HAMILTON, Bermuda, Feb. 15, 2022 /PRNewswire/ -- Ardmore
Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we")
today 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."
Summary of Recent and Fourth Quarter 2021 Events
Fleet
Fleet Operations and Employment
As at December 31, 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 fourth 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 $11,424 per day in the fourth quarter of 2021. In
the fourth quarter of 2021, the Company's 15 Eco-Design MR tankers
earned an average TCE rate of $11,614
and the Company's six Eco-Mod MR tankers earned an average TCE rate
of $10,950 per day.
In the first quarter of 2022, the Company expects to have 18% of
its revenue days for its MR Eco-Design tankers on time
charter. The remaining 82% 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 February 15, 2022, the
Company had fixed approximately 60% of its total MR
revenue days for the first quarter of 2022 at an average TCE
rate of approximately $13,725 per
day.
Product / Chemical Tankers (IMO 2: 25,000 Dwt –
37,800 Dwt)
At the end of the fourth 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 fourth quarter of
2021, the Company's six Eco-Design product / chemical vessels
earned an average TCE rate of $11,274
per day.
In the first quarter of 2022, 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 15, 2022, the Company had fixed
approximately 70% of its Eco-Design IMO 2 product / chemical
tankers spot revenue days for the first quarter of 2022 at an
average TCE rate of approximately $13,325 per day.
Drydocking
The Company had no drydock or repositioning days in the fourth
quarter of 2021. The Company does not expect to have any
drydock days in the first quarter of 2022.
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 fourth quarter of 2021.
Financing
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
Investments: e1 Marine and Element 1 Corp
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.
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 of the
COVID-19 pandemic on the Company cannot be made at this time.
Results for the three months ended
December 31, 2021 and 2020
The Company 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, as compared 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. The Company
reported Adjusted EBITDA (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.
Results for the year ended December 31, 2021 and
2020
The Company reported a net loss of $38.1
million for the year ended December 31, 2021, or
$1.12 loss per basic and diluted
share, as compared to a net loss of $6.0
million, or $0.18 loss per
basic and diluted share, for the year ended
December 31, 2020. The Company reported Adjusted EBITDA
(see Non-GAAP Measures section) of $16.6
million for the year ended December 31, 2021, as
compared to Adjusted EBITDA of $57.0
million for the year ended December 31, 2020.
The Company reported an Adjusted loss (see Non–GAAP Measures
section) of $37.5 million for the
year ended December 31, 2021, or $1.11 Adjusted loss per basic and diluted share,
as compared to Adjusted earnings of $0.4
million, or $0.01 Adjusted
earnings per basic and diluted share, for the year ended
December 31, 2020.
Management's Discussion and Analysis of Financial Results for
the three months ended December 31, 2021 and 2020
Revenue. Revenue for the three months ended
December 31, 2021 was $52.5
million, an increase of $10.8
million from $41.7 million for
the three months ended December 31, 2020.
The Company's average number of operating vessels increased to
27 for the three months ended
December 31, 2021, compared to 26 for the three
months ended December 31, 2020.
The Company had four product tankers employed under time
charters as at December 31, 2021, compared with none
as at December 31, 2020. Revenue days derived from time
charters were 364 for the three months ended
December 31, 2021, as compared to none for the three
months ended December 31, 2020. The increase in revenue
days for time-chartered vessels resulted in an increase in revenue
of $5.3 million.
The Company had 2,112 spot revenue days for the
three months ended December 31, 2021, as compared to
2,267 for the three months ended December 31, 2020.
The Company had 23 and 26 vessels employed directly in the spot
market as of the years ended December 31, 2021 and 2020,
respectively. The decrease in spot revenue days resulted in a
decrease in revenue of $2.9 million,
while changes in spot rates resulted in an increase in revenue of
$8.1 million for the
three months ended December 31, 2021, as compared to
the three months ended December 31, 2020. The Company
managed four third party chemical tankers employed under spot as at
December 31, 2021, compared with none
as at December 31, 2020. This
resulted in an increase in revenue of $0.3
million.
Voyage Expenses. Voyage expenses were $24.6 million for the three months ended
December 31, 2021, an increase of $4.7 million from $19.9
million for the three months ended
December 31, 2020. Voyage expenses increased primarily
due to the increase in bunker prices resulting in an increase of
$6.1 million, partially offset by a
decrease in spot revenue days of $1.4
million for the three months ended
December 31, 2021, as compared to the three months
ended December 31, 2020.
