HAMILTON, Bermuda, Feb. 14,
2023 /PRNewswire/ -- Ardmore Shipping Corporation
(NYSE: ASC) ("Ardmore", the "Company" or "we") today announced
results for the three and twelve months ended
December 31, 2022.
Highlights and Recent Activity
- Reported net income of $53.1
million for the three months ended December 31, 2022, or $1.31 earnings per basic share and $1.28 earnings per diluted share, compared to a
net loss of $8.6 million, or
$0.25 loss per basic and diluted
share, for the three months ended December
31, 2021. Adjusted for certain costs (see Adjusted earnings
/ (loss) in the Non-GAAP Measures section), we reported Adjusted
earnings of $54.0 million, or
$1.33 Adjusted earnings per basic
share and $1.30 Adjusted earnings per
diluted share, for the three months ended December 31, 2022, compared to an Adjusted loss
of $8.6 million, or $0.25 Adjusted loss per basic and diluted share,
for the three months ended December 31,
2021.
- Reported record net income of $135.1
million for the year ended December
31, 2022, or $3.63 earnings
per basic share and $3.52 earnings
per diluted share, compared to a net loss of $38.1 million, or $1.12 loss per basic and diluted share, for the
year ended December 31, 2021.
Adjusted for certain costs (see Adjusted earnings / (loss) in the
Non-GAAP Measures section), we reported Adjusted earnings of
$143.5 million, or $3.86 Adjusted earnings per basic and
$3.74 Adjusted earnings per diluted
share for the year ended December 31,
2022, compared to an Adjusted loss of $37.5 million, or $1.11 Adjusted loss per basic and diluted share,
for the year ended December 31,
2021.
- MR Eco-Design tankers earned an average spot TCE rate of
$43,174 per day for the three months
ended December 31, 2022. Chemical tankers earned an
average TCE rate of $28,544 per day
for the three months ended December 31, 2022. Based on
approximately 55% total revenue days currently fixed for the
first quarter of 2023, the average spot TCE rate is approximately
$39,500 per day for MR Eco-Design
tankers; based on approximately 70% of revenue days fixed for the
first quarter of 2023, the average TCE rate for chemical tankers is
approximately $27,750 per day.
- On January 9, 2023, Ardmore
announced the appointment of Mr. James
Fok to Ardmore's Board of Directors as a Class III director.
He is also serving on the Audit and Nominating and Corporate
Governance Committees.
- Consistent with the Company's capital allocation policy, the
Board of Directors declared a cash dividend on February 14, 2023, of $0.45 per common share for the quarter ended
December 31, 2022, based on Ardmore's
current policy of paying out a third of Adjusted Earnings, as
calculated for dividends. The dividend will be paid on March
15, 2023, to all shareholders of record on February 28,
2023.
Anthony Gurnee, the Company's
Chief Executive Officer, commented:
"2022 was a tremendous year for product tanker markets and
the most profitable year thus far for Ardmore, as supportive
fundamentals created early momentum that was then amplified by a
substantial re-ordering of global energy markets. This also
followed a prolonged period of refined product inventory draws and
post-pandemic energy consumption growth, and energy supply chains
operating with little, if any, buffer to account for dislocations
or unforeseen developments.
In these tight and fast-changing markets, Ardmore's
high-quality fleet of modern MR product and chemical tankers, its
focus on operational excellence and ability to take advantage of
market volatility, along with a strong balance sheet and low
breakeven levels, have enabled us to generate strong profits and
cash flow.
As a result, we are also now able to pursue our capital
allocation policy priorities simultaneously: maintaining our fleet
over time, continued de-levering of our balance sheet, paying our
newly initiated quarterly dividend, and selectively evaluating
accretive growth opportunities that support our long-term strategic
goals.
As strong markets extend into 2023 and with the newbuilding
orderbook remaining at a historically low level, we believe Ardmore
is exceptionally well positioned to continue generating strong
earnings and translating our current performance into lasting
shareholder value."
Summary of Recent and Fourth Quarter 2022 Events
Fleet
Fleet Operations and Employment
As of December 31, 2022, the Company had 27 vessels in
operation (including five chartered-in vessels), including 21 MR
tankers ranging from 45,000 deadweight tonnes (Dwt) to 49,999 Dwt
(15 Eco-Design and six Eco-Mod) and six Eco-Design IMO 2
product/chemical tankers ranging from 25,000 Dwt to 37,800 Dwt. The
Company also commercially manages two of Carl Büttner's 24,000 Dwt
chemical tankers.
MR Tankers (45,000 Dwt – 49,999 Dwt)
At the end of the fourth quarter of 2022, the Company had 21 MR
tankers in operation, all of which were trading in the spot market.
The MR tankers earned an average TCE rate of $41,911 per day in the fourth quarter of 2022. In
the fourth quarter of 2022, the Company's 15 MR Eco-Design tankers
earned an average TCE rate of $42,301
and the Company's six MR Eco-Mod tankers earned an average TCE rate
of $40,990 per day.
In the first quarter of 2023, the Company expects to have all
revenue days for its MR tankers employed in the spot market. As of
February 14, 2023, the Company had
fixed approximately 55% of its total MR revenue days for the
first quarter of 2023 at an average TCE rate of approximately
$37,500 per day which comprises MR
Eco-Design tankers of $39,500 per day
and MR Eco-Mod tankers of $32,000 per
day.
Product / Chemical Tankers (IMO 2: 25,000 Dwt –
37,800 Dwt)
At the end of the fourth quarter of 2022, the Company had six
Eco-Design IMO 2 product / chemical tankers in operation, all of
which were trading in the spot market. During the fourth quarter of
2022, the Company's six Eco-Design product / chemical vessels
earned an average TCE rate of $28,544
per day.
In the first quarter of 2023, the Company expects to have all
revenue days for its Eco-Design IMO 2 product / chemical
tankers employed in the spot market. As of February 14, 2023, the Company had fixed
approximately 70% of its Eco-Design IMO 2 product / chemical
tankers spot revenue days for the first quarter of 2023 at an
average TCE rate of approximately $27,750 per day.
Drydocking
The Company had 23 drydock days and no repositioning days in the
fourth quarter of 2022. The Company expects to have eight
drydock days and six repositioning days in the first quarter
of 2023.
Dividend
Consistent with the Company's capital allocation policy, the
Board of Directors declared a cash dividend on February 14, 2023, of $0.45 per share
for the quarter ended December 31, 2022, based on the
Company's current policy of paying out dividends equal to one-third
of Adjusted Earnings (see Adjusted Earnings (for purposes of
dividend calculations) in the Non-GAAP Measures section). The
dividend is payable on March 15, 2023 to all shareholders
of record on February 28, 2023.
New Director Appointment
On January 9, 2023, the Company
announced the appointment of Mr. James
Fok to the Company's Board of Directors as a Class III
director. He is also serving on the Nominating and Corporate
Governance Committee and has replaced Mats
Berglund on the Audit Committee. We thank Mats Berglund for his service on the Audit
Committee and for his continued service on the Board of Directors
and the Compensation and the Nominating and Corporate Governance
Committees.
