Ardmore Shipping(ASC)2024-07-31 12:07Fleet and Operations - As of March 31, 2024, Ardmore Shipping Corporation operated a fleet of 26 vessels, including 20 Medium Range (MR) tankers and 6 Eco-Design chemical tankers[9]. - In April 2024, Ardmore delivered the 2010-built Ardmore Seafarer and acquired a 2017 Korean-built MR product tanker, the Ardmore Gibraltar[16]. - Ardmore's fleet expansion strategy includes exercising purchase options for the Ardmore Seawolf and Ardmore Seahawk, expected to close in June 2024[16]. - The company had 22 owned vessels and four chartered-in vessels in operation as of March 31, 2024, with an average fleet age of 9.8 years[81]. - The average number of operating vessels was 26.0 for the three months ended March 31, 2024, compared to 26.7 for the same period in 2023[24]. Financial Performance - Revenue for the three months ended March 31, 2024, was 118.2 million for the same period in 2023[24]. - Net income for the three months ended March 31, 2024, was 44.1 million for the same period in 2023[24]. - Earnings per share (EPS) for basic shares was 1.06 in Q1 2023, reflecting a decrease of 12.3%[70]. - The company reported a decrease in comprehensive income to 43,367,000 in Q1 2023, a decline of 9.8%[72]. - Net cash provided by operating activities was 56.8 million in the prior year[42]. Expenses and Costs - Voyage expenses decreased by 16% to 36.6 million in the prior year[26]. - Interest expense and finance costs decreased to 2.9 million in the same period in 2023[31]. - The company paid 18,286,000 in Q1 2023, a reduction of 52.5%[78]. - For the three months ended March 31, 2024, net cash used in financing activities was 30.0 million in revolver repayments and 285.3 million in liquidity available as of March 31, 2024, including cash and cash equivalents of 143.9 million from 99.1 million as of March 31, 2024, from 23.1 million, a decrease of 50.7% from 18.8 million as of March 31, 2024, based on its debt obligations[99]. Market and Economic Conditions - The ongoing Russia-Ukraine war has led to increased spot tanker rates due to disruptions in energy supply chains[18]. - Geopolitical tensions from the Israel-Hamas war have affected trading patterns and expenses in the shipping industry[18]. - The company emphasizes the importance of monitoring tanker markets to adapt chartering strategies based on changing conditions[12]. Environmental and Regulatory Compliance - Ardmore's Energy Transition Plan aims to capitalize on regulations related to energy efficiency and emissions reduction in the shipping industry[11]. - The number of vessels in drydock for 2024 is projected to be 4, with ongoing costs for compliance with environmental regulations expected to increase[47]. - As of March 31, 2024, the company had ballast water treatment systems on 20 owned vessels, with 2 installations in progress[49]. - As of March 31, 2024, the company had scrubber systems on 6 owned vessels, with 3 installations in progress[51]. Investments and Acquisitions - The Company recorded an investment of 9.1 million in E1 and 42.0 million in April 2024[123]. - The Company sold the 2010-built Ardmore Seafarer for 0.31 per common share for the quarter ended March 31, 2024, to be paid on June 14, 2024[15]. - The Company declared a cash dividend of 12.8 million, to be paid on June 14, 2024[123].