TCE Rate. The average TCE rate for the Company's
fleet was $11,390 per day for the
three months ended December 31, 2021, an increase of
$1,626 per day from $9,764 per day for the three months ended
December 31, 2020. The increase in average TCE rate was
the result of higher spot rates for the three months ended
December 31, 2021, as compared to the three months ended
December 31, 2020. TCE rates represent net revenues (or
revenue less voyage expenses) divided by revenue days.
Vessel Operating Expenses. Vessel operating
expenses were $15.8 million for the
three months ended December 31, 2021, a decrease
of $0.6 million from $16.4 million for the
three months ended December 31, 2020. This decrease
is due to one less vessel in operation in the three months ended
December 31, 2021, as compared to the
three months ended December 31, 2020.
Vessel operating expenses, by their nature, are prone to
fluctuations between periods. Average fleet operating expenses per
day, including technical management fees, were $6,592 per
vessel for the three months ended December 31, 2021,
as compared to $6,518 per vessel for the three months
ended December 31, 2020.
Charter Hire Costs. Charter hire costs were
$2.1 million for the three months
ended December 31, 2021, an increase of $0.9 million from $1.2
million for the three months ended
December 31, 2020. The Company currently has two vessels
chartered-in, as compared to one vessel chartered-in as at
December 31, 2020.
Depreciation. Depreciation expense for the
three months ended December 31, 2021 was
$8.0 million, as compared to
$8.3 million for the
three months ended December 31, 2020.
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the
three months ended December 31, 2021 was
$1.3 million, a decrease of
$0.4 million from $1.7 million for the three months ended
December 31, 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 December 31, 2021 were $3.3 million, an increase of $0.2 million from $3.1
million for the three months ended
December 31, 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 December 31, 2021 were $0.9
million, an increase of $0.7
million from $0.2 million for
the three months ended December 31, 2020.
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
December 31, 2021 were $4.3
million, an increase of $0.4
million from $3.9 million for
the three months ended December 31, 2020. Cash
interest expense increased by $0.4
million to $3.8 million for
the three months ended December 31, 2021, from
$3.4 million for the
three months ended December 31, 2020, primarily due
to increased interest costs following the refinancing of two
vessels in June 2021. Amortization of
deferred finance fees for the three months ended
December 31, 2021 was $0.4
million, consistent with $0.5
million for the three months ended
December 31, 2020.
Liquidity
As at December 31, 2021, the Company had $67.0 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 $11.6
million (December 31, 2020:
$0.0 million). During the fourth
quarter of 2021, the Company decreased the outstanding amounts
under its revolving credit facilities through a $23.0 million repayment. The following debt and
lease liabilities (net of deferred finance fees) were outstanding
as at the dates indicated:
|
|
|
|
|
|
|
|
|
As at
|
|
|
December 31, 2021
|
|
December 31, 2020
|
Cash
|
|
$
|
55,448,895
|
|
$
|
58,365,330
|
|
|
|
|
|
|
|
Finance leases (net
of sellers' credit)
|
|
|
223,574,677
|
|
|
194,824,384
|
Senior
Debt
|
|
|
114,467,634
|
|
|
157,710,865
|
Revolving Credit
Facilities
|
|
|
30,633,757
|
|
|
53,631,491
|
Total
debt
|
|
|
368,676,068
|
|
|
406,166,740
|
|
|
|
|
|
|
|
Total net
debt
|
|
$
|
313,227,173
|
|
$
|
347,801,410
|
Conference Call
The Company plans to have a conference call on February 15, 2022 at 10:00 a.m. Eastern Time
to discuss its results for the quarter and year ended