Mr. Fok has more than 20 years of experience as a financial
and strategic advisor to corporations and governments, with
particular expertise in Asian cross-border capital markets
transactions and mechanisms. From 2012 until 2021, he served as a
senior executive at Hong Kong Exchanges and Clearing (HKEX),
playing a major role in a number of landmark capital markets
internationalization initiatives. Previously, Mr. Fok served as an
investment banker at multiple bulge bracket firms in
both Europe and Asia, focusing on the financial
services sector. He currently serves as an Advisor to Bain &
Company, is on the Advisory Board of Hex Trust, a provider of
bank-grade custody for digital assets, and serves as an
International Member of Ireland for Finance's Industry
Advisory Committee. Mr. Fok holds a BA (Hons) in Law and Chinese
from the School of Oriental & African Studies of the University
of London and is a published author on the subject of
Sino-American financial relations.
COVID-19
In response to the COVID-19 pandemic, many countries, ports and
organizations, including those where Ardmore conducts a large part
of its operations, have implemented measures to combat the
outbreak, such as quarantines and travel restrictions. Such
measures have caused severe trade disruptions. In addition, the
pandemic initially resulted and may again result in a significant
decline in global demand for refined oil products. As Ardmore's
business is the transportation of refined oil products on behalf of
oil majors, oil traders and other customers, any significant
decrease in demand for the cargo Ardmore transports has and could
continue to adversely affect demand for its vessels and services.
The extent to which the pandemic may impact Ardmore's results of
operations and financial condition, including possible impairments,
will depend on future developments, which are highly uncertain and
cannot be predicted, including, among others, the impact of the end
of China's Zero Covid policy and
of the development of variants of the COVID virus, and the level of
the effectiveness and delivery of vaccines and other actions to
contain or treat its impact.
Conflict in Ukraine
Russia's invasion of
Ukraine in February 2022 and the subsequent conflict has
disrupted supply chains and caused instability and significant
volatility in the global economy.
Much uncertainty remains regarding the global impact of the
conflict in Ukraine, and it is
possible that such instability, uncertainty and resulting
volatility could significantly increase our costs and adversely
affect our business, including our ability to secure charters and
financing on attractive terms. The ongoing conflict has contributed
significantly to related increases in spot tanker rates.
As a result of Russia's
invasion of Ukraine, the United States, several European Union
nations, the United Kingdom and
other countries have announced unprecedented sanctions and other
measures against Russia,
Belarus and certain Russian and
Belarussian entities and nationals.
The sanctions announced by the U.S. and other countries against
Russia and, in some instances,
Belarus include, among others,
restrictions on selling or importing goods, services or technology
in or from affected regions, travel bans and asset freezes
impacting connected individuals and political, military, business
and financial organizations in Russia, severing large Russian banks from U.S.
and/or other financial systems, and barring some Russian
enterprises from raising money in the U.S. market. The U.S. has
also banned the import of certain Russian energy products into the
U.S., including crude oil, petroleum, petroleum fuels, oils,
liquefied natural gas and coal. The U.S., EU nations and other
countries could impose wider sanctions and take other actions.
While it is difficult to anticipate the impact the sanctions
announced to date may have on our business and us, these and any
further sanctions imposed or actions taken by the U.S., EU nations
or other countries, and any retaliatory measures by Russia in response, could lead to increased
volatility in global oil demand which could have a material impact
on our business, results of operations and financial condition. In
addition, it is possible that third parties with which we do
business may be impacted by events in Russia and Ukraine, which could adversely affect us.
Results for the three months ended
December 31, 2022 and 2021
The Company reported net income of $53.1
million for the three months ended
December 31, 2022, or $1.31
earnings per basic share and $1.28
earnings per diluted share, as compared to a net loss of
$8.6 million, or $0.25 loss per basic and diluted share for the
three months ended December 31, 2021.
Results for the year ended December 31, 2022 and
2021
The Company reported net income of $135.1
million for the year ended December 31, 2022
or $3.63 earnings per basic share and
$3.52 earnings per diluted share, as
compared to a net loss of $38.1
million, or $1.12 loss per
basic and diluted share, for the year ended
December 31, 2021.
Management's Discussion and Analysis of Financial Results for
the three months ended December 31, 2022 and 2021
Revenue. 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 three months ended December 31, 2021.
The Company's average number of operating vessels was 27.0 for
the three months ended December 31,
2022, consistent with 27.0 for the three months ended
December 31, 2021.
The Company had no product tankers employed under time charter
as of December 31, 2022, as compared to four as of
December 31, 2021. Revenue days derived from time
charters were 47 for the three months ended
December 31, 2022, as compared to 364 for the three
months ended December 31, 2021. The decrease in revenue
days for time-chartered vessels resulted in a decrease in revenue
of $4.3 million.
The Company had 2,399 spot revenue days for the
three months ended December 31, 2022, as compared to
2,112 for the three months ended December 31, 2021. The
Company had 27 and 23 vessels employed directly in the spot market
as of the years ended December 31, 2022 and 2021,
respectively. The increase in spot revenue days resulted in an
increase in revenue of $6.3 million,
while changes in spot rates resulted in an increase in revenue of
$78.3 million for the
three months ended December 31, 2022, as compared to
the three months ended December 31, 2021.
Voyage Expenses. Voyage expenses were $39.5 million for the three months ended
December 31, 2022, an increase of $14.9 million from $24.6
million for the three months ended
December 31, 2021. An increase in bunker prices resulted
in an increase of $10.4 million and
an increase in spot revenue days resulted in an increase in port
and agency expenses plus commission costs of $4.5 million for the three months ended
December 31, 2022, as compared with the three months
ended December 31, 2021.
TCE Rate. The average TCE rate for the Company's
fleet was $38,861 per day for the
three months ended December 31, 2022, an increase of
$27,471 per day from $11,390 per day for the three months ended
December 31, 2021. The increase in average TCE rate was
primarily the result of higher spot rates for the three months
ended December 31, 2022, as compared to the three months
ended December 31, 2021, which was partially offset by an
increase in bunker prices. TCE rates represent net revenues (or
revenue less voyage expenses) divided by revenue days. Net
revenue utilized to calculate TCE is determined on a
discharge-to-discharge basis, which is different from how we record
revenue under U.S. GAAP.
Vessel Operating Expenses. Vessel operating
expenses were $14.2 million for the
three months ended December 31, 2022, a decrease
of $1.6 million from $15.8 million for the
three months ended December 31, 2021. This decrease is
primarily attributable to the completion of the sales of the
Ardmore Sealeader, Ardmore Sealifter and Ardmore
Sealancer earlier in 2022. In addition, the decrease also
reflects the timing of vessel operating expenses between quarters.
Vessel operating expenses, by their nature, are prone to
fluctuations between periods.
Charter Hire Costs. 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 three months ended
December 31, 2021. This increase is the result of the
Company having five vessels chartered-in as of
December 31, 2022, compared to two vessel chartered-in as
of December 31, 2021. Total charter hire expense for the
three months ended December 31, 2022 was comprised of an
operating expense component of $3.1
million and a vessel lease expense component of $2.9 million.
Depreciation. Depreciation expense for the
three months ended December 31, 2022 was
$7.3 million, a decrease of
$0.7 million from $8.0 million for the three months ended
December 31, 2021. This decrease is a result of the sale
of one vessel in June 2022, and two
additional vessels in July 2022. All
three vessels were classified as held for sale up to their
respective delivery dates. We ceased depreciating these three
vessels, when they were classified as held for sale, during the
first quarter of 2022.
