Ardmore Reports Fourth Quarter Net Income of USD 53.1 Million

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Ardmore Shipping Corporation 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.”

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