Ardmore Shipping(US:ASC)2023-02-14 13:01Financial Performance - The Company reported a net income of $135.1 million for the year ended December 31, 2022, compared to a net loss of $38.1 million for the year ended December 31, 2021[17]. - Total revenue for the year ended December 31, 2022, was $445.741 million, a significant increase from $192.484 million in 2021, representing a growth of 132%[37]. - Net income for the year ended December 31, 2022, was $138.454 million, compared to a net loss of $36.834 million in 2021, indicating a turnaround in profitability[38]. - Earnings per share (EPS) for the year ended December 31, 2022, was $3.63, a substantial improvement from a loss of $1.12 per share in 2021[38]. - For the three months ended December 31, 2022, net income attributable to common stockholders was $53.08 million, compared to a loss of $8.55 million for the same period in 2021[57]. - Adjusted earnings for the quarter ended December 31, 2022, were $53.968 million, with an adjusted earnings per share of $1.33[57]. Revenue and Expenses - Revenue for the three months ended December 31, 2022, was $132.8 million, an increase of $80.3 million from $52.5 million for the same period in 2021[17]. - Voyage expenses increased to $39.5 million for the three months ended December 31, 2022, up by $14.9 million from $24.6 million for the same period in 2021[19]. - Total charter hire expense was $6.0 million for the three months ended December 31, 2022, an increase of $3.9 million from $2.1 million for the same period in 2021[22]. - Corporate-related general and administrative expenses increased to $5.3 million for the three months ended December 31, 2022, up by $2.0 million from $3.3 million for the same period in 2021[24]. Liquidity and Assets - As of December 31, 2022, the Company had $220.6 million in liquidity available, with cash and cash equivalents of $50.6 million[29]. - Total current assets decreased to $157.738 million from $94.217 million year-over-year, while total non-current assets decreased to $566.121 million from $630.315 million[36]. - Total liabilities decreased significantly to $217.417 million from $395.535 million, reflecting a reduction in both current and non-current liabilities[36]. - The cash and cash equivalents at the end of the period were $50.569 million, down from $55.449 million at the beginning of the year[40]. Fleet and Operations - The Company had 27 vessels employed directly in the spot market as of December 31, 2022, compared to 23 vessels as of December 31, 2021[18]. - The average daily TCE for MR Eco-Design Tankers was reported at $43,174, a substantial rise from $11,024 in the previous year, indicating an increase of about 291%[41]. - The fleet operating expenses per day were $6,499, which is an increase from $6,141 in 2021, representing a rise of approximately 5.9%[41]. - The number of vessels in operation at the end of December 31, 2022, was 27, an increase from 26 vessels in the previous year[46]. - The fleet average age increased to 9.6 years as of December 31, 2022, compared to 8.6 years in 2021[46]. - The percentage of idle time for the fleet decreased to 3.32% in Q4 2022 from 3.69% in Q4 2021[46]. Environmental and Regulatory Compliance - Ardmore Shipping Corporation is committed to reducing CO2 emissions in line with the International Maritime Organization's strategy, emphasizing transparency in emissions reporting[44]. - The BIMCO CII Operations Clause for Time Charter Parties came into effect on January 1, 2023, shifting emissions responsibility to charterers, which may impact future operational strategies[45]. - The company has made advances for ballast water treatment and scrubber systems totaling $5.530 million, indicating ongoing investment in environmental compliance[36]. - Ardmore's carbon emissions for the full year 2022 increased by 0.2% to 404,068 metric tonnes of CO2 compared to 403,321 metric tonnes in 2021[47]. - The Fleet Energy Efficiency Operational Indicator (EEOI) for the period increased by 4.6% to 12.59 g/ctm from 12.04 g/ctm[47]. Future Outlook and Strategic Considerations - The Company anticipates future operating results to be influenced by global economic conditions and shipping market trends, including tanker demand and supply[60]. - The impact of the COVID-19 pandemic and geopolitical events, such as Russia's invasion of Ukraine, is expected to affect the Company's business and financial condition[60]. - The Company estimates a significant number of drydocking and repositioning days in Q1 2023, which may impact operational efficiency[60]. - Management's estimates of the Depreciated Replacement Value (DRV) of its vessels will be crucial for assessing asset value and capital allocation[60]. - The Company is focused on refining performance measures for emissions and efficiency, aligning with energy transition trends[60]. - The strength of the Company's balance sheet is expected to support strategic objectives and enhance shareholder value[60]. - The Company faces uncertainties related to fluctuations in spot and charter rates, which could materially affect revenue[61]. - Changes in operating expenses, including bunker prices and drydocking costs, are anticipated to impact overall profitability[61]. - The Company is monitoring the market for its vessels and competition within the tanker industry, which may influence future chartering opportunities[61]. - The declaration of future dividends will depend on the Company's operating results and capital requirements[61].