December 31, 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 February 22, 2022 at 877–344–7529 or
412–317–0088. Enter the passcode 6746358 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 Consolidated Balance Sheets
(Expressed in U.S. Dollars, except for shares)
|
|
|
|
|
|
|
|
|
As
at
|
|
|
December 31, 2021
|
|
December 31, 2020
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
55,448,895
|
|
58,365,330
|
Receivables, net of
allowance for bad debts of $0.8 million (2020: $0.5
million)
|
|
20,303,507
|
|
17,808,496
|
Prepaid expenses and
other assets
|
|
3,511,349
|
|
3,683,910
|
Advances and
deposits
|
|
3,550,942
|
|
2,516,646
|
Inventories
|
|
11,095,318
|
|
10,274,062
|
Current portion of
derivative assets
|
|
306,912
|
|
—
|
Vessel held for
sale
|
|
—
|
|
9,895,000
|
Total current
assets
|
|
94,216,923
|
|
102,543,444
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Investments and other
assets, net
|
|
11,081,579
|
|
678,632
|
Vessels and vessel
equipment, net
|
|
603,227,228
|
|
631,458,305
|
Deferred drydock
expenditures, net
|
|
8,878,578
|
|
10,216,090
|
Advances for ballast
water treatment systems
|
|
2,032,894
|
|
2,568,874
|
Amount receivable in
respect of finance leases
|
|
2,880,000
|
|
2,880,000
|
Non-current portion
of derivative assets
|
|
981,835
|
|
—
|
Operating lease,
right-of-use asset
|
|
1,231,877
|
|
1,662,510
|
Total non-current
assets
|
|
630,313,991
|
|
649,464,411
|
|
|
|
|
|
TOTAL
ASSETS
|
|
724,530,914
|
|
752,007,855
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
8,577,567
|
|
9,125,321
|
Accrued expenses and
other liabilities
|
|
10,741,500
|
|
11,233,767
|
Deferred
revenue
|
|
2,069,750
|
|
—
|
Accrued interest on
debt and finance leases
|
|
650,742
|
|
769,304
|
Current portion of
long-term debt
|
|
15,103,186
|
|
22,456,396
|
Current portion of
finance lease obligations
|
|
21,083,831
|
|
18,454,222
|
Current portion of
derivative liabilities
|
|
—
|
|
397,418
|
Current portion of
operating lease obligations
|
|
273,141
|
|
463,559
|
Total current
liabilities
|
|
58,499,717
|
|
62,899,987
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Non-current portion
of long-term debt
|
|
129,998,205
|
|
188,054,568
|
Non-current portion
of finance lease obligations
|
|
205,370,846
|
|
179,250,162
|
Non-current portion
of derivative liabilities
|
|
—
|
|
433,974
|
Non-current portion
of operating lease obligations
|
|
722,085
|
|
1,034,218
|
Other non-current
liabilities
|
|
942,508
|
|
—
|
Total non-current
liabilities
|
|
337,033,644
|
|
368,772,922
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
395,533,361
|
|
431,672,909
|
|
|
|
|
|
Redeemable
Preferred Stock
|
|
|
|
|
Cumulative Series A
8.5% redeemable preferred stock
|
|
37,043,138
|
|
—
|
Total redeemable
preferred stock
|
|
37,043,138
|
|
—
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common
stock
|
|
363,839
|
|
352,067
|
Additional paid in
capital
|
|
426,102,179
|
|
418,180,983
|
Accumulated other
comprehensive income / (loss)
|
|
1,044,067
|
|
(729,135)
|
Treasury
stock
|
|
(15,635,765)
|
|
(15,635,765)
|
Accumulated
deficit
|
|
(119,919,905)
|
|
(81,833,204)
|
Total
stockholders' equity
|
|
291,954,415
|
|
320,334,946
|
|
|
|
|
|
Total redeemable
preferred stock and stockholders' equity
|
|
328,997,553
|
|
320,334,946
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
724,530,914
|
|
752,007,855
|
Ardmore Shipping
Corporation
Unaudited Consolidated Statements of Operations
(Expressed in U.S. Dollars, except for shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
December 31, 2021
|
|
December 31, 2020
|
Revenue,
net
|
|
52,459,069
|
|
41,725,326
|
|
192,484,301
|
|
220,057,606
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
(24,592,032)
|
|
(19,888,091)
|
|
(88,577,719)
|
|
(81,253,212)
|
Vessel operating
expenses
|
|
(15,800,667)
|
|
(16,422,424)
|
|
(60,833,537)
|
|
(62,546,733)
|
Charter hire
costs
|
|
(2,084,859)
|
|
(1,211,978)
|
|
(6,930,193)
