||
Non-current portion of long-term debt | 20,459 | 38,796 | ||
Non-current portion of operating lease obligations | 368 | 476 | ||
Other non-current liabilities | 273 | 273 | ||
Total non-current liabilities | 21,100 | 39,545 | ||
TOTAL LIABILITIES | 51,960 | 69,375 | ||
Redeemable Preferred Stock | ||||
Cumulative Series A | 27,782 | 27,782 | ||
Total redeemable preferred stock | 27,782 | 27,782 | ||
Stockholders' equity | ||||
Common stock | 442 | 440 | ||
Additional paid in capital | 476,458 | 475,812 | ||
Treasury stock | (33,524) | (33,524) | ||
Retained earnings | 167,301 | 164,914 | ||
Total stockholders' equity | 610,677 | 607,642 | ||
Total redeemable preferred stock and stockholders' equity | 638,459 | 635,424 | ||
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | 690,419 | 704,799 | ||
Ardmore Shipping Corporation Unaudited Condensed Consolidated Statements of Operations | |||||||||
Three Months Ended | |||||||||
In thousands of | March 31, 2025 | March 31, 2024 | |||||||
Revenue, net | 73,996 | 106,301 | |||||||
Voyage expenses | (31,032) | (30,548) | |||||||
Vessel operating expenses | (15,196) | (14,920) | |||||||
Time charter-in | |||||||||
Operating expense component | (3,039) | (2,836) | |||||||
Vessel lease expense component | (2,796) | (2,609) | |||||||
Depreciation | (7,653) | (6,975) | |||||||
Amortization of deferred drydock expenditures | (923) | (756) | |||||||
General and administrative expenses | |||||||||
Corporate | (4,950) | (5,067) | |||||||
Commercial and chartering | (1,237) | (1,063) | |||||||
Interest expense and finance costs | (935) | (2,526) | |||||||
Interest income | 108 | 544 | |||||||
Income before taxes | 6,343 | 39,545 | |||||||
Income tax | (26) | (79) | |||||||
Loss from equity method investments | (64) | (229) | |||||||
Net Income | 6,253 | 39,237 | |||||||
Preferred dividends | (629) | (848) | |||||||
Net Income attributable to common stockholders | 5,624 | 38,389 | |||||||
Earnings per share, basic | 0.14 | 0.93 | |||||||
Earnings per share, diluted | 0.14 | 0.92 | |||||||
Adjusted earnings (1) | 5,624 | 38,389 | |||||||
Adjusted earnings per share, basic | 0.14 | 0.93 | |||||||
Adjusted earnings per share, diluted | 0.14 | 0.92 | |||||||
Weighted average number of shares outstanding, basic | 40,472,079 | 41,371,887 | |||||||
Weighted average number of shares outstanding, diluted | 40,620,908 | 41,916,276 | |||||||
(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 | ||||
Three Months Ended | ||||
In thousands of | March 31, 2025 | March 31, 2024 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | 6,253 | 39,237 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 7,653 | 6,975 | ||
Amortization of deferred drydock expenditures | 923 | 756 | ||
Share-based compensation | 647 | 826 | ||
Amortization of deferred finance fees | 269 | 260 | ||
Operating lease ROU - lease liability, net | 35 | (7) | ||
Loss from equity method investments | 64 | 229 | ||
Deferred drydock payments | (1,454) | (1,275) | ||
Changes in operating assets and liabilities: | ||||
Receivables | 13,130 | (4,111) | ||
Prepaid expenses and other assets | (757) | (997) | ||
Advances and deposits | (460) | 3,778 | ||
Inventories | 118 | 624 | ||
Accounts payable | 1,270 | 3,010 | ||
Accrued expenses and other liabilities | (1,518) | (1,074) | ||
Deferred revenue | (285) | 1,038 | ||
Accrued interest | 369 | (91) | ||
Net cash provided by operating activities | 26,257 | 49,178 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Payments for acquisition of vessels and vessel equipment, including deposits | (2,385) | (13,216) | ||
Advances for ballast water treatment and scrubber systems | (1,151) | — | ||
Payments for other non-current assets | (46) | (233) | ||
Net cash (used in) investing activities | (3,582) | (13,449) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from revolving facilities | 25,000 | 7,987 | ||
Repayments of long term debt | — | (1,678) | ||
Repayments on revolving facilities | (43,337) | (30,000) | ||
Repayments of finance leases | — | (488) | ||
Payments for deferred finance fees | — | (200) | ||
Payment of common share dividends | (3,236) | (8,674) | ||
Payment of preferred share dividends | (643) | (857) | ||
Net cash (used in) financing activities | (22,216) | (33,910) | ||
Net increase in cash and cash equivalents | 459 | 1,819 | ||
Cash and cash equivalents at the beginning of the year | 46,988 | 46,805 | ||
Cash and cash equivalents at the end of the year | 47,447 | 48,624 | ||
Ardmore Shipping Corporation Unaudited Other Operating Data | ||||
Three Months Ended | ||||
March 31, 2025 | March 31, 2024 | |||
In thousands of | ||||
Adjusted EBITDA (1) | 15,746 | 49,258 | ||
Adjusted EBITDAR (1) | 18,542 | 51,867 | ||
AVERAGE DAILY DATA | ||||
MR Eco-Design Tankers Spot TCE per day (2) | 21,548 | 38,430 | ||
Fleet TCE per day (2) | 20,542 | 34,720 | ||