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the
three months ended December 31, 2022 was
$1.0 million, a decrease of
$0.3 million from $1.3 million for the three months ended
December 31, 2021. The deferred costs of drydockings for
a given vessel are amortized on a straight-line basis to the next
scheduled drydocking of the vessel.
General and Administrative Expenses: Corporate.
Corporate-related general and administrative expenses for the three
months ended December 31, 2022 were $5.3 million, an increase of $2.0 million from $3.3
million for the three months ended
December 31, 2021. The increase in costs was primarily
due to an increase in variable-based compensation, in line with
strong results, during the three months ended
December 31, 2022, compared to the three months ended
December 31, 2021.
General and Administrative Expenses: Commercial and
Chartering. Commercial and chartering expenses are the
expenses attributable to Ardmore's chartering and commercial
operations departments in connection with its spot trading
activities. Commercial and chartering expenses for the three months
ended December 31, 2022 were $1.3
million, an increase of $0.4
million from $0.9 million for
the three months ended December 31, 2021. The increase in
costs was primarily due to an increase in variable-based
compensation, in line with strong results, during the three months
ended December 31, 2022, compared to the three months
ended December 31, 2021.
Unrealized (Loss) / Gain on Derivatives:
Unrealized loss on derivatives was $1.3
million for the three months ended
December 31, 2022, a negative change of $1.5 million from an unrealized gain of
$0.2 million for the three months
ended December 31, 2021. The change is primarily due to
realized gains of $2.2 million on
interest rate swaps recognized during the three months ended
December 31, 2022, which resulted in
a decrease in the year-to-date unrealized gains to $3.0 million as of December 31, 2022 from $4.3 million as of September 30, 2022.
Interest Expense and Finance Costs. Interest
expense and finance costs for the three months ended
December 31, 2022 were $2.0
million, a decrease of $2.3
million from $4.3 million for
the three months ended December 31, 2021. The decrease in
costs primarily reflects the low outstanding balance on the
Company's revolving facility, with only $22.5 million drawn as of December 31, 2022, as well as the refinancing of
nine vessels into senior loan facilities, during the third and
fourth quarters of 2022, which were previously financed under lease
arrangements. Amortization of deferred finance fees for the
three months ended December 31, 2022 was
$0.3 million, generally consistent
with $0.4 million for the three
months ended December 31, 2021.
Loss on Extinguishment. Loss on extinguishment for
the three months ended December 31,
2022 was $0.9 million, an
increase of $0.9 million from
$0 for the three months ended
December 31, 2021. As a result of
deferred finance fees of $0.9 million
being written off following the prepayment of the debt related to
the exercises of the vessel purchase options, the loss on
extinguishment increased by $0.9
million for the three months ended December 31, 2022. The Company incurred no
corresponding loss or gain for three months ended December 31, 2021.
Liquidity
As of December 31, 2022, the Company had $220.6 million in liquidity available, with cash
and cash equivalents of $50.6 million
(December 31, 2021: $55.4
million) and amounts available and undrawn under its
revolving credit facilities of $170.0
million (December 31, 2021:
$11.6 million). The following debt
and lease liabilities (net of deferred finance fees) were
outstanding as of the dates indicated:
|
|
|
|
|
|
|
|
|
As at
|
|
|
December 31, 2022
|
|
December 31, 2021
|
Cash and cash
equivalents
|
|
$
|
50,569
|
|
$
|
55,449
|
|
|
|
|
|
|
|
Finance
leases
|
|
|
45,500
|
|
|
223,575
|
Senior Debt
|
|
|
103,112
|
|
|
114,467
|
Revolving Credit
Facilities
|
|
|
25,684
|
|
|
30,634
|
Total
debt
|
|
|
174,296
|
|
|
368,676
|
|
|
|
|
|
|
|
Total net
debt
|
|
$
|
123,727
|
|
$
|
313,227
|
Conference Call
The Company plans to host a conference call on February 14, 2023, at 12:00 p.m. Eastern
Time to discuss its results for the quarter ended
December 31, 2022. All interested parties are invited to
listen to the live conference call and review the related slide
presentation by choosing from the following options:
- By dialing 844–492–3728 (U.S.) or 412–542–4189 (International)
and referencing "Ardmore Shipping."
- By accessing the live webcast at Ardmore Shipping's website at
www.ardmoreshipping.com.
Participants should dial into the call 10 minutes before the
scheduled time.
If you are unable to participate at this time, an audio replay
of the call will be available through February 21, 2023 at 877–344–7529 or
412–317–0088. Enter the passcode 1945737 to access the audio
replay. A recording of the webcast, with associated slides, will
also be available on the Company's website. The information
provided on the teleconference is only accurate at the time of the
conference call, and the Company will take no responsibility for
providing updated information.
About Ardmore Shipping Corporation
Ardmore owns and operates a fleet of MR product and chemical
tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore
provides, through its modern, fuel-efficient fleet of mid-size
tankers, seaborne transportation of petroleum products and
chemicals worldwide to oil majors, national oil companies, oil and
chemical traders, and chemical companies.
Ardmore's core strategy is to continue to develop a modern,
high-quality fleet of product and chemical tankers, build key
long-term commercial relationships and maintain its cost advantage
in assets, operations and overhead, while creating synergies and
economies of scale as the company grows. Ardmore provides its
services to customers through voyage charters and time charters,
and enjoys close working relationships with key commercial and
technical management partners.
Ardmore's Energy Transition Plan ("ETP") focusses on three key
areas: transition technologies, transition projects, and
sustainable (non-fossil fuel) cargos. The ETP is an extension of
Ardmore's strategy, building on its core strengths of tanker
chartering, shipping operations, technical and operational fuel
efficiency improvements, technical management, construction
supervision, project management, investment analysis, and ship
finance. Ardmore has established Ardmore Ventures as Ardmore's
holding company for existing and future potential investments
related to the ETP and completed its first projects under the plan
in June 2021.
Ardmore Shipping
Corporation
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
As at
|
In thousands of U.S.
