Ardmore Shipping Corporation Announces Financial Results For The Three and Twelve Months Ended December 31, 2024

Core Insights - Ardmore Shipping Corporation reported its financial results for the three and twelve months ended December 31, 2024, highlighting a focus on performance optimization and financial strength [1][3][4] Financial Performance - The company reported adjusted earnings of $10.3 million for Q4 2024, down from $26.1 million in Q4 2023, resulting in adjusted earnings per share of $0.25 compared to $0.63 [8][17] - For the full year 2024, adjusted earnings were $119.5 million, an increase from $113.4 million in 2023, with adjusted earnings per share of $2.87 compared to $2.76 [8][18] - Revenue for Q4 2024 was $82.0 million, a decrease of $16.9 million from $98.9 million in Q4 2023 [19] Fleet and Operations - As of December 31, 2024, Ardmore operated a fleet of 26 vessels, including 20 MR tankers and six Eco-Design IMO 2 product/chemical tankers [6][10] - The average daily TCE rate for MR Eco-Design tankers was $22,663 in Q4 2024, with an expected increase to $23,400 in Q1 2025 [7][9] - The company had no drydocking days in Q4 2024 but is scheduled for 174 drydocking days in Q1 2025 [11] Capital Allocation and Shareholder Returns - Ardmore continues to prioritize capital allocation for long-term value creation, including investments in vessels and returning capital to shareholders through dividends and share repurchases [4][12][13] - A cash dividend of $0.08 per common share was declared for Q4 2024, to be paid on March 14, 2025 [12] - In December 2024, the company repurchased 1.56 million shares, approximately 4% of its outstanding common stock, at a total cost of $17.9 million [13] Market Outlook - The company anticipates steady growth in demand for refined oil products and biofuels, supporting product tanker demand as the MR fleet ages [5] - Geopolitical instability, including the Russia-Ukraine conflict and tensions in the Middle East, has increased spot tanker rates and highlighted the importance of cargo flexibility [15][16] Environmental and Efficiency Metrics - Ardmore is committed to reducing CO2 emissions, reporting a slight increase in emissions to 422,083 metric tons for the year ended December 31, 2024, compared to 418,022 metric tons in 2023 [55] - The fleet's Annual Efficiency Ratio (AER) increased from 6.05g/tm to 6.13g/tm, indicating a need for continued improvements in operational efficiency [55]