Fleet operating expenses per day (3) | 6,978 | 6,865 | ||
Technical management fees per day (4) | 533 | 517 | ||
7,511 | 7,382 | |||
MR Eco-Design Tankers | ||||
TCE per day (2) | 21,548 | 38,430 | ||
Vessel operating expenses per day (5) | 7,634 | 7,413 | ||
MR Eco-Mod Tankers | ||||
TCE per day (2) | 20,357 | 38,184 | ||
Vessel operating expenses per day (5)(6) | — | 5,643 | ||
Prod/Chem Eco-Design Tankers (25k - 38k dwt) | ||||
TCE per day (2) | 14,975 | 24,831 | ||
Vessel operating expenses per day (5) | 7,185 | 7,595 | ||
FLEET | ||||
Average number of operating vessels | 26.0 | 26.0 | ||
(1) | Adjusted EBITDA and Adjusted EBITDAR are non-GAAP measures and are defined and reconciled to the most directly comparable | |||||||||
(2) | Time Charter Equivalent ("TCE") rate, a non-GAAP measure, represents net revenues (a non-GAAP measure representing revenues less voyage expenses) divided by revenue days. Revenue days are the total number of calendar days the vessels are in the Company's possession less off-hire days generally associated with drydocking or repairs and idle days associated with repositioning of vessels held for sale. Net revenue utilized to calculate the TCE rate is determined on a discharge to discharge basis, which is different from how the Company records revenue under | |||||||||
(3) | Fleet operating expenses per day are routine operating expenses and comprise crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. These amounts do not include expenditures related to vessel upgrades and enhancements or other non-routine expenditures, which were expensed during the period. | |||||||||
(4) | Technical management fees are fees paid to Anglo Ardmore Ship Management Limited, a joint venture entity that is | |||||||||
(5) | Vessel operating expenses per day include technical management fees. | |||||||||
(6) | As a result of selling the Ardmore Seafarer in April 2024, the Company no longer owns MR Eco-Mod tankers; as a result, the Company had no vessel operating expenses for the first quarter of 2025 with respect to owned MR Eco-Mod tankers. The MR Eco-Mod TCE per day for the first quarter of 2025 is derived from four the vessels the Company has 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 | ||||||||
March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | ||||||
Number of Vessels in Operation (at period end)(2) | 26 | 26 | 26 | 26 | |||||
Fleet Average Age | 11.4 | 10.7 | 11.4 | 10.7 | |||||
CO2 Emissions Generated in Metric Tons | 95,630 | 106,877 | 410,836 | 419,028 | |||||
Distance Travelled (Nautical Miles) | 340,430 | 381,024 | 1,490,497 | 1,544,220 | |||||
Fuel Consumed in Metric Tons | 30,428 | 34,055 | 130,819 | 132,808 | |||||
Cargo Heating and Tank Cleaning Emissions | |||||||||
Fuel Consumed in Metric Tons | 428 | 1,135 | 3,113 | 2,407 | |||||
% of Total Fuel Consumed | 1.41 % | 3.33 % | 2.38 % | 1.81 % | |||||
Annual Efficiency Ratio (AER) for the period(3) | |||||||||
Fleet | 6.28g / tm | 6.27g / tm | 6.13g / tm | 6.05g / tm | |||||
MR Eco-Design | 5.89g / tm | 5.93g / tm | 5.81g / tm | 5.73g / tm | |||||
MR Eco-Mod | 6.06g / tm | 5.99g / tm | 5.79g / tm | 5.62g / tm | |||||
Chemical | 8.09g / tm | 8.16g / tm | 8.28g / tm | 8.24g / tm | |||||
Chemical (Less Cargo Heating & Tank Cleaning)(4) | 7.92g / tm | 7.33g / tm | 7.90g / tm | 7.72g / tm | |||||
Energy Efficiency Operational Indicator (EEOI) for the period(5) | |||||||||
Fleet | 12.85g / ctm | 12.78g / ctm | 12.38g / ctm | 13.16g / ctm | |||||
MR Eco-Design | 12.07g / ctm | 12.31g / ctm | 11.66g / ctm | 12.89g / ctm | |||||
MR Eco-Mod | 12.28g / ctm | 13.14g / ctm | 13.46g / ctm | 13.68g / ctm | |||||
Chemical | 19.41g / ctm | 14.09g / ctm | 14.71g / ctm | 13.54g / ctm | |||||
Chemical (Less Cargo Heating & Tank Cleaning)(4) | 19.01g / ctm | 12.65g / ctm | 14.05g / ctm | 12.67g / ctm | |||||
Wind Strength (% greater than 4 on BF) | 50.10 % | 47.54 % | 47.18 % | 47.71 % | |||||
% Idle Time(6) | 4.17 % | 1.99 % | 3.07 % | 3.62 % | |||||
tm = ton-mile | |||||||||
ctm = cargo ton-mile | |||||||||
Ardmore Performance
It should be noted that results vary quarter to quarter depending on ship activity, ballast / laden ratio, cargo carried, weather, waiting time, time in port, and vessel speed. However, analysis is also presented on a trailing 12-month basis to provide a more accurate assessment of Ardmore's progress over a longer period and to mitigate seasonality. From a weather perspective rougher weather (based on Beaufort Scale wind force rating being greater than 4 BF) will generally have a mitigating impact on the ability to optimize fuel consumption, while idle time will impact ships metrics as they will still require power to run but will not be moving. Overall Ardmore Shipping's carbon emissions for the trailing 12-month period have decreased 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 tons per kilometer as opposed to CO2 in tons per nautical mile) and consequently it is not always practical to directly compare emissions from different companies. The figures reported above represent Ardmore's initial findings; the Company is committed to improving the methodology and transparency of its emissions reporting in line with industry best practices. Accordingly, the above results may vary as the methodology and performance measures set out by the industry evolve. | |||||||||
