HAMILTON, Bermuda, July 27, 2021 /PRNewswire/ -- Ardmore
Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we")
today announced results for the three and six months ended
June 30, 2021.
Highlights and Recent Activity
- Reported a net loss of $8.1
million for the three months ended June 30, 2021,
or $0.24 loss per basic and diluted
share, which includes deferred finance fees written off and
unrealized losses on derivatives; losses adjusted for these items
(see Adjusted (loss) / earnings in the Non-GAAP Measures section)
are $7.6 million, or $0.23 Adjusted loss per basic and diluted share.
This compares to net income of $13.6
million, or $0.41 earnings per
basic and diluted share, for the three months ended
June 30, 2020. Adjusted earnings were $13.7 million or $0.41 Adjusted earnings per basic and diluted
share for the three months ended June 30, 2020.
Reported EBITDA (see Non-GAAP Measures section) of
$5.4 million for the three months
ended June 30, 2021 as compared to $27.9 million for the three months ended
June 30, 2020.
- Reported a net loss of $16.6
million for the six months ended June 30, 2021 or
$0.50 loss per basic and diluted
share, which includes deferred finance fees written off and
unrealized gains on derivatives; losses adjusted for these items
(see Adjusted (loss) / earnings in the Non-GAAP Measures section)
are $16.1 million, or $0.48 Adjusted loss per basic and diluted share.
This compares to net income of $20.1
million or $0.61 basic and
$0.60 diluted earnings per share for
the six months ended June 30, 2020. Adjusted earnings
were $20.2 million or $0.61 Adjusted earnings per basic and diluted
share for the six months ended June 30, 2020.
- Reported EBITDA (see Non-GAAP Measures section) of $9.9 million for the six months ended
June 30, 2021, as compared to $48.9 million for the six months ended
June 30, 2020.
- MR tankers earned $11,640 per day
overall for the three months ended June 30, 2021 and
$11,406 per day for the six months
ended June 30, 2021. Chemical tankers earned $12,308 per day for the three months ended
June 30, 2021 and $12,127
per day for the six months ended June 30, 2021.
- On June 17, 2021, Ardmore
completed its previously-announced strategic investment in Element
1 Corp.'s methanol-to-hydrogen technology through the establishment
of the e1 Marine joint venture with affiliates of Element 1 Corp
and Maritime Partners, LLC and Ardmore's purchase of a 10% equity
stake in Element 1 Corp. In a related transaction, the affiliate of
Maritime Partners, LLC also invested $25.0
million in the Company's newly created Series A 8.5%
Cumulative Redeemable Perpetual Preferred Shares.
- On June 25, 2021, Ardmore
completed the refinancing of two vessels, the Ardmore
Seawolf and Ardmore
Seahawk, which were refinanced with an existing
lender. The net cash proceeds to the Company of these
transactions, after prepayment of existing debt, were $15.5 million in the aggregate.
- On June 4, 2021, Ardmore entered
into an agreement to charter-in a 2009 Japanese-built MR product
tanker for a period of eight months at a net rate of
approximately $11,850 per day, plus a four-month
extension option. Delivery occurred in mid-June 2021.
- As part of its Energy Transition Plan, on May 18, 2021, Ardmore announced that it plans to
install Lean Marine's
FuelOpt™ propulsion optimization technology across its
entire fleet following the successful trial of this technology on
the MR tanker, Ardmore Sealion.
Anthony Gurnee, the Company's
Chief Executive Officer, commented:
"Product tanker charter rates improved in the second quarter
on the back of increasing global economic activity driving an
ongoing recovery in oil demand. While oil demand remains well below
pre-COVID levels, it is currently recovering rapidly, with the IEA
forecasting a further 4 million barrels per day by the end of the
year. We are now in a seasonally slow charter market which we
believe will persist through August, but thereafter we expect
charter rates to improve markedly through the autumn and into the
winter months. Increasing refinery dislocation, which has
accelerated as a result of the pandemic, is boosting tonne-mile
demand for product tankers, and we believe this positive impact
will be more evident as aggregate oil demand returns to pre-COVID
levels this winter.
Meanwhile, operating performance and financial strength
remain our top priorities. Our fleet continues to perform very well
relative to our peers under challenging market conditions, and, as
a consequence of the recent financing transactions, we have a
substantial amount of cash and undrawn lines affording considerable
financial flexibility. In terms of our Energy Transition Plan,
we closed the Element 1 transactions in June and are looking ahead
to further progress in our other initiatives focused on fuel
efficiency, emissions reduction, and future fuels including e1
Marine.
This continues to be a difficult period most of all for our
seafarers, and we are working hard to ensure the continued health
and welfare of our crew and their families. We want to sincerely
thank them and acknowledge the contribution they have made to
keeping the global economy moving over the past 16
months."
Summary of Recent and Second Quarter 2021 Events
Fleet
Fleet Operations and Employment
As at June 30, 2021, the Company had 27 vessels in
operation, 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.
MR Tankers (45,000 Dwt – 49,999 Dwt)
At the end of the second quarter of 2021, the Company had 21 MR
tankers trading in the spot market or on time charters. The MR
tankers earned an average TCE rate of $11,640 per day in the second quarter of 2021. In
the second quarter of 2021, the Company's 15 Eco-Design MR tankers
earned an average TCE rate of $11,805
and the Company's six Eco-Mod MR tankers earned an average TCE rate
of $11,130 per day.
