Ardmore Shipping Corporation Announces Financial Results For The Three and Nine Months Ended September 30, 2024

Core Insights - Ardmore Shipping Corporation reported a net income of $23.3 million for Q3 2024, an increase from $20.3 million in Q3 2023, with earnings per share rising to $0.55 from $0.49 [2][17] - For the nine months ended September 30, 2024, net income reached $123.5 million, compared to $87.3 million for the same period in 2023, with earnings per share increasing to $2.96 from $2.12 [2][17] - The company declared a cash dividend of $0.18 per common share for Q3 2024, consistent with its variable dividend policy [2][12] Financial Performance - Revenue for Q3 2024 was $96.1 million, up from $86.9 million in Q3 2023, driven by increased spot rates and revenue days [18][19] - The average Time Charter Equivalent (TCE) rate for the fleet was $26,628 per day, an increase from $26,347 per day in Q3 2023 [22][45] - Voyage expenses increased to $34.6 million in Q3 2024 from $30.6 million in Q3 2023, primarily due to higher port and bunker costs [21][22] Fleet Operations - As of September 30, 2024, Ardmore operated 26 vessels, including 20 MR tankers and six Eco-Design IMO 2 product/chemical tankers [6][49] - The average TCE rate for MR Eco-Design tankers was $28,481 per day in Q3 2024, while chemical tankers earned an average TCE rate of $21,604 per day [3][9] - The company expects 95% of its MR tankers' revenue days to be employed in the spot market for Q4 2024, with fixed rates averaging approximately $23,100 per day [8][10] Leadership and Strategy - Gernot Ruppelt was appointed as the new CEO following the retirement of founder Anthony Gurnee [14] - The company focuses on maximizing TCE performance, managing costs, and reducing its breakeven level to enhance earnings capacity [5][6] - Ardmore's Energy Transition Plan aims to improve operational efficiency and reduce emissions through technological advancements [36][50] Market Conditions - Geopolitical factors, including the Russia-Ukraine conflict and tensions in the Middle East, have contributed to rising tanker charter rates [15][16] - The company is well-positioned to capture market upside as conditions improve with the onset of the winter season [4][6]