Ardmore Shipping Corporation Announces Financial Results For The Three and Six Months Ended June 30, 2025

Core Insights - Ardmore Shipping Corporation reported continued strengthening of earnings through the first half of 2025, supported by strategic acquisitions and refinancing initiatives [3][4] - The company announced the acquisition of three modern MR tankers for a total of $103.9 million, aimed at enhancing fleet quality and reducing average fleet age [5][10] - Financial results showed a significant decrease in adjusted earnings and net income compared to the same period in 2024, attributed to a prior year gain from vessel sales [5][17][18] Financial Performance - For Q2 2025, Ardmore reported adjusted earnings of $9.0 million, or $0.22 per share, down from $47.6 million and $1.14 per share in Q2 2024 [5][17] - For the first half of 2025, adjusted earnings were $14.6 million, or $0.36 per share, compared to $86.0 million and $2.07 per share in the same period of 2024 [5][18] - Revenue for Q2 2025 was $72.0 million, a decrease of $49.3 million from $121.3 million in Q2 2024 [19] Fleet Operations - As of June 30, 2025, the company operated 26 vessels, including 20 MR tankers and 6 chemical tankers [6] - The average daily TCE rate for MR Eco-Design tankers was $23,441 in Q2 2025, with an expected increase to $25,450 for Q3 2025 [7] - Chemical tankers earned an average TCE rate of $20,409 in Q2 2025, projected to rise to $21,650 in Q3 2025 [8] Strategic Initiatives - The company completed tank coating upgrades on most chemical tankers, resulting in improved cargo capacity and premium returns [3] - Ardmore secured a $350 million revolving credit facility with a margin of 1.8%, maturing in 2031, to support its acquisition strategy [12] - The company declared a cash dividend of $0.07 per common share for Q2 2025, consistent with its variable dividend policy [13] Market Conditions - Geopolitical conflicts, including the Russia-Ukraine war and tensions in the Middle East, have led to increased volatility in tanker rates [14][15] - The ongoing geopolitical and economic uncertainty has created challenges for the shipping industry, affecting demand and operational costs [16] Environmental Performance - Ardmore reported a decrease in CO2 emissions from 424,690 metric tons to 394,356 metric tons over the trailing 12 months, attributed to reduced distance traveled [52] - The fleet's average age increased to 11.6 years, reflecting the company's strategy to modernize its fleet through acquisitions [51]