In the third quarter of 2021, the Company expects to have 27% of
its revenue days for its MR Eco-Design tankers on time
charter. The remaining 73% of days for its MR Eco-Design and all of
its MR Eco-Mod tankers are expected to be employed in the spot
market. As of July 27, 2021, the
Company had fixed approximately 40% of its total MR
revenue days for the third quarter of 2021 at an average TCE
rate of approximately $10,000 per
day.
Product / Chemical Tankers (IMO 2: 25,000 Dwt –
37,800 Dwt)
At the end of the second quarter of 2021, the Company had six
Eco-Design IMO 2 product / chemical tankers in operation, all of
which were trading in the spot market. During the second quarter of
2021, the Company's six Eco-Design product / chemical vessels
earned an average TCE rate of $12,308
per day.
In the third quarter of 2021, the Company expects to have all
revenue days for its Eco-Design IMO 2 product / chemical
tankers employed in the spot market. As of July 27, 2021, the Company had fixed
approximately 35% of its Eco-Design IMO 2 product / chemical
tankers spot revenue days for the third quarter of 2021 at an
average TCE rate of approximately $10,000 per day.
Drydocking
The Company had no drydock or repositioning days in the second
quarter of 2021. The Company expects to have 80 drydock days
in the third quarter of 2021.
Capital Allocation Policy
Consistent with the Company's capital allocation policy, the
Company is not declaring a dividend, in respect of its common
shares, for the second quarter of 2021.
Element 1 Strategic Investments and Maritime Partners, LLC
Preferred Stock Financing
On June 17, 2021, the Company
completed its previously-announced strategic investment in Element
1 Corp.'s methanol-to-hydrogen technology through the establishment
of the e1 Marine joint venture with affiliates of Element 1 Corp
and Maritime Partners, LLC and the Company's purchase of a 10%
equity stake in Element 1 Corp. In a related transaction, the
affiliate of Maritime Partners, LLC also invested $25.0 million in the Company's newly created
Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares.
These represented the initial transactions under the Company's
Energy Transition Plan.
Refinancing of Two Vessels
On June 25, 2021, the Company
completed financing transactions for two vessels, the Ardmore
Seawolf and Ardmore
Seahawk, which were refinanced with an existing
lender. The net cash proceeds to the Company of these
transactions, after prepayment of existing debt, were $15.5 million in the aggregate.
Vessel Addition
On June 4, 2021, the Company
entered into an agreement to charter-in a 2009 Japanese-built MR
product tanker for a period of eight months at a net rate of
approximately $11,850 per day, plus a four-month
extension option. Delivery occurred in mid-June 2021.
Fuel Optimization Technology
As part of its Energy Transition Plan, on May 18, 2021, the Company announced that it plans
to install Lean Marine's
FuelOpt™ propulsion optimization technology across its
entire fleet following the successful trial of this technology on
the MR tanker, Ardmore Sealion.
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 has resulted and may continue to 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 could 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, new information which may emerge
concerning the virus and of its variants and the level of the
effectiveness and delivery of vaccines and other actions to contain
or treat its impact. Accordingly, an estimate of the impact on the
Company cannot be made at this time.
Results for the three months ended June 30, 2021
and 2020
The Company reported a net loss of $8.1
million for the three months ended June 30, 2021,
or $0.24 loss per basic and diluted
share, as compared to net income of $13.6
million, or $0.41 earnings per
basic and diluted share for the three months ended
June 30, 2020. The Company reported EBITDA (see Non-GAAP
Measures section) of $5.4 million for
the three months ended June 30, 2021 as compared to
$27.9 million for the three months
ended June 30, 2020.
The Company reported an Adjusted loss (see Non–GAAP Measures
section) of $7.6 million for the
three months ended June 30, 2021, or a $0.23 Adjusted loss per basic and diluted share,
as compared to Adjusted earnings of $13.7
million, or $0.41 Adjusted
earnings per basic and diluted share, for the three months ended
June 30, 2020.
Results for the six months ended June 30, 2021 and
2020
The Company reported a net loss of $16.6
million for the six months ended June 30, 2021, or
$0.50 loss per basic and diluted
share, as compared to net income of $20.1
million, or $0.61 basic and
$0.60 diluted earnings per share for
the six months ended June 30, 2020. The Company reported
EBITDA (see Non-GAAP Measures section) of $9.9 million for the six months ended
June 30, 2021 as compared to $48.9
million for the six months ended
June 30, 2020.
The Company reported an Adjusted loss (see Non–GAAP Measures
section) of $16.1 million for the six
months ended June 30, 2021, or a $0.48 Adjusted loss per basic and diluted share,
as compared to Adjusted earnings of $20.2
million, or $0.61 Adjusted
earnings per basic and diluted share, for the six months ended
June 30, 2020.
Management's Discussion and Analysis of Financial Results for
the three months ended June 30, 2021 and 2020
Revenue. Revenue for the three months ended
June 30, 2021 was $47.3
million, a decrease of $20.6
million from $67.9 million for
the three months ended June 30, 2020.
