Ardmore Shipping(US: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 $106.3 million, a decrease of 10% from $118.2 million for the same period in 2023[24]. - Net income for the three months ended March 31, 2024, was $39.2 million, an 11% decrease from $44.1 million for the same period in 2023[24]. - Earnings per share (EPS) for basic shares was $0.93 in Q1 2024, compared to $1.06 in Q1 2023, reflecting a decrease of 12.3%[70]. - The company reported a decrease in comprehensive income to $39,237,000 in Q1 2024 from $43,367,000 in Q1 2023, a decline of 9.8%[72]. - Net cash provided by operating activities was $49.2 million for the three months ended March 31, 2024, down from $56.8 million in the prior year[42]. Expenses and Costs - Voyage expenses decreased by 16% to $30.5 million for the three months ended March 31, 2024, down from $36.6 million in the prior year[26]. - Interest expense and finance costs decreased to $2.5 million for the three months ended March 31, 2024, from $2.9 million in the same period in 2023[31]. - The company paid $8,674,000 in common share dividends in Q1 2024, down from $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 $33.9 million, including $30.0 million in revolver repayments and $8.7 million in cash dividends[44]. Liquidity and Debt - The company had $285.3 million in liquidity available as of March 31, 2024, including cash and cash equivalents of $48.6 million[32]. - As of March 31, 2024, total current assets increased to $143.9 million from $126.8 million as of December 31, 2023[67]. - Total liabilities decreased to $99.1 million as of March 31, 2024, from $116.5 million as of December 31, 2023[67]. - As of March 31, 2024, total debt amounted to $23.1 million, a decrease of 50.7% from $46.8 million as of December 31, 2023[93]. - The Company maintains a minimum cash and cash equivalents requirement of $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 $10.4 million in equity investments, which includes $9.1 million in E1 and $1.3 million in e1 Marine LLC[89]. - The Company acquired a 2017 Korean-built MR product tanker, the Ardmore Gibraltar, for $42.0 million in April 2024[123]. - The Company sold the 2010-built Ardmore Seafarer for $27.1 million in a separate transaction[123]. Dividends and Shareholder Returns - The company declared a cash dividend of $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 $0.31 per common share for the quarter ended March 31, 2024, totaling approximately $12.8 million, to be paid on June 14, 2024[123].