Financial Performance - The Company reported net income of $113.4 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 $98.9 million, a decrease of $33.9 million or 25.5% from $132.8 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 $132,831 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 $138,454 thousand in 2022[33] - Adjusted EBITDA for the year ended December 31, 2023, was $159,489 thousand, a decline of 12.5% from $168,869 thousand in 2022[36] - Adjusted EBITDA for the three months ended December 31, 2023, was $37.839 million, compared to $66.457 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 $66.457 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 $3.52 in 2022[33] - Adjusted earnings per share for the quarter ended December 31, 2023, was $0.63, down from $1.33 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 $9,159 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 $33.2 million for the three months ended December 31, 2023, a decrease of $6.3 million or 15.9% from $39.5 million in 2022[19] - Total charter hire expense was $5.7 million for the three months ended December 31, 2023, a decrease of $0.3 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 $7,192 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 $268.0 million in liquidity available, with cash and cash equivalents of $46.8 million, down from $50.6 million in 2022[26] - Total debt decreased to $89.7 million as of December 31, 2023, down from $174.3 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 $164,497 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] - 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]
Ardmore Shipping(ASC) - 2024 Q1 - Quarterly Report