Dollars, except as indicated
|
|
December 31, 2022
|
|
December 31, 2021
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
50,569
|
|
55,449
|
Receivables, net of
allowance for bad debts of $2.2 million (2021: $0.8
million)
|
|
79,843
|
|
20,304
|
Prepaid expenses and
other assets
|
|
4,521
|
|
3,511
|
Advances and
deposits
|
|
2,160
|
|
3,551
|
Inventories
|
|
15,718
|
|
11,095
|
Current portion of
derivative assets
|
|
4,927
|
|
307
|
Total current
assets
|
|
157,738
|
|
94,217
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Investments and other
assets, net
|
|
11,219
|
|
11,082
|
Vessels and vessel
equipment, net
|
|
531,378
|
|
603,227
|
Deferred drydock
expenditures, net
|
|
4,716
|
|
8,879
|
Advances for ballast
water treatment and scrubber systems
|
|
5,530
|
|
2,033
|
Amount receivable in
respect of finance leases
|
|
—
|
|
2,880
|
Deferred finance fees,
net
|
|
2,717
|
|
—
|
Non-current portion of
derivative assets
|
|
—
|
|
982
|
Operating lease,
right-of-use asset
|
|
10,561
|
|
1,232
|
Total non-current
assets
|
|
566,121
|
|
630,315
|
|
|
|
|
|
TOTAL
ASSETS
|
|
723,859
|
|
724,532
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
8,814
|
|
8,578
|
Accrued expenses and
other liabilities
|
|
20,890
|
|
10,742
|
Deferred
revenue
|
|
1,220
|
|
2,070
|
Accrued interest on
debt and finance leases
|
|
863
|
|
651
|
Current portion of
long-term debt
|
|
12,927
|
|
15,103
|
Current portion of
finance lease obligations
|
|
1,857
|
|
21,084
|
Current portion of
operating lease obligations
|
|
6,358
|
|
273
|
Total current
liabilities
|
|
52,929
|
|
58,501
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Non-current portion of
long-term debt
|
|
115,869
|
|
129,998
|
Non-current portion of
finance lease obligations
|
|
43,643
|
|
205,371
|
Non-current portion of
operating lease obligations
|
|
3,969
|
|
722
|
Other non-current
liabilities
|
|
1,007
|
|
943
|
Total non-current
liabilities
|
|
164,488
|
|
337,034
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
217,417
|
|
395,535
|
|
|
|
|
|
Redeemable Preferred
Stock
|
|
|
|
|
Cumulative Series A
8.5% redeemable preferred stock
|
|
37,043
|
|
37,043
|
Total redeemable
preferred stock
|
|
37,043
|
|
37,043
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock
|
|
426
|
|
364
|
Additional paid in
capital
|
|
468,006
|
|
426,102
|
Accumulated other
comprehensive income
|
|
1,468
|
|
1,044
|
Treasury
stock
|
|
(15,636)
|
|
(15,636)
|
Retained earnings /
(accumulated deficit)
|
|
15,135
|
|
(119,920)
|
Total stockholders'
equity
|
|
469,399
|
|
291,954
|
|
|
|
|
|
Total redeemable
preferred stock and stockholders' equity
|
|
506,442
|
|
328,997
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
723,859
|
|
724,532
|
Ardmore Shipping
Corporation
|
Unaudited Condensed
Consolidated Statements of Operations
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
In thousands of U.S.
Dollars except per share and share data
|
|
December 31, 2022
|
|
December 31, 2021
|
|
December 31, 2022
|
|
December 31, 2021
|
Revenue, net
|
|
132,831
|
|
52,459
|
|
445,741
|
|
192,484
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
(39,506)
|
|
(24,592)
|
|
(153,729)
|
|
(88,578)
|
Vessel operating
expenses
|
|
(14,174)
|
|
(15,801)
|
|
(60,020)
|
|
(60,834)
|
Time
charter-in
|
|
|
|
|
|
|
|
|
Operating expense
component
|
|
(3,145)
|
|
(1,086)
|
|
(7,809)
|
|
(3,609)
|
Vessel lease expense
component
|
|
(2,894)
|
|
(999)
|
|
(7,185)
|
|
(3,321)
|
Depreciation
|
|
(7,250)
|
|
(8,009)
|
|
(29,276)
|
|
(31,703)
|
Amortization of
deferred drydock expenditures
|
|
(1,000)
|
|
(1,284)
|
|
(4,161)
|
|
(5,169)
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
Corporate
|
|
(5,347)
|
|
(3,341)
|
|
(19,936)
|
|
(16,071)
|
Commercial and
chartering
|
|
(1,308)
|
|
(928)
|
|
(4,171)
|
|
(3,126)
|
Unrealized (losses) /
gains on derivatives
|
|
(1,303)
|
|
222
|
|
2,961
|
|
276
|
Interest expense and
finance costs
|
|
(2,035)
|
|
(4,300)
|
|
(15,537)
|
|
(16,202)
|
Loss on
extinguishment
|
|
(888)
|
|
—
|
|
(1,576)
|
|
(569)
|
Interest
income
|
|
251
|
|
16
|
|
471
|
|
55
|
Loss on vessels
sold
|
|
—
|
|
—
|
|
(6,917)
|
|
—
|
|
|
|
|
|
|
|
|
|
Income / (loss)
before taxes
|
|
54,232
|
|
(7,643)
|
|
138,856
|
|
(36,367)
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(136)
|
|
(14)
|
|
(207)
|
|
(150)
|
Loss from equity method
investments
|
|
(159)
|
|
(258)
|
|
(195)
|
|
(317)
|
|
|
|
|
|
|
|
|
|
Net Income /
(Loss)
|
|
53,937
|
|
(7,915)
|
|
138,454
|
|
(36,834)
|
|
|
|
|
|
|
|
|
|
Preferred
dividend
|
|
(857)
|
|
(637)
|
|
(3,400)
|
|
(1,254)
|
|
|
|
|
|
|
|
|
|
Net Income / (Loss)
attributable to common stockholders
|
|
53,080
|
|
(8,552)
|
|
135,054
|
|
(38,088)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per
share, basic
|
|
1.31
|
|
(0.25)
|
|
3.63
|
|
(1.12)
|
Earnings / (Loss) per
share, diluted
|
|
1.28
|
|
(0.25)
|
|
3.52
|
|
(1.12)
|
|
|
|
|
|
|
|
|
|
Adjusted earnings /
(loss) (1)
|
|
53,968
|
|
(8,552)
|
|
143,547
|
|
(37,519)
|
Adjusted earnings /
(loss) per share, basic
|
|
1.33
|
|
(0.25)
|
|
3.86
|
|
(1.11)
|
Adjusted earnings /
(loss) per share, diluted
|
|
1.30
|
|
(0.25)
|
|
3.74
|
|
(1.11)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding, basic
|
|
40,591,137
|
|
34,363,884
|
|
37,235,599
|
|
33,882,932
|
Weighted average number
of shares outstanding, diluted
|
|
41,493,367
|
|
34,363,884
|
|
38,359,985
|
|
33,882,932
|
|
|
|
|
|
|
|
|
|
_____________________
|
(1) Adjusted earnings /
(loss) is a non-GAAP measure and is defined and reconciled under
the "Non-GAAP Measures" section.
|
Ardmore Shipping
Corporation
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
|
|
|
Year
Ended
|
In thousands of U.S.
