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Ardmore Shipping(ASC) - 2024 Q1 - Quarterly Report
ASCArdmore Shipping(ASC)2024-02-15 13:05
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Financial Performance - The Company reported net income of 113.4millionfortheyearendedDecember31,2023,downfrom113.4 million for the year ended December 31, 2023, down from 135.1 million in 2022, representing a decrease of approximately 16%[17] - Revenue for the three months ended December 31, 2023 was 98.9million,adecreaseof98.9 million, a decrease of 33.9 million or 25.5% from 132.8millionforthesameperiodin2022[17]−NetrevenueforthethreemonthsendedDecember31,2023,was132.8 million for the same period in 2022[17] - Net revenue for the three months ended December 31, 2023, was 98,878 thousand, a decrease of 25.6% compared to 132,831thousandforthesameperiodin2022[33]−NetincomefortheyearendedDecember31,2023,was132,831 thousand for the same period in 2022[33] - Net income for the year ended December 31, 2023, was 116,808 thousand, down 15.7% from 138,454thousandin2022[33]−AdjustedEBITDAfortheyearendedDecember31,2023,was138,454 thousand in 2022[33] - Adjusted EBITDA for the year ended December 31, 2023, was 159,489 thousand, a decline of 12.5% from 168,869thousandin2022[36]−AdjustedEBITDAforthethreemonthsendedDecember31,2023,was168,869 thousand in 2022[36] - Adjusted EBITDA for the three months ended December 31, 2023, was 37.839 million, compared to 66.457millionforthesameperiodin2022,reflectingadeclineofapproximately4366.457 million for the same period in 2022, reflecting a decline of approximately 43%[49] - The company reported EBITDA of 37.839 million for the three months ended December 31, 2023, compared to 66.457millionforthesameperiodin2022,indicatingasignificantdecreaseinoperationalperformance[49]−Earningspershare,diluted,fortheyearendedDecember31,2023,was66.457 million for the same period in 2022, indicating a significant decrease in operational performance[49] - Earnings per share, diluted, for the year ended December 31, 2023, was 2.71, a decrease of 23.1% from 3.52in2022[33]−AdjustedearningspershareforthequarterendedDecember31,2023,was3.52 in 2022[33] - Adjusted earnings per share for the quarter ended December 31, 2023, was 0.63, down from 1.33inthesamequarterof2022[50]OperationalMetrics−TheaverageTCEratefortheCompany′sfleetdecreasedto1.33 in the same quarter of 2022[50] Operational Metrics - The average TCE rate for the Company's fleet decreased to 29,702 per day for the three months ended December 31, 2023, down 9,159perdayor23.59,159 per day or 23.5% from 38,861 per day in 2022[20] - The Company had 2,293 spot revenue days for the three months ended December 31, 2023, a decrease of 106 days or 4.4% from 2,399 days in the same period of 2022[18] - Voyage expenses were 33.2millionforthethreemonthsendedDecember31,2023,adecreaseof33.2 million for the three months ended December 31, 2023, a decrease of 6.3 million or 15.9% from 39.5millionin2022[19]−Totalcharterhireexpensewas39.5 million in 2022[19] - Total charter hire expense was 5.7 million for the three months ended December 31, 2023, a decrease of 0.3millionor50.3 million or 5% from 6.0 million in 2022[22] - The average number of operating vessels in the fleet was 26.0 for the three months ended December 31, 2023, compared to 27.0 in the same period of 2022[36] - Fleet operating expenses per day increased to 7,192forthethreemonthsendedDecember31,2023,comparedto7,192 for the three months ended December 31, 2023, compared to 6,927 in the same period of 2022[36] Liquidity and Debt - As of December 31, 2023, the Company had 268.0millioninliquidityavailable,withcashandcashequivalentsof268.0 million in liquidity available, with cash and cash equivalents of 46.8 million, down from 50.6millionin2022[26]−Totaldebtdecreasedto50.6 million in 2022[26] - Total debt decreased to 89.7 million as of December 31, 2023, down from 174.3millionin2022,representingareductionofapproximately48.6174.3 million in 2022, representing a reduction of approximately 48.6%[27] - Net cash used in financing activities for the year ended December 31, 2023, was 136,537 thousand, compared to 164,497thousandin2022[35]EnvironmentalandEfficiencyInitiatives−Ardmore′sEnergyTransitionPlanfocusesontransitiontechnologies,projects,andsustainablecargos,aimingtoenhanceoperationalefficiencyandreduceenvironmentalimpact[30]−CO2emissionsforthethreemonthsendedDecember31,2023,were103,348metrictonnes,adecreasefrom105,625metrictonnesinthesameperiodof2022[40]−Theannualefficiencyratio(AER)forthefleetimprovedto6.05g/tmforthetwelvemonthsendedDecember31,2023,downfrom6.10g/tminthepreviousyear[40]−Theenergyefficiencyoperationalindicator(EEOI)forthefleetincreasedto13.34g/ctmforthetwelvemonthsendedDecember31,2023,comparedto12.53g/ctminthepreviousyear[40]−Thecompanyanticipatescontinuedrefinementofperformancemeasuresforemissionsandefficiency,aligningwithindustrybestpractices[53]−Thecompanyexpectstoinstalladditionalscrubbersonvesselsduring2024,enhancingcompliancewithenvironmentalregulations[53]FutureOutlookandEvents−TheCompanyplanstohostanInvestorDayandconferencecallonFebruary15,2024,todiscussthefinancialresultsforthequarterendedDecember31,2023[28]−Thecompanyacknowledgespotentialimpactsfromgeopoliticalconflicts,includingtheRussia−UkrainewarandtheHamas−Israelwar,ontheshippingindustryanditsoperations[54]AssetValuation−Ardmore′stotalassetvaluewasestimatedat164,497 thousand in 2022[35] Environmental and Efficiency Initiatives - Ardmore's Energy Transition Plan focuses on transition technologies, projects, and sustainable cargos, aiming to enhance operational efficiency and reduce environmental impact[30] - CO2 emissions for the three months ended December 31, 2023, were 103,348 metric tonnes, a decrease from 105,625 metric tonnes in the same period of 2022[40] - The annual efficiency ratio (AER) for the fleet improved to 6.05g/tm for the twelve months ended December 31, 2023, down from 6.10g/tm in the previous year[40] - The energy efficiency operational indicator (EEOI) for the fleet increased to 13.34g/ctm for the twelve months ended December 31, 2023, compared to 12.53g/ctm in the previous year[40] - The company anticipates continued refinement of performance measures for emissions and efficiency, aligning with industry best practices[53] - The company expects to install additional scrubbers on vessels during 2024, enhancing compliance with environmental regulations[53] Future Outlook and Events - The Company plans to host an Investor Day and conference call on February 15, 2024, to discuss the financial results for the quarter ended December 31, 2023[28] - The company acknowledges potential impacts from geopolitical conflicts, including the Russia-Ukraine war and the Hamas-Israel war, on the shipping industry and its operations[54] Asset Valuation - Ardmore's total asset value was estimated at 721.62 million as of December 31, 2023, with a depreciated replacement value (DRV) per share of 17.47[37]−Theestimatedresalepricefornewbuildvesselsofequivalentdeadweighttonneis17.47[37] - The estimated resale price for newbuild vessels of equivalent deadweight tonne is 51.50 million as of December 31, 2023[37] - Ardmore's commercial management business is estimated to have a value of $700.15 million, based on industry standard fees and a multiple of 7x net earnings[37]