Ardmore Shipping Corporation Announces Financial Results For The Three and Nine Months Ended September 30, 2025

Core Insights - Ardmore Shipping Corporation reported increased earnings driven by record volumes of refined products and strategic acquisitions of modern MR tankers [3][4] - The company declared its twelfth consecutive dividend while redeeming all outstanding preferred shares, reflecting a strong capital allocation policy [3][4][9] - Freight markets remain robust due to long-term sectoral trends, healthy refining margins, and geopolitical factors impacting supply and demand [3][15][16] Financial Performance - For Q3 2025, Ardmore reported adjusted earnings of $12.6 million, down from $23.3 million in Q3 2024, with earnings per share decreasing from $0.55 to $0.30 [4][18] - For the nine months ended September 30, 2025, adjusted earnings were $27.2 million compared to $109.3 million for the same period in 2024, with earnings per share dropping from $2.62 to $0.67 [4][19] - Revenue for Q3 2025 was $81.2 million, a decrease of $14.9 million from $96.1 million in Q3 2024, attributed to fewer spot revenue days and lower spot rates [20] Fleet Operations - As of September 30, 2025, the company operated 27 vessels, including 21 MR tankers and 6 chemical tankers [5] - The average spot TCE rate for MR tankers was $24,697 per day in Q3 2025, with a projected rate of $24,900 for Q4 2025 [6] - The company took delivery of three modern MR tankers during Q3 2025, enhancing fleet quality and reducing average fleet age [10] Expenses and Costs - Voyage expenses decreased to $28.5 million in Q3 2025 from $34.6 million in Q3 2024, primarily due to lower bunker costs [23] - Vessel operating expenses increased to $16.4 million in Q3 2025, reflecting the addition of three vessels to the fleet [25] - Total charter hire expense was $4.6 million for Q3 2025, down from $5.9 million in Q3 2024, due to the redelivery of chartered-in vessels [26] Liquidity and Financing - As of September 30, 2025, Ardmore had $296.0 million in liquidity, including $47.1 million in cash and cash equivalents [34] - The company closed a $350 million revolving credit facility in July 2025, secured by 20 owned vessels, maturing in 2031 [12] Geopolitical Impact - Ongoing geopolitical conflicts, including the Russia-Ukraine conflict and tensions in the Middle East, have disrupted energy supply chains and contributed to increased spot tanker rates [15][16][17]