Dollars
|
|
December 31, 2022
|
|
December 31, 2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
|
138,454
|
|
(36,834)
|
Adjustments to
reconcile net income / (loss) to net cash provided by / (used in)
operating activities:
|
|
|
|
|
Depreciation
|
|
29,276
|
|
31,703
|
Amortization of
deferred drydock expenditures
|
|
4,161
|
|
5,169
|
Share-based
compensation
|
|
3,057
|
|
2,613
|
Loss on vessels
sold
|
|
6,917
|
|
—
|
Amortization of
deferred finance fees
|
|
3,037
|
|
2,192
|
Unrealized (gains) on
derivatives
|
|
(2,961)
|
|
(276)
|
Foreign
exchange
|
|
2
|
|
(72)
|
Loss from equity method
investments
|
|
195
|
|
317
|
Deferred drydock
payments
|
|
(1,913)
|
|
(5,883)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
|
(59,559)
|
|
(2,495)
|
Prepaid expenses and
other assets
|
|
(1,010)
|
|
173
|
Advances and
deposits
|
|
1,391
|
|
(1,034)
|
Inventories
|
|
(4,623)
|
|
(821)
|
Accounts
payable
|
|
(1,612)
|
|
1,151
|
Accrued expenses and
other liabilities
|
|
10,033
|
|
(701)
|
Deferred
revenue
|
|
(850)
|
|
2,070
|
Accrued
interest
|
|
212
|
|
(157)
|
Net cash provided by
/ (used in) operating activities
|
|
124,207
|
|
(2,885)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Proceeds from sale of
vessels
|
|
39,912
|
|
9,895
|
Payments for
acquisition of vessels and vessel equipment
|
|
(1,335)
|
|
(2,475)
|
Advances for ballast
water treatment and scrubber systems
|
|
(2,473)
|
|
(158)
|
Payments for other
non-current assets
|
|
(106)
|
|
(94)
|
Payments for equity
investments
|
|
(588)
|
|
(5,541)
|
Net cash provided by
investing activities
|
|
35,410
|
|
1,627
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Prepayment of finance
lease obligation
|
|
(166,580)
|
|
—
|
Proceeds from long-term
debt
|
|
131,884
|
|
—
|
Repayments of long-term
debt
|
|
(148,245)
|
|
(66,912)
|
Proceeds from finance
leases
|
|
—
|
|
49,000
|
Repayments of finance
leases
|
|
(13,675)
|
|
(19,960)
|
Payments for deferred
finance fees
|
|
(3,505)
|
|
(980)
|
Issuance of common
stock, net
|
|
38,909
|
|
—
|
Issuance of preferred
stock, net
|
|
—
|
|
37,986
|
Payment of preferred
dividend
|
|
(3,285)
|
|
(792)
|
Net cash (used in)
financing activities
|
|
(164,497)
|
|
(1,658)
|
|
|
|
|
|
Net (decrease) in
cash and cash equivalents
|
|
(4,880)
|
|
(2,916)
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
55,449
|
|
58,365
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
50,569
|
|
55,449
|
Ardmore Shipping
Corporation
|
Unaudited Other
Operating Data
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31, 2022
|
|
December 31, 2021
|
|
December 31, 2022
|
|
December 31, 2021
|
In thousands of U.S.
Dollars except Fleet Data
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
66,298
|
|
5,454
|
|
192,696
|
|
16,335
|
Adjusted EBITDAR
(1)
|
|
69,192
|
|
N/A
|
|
199,881
|
|
N/A
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MR Eco-Design Tankers
Spot TCE per day (2)
|
|
43,174
|
|
11,024
|
|
35,150
|
|
10,931
|
|
|
|
|
|
|
|
|
|
Fleet TCE per day
(2)
|
|
38,861
|
|
11,390
|
|
30,618
|
|
11,216
|
|
|
|
|
|
|
|
|
|
Fleet operating
expenses per day (3)
|
|
6,499
|
|
6,141
|
|
6,372
|
|
5,967
|
Technical management
fees per day (4)
|
|
428
|
|
451
|
|
451
|
|
459
|
|
|
6,927
|
|
6,592
|
|
6,823
|
|
6,426
|
|
|
|
|
|
|
|
|
|
MR Eco-Design
Tankers
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
42,301
|
|
11,614
|
|
33,447
|
|
11,501
|
Vessel operating
expenses per day (5)
|
|
6,959
|
|
6,712
|
|
6,822
|
|
6,485
|
|
|
|
|
|
|
|
|
|
MR Eco-Mod
Tankers
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
40,990
|
|
10,950
|
|
30,727
|
|
10,667
|
Vessel operating
expenses per day (5)
|
|
8,010
|
|
6,366
|
|
6,905
|
|
6,359
|
|
|
|
|
|
|
|
|
|
Prod/Chem Eco-Design
Tankers (25k - 38k Dwt)
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
28,544
|
|
11,274
|
|
23,567
|
|
10,982
|
Vessel operating
expenses per day (5)
|
|
6,690
|
|
6,441
|
|
6,876
|
|
6,324
|
|
|
|
|
|
|
|
|
|
FLEET
|
|
|
|
|
|
|
|
|
Average number of
operating vessels
|
|
27.0
|
|
27.0
|
|
27.0
|
|
26.6
|
|
|
|
|
|
|
|
|
|
_____________________
|
(1)
|
Adjusted EBITDA and
Adjusted EBITDAR are non-GAAP measures and are defined and
reconciled to the most directly comparable U.S. GAAP measure under
the section of this release entitled "Non-GAAP
Measures."
|
(2)
|
Time Charter Equivalent
("TCE") rate, a non-GAAP measure, represents net revenues (revenues
less voyage expenses) divided by revenue days.
Revenue days are the total number of calendar days the
vessels are in the Company's possession less off-hire days
generally associated with drydocking or repairs and idle days
associated with repositioning of vessels held for sale. Net revenue
utilized to calculate the TCE rate is determined on a discharge to
discharge basis, which is different from how the Company records
revenue under U.S. GAAP. Under discharge to discharge, revenues are
recognized beginning from the discharge of cargo from the prior
voyage to the anticipated discharge of cargo in the current voyage,
and voyage expenses are recognized as incurred.
|
(3)
|
Fleet operating
expenses per day are routine operating expenses and comprise
crewing, repairs and maintenance, insurance, stores, lube oils and
communication expenses. These amounts do not include expenditures
related to vessel upgrades and enhancements or other non-routine
expenditures which were expensed during the period.
|
(4)
|
Technical management
fees are fees paid to third-party technical managers.
|
(5)
|
Vessel operating
expenses per day include technical management fees.
|
Ardmore Shipping
Corporation
|
Fleet Details at
December 31, 2022
|
(Expressed in
Millions of U.S. Dollars, other than per share
amount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Resale
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
Newbuilding
|
|
Depreciated
|
|
|
|
|
|
|
|
|
|
|
Eco
|
|
Price (1)
|
|
Replacement
|
Vessel
|
|
IMO
|
|
Built
|
|
Country
|
|
DWT
|
|
Specification
|
|
December 31, 2022
|
|
Value
(2)
|
Seavaliant
|
|
IMO2/3
|
|
Feb–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
30.37
|
Seaventure
|
|
IMO2/3
|
|
Jun–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
30.86
|
Seavantage
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
31.96
|
Seavanguard
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
32.09
|
Sealion
|
|
IMO2/3
|
|
May–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
34.38
|
Seafox
|
|
IMO2/3
|
|
Jun–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
34.53
|
Seawolf
|
|
IMO2/3
|
|
Aug–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
34.77
|
Seahawk
|
|
IMO2/3
|
|
Nov–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
35.16
|
Endeavour
|
|
IMO2/3
|
|
Jul–13
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
31.07
|
Enterprise
|
|
IMO2/3
|
|
Sep–13
|
|
S. Korea
|
|
49,453
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
31.36
|
Endurance
|
|
IMO2/3
|
|
Dec–13
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
31.78
|
Encounter
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,478
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
31.86
|
Explorer
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,494
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
31.99
|
Exporter
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
32.12
|
Engineer
|
|
IMO2/3
|
|
Mar–14
|
|
S. Korea
|
|
49,420
|
|
Eco-Design
|
|
$
|
48.00
|
|
$
|
32.25
|
Seafarer
|
|
IMO3
|
|
Jun-10
|
|
Japan
|
|
49,999
|
|
Eco-Mod
|
|
$
|
48.00
|
|
$
|
25.27
|
Dauntless
|
|
IMO2
|
|
Feb-15
|
|
S. Korea
|
|
37,764
|
|
Eco-Design
|
|
$
|
40.00
|
|
$
|
28.24
|
Defender
|
|
IMO2
|
|
Feb-15
|
|
S. Korea
|
|
37,791
|
|
Eco-Design
|
|
$
|
40.00
|
|
$
|
28.28
|
Cherokee
|
|
IMO2
|
|
Jan-15
|
|
Japan
|
|
25,215
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
24.43
|
Cheyenne
|
|
IMO2
|
|
Mar-15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
24.72
|
Chinook
|
|
IMO2
|
|
Jul-15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
25.13
|
Chippewa
|
|
IMO2
|
|
Nov-15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
25.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
668.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash / Debt / Work. Cap
/ Other Assets
|
|
$
|
(55.45)
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets) (3)
|
|
$
|
612.68
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
15.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ardmore Commercial
Management (5)
|
|
$
|
33.99
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets & Commercial Management) (3)
|
|
$
|
646.67
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
15.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Element 1
Corp. / e1 Marine (6)
|
|
$
|
10.78
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets, Commercial Management & Investments)
(3)
|
|
$
|
657.45
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)(6)
|
|
|
|
|
|
|
$
|
16.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
|
1.