The Company's average number of operating vessels increased to
26.1 for the three months ended June 30, 2021.
The Company had four product tankers employed under time
charters as at June 30, 2021 compared with none
as at June 30, 2020. Revenue days derived from time
charters were 361 for the three months ended
June 30, 2021, as compared to none for the three months
ended June 30, 2020. The increase in revenue days for
time-chartered vessels resulted in an increase in revenue
of $5.1 million.
The Company had 2,004 spot revenue days for the
three months ended June 30, 2021, as compared to
2,269 for the three months ended June 30, 2020. The
Company had 23 and 25 vessels employed directly in the spot market
as at June 30, 2021 and 2020, respectively. The decrease
in spot revenue days resulted in a decrease in revenue of
$7.9 million, while changes in spot
rates resulted in a decrease in revenue of $18.0 million for the three months ended
June 30, 2021 as compared to the three months ended
June 30, 2020.
Voyage Expenses. Voyage expenses were $20.5 million for the three months ended
June 30, 2021, a decrease of $0.4
million from $20.9 million for
the three months ended June 30, 2020. Voyage
expenses decreased primarily due to the decrease in spot days for
the three months ended June 30, 2021, as compared to
the three months ended June 30, 2020.
TCE Rate. The average TCE rate for the Company's
fleet was $11,796 per day for the
three months ended June 30, 2021, a decrease of
$8,276 per day from $20,072 per day for the three months ended
June 30, 2020. The decrease in average TCE rate was the
result of lower spot rates for the three months ended
June 30, 2021, as compared to the three months ended
June 30, 2020. TCE rates represent net revenues (or
revenue less voyage expenses) divided by revenue days.
Vessel Operating Expenses. Vessel operating
expenses were $15.1 million for the three months
ended June 30, 2021, an increase of $0.8
million from $14.3 million for the three months
ended June 30, 2020. This increase is due to the timing
of vessel operating expenses between quarters. Vessel operating
expenses, by their nature, are prone to fluctuations between
periods. Average fleet operating expenses per day, including
technical management fees, were $6,398 per vessel for the
three months ended June 30, 2021, as compared
to $6,325 per vessel for the three months ended
June 30, 2020.
Charter Hire Costs. Charter hire costs were
$1.4 million for the three months
ended June 30, 2021. There were no charter hire costs
incurred in the three months ended June 30, 2020. Ardmore
chartered-in one vessel in September
2020 and another in June
2021.
Depreciation. Depreciation expense for the
three months ended June 30, 2021 was $7.9 million, consistent with $7.9 million for the three months ended
June 30, 2020.
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the
three months ended June 30, 2021 was $1.3 million, a decrease of $0.2 million from $1.5
million for the three months ended
June 30, 2020. 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 June 30, 2021 were $4.3 million, an increase of $0.3 million from $4.0
million for the three months ended
June 30, 2020.
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 June 30, 2021 were $0.7
million, a decrease of $0.2
million from $0.9 million for
the three months ended June 30, 2020.
Unrealized Losses on Derivatives.
Unrealized losses on derivatives for the three months ended
June 30, 2021 was $0.0m
compared to $0.1 million for the
three months ended June 30, 2020. The loss for the three
months ended June 30, 2021 relates to derivatives entered
into in May 2020 that are not
designated as hedging instruments.
Interest Expense and Finance Costs. Interest
expense and finance costs include loan interest, finance lease
interest, and amortization of deferred finance fees. Interest
expense and finance costs for the three months ended
June 30, 2021 were $4.3
million, a decrease of $0.5
million from $4.8 million for
the three months ended June 30, 2020. Cash interest
expense decreased by $1.2 million to
$3.2 million for the
three months ended June 30, 2021, from $4.4 million for the three months ended
June 30, 2020, primarily due to a decreased average LIBOR
during the three months ended June 30, 2021, as
compared to the three months ended June 30, 2020, as
well as the Company entering into three-year floating-to-fixed
interest rate swap agreements during the second quarter of 2020
with an average fixed interest rate of 0.32%. Amortization of
deferred finance fees for the three months ended
June 30, 2021 was $1.0
million, an increase of $0.6
million from $0.4 million for
the three months ended June 30, 2020.
Liquidity
As at June 30, 2021, the Company had $77.0 million in liquidity available, with cash
and cash equivalents of $55.4 million
(December 31, 2020: $58.4
million) and amounts available and undrawn under its
revolving credit facilities of $21.6
million (December 31, 2020:
$0.0 million). During the second
quarter of 2021, the Company decreased the outstanding amounts
under its revolving credit facilities through a $32.5 million repayment. The following debt and
lease liabilities (net of deferred finance fees) were outstanding
as at the dates indicated:
|
|
|
|
|
|
|
|
|
As at
|
|
|
June 30, 2021
|
|
December 31, 2020
|
Cash
|
|
$
|
55,421,015
|
|
$
|
58,365,330
|
|
|
|
|
|
|
|
Finance leases (net
of sellers' credit)
|
|
|
233,699,699
|
|
|
194,824,384
|
Senior
Debt
|
|
|
122,344,252
|
|
|
157,710,865
|
Revolving Credit
Facilities
|
|
|
21,116,243
|
|
|
53,631,491
|
Total
debt
|
|
|
377,160,194
|
|
|
406,166,740
|
|
|
|
|
|
|
|
Total net
debt
|
|
$
|
321,739,179
|
|
$
|
347,801,410
|
Conference Call
The Company plans to have a conference call on July 27, 2021 at 10:00 a.m. Eastern Time to
discuss its results for the quarter ended June 30, 2021.
