Ardmore Posts 2021 Net Loss In Weak Tanker Market

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Ardmore Shipping Corporation announced results for the three and twelve months ended December 31, 2021.

Highlights and Recent Activity

  • Reported a net loss of $8.6 million for the three months ended December 31, 2021, or $0.25 loss per basic and diluted share. This compares to a net loss of $19.5 million, or $0.59 loss per basic and diluted share, for the three months ended December 31, 2020. Reported Adjusted EBITDA, which includes unrealized losses on derivatives and amortization of drydock expenditure (see Non-GAAP Measures section), of $5.5 million for the three months ended December 31, 2021 as compared to $0.9 million for the three months ended December 31, 2020.
  • Reported a net loss of $38.1 million for the year ended December 31, 2021 or $1.12 loss per basic and diluted share, which includes deferred finance fees written off; losses adjusted for these items (see Adjusted (loss) / earnings in the Non-GAAP Measures section) are $37.5 million, or $1.11 Adjusted loss per basic and diluted share. This compares to a net loss of $6.0 million, or $0.18 loss per basic and diluted share, and Adjusted earnings of $0.4 million, or $0.01 Adjusted earnings per basic and diluted share, for the year ended December 31, 2020. Reported Adjusted EBITDA (see Non-GAAP Measures section) of $16.6 million for the year ended December 31, 2021, as compared to $57.0 million for the year ended December 31, 2020.
  • MR tankers earned an average TCE rate of $11,424 per day for the three months ended December 31, 2021 and $11,286 per day for the year ended December 31, 2021. Chemical tankers earned an average TCE rate of $11,274 per day for the three months ended December 31, 2021 and $10,982 per day for the year ended December 31, 2021.
  • In November 2021, e1 Marine announced it has signed a memorandum of understanding with Maritime Partners LLC, Elliott Bay Design Group and ABB to develop the world’s first methanol-to-hydrogen fueled towboat, Hydrogen One, which will be powered by e1 Marine’s reformer technology.
  • In December 2021, Ardmore completed the issuance of an additional 15,000 Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares to Maritime Partners, LLC for a purchase price of $15.0 million.

Anthony Gurnee, the Company’s Chief Executive Officer, commented:

“The tanker market overall was weak throughout 2021, lagging other shipping sectors mainly due to the pandemic’s negative impact on mobility and transport fuels. Given the direct connection to economic activity and consumer demand, the product and chemical tanker sectors did recover in the fourth quarter along with the global economy; however, it was not until year-end that charter rates began to properly improve, as reflected in our fourth quarter results.

Based upon clear and encouraging fundamentals, we expect our sectors to continue a recovery in 2022 from an already improved first quarter to-date, but also potentially influenced by many competing factors, including the evolution of the pandemic and the global economy, geopolitical concerns, and currently high oil prices impacting cargo movement and bunker costs.

Notwithstanding these factors, the big picture is very much one of an ongoing economic recovery, rising tonne-mile demand, and a tight tonnage supply outlook aided by heightened tanker scrapping and a rush of newbuilding orders in other shipping sectors that has pushed tanker newbuilding prices up and delivery schedules out.

Given this outlook, we have been increasing our spot exposure, while continuing a financially conservative stance in view of the potential cross currents in the market. Moving forward, Ardmore remains well positioned in terms of market upside and financial strength, with a high-quality modern fleet and a strong balance sheet.”