|
Based on the average of
two broker estimates of prompt resale for a newbuild vessel of
equivalent deadweight tonne at a yard in South Korea as of December
31, 2022.
|
2.
|
Depreciated Replacement
Value ("DRV") is based on estimated resale price for a newbuild
vessel depreciated for the age of each vessel (assuming an
estimated useful life of 25 years on a straight-line basis and
assuming a residual scrap value of $300 per tonne, which is in line
with Ardmore's depreciation policy). The Company's estimates of DRV
assume that its vessels are all in good and seaworthy condition
without the need for repair and, if inspected, that they would be
certified in class without notations of any kind. Vessel values are
highly volatile and, as such, the Company's estimates of DRV may
not be indicative of the current or future value of its vessels, or
prices that the Company could achieve if it were to sell
them.
|
3.
|
DRV and DRV per share
are non-GAAP measures. Management believes that many investors use
DRV as a reference point in assessing valuation of fleets of ships
and similar assets.
|
4.
|
DRV / Share calculated
using 40,626,583 shares outstanding as of
December 31, 2022.
|
5.
|
Ardmore Commercial
Management is management's estimate of the value of Ardmore's
commercial management and pooling business. The estimate is based
on industry standard commercial management and pooling fees in
determining revenue less Ardmore's commercial and chartering
overhead (as stated in Ardmore's Statement of Operations) and
applying an illustrative multiple to the resulting net earnings of
7x. The multiple is illustrative only and may not be indicative of
the valuation multiple the Company could achieve if it were to sell
its commercial management and pooling business. Revenue of this
business is comprised of (i) commission (1.25% for standard product
tankers and 2.5% for chemical tankers) on gross freight based on
estimated current TCE rates grossed up for voyage expenses and (ii)
an administration fee of $300 per vessel per day. These rates may
vary over time.
|
6.
|
Valuation of
investments in Element 1 Corp. and e1 Marine LLC (a joint venture
with Element 1 Corp. and Maritime Partners, LLC, of which the
Company owns 33%) is at cost.
|
CO2 Emissions Reporting(1)
In April 2018, the International Maritime Organization's
("IMO") Marine Environment Protection Committee ("MEPC") adopted an
initial strategy for the reduction of greenhouse gas ("GHG")
emissions from ships, setting out a vision to reduce GHG emissions
from international shipping and phase them out as soon as possible.
Ardmore is committed to transparency and contributing to the
reduction of CO2 emissions in the Company's industry.
Ardmore's reporting methodology is in line with the framework set
out within the IMO's Data Collection System ("DCS") initiated in
2019.
On January 1, 2023 the BIMCO CII
Operations Clause for Time Charter Parties came into force. This
clause outlines that the charterer should take responsibility for a
ship's emissions. On this basis, Ardmore's GHG emissions analysis
has been updated to exclude the impact of ships time-chartered out
and to include the impact of ships time-chartered in. Previously
all vessels were included in Ardmore's analysis from the fleet
except for vessels commercially managed by Ardmore.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve months
ended
|
|
|
|
December 31, 2022
|
|
December 31, 2021
|
|
December 31, 2022
|
|
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
Number of Vessels in
Operation (at period end)
|
|
27
|
|
26
|
|
27
|
|
26
|
|
Fleet Average
Age
|
|
9.6
|
|
8.6
|
|
9.6
|
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
CO2 Emissions Generated
in Metric Tonnes
|
|
105,625
|
|
101,099
|
|
404,068
|
|
403,321
|
|
Distance Travelled
(Miles)
|
|
371,267
|
|
389,820
|
|
1,469,634
|
|
1,542,874
|
|
Fuel Consumed in Metric
Tonnes
|
|
33,437
|
|
31,998
|
|
127,912
|
|
127,397
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and
Tank Cleaning Emissions
|
|
|
|
|
|
|
|
|
|
Fuel Consumed in Metric
Tonnes
|
|
520
|
|
687
|
|
3,591
|
|
4,048
|
|
% of Total Fuel
Consumed
|
|
1.56 %
|
|
2.15 %
|
|
2.81 %
|
|
3.18 %
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency
Ratio (AER) for the period(2)
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
6.35g / tm
|
|
5.79g / tm
|
|
6.13g / tm
|
|
5.83g / tm
|
|
MR
Eco-Design
|
|
5.88g / tm
|
|
5.50g / tm
|
|
5.84g / tm
|
|
5.58g / tm
|
|
MR Eco-Mod
|
|
6.58g / tm
|
|
5.77g / tm
|
|
6.16g / tm
|
|
5.90g / tm
|
|
Chemical
|
|
8.07g / tm
|
|
7.43g / tm
|
|
7.63g / tm
|
|
7.19g / tm
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(3)
|
|
7.60g / tm
|
|
6.75g / tm
|
|
7.09g / tm
|
|
6.49g / tm
|
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency
Operational Indicator (EEOI) for the period
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
13.33g / ctm
|
|
11.42g / ctm
|
|
12.59g / ctm
|
|
12.04g / ctm
|
|
MR
Eco-Design
|
|
12.74g / ctm
|
|
11.13g / ctm
|
|
12.29g / ctm
|
|
12.02g / ctm
|
|
MR Eco-Mod
|
|
13.59g / ctm
|
|
10.51g / ctm
|
|
13.05g / ctm
|
|
11.30g / ctm
|
|
Chemical
|
|
15.23g / ctm
|
|
13.95g / ctm
|
|
12.96g / ctm
|
|
12.98g / ctm
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(3)
|
|
14.43g / ctm
|
|
12.67g / ctm
|
|
12.05g / ctm
|
|
11.72g / ctm
|
|
|
|
|
|
|
|
|
|
|
|
Wind Strength (%
greater than 4 on BF)
|
|
48.90 %
|
|
46.10 %
|
|
47.64 %
|
|
46.64 %
|
|
% Idle Time
|
|
3.32 %
|
|
3.69 %
|
|
2.91 %
|
|
4.59 %
|
|
|
|
|
|
|
|
|
|
|
|
tm =
tonne-mile
|
|
|
|
|
|
|
|
|
|
ctm = cargo
tonne-mile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ardmore Performance
It should be noted that results vary quarter to quarter
depending on ship activity, ballast / laden ratio, cargo carried,
weather, waiting time, time in port and vessel speed. However,
analysis is also presented on a trailing 12-month basis to provide
a more accurate assessment of Ardmore's progress over a longer
period and to mitigate seasonality. From a weather perspective
rougher weather (based on Beaufort
Scale wind force rating being greater than 4 BF) will
generally have a mitigating impact on the ability to optimize fuel
consumption while idle time will impact ships metrics as they will
still require power to run but will not be moving. Overall Ardmore
Shipping's carbon emissions for the full year 2022 have increased
0.2% to 404,068 metric tonnes of CO2, in comparison to the full
year 2021, primarily as a result of increased vessel speeds, as a
result of strong charter rates. Fleet EEOI for the period increased
4.6% to 12.59 g / ctm, from 12.04 g / ctm, while AER increased by
5.1% to 6.13 g / tm, from 5.83 g / tm.