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 August
3, 2021 at 877–344–7529 or 412–317–0088. Enter the passcode
10158719 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 seaborne transportation of petroleum products and
chemicals worldwide to oil majors, national oil companies, oil and
chemical traders, and chemical companies, with its modern,
fuel-efficient fleet of mid-size tankers.
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, commercial pools,
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 Energy Transition Plan and completed its first
projects under the ETP in June
2021.
Ardmore Shipping
Corporation
Unaudited Interim
Condensed Consolidated Balance Sheets
(Expressed in U.S.
Dollars, except for shares)
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|
|
|
|
|
|
|
As
at
|
|
|
June 30, 2021
|
|
December 31, 2020
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
55,421,015
|
|
58,365,330
|
Receivables, net of
allowance for bad debts of $0.8 million (2020: $0.5
million)
|
|
16,633,765
|
|
17,808,496
|
Prepaid expenses and
other assets
|
|
3,618,459
|
|
3,683,910
|
Advances and
deposits
|
|
4,247,135
|
|
2,516,646
|
Inventories
|
|
9,457,085
|
|
10,274,062
|
Vessel held for
sale
|
|
—
|
|
9,895,000
|
Total current
assets
|
|
89,377,459
|
|
102,543,444
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Investments and other
assets, net
|
|
10,906,384
|
|
678,632
|
Vessels and vessel
equipment, net
|
|
616,921,427
|
|
631,458,305
|
Deferred drydock
expenditures, net
|
|
8,449,824
|
|
10,216,090
|
Advances for ballast
water treatment systems
|
|
2,726,753
|
|
2,568,874
|
Amount receivable in
respect of finance leases
|
|
2,880,000
|
|
2,880,000
|
Non-current portion
of derivative assets
|
|
246,830
|
|
—
|
Operating lease,
right-of-use asset
|
|
1,471,226
|
|
1,662,510
|
Total non-current
assets
|
|
643,602,444
|
|
649,464,411
|
|
|
|
|
|
TOTAL
ASSETS
|
|
732,979,903
|
|
752,007,855
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
6,017,704
|
|
9,125,321
|
Accrued expenses and
other liabilities
|
|
10,245,268
|
|
11,233,767
|
Charter revenue
received in advance
|
|
975,970
|
|
—
|
Accrued interest on
debt and finance leases
|
|
714,189
|
|
769,304
|
Current portion of
long-term debt
|
|
15,050,339
|
|
22,456,396
|
Current portion of
finance lease obligations
|
|
24,344,250
|
|
18,454,222
|
Current portion of
derivative liabilities
|
|
381,336
|
|
397,418
|
Current portion of
operating lease obligations
|
|
379,946
|
|
463,559
|
Total current
liabilities
|
|
58,109,002
|
|
62,899,987
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Non-current portion
of long-term debt
|
|
128,028,820
|
|
188,054,568
|
Non-current portion
of finance lease obligations
|
|
212,235,449
|
|
179,250,162
|
Non-current portion
of derivative liabilities
|
|
—
|
|
433,974
|
Non-current portion
of operating lease obligations
|
|
882,456
|
|
1,034,218
|
Total non-current
liabilities
|
|
341,146,725
|
|
368,772,922
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
399,255,727
|
|
431,672,909
|
|
|
|
|
|
Preferred
Stock
|
|
|
|
|
Cumulative Series A
8.5% cumulative preferred redeemable preferred stock
|
|
23,047,291
|
|
—
|
Total preferred
stock
|
|
23,047,291
|
|
—
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common
stock
|
|
363,839
|
|
352,067
|
Additional paid in
capital
|
|
424,629,576
|
|
418,180,983
|
Accumulated other
comprehensive loss
|
|
(144,023)
|
|
(729,135)
|
Treasury
stock
|
|
(15,635,765)
|
|
(15,635,765)
|
Accumulated
deficit
|
|
(98,536,742)
|
|
(81,833,204)
|
Total
stockholders' equity
|
|
310,676,885
|
|
320,334,946
|
|
|
|
|
|
Total
stockholders' equity and preferred stock
|
|
333,724,176
|
|
320,334,946
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
732,979,903
|
|
752,007,855
|
Ardmore Shipping
Corporation
Unaudited Interim
Condensed Consolidated Statements of Operations
(Expressed in U.S.