2 Includes time-chartered out and time-chartered in vessels. | |||||||||
3 Annual Efficiency Ratio ("AER") is a measure of carbon efficiency using the parameters of fuel consumption, distance travelled, and design deadweight tonnage ("DWT"). AER is reported in unit grams of CO2 per ton-mile (gCO2/dwt-nm). It is calculated by dividing (i) mass of fuel consumed by type converted to metric tons of CO2 by (ii) DWT multiplied by distance travelled in nautical miles. A lower AER reflects better carbon efficiency. | |||||||||
4 The AER and EEOI figures are presented including the impact of cargo heating and tank cleaning operations unless stated. | |||||||||
5 Energy Efficiency Operational Indicator ("EEOI") is a tool for measuring CO2 gas emissions in a given time period per unit of transport work performed. It is calculated by dividing (i) mass of fuel consumed by type converted to metric tons of CO2 by (ii) cargo carried in tons multiplied by laden voyage distance in nautical miles. This calculation is performed as per IMO MEPC.1/Circ684. A lower EEOI reflects lower CO2 gas emissions in a given time period per unit of transport work performed. | |||||||||
6 Idle time is the amount of time a vessel is waiting in port or awaiting the laycan or waiting in port/at sea unfixed. | |||||||||
Non-GAAP Measures
EBITDA + vessel lease expense component (i.e., EBITDAR) and Adjusted EBITDAR
EBITDAR is defined as EBITDA (i.e., earnings before interest, unrealized gains/(losses) on interest rate derivatives, taxes, depreciation and amortization) plus the vessel lease expense component of total charter hire expense for chartered-in vessels. Adjusted EBITDAR is defined as EBITDAR before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels.
For the three months ended March 31, 2025, 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 March 31, 2025, 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 | ||||
March 31, 2025 | March 31, 2024 | |||
In thousands of | ||||
Net income | 6,253 | 39,237 | ||
Interest income | (108) | (544) | ||
Interest expense and finance costs | 935 | 2,526 | ||
Income tax | 26 | 79 | ||
Depreciation | 7,653 | 6,975 | ||
Amortization of deferred drydock expenditures | 923 | 756 | ||
EBITDA | 15,682 | 49,029 | ||
Loss from equity method investments | 64 | 229 | ||
ADJUSTED EBITDA | 15,746 | 49,258 | ||
Plus: Vessel lease expense component | 2,796 | 2,609 | ||
ADJUSTED EBITDAR | 18,542 | 51,867 | ||
Reconciliation of net income attributable to common stockholders to Adjusted earnings | ||||
Three Months Ended | ||||
March 31, 2025 | March 31, 2024 | |||
In thousands of | ||||
Net income attributable to common stockholders | 5,624 | 38,389 | ||
Adjusted earnings | 5,624 | 38,389 | ||
Adjusted earnings per share, basic | 0.14 | 0.93 | ||
Adjusted earnings per share, diluted | 0.14 | 0.92 | ||
Weighted average number of shares outstanding, basic | 40,472,079 | 41,371,887 | ||
Weighted average number of shares outstanding, diluted | 40,620,908 | 41,916,276 | ||
Adjusted earnings for purposes of dividend calculation | ||||
Three Months Ended | ||||
March 31, 2025 | ||||
In thousands of | ||||
Adjusted earnings | 5,624 | |||
Unrealized gains | — | |||
Adjusted earnings for purposes of dividend calculation | 5,624 | |||
Dividend to be paid | 1,875 | |||
Dividend Per Share (DPS) | 0.05 | |||
Number of shares outstanding as of May 7, 2025 | 40,623,928 | |||
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; the Company's leadership transition; 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 capital allocation priorities and business strategies; the potential effects of tariffs and other foreign policy activities on global markets, the shipping industry and the Company's operations; the potential effect of geopolitical conflicts, including the
In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: the strength of world economies and currencies; general market conditions, including fluctuations in spot and charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; changes in the projections of spot and time charter or pool trading of the Company's vessels; geopolitical conflicts, including future developments relating to the
Investor Relations Enquiries: | |
Mr. 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
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