Ardmore seeks to achieve continued improvements through a
combination of technological advancements and operational
optimization.
_____________________
|
1 Ardmore's emissions data is based
on the reporting tools and information reasonably available to
Ardmore and its applicable third-party technical managers for
Ardmore's owned fleet. Management assesses such data and may adjust
and restate the data to reflect latest information. It is expected
that the shipping industry will continue to refine the performance
measures for emissions and efficiency over time. AER and EEOI
metrics are impacted by external factors such as charter speed,
vessel orders and weather, in conjunction with overall market
factors such as cargo load sizes and fleet utilization rate. As
such, variance in performance can be found in the reported
emissions between two periods for the same vessel and between
vessels of a similar size and type. Furthermore, other companies
may report slight variations (e.g. some shipping companies report
CO2 in tonnes per kilometer as opposed to CO2
in tonnes per nautical mile) and consequently it is not always
practical to directly compare emissions from different companies.
The figures reported above represent Ardmore's initial findings;
the Company is committed to improving the methodology and
transparency of its emissions reporting in line with industry best
practices. Accordingly, the above results may vary as the
methodology and performance measures set out by the industry
evolve.
|
2 Annual Efficiency Ratio ("AER") is a
measure of carbon efficiency using the parameters of fuel
consumption, distance travelled, and design deadweight tonnage
("DWT"). AER is reported in unit grams of CO2 per
ton-mile (gCO2/dwt-nm). It is calculated by dividing (i)
mass of fuel consumed by type converted to metric tonnes of
CO2 by (ii) DWT multiplied by distance travelled in
nautical miles. A lower AER reflects better carbon
efficiency.
|
3 The
AER and EEOI figures are presented including the impact of cargo
heating and tank cleaning operations unless stated.
|
4 Energy Efficiency Operational
Indicator ("EEOI") is a tool for measuring CO2 gas
emissions in a given time period per unit of transport work
performed. It is calculated by dividing (i) mass of fuel consumed
by type converted to metric tonnes of CO2 by (ii) cargo
carried in tonnes multiplied by laden voyage distance in nautical
miles. This calculation is performed as per IMO MEPC.1/Circ684. A
lower EEOI reflects lower CO2 gas emissions in a given time period
per unit of transport work performed.
|
5 Idle time
is the amount of time a vessel is waiting in port or awaiting the
laycan or waiting in port/at sea unfixed.
|
Non-GAAP Measures
EBITDA + vessel lease expense component (i.e.
EBITDAR)
EBITDAR is defined as EBITDA (i.e. earnings before
interest, unrealized gains (losses) on interest rate derivatives,
taxes, depreciation and amortization) plus the vessel lease expense
component of total charter hire expense for chartered-in vessels.
Adjusted EBITDAR is defined as EBITDAR before certain items that
Ardmore believes are not representative of its operating
performance, including gain or loss on sale of vessels.
For the three months ended December 31,
2022, we recognized total charterhire expense of
$6.0 million in respect of time
charter-in vessels under operating leases. The total expense
includes (i) $2.9 million in respect
of the right to use the leased assets (i.e. vessel lease expense
component), and (ii) $3.1 million in
respect of the costs of operating the vessels (i.e. operating
expense component). Under US GAAP, the expense related to the right
to use the leased assets (i.e. capital component) is treated as an
operating item on our consolidated statement of operations, and is
not added back in our calculation of EBITDA. The treatment of
operating lease expenses differs under US GAAP as compared to
international financial reporting standards (IFRS). Under IFRS, the
expense of an operating lease is presented in depreciation and
interest expense.
Many companies in our industry report under IFRS; we, therefore
use EBITDAR and Adjusted EBITDAR as tools to compare our valuation
with the valuation of these other companies in our industry. We do
not use EBITDAR and Adjusted EBITDAR as measures of performance or
liquidity. We present below reconciliations of net income / (loss)
attributable to common stockholders to EBITDAR (which includes an
adjustment for vessel lease operating expenses) and Adjusted
EBITDAR.
EBITDAR and Adjusted EBITDAR, as presented, may not be directly
comparable to similarly titled measures presented by other
companies. In addition, EBITDAR and Adjusted EBITDAR should not be
viewed as measures of overall performance since they exclude vessel
rent, which is a normal, recurring cash operating expense related
to our in-chartering of vessels that is necessary to operate our
business. Accordingly, you are cautioned not to place undue
reliance on this information.
EBITDA, Adjusted EBITDA, Adjusted earnings / (loss) and
Adjusted Earnings (for purposes of dividend
calculations)
EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) are not
measures prepared in accordance with U.S. GAAP and are defined and
reconciled below. EBITDA is defined as earnings before interest,
unrealized gains/(losses) on interest rate derivatives, taxes,
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
before certain items that Ardmore believes are not representative
of its operating performance, including gain or loss on sale of
vessels. Adjusted earnings / (loss) excludes certain items from net
income / (loss) attributable to common stockholders, including gain
or loss on sale of vessels and write-off of deferred finance fees
(i.e., loss on extinguishment) because they are considered to be
not representative of the Company's operating performance.
EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) are
presented in this press release as the Company believes that they
provide investors with a means of evaluating and understanding how
Ardmore's management evaluates operating performance. EBITDA and
Adjusted EBITDA increase the comparability of the Company's
fundamental performance from period to period. This increased
comparability is achieved by excluding the potentially disparate
effects between periods of interest expense, taxes, depreciation or
amortization, which items are affected by various and possibly
changing financing methods, capital structure and historical cost
basis and which items may significantly affect net income between
periods. The Company believes that including EBITDA, Adjusted
EBITDA and Adjusted earnings / (loss) as financial and operating
measures assists investors in making investment decisions regarding
the Company and its common stock.
For purposes solely of the quarterly dividend calculation,
Adjusted Earnings represents the Company's Adjusted earnings for
the quarter ended December 31, 2022,
but excluding the impact of unrealized gains / (losses) and certain
non-recurring items.