Dollars, except for shares)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30, 2021
|
|
June 30, 2020
|
|
June 30, 2021
|
|
June 30, 2020
|
Revenue,
net
|
|
47,274,052
|
|
67,932,494
|
|
92,825,372
|
|
133,126,009
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
(20,492,951)
|
|
(20,871,765)
|
|
(40,885,002)
|
|
(44,534,157)
|
Vessel operating
expenses
|
|
(15,077,122)
|
|
(14,313,236)
|
|
(29,580,332)
|
|
(29,999,390)
|
Charter hire
costs
|
|
(1,359,626)
|
|
—
|
|
(2,563,882)
|
|
—
|
Depreciation
|
|
(7,906,716)
|
|
(7,945,434)
|
|
(15,715,663)
|
|
(15,800,393)
|
Amortization of
deferred drydock expenditures
|
|
(1,267,511)
|
|
(1,492,328)
|
|
(2,750,033)
|
|
(2,777,670)
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
Corporate
|
|
(4,259,967)
|
|
(3,987,796)
|
|
(8,436,867)
|
|
(7,973,474)
|
Commercial and
chartering
|
|
(686,922)
|
|
(852,364)
|
|
(1,446,717)
|
|
(1,719,751)
|
Unrealized (losses) /
gains on derivatives
|
|
(21,523)
|
|
(99,292)
|
|
80,049
|
|
(99,292)
|
Interest expense and
finance costs
|
|
(4,311,306)
|
|
(4,782,484)
|
|
(8,087,733)
|
|
(10,229,105)
|
Interest
income
|
|
17,397
|
|
73,988
|
|
29,991
|
|
218,190
|
|
|
|
|
|
|
|
|
|
(Loss) / income
before taxes
|
|
(8,092,195)
|
|
13,661,783
|
|
(16,530,817)
|
|
20,210,967
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(33,373)
|
|
(78,260)
|
|
(91,214)
|
|
(108,763)
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income
|
|
(8,125,568)
|
|
13,583,523
|
|
(16,622,031)
|
|
20,102,204
|
|
|
|
|
|
|
|
|
|
Preferred
dividend
|
|
(81,507)
|
|
—
|
|
(81,507)
|
|
—
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income attributable to common stockholders
|
|
(8,207,075)
|
|
13,583,523
|
|
(16,703,538)
|
|
20,102,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) / earnings per
share, basic
|
|
(0.24)
|
|
0.41
|
|
(0.50)
|
|
0.61
|
(Loss) / earnings per
share, diluted
|
|
(0.24)
|
|
0.41
|
|
(0.50)
|
|
0.60
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) /
earnings (1)
|
|
(7,551,867)
|
|
13,682,815
|
|
(16,133,242)
|
|
20,201,496
|
Adjusted (loss) /
earnings per share, basic
|
|
(0.23)
|
|
0.41
|
|
(0.48)
|
|
0.61
|
Adjusted (loss) /
earnings per share, diluted
|
|
(0.23)
|
|
0.41
|
|
(0.48)
|
|
0.61
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding, basic
|
|
33,500,030
|
|
33,247,848
|
|
33,394,008
|
|
33,222,383
|
Weighted average
number of shares outstanding, diluted
|
|
33,500,030
|
|
33,356,978
|
|
33,394,008
|
|
33,357,635
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted (loss) /
earnings is a non-GAAP measure and is defined and reconciled under
the "Non-GAAP Measures" section. Adjusted (loss) / earnings has
been calculated as Earnings per share reported under US GAAP as
adjusted for unrealized and realized gains and losses (see Non-GAAP
Measures Section).
|
Ardmore Shipping
Corporation
Unaudited Interim
Condensed Consolidated Statements of Cash Flows
(Expressed in U.S.
Dollars)
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
June 30, 2021
|
|
June 30, 2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income
|
|
(16,622,031)
|
|
20,102,204
|
Adjustments to
reconcile net (loss) / income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
15,715,663
|
|
15,800,393
|
Amortization of
deferred drydock expenditures
|
|
2,750,033
|
|
2,777,670
|
Share-based
compensation
|
|
1,140,365
|
|
1,630,702
|
Amortization of
deferred finance fees
|
|
1,401,083
|
|
867,309
|
Unrealized (gains) /
losses on derivatives
|
|
(80,049)
|
|
99,292
|
Foreign
exchange
|
|
(44,091)
|
|
(19,971)
|
Deferred drydock
expenditures
|
|
(3,329,971)
|
|
(3,566,595)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
|
1,174,731
|
|
(3,164,624)
|
Prepaid expenses and
other assets
|
|
65,451
|
|
284,417
|
Advances and
deposits
|
|
(1,730,489)
|
|
(643,816)
|
Inventories
|
|
816,977
|
|
3,587,431
|
Accounts
payable
|
|
(1,114,311)
|
|
(1,902,923)
|
Accrued expenses and
other liabilities
|
|
(713,097)
|
|
(4,536,813)
|
Charter revenue
received in advance
|
|
975,970
|
|
—
|
Accrued interest on
debt and finance leases
|
|
(88,868)
|
|
(189,254)
|
Net cash provided
by operating activities
|
|
317,366
|
|
31,125,422
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Proceeds from sale of
vessels
|
|
9,895,000
|
|
—
|
Payments for
acquisition of vessels and vessel equipment
|
|
(1,056,926)
|
|
(860,418)
|
Advances for ballast
water treatment systems
|
|
(157,879)
|
|
(365,712)
|
Payments for other
non-current assets
|
|
(33,792)
|
|
(61,836)
|
Payments for equity
investments
|
|
(4,997,802)
|
|
—
|
Net cash provided
by / (used in) investing activities
|
|
3,648,601
|
|
(1,287,966)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
long-term debt
|
|
—
|
|
10,178,101
|
Repayments of
long-term debt
|
|
(68,511,781)
|
|
(7,904,486)
|
Proceeds from finance
leases
|
|
49,000,000
|
|
—
|
Repayments of finance
leases
|
|
(9,465,792)
|
|
(9,261,596)
|
Payments for deferred
finance fees
|
|
(980,000)
|
|
—
|
Payment of
dividend
|
|
—
|
|
(1,659,308)
|
Issuance of preferred
stock, net
|
|
23,047,291
|
|
—
|
Net cash (used in)
financing activities
|
|
(6,910,282)
|
|
(8,647,289)
|
|
|
|
|
|
Net (decrease) /
increase in cash and cash equivalents
|
|
(2,944,315)
|
|
21,190,167
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
58,365,330
|
|
51,723,107
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
55,421,015
|
|
72,913,274
|
Ardmore Shipping
Corporation
Unaudited Other
Operating Data
(Expressed in U.S.
Dollars, unless otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30, 2021
|
|
June 30, 2020
|
|
June 30, 2021
|
|
June 30, 2020
|
EBITDA
(1)
|
|
5,397,464
|
|
27,907,333
|
|
9,912,572
|
|
48,899,237
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MR Tankers Eco-Design
Spot TCE per day (2)
|
|
11,255
|
|
21,539
|
|
11,197
|
|
20,551
|
|
|
|
|
|
|
|
|
|
Fleet TCE per day
(2)
|
|
11,796
|
|
20,072
|
|
11,576
|
|
19,738
|
|
|
|
|
|
|
|
|
|
Fleet operating
expenses per day (3)
|
|
5,942
|
|
5,864
|
|
5,903
|
|
5,946
|
Technical management
fees per day (4)
|
|
456
|
|
461
|
|
466
|
|
459
|
|
|
6,398
|
|
6,325
|
|
6,369
|
|
6,405
|
|
|
|
|
|
|
|
|
|
MR Tankers
Eco-Design
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
11,805
|
|
21,539
|
|
11,676
|
|
20,551
|
Vessel operating
expenses per day (5)
|
|
6,530
|
|
6,293
|
|
6,397
|
|
6,327
|
|
|
|
|
|
|
|
|
|
MR Tankers
Eco-Mod
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
11,130
|
|
20,192
|
|
10,606
|
|
19,266
|
Vessel operating
expenses per day (5)
|
|
6,201
|
|
6,463
|
|
6,419
|
|
6,511
|
|
|
|
|
|
|
|
|
|
Prod/Chem Tankers
Eco-Design (25k - 38k Dwt)
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
12,308
|
|
16,337
|
|
12,127
|
|
17,864
|
Vessel operating
expenses per day (5)
|
|
6,200
|
|
6,313
|
|
6,265
|
|
6,528
|
|
|
|
|
|
|
|
|
|
FLEET
|
|
|
|
|
|
|
|
|
Average number of
owned operating vessels
|
|
25.0
|
|
25.0
|
|
25.1
|
|
25.0
|
|
|
|
|
|
(1)
|
EBITDA is a non-GAAP
measure and is defined and reconciled to the most directly
comparable U.S. GAAP measure under the "Non-GAAP Measures"
section.
|
(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 TCE 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 upgradings 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
June 30, 2021
(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
|
|
June 30, 2021
|
|
Value
(2)
|
Seavaliant
|
|
IMO2/3
|
|
Feb–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.40
|
Seaventure
|
|
IMO2/3
|
|
Jun–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.78
|
Seavantage
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.63
|
Seavanguard
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.74
|
Sealion
|
|
IMO2/3
|
|
May–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.52
|
Seafox
|
|
IMO2/3
|
|
Jun–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.63
|
Seawolf
|
|
IMO2/3
|
|
Aug–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.82
|
Seahawk
|
|
IMO2/3
|
|
Nov–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
30.12
|
Endeavour
|
|
IMO2/3
|
|
Jul–13
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.95
|
Enterprise
|
|
IMO2/3
|
|
Sep–13
|
|
S. Korea
|
|
49,453
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.17
|
Endurance
|
|
IMO2/3
|
|
Dec–13
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.49
|
Encounter
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,494
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.56
|
Explorer
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,478
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.66
|
Exporter
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.76
|
Engineer
|
|
IMO2/3
|
|
Mar–14
|
|
S. Korea
|
|
49,420
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.86
|
Sealeader
|
|
IMO3
|
|
Jun–08
|
|
Japan
|
|
47,451
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
19.52
|
Sealifter
|
|
IMO3
|
|
Aug–08
|
|
Japan
|
|
47,463
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
19.81
|
Sealancer
|
|
IMO3
|
|
Jul–08
|
|
Japan
|
|
47,472
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
19.64
|
Seafarer
|
|
IMO3
|
|
Jun–10
|
|
Japan
|
|
49,999
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
22.41
|
Dauntless
|
|
IMO2
|
|
Feb–15
|
|
S. Korea
|
|
37,764
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
26.76
|
Defender
|
|
IMO2
|
|
Feb–15
|
|
S. Korea
|
|
37,791
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
26.80
|
Cherokee
|
|
IMO2
|
|
Jan–15
|
|
Japan
|
|
25,215
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
23.83
|
Cheyenne
|
|
IMO2
|
|
Mar–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
24.09
|
Chinook
|
|
IMO2
|
|
Jul–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
24.45
|
Chippewa
|
|
IMO2
|
|
Nov–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
24.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
652.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash / Debt / Work.