These non-GAAP measures should not be considered in isolation
from, as substitutes for, or superior to, financial measures
prepared in accordance with U.S. GAAP. In addition, these non-GAAP
measures may not have a standardized meaning and therefore may not
be comparable to similar measures presented by other companies.
|
|
|
|
|
|
|
Reconciliation of
net income to EBITDA, Adjusted EBITDA and Adjusted
EBITDAR
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31, 2022
|
|
|
December 31, 2022
|
|
In thousands of U.S.
Dollars
|
|
|
|
|
|
|
Net income
|
|
53,937
|
|
|
138,454
|
|
Interest
income
|
|
(251)
|
|
|
(471)
|
|
Interest expense and
finance costs
|
|
2,035
|
|
|
15,537
|
|
Loss on
extinguishment
|
|
888
|
|
|
1,576
|
|
Income tax
|
|
136
|
|
|
207
|
|
Unrealized loss /
(gains) on derivatives
|
|
1,303
|
|
|
(2,961)
|
|
Depreciation
|
|
7,250
|
|
|
29,276
|
|
Amortization of
deferred drydock expenditures
|
|
1,000
|
|
|
4,161
|
|
EBITDA
|
|
66,298
|
|
|
185,779
|
|
Loss on vessels
sold
|
|
—
|
|
|
6,917
|
|
ADJUSTED
EBITDA
|
|
66,298
|
|
|
192,696
|
|
Plus: Vessel lease
expense component
|
|
2,894
|
|
|
7,185
|
|
ADJUSTED
EBITDAR
|
|
69,192
|
|
|
199,881
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income / (loss) attributable to common stockholders to Adjusted
earnings / (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31, 2022
|
|
December 31, 2021
|
|
December 31, 2022
|
|
December 31, 2021
|
In thousands of U.S.
Dollars except per share data
|
|
|
|
|
|
|
|
|
Net income / (loss)
attributable to common stockholders
|
|
53,080
|
|
(8,552)
|
|
135,054
|
|
(38,088)
|
Loss on vessels
sold
|
|
—
|
|
—
|
|
6,917
|
|
—
|
Loss on
extinguishment
|
|
888
|
|
—
|
|
1,576
|
|
569
|
Adjusted earnings /
(loss)
|
|
53,968
|
|
(8,552)
|
|
143,547
|
|
(37,519)
|
|
|
|
|
|
|
|
|
|
Adjusted earnings /
(loss) per share, basic
|
|
1.33
|
|
(0.25)
|
|
3.86
|
|
(1.11)
|
Adjusted earnings /
(loss) per share, diluted
|
|
1.30
|
|
(0.25)
|
|
3.74
|
|
(1.11)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding, basic
|
|
40,591,137
|
|
34,363,884
|
|
37,235,599
|
|
33,882,932
|
Weighted average number
of shares outstanding, diluted
|
|
41,493,367
|
|
34,363,884
|
|
38,359,985
|
|
33,882,932
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
for purposes of dividend calculation
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
December 31, 2022
|
|
|
|
|
|
|
In thousands of U.S.
Dollars except per share data
|
|
|
|
|
|
|
|
|
Adjusted
earnings
|
|
53,968
|
|
|
|
|
|
|
Unrealized
losses
|
|
1,303
|
|
|
|
|
|
|
Adjusted earnings for
dividend calculation
|
|
55,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend to be
paid
|
|
18,424
|
|
|
|
|
|
|
Dividend Per Share
(DPS)
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
outstanding as of December 31, 2022
|
|
40,626,583
|
|
|
|
|
|
|
Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. In some
cases, you can identify the forward-looking statements by the use
of words such as "believe", "anticipate", "intends", "estimate",
"forecast", "plan", "potential", "may", "expect", and similar
expressions.
Forward looking statements in this press release include, among
others, statements regarding: future operating or financial
results, including future earnings; global and regional economic
conditions and trends; shipping market trends and market
fundamentals, including tanker demand and supply and future spot
and charter rates; the effect of the COVID-19 pandemic and
Russia's invasion of the
Ukraine (including from related
sanctions and import bans) on the tanker market, energy supply
chains and the Company's business, financial condition and the
results of operation; expected employment of the Company's vessels
during the first quarter of 2023; expected drydocking and
repositioning days in the first quarter of 2023; the Company's
ability to pursue and implement strategic objectives, its capital
allocation policy and deliver additional shareholder value due to
the strength of the Company's balance sheet, operating performance
and results; management's estimates of the Depreciated Replacement
Value (DRV) of its vessels and of the value of the Company's
commercial management and pooling business; trends in the Company's
performance as measured by energy efficiency and emission-reduction
metrics; the impact of energy transition on the Company and the
markets in which the Company operates; expected continuation of
refinement by the Company of performance measures for emissions and
efficiency and the timing and payment of quarterly dividends by the
Company. The forward-looking statements in this press release are
based upon various assumptions, including, without limitation,
Ardmore management's examination of historical operating trends,
data contained in the Company's records and other data available
from third parties. Although the Company believes that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company's control, the Company cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections. The Company cautions readers of this release not to
place undue reliance on these forward-looking statements, which
speak only as of their dates. The Company undertakes no obligation
to update or revise any forward-looking statements. These
forward-looking statements are not guarantees of the Company's
future performance, and actual results and future developments may
vary materially from those projected in the forward-looking
statements.
In addition to these important factors, other important factors
that, in the Company's view, could cause actual results to differ
materially from those discussed in the forward-looking statements
include: the strength of world economies and currencies; general
market conditions, including fluctuations in spot and charter rates
and vessel values; changes in demand for and the supply of tanker
vessel capacity; changes in the projections of spot and time
charter or pool trading of the Company's vessels; the effect of the
COVID-19 pandemic and Russia's
invasion of the Ukraine (including
the related EU ban on Russian refined products) on, among others,
oil demand, the Company's business, financial condition and results
of operation, including its liquidity; fluctuations in oil prices
or demand; changes in the Company's operating expenses, including
bunker prices, drydocking and insurance costs; general domestic and
international political conditions; potential disruption of
shipping routes due to accidents, piracy or political events; the
market for the Company's vessels; competition in the tanker
industry; availability of financing and refinancing; changes in
governmental rules and regulations or actions taken by
regulatory authorities; the Company's ability to charter vessels
for all remaining revenue days during the first quarter of
2023 in the spot market; vessel breakdowns and instances of
off-hire; the Company's operating results and capital requirements,
and the declaration of any future dividends by the Company's board
of directors; and other factors. Please see the Company's filings
with the U.S. Securities and Exchange Commission, including the
Company's Form 20–F for the year ended December 31, 2021, for a more complete discussion
of these and other risks and uncertainties.
Investor Relations Enquiries:
|
|
Mr. Leon
Berman
|
Mr. Bryan
Degnan
|
The IGB
Group
|
The IGB
Group
|
45 Broadway, Suite
1150
|
45 Broadway, Suite
1150
|
New York, NY
10006
|
New York, NY
10006
|
Tel:
212–477–8438
|
Tel:
646–673–9701
|
Fax:
212–477–8636
|
Fax:
212–477–8636
|
Email:
lberman@igbir.com
|
Email:
bdegnan@igbir.com
|
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content:https://www.prnewswire.com/news-releases/ardmore-shipping-corporation-announces-financial-results-for-the-three-and-twelve-months-ended-december-31-2022-301746253.html
SOURCE Ardmore Shipping Corporation