Cap / Other Assets
|
|
$
|
(310.35)
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets) (3)
|
|
$
|
341.83
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
9.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ardmore Commercial
Management (5)
|
|
$
|
21.59
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets & Commercial Management) (3)
|
|
$
|
363.42
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
10.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Element
1 Corp. / e1 Marine (6)
|
|
$
|
10.32
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets, Commercial Management & Investments)
(3)
|
|
$
|
373.74
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)(6)
|
|
|
|
|
|
|
$
|
10.88
|
|
|
|
|
|
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 at
June 30, 2021.
|
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.
|
Depreciated Asset
Value ("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 34,363,884 shares outstanding as at
June 30, 2021.
|
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) administration fee of $300 per vessel per day. These
rates may vary over time.
|
6.
|
Valuation of
investment in E1 Corp. and e1 Marine (a JV with E1 Corp and
Maritime Partners, of which ASC owns 33%) are 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
June 30, 2021
|
|
June 30, 2020
|
|
June 30, 2021
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Number of Owned &
TC-In Vessels in Operation (at period end)
|
|
27
|
|
25
|
|
27
|
|
25
|
|
Fleet Average
Age
|
|
8.1
|
|
6.9
|
|
8.1
|
|
6.9
|
|
|
|
|
|
|
|
|
|
|
|
CO2
Emissions Generated in Metric Tonnes
|
|
101,217
|
|
96,825
|
|
386,125
|
|
405,655
|
|
Distance Travelled
(Miles)
|
|
394,987
|
|
369,932
|
|
1,439,074
|
|
1,480,913
|
|
Fuel Consumed in
Metric Tonnes
|
|
31,922
|
|
30,484
|
|
121,798
|
|
128,782
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and
Tank Cleaning Fuel Consumption
|
|
|
|
|
|
|
|
|
|
Fuel Consumed in
Metric Tonnes
|
|
796
|
|
604
|
|
4,563
|
|
N/A
|
|
% of Total Fuel
Consumed
|
|
2.49%
|
|
1.98%
|
|
3.75%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency
Ratio (AER) for the period (2)
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
5.72g / tm
|
|
5.89g / tm
|
|
5.99g / tm
|
|
6.16g / tm
|
|
MR
Eco-Design
|
|
5.59g / tm
|
|
5.67g / tm
|
|
5.76g / tm
|
|
5.76g / tm
|
|
MR Eco-Mod
|
|
5.64g / tm
|
|
6.00g / tm
|
|
6.16g / tm
|
|
6.34g / tm
|
|
Chemical
|
|
6.84g / tm
|
|
6.95g / tm
|
|
7.18g / tm
|
|
7.92g / tm
|
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency
Operational Indicator (EEOI) for the period
(3)
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
12.23g /
ctm
|
|
10.82g /
ctm
|
|
12.95g /
tm
|
|
12.00g /
ctm
|
|
MR
Eco-Design
|
|
13.25g /
ctm
|
|
10.73g /
ctm
|
|
13.09g /
tm
|
|
11.55g /
ctm
|
|
MR Eco-Mod
|
|
9.86g /
ctm
|
|
10.08g /
ctm
|
|
12.83g /
tm
|
|
11.76g /
ctm
|
|
Chemical
|
|
12.47g /
ctm
|
|
11.91g /
ctm
|
|
12.66g /
tm
|
|
13.86g /
ctm
|
|
|
|
|
|
|
|
|
|
|
|
Wind Force (% greater
than 4 on BF)
|
|
42.70%
|
|
34.90%
|
|
46.19%
|
|
43.36%
|
|
% Idle Time
(4)
|
|
4.58%
|
|
4.77%
|
|
5.92%
|
|
7.70%
|
|
|
|
|
|
|
|
|
|
|
|
tm =
tonne-mile
|
|
|
|
|
|
|
|
|
|
ctm = cargo
tonne-mile
|
|
|
|
|
|
|
|
|
|
Ardmore Performance
Note: results vary quarter to quarter depending on ship
activity, ballast / laden ratio, cargo carried, weather, waiting
time and time in port, however analysis is presented on a trailing
12-month basis to provide a more accurate assessment of Ardmore's
progress and to mitigate any seasonality.
From a weather perspective the second quarter had much rougher
weather than the same period last year (based on Beaufort Scale wind force rating being greater
than 4), and this would have had a mitigating impact on efficiency.
It is also evident that heated cargoes were higher in the quarter,
which means there were emissions unrelated to the efficiency of our
ships, while the variance in idle time over the quarter is
negligible.
On a trailing 12-month basis Ardmore Shipping's carbon emissions
were 386,125 metric tonnes of CO2, a decrease of 4.8% in comparison
to the same 12-month period from 2019 to 2020. On an overall basis
the AER for the period has decreased by 2.9% to 5.99 g / tm, from
6.16 g / tm from the prior period. While the EEOI shows an increase
of a 7.9% to 12.95 g / ctm, from 12.00 g / ctm.
Continued improvements are being achieved 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 kilometre 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
|
3 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
|
4 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
This press release describes EBITDA and Adjusted (loss) /
earnings, which are not measures prepared in accordance with U.S.
GAAP and are defined and reconciled below. EBITDA is defined as
earnings before interest, unrealized losses / (gains) on
derivatives, taxes, depreciation and amortization. Adjusted
(loss) / earnings excludes certain items from net (loss) / income,
including gain or loss on sale of vessels, write-off of deferred
finance fees and unrealized gains (losses) on derivatives because
they are considered to be not representative of its operating
performance.
These non-GAAP measures 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 increases 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
and Adjusted (loss) / earnings as financial and operating measures
assists investors in making investment decisions regarding the
Company and its common stock.
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. All
amounts in the tables below are expressed in U.S. dollars, unless
otherwise stated.
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
Reconciliation of
net (loss) / income to EBITDA
|
|
June 30, 2021
|
|
June 30, 2020
|
|
June 30, 2021
|
|
June 30, 2020
|
Net (loss) /
income
|
|
(8,125,568)
|
|
13,583,523
|
|
(16,622,031)
|
|
20,102,204
|
Interest
income
|
|
(17,397)
|
|
(73,988)
|
|
(29,991)
|
|
(218,190)
|
Interest expense and
finance costs
|
|
4,311,306
|
|
4,782,484
|
|
8,087,733
|
|
10,229,105
|
Income tax
|
|
33,373
|
|
78,260
|
|
91,214
|
|
108,763
|
Unrealized losses /
(gains) on derivatives
|
|
21,523
|
|
99,292
|
|
(80,049)
|
|
99,292
|
Depreciation
|
|
7,906,716
|
|
7,945,434
|
|
15,715,663
|
|
15,800,393
|
Amortization of
deferred drydock expenditures
|
|
1,267,511
|
|
1,492,328
|
|
2,750,033
|
|
2,777,670
|
EBITDA
|
|
5,397,464
|
|
27,907,333
|
|
9,912,572
|
|
48,899,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
Reconciliation of
net (loss) / income to Adjusted (loss) / earnings
|
|
June 30, 2021
|
|
June 30, 2020
|
|
June 30, 2021
|
|
June 30, 2020
|
Net (loss) /
income
|
|
(8,125,568)
|
|
13,583,523
|
|
(16,622,031)
|
|
20,102,204
|
Write-off of deferred
finance fees
|
|
552,178
|
|
—
|
|
568,838
|
|
—
|
Unrealized losses /
(gains) on derivatives
|
|
21,523
|
|
99,292
|
|
(80,049)
|
|
99,292
|
Adjusted (loss)/
earnings
|
|
(7,551,867)
|
|
13,682,815
|
|
(16,133,242)
|
|
20,201,496
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) /
earnings per share, basic
|
|
(0.23)
|
|
0.41
|
|
(0.48)
|
|
0.61
|
Adjusted (loss) /
earnings per share, diluted
|
|
(0.23)
|
|
0.41
|
|
(0.48)
|
|
0.61
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding, basic
|
|
33,500,030
|
|
33,247,848
|
|
33,394,008
|
|
33,222,383
|
Weighted average
number of shares outstanding, diluted
|
|
33,500,030
|
|
33,356,978
|
|
33,394,008
|
|
33,357,635
|
|
|
|
|
|
|
|
|
|
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, the following statements: future operating or financial
results; global and regional economic conditions and trends;
shipping market trends and market fundamentals, including tanker
demand and supply and future growth rates; the effect of the
COVID-19 pandemic on the Company's business, financial condition
and the results of operation; the Company's expectations regarding
the timing and impact of economic recovery from the pandemic;
expected employment of the Company's vessels during the third
quarter of 2021; expected drydocking days in the third quarter
of 2021; implementation of the Company's Energy Transition Plan;
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 shipping industry of performance measures for
emissions and efficiency; and the anticipated results of the
Company's joint venture and investment transactions involving
affiliates of Element 1 Corp and Maritime Partners, LLC. 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 amount of the world tanker fleet used for storage
purposes; current expected spot rates compared with current and
expected charter rates; the failure of counterparties to fully
perform their contracts with the Company; the strength of world
economies and currencies; general market conditions, including
fluctuations in 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 on, among
others, oil demand, the Company's business, financial condition and
results of operation, including its liquidity; fluctuations in oil
prices; 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; charter
counterparty performance; 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 third quarter of 2021 in the spot
market; vessels breakdowns and instances of off-hire; actual
performance of Element 1's technology and systems, particularly in
the marine environment; the level and timing of adoption of the
technology by participants in the marine industry; 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, 2020, 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
|
View original
content:https://www.prnewswire.com/news-releases/ardmore-shipping-corporation-announces-financial-results-for-the-three-and-six-months-ended-june-30-2021-301341665.html
SOURCE Ardmore Shipping Corporation