|
|
(1,367,528)
|
Depreciation
|
|
(8,009,390)
|
|
(8,268,960)
|
|
(31,703,305)
|
|
(32,187,324)
|
Amortization of
deferred drydock
expenditures
|
|
(1,284,161)
|
|
(1,712,360)
|
|
(5,168,526)
|
|
(6,198,245)
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
Corporate
|
|
(3,341,437)
|
|
(3,063,281)
|
|
(16,071,865)
|
|
(15,122,906)
|
Commercial and
chartering
|
|
(928,386)
|
|
(239,660)
|
|
(3,125,574)
|
|
(2,780,970)
|
Unrealized gains /
(losses) on derivatives
|
|
221,613
|
|
(25,588)
|
|
276,268
|
|
(113,591)
|
Interest expense and
finance costs
|
|
(4,300,143)
|
|
(3,915,885)
|
|
(16,771,198)
|
|
(18,168,155)
|
Interest
income
|
|
16,097
|
|
25,776
|
|
55,088
|
|
281,618
|
Loss on vessel held
for sale
|
|
—
|
|
(6,447,309)
|
|
—
|
|
(6,447,309)
|
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
|
(7,644,296)
|
|
(19,444,434)
|
|
(36,366,260)
|
|
(5,846,749)
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(13,587)
|
|
(70,968)
|
|
(149,593)
|
|
(199,446)
|
Loss from equity
method investments
|
|
(258,192)
|
|
—
|
|
(316,790)
|
|
—
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(7,916,075)
|
|
(19,515,402)
|
|
(36,832,643)
|
|
(6,046,195)
|
|
|
|
|
|
|
|
|
|
Preferred
dividend
|
|
(636,935)
|
|
—
|
|
(1,254,058)
|
|
—
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common
stockholders
|
|
(8,553,010)
|
|
(19,515,402)
|
|
(38,086,701)
|
|
(6,046,195)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic
and diluted
|
|
(0.25)
|
|
(0.59)
|
|
(1.12)
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) /
earnings (1)
|
|
(8,553,010)
|
|
(13,068,093)
|
|
(37,517,863)
|
|
401,114
|
Adjusted (loss) /
earnings per share,
basic
|
|
(0.25)
|
|
(0.39)
|
|
(1.11)
|
|
0.01
|
Adjusted (loss) /
earnings per share,
diluted
|
|
(0.25)
|
|
(0.39)
|
|
(1.11)
|
|
0.01
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
outstanding, basic
|
|
34,363,884
|
|
33,237,297
|
|
33,882,932
|
|
33,241,936
|
Weighted average
number of shares
outstanding, diluted
|
|
34,363,884
|
|
33,237,297
|
|
33,882,932
|
|
33,443,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 certain unrealized and realized gains and losses (see
Non-GAAP Measures Section).
|
Ardmore Shipping
Corporation
Unaudited Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)
|
|
|
|
|
|
|
|
|
Year
ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(36,832,643)
|
|
(6,046,195)
|
Adjustments to
reconcile net loss to net cash (used in) / provided by
operating
activities:
|
|
|
|
|
Depreciation
|
|
31,703,305
|
|
32,187,324
|
Amortization of
deferred drydock expenditures
|
|
5,168,526
|
|
6,198,245
|
Share-based
compensation
|
|
2,612,968
|
|
3,000,672
|
Loss on vessel held for
sale
|
|
—
|
|
6,447,309
|
Amortization of
deferred finance fees
|
|
2,192,177
|
|
1,765,271
|
Unrealized (gains) /
losses on derivatives
|
|
(276,268)
|
|
113,591
|
Foreign
exchange
|
|
(71,917)
|
|
108,978
|
Loss from equity method
investments
|
|
316,790
|
|
—
|
Payments for
drydocks
|
|
(5,882,866)
|
|
(7,003,305)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
|
(2,495,011)
|
|
12,274,862
|
Prepaid expenses and
other assets
|
|
172,561
|
|
(1,743,880)
|
Advances and
deposits
|
|
(1,034,296)
|
|
1,597,419
|
Inventories
|
|
(821,256)
|
|
(115,327)
|
Accounts
payable
|
|
1,151,201
|
|
2,543,080
|
Accrued expenses and
other liabilities
|
|
(701,459)
|
|
(5,098,531)
|
Deferred
revenue
|
|
2,069,750
|
|
—
|
Accrued interest on
debt and finance leases
|
|
(156,966)
|
|
(135,064)
|
Net cash (used in)
/ provided by operating activities
|
|
(2,885,404)
|
|
46,094,449
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Proceeds from sale of
vessels
|
|
9,895,000
|
|
—
|
Payments for
acquisition of vessels and vessel equipment
|
|
(2,475,399)
|
|
(18,720,337)
|
Advances for ballast
water treatment systems
|
|
(157,879)
|
|
(2,184,466)
|
Payments for other
non-current assets
|
|
(93,798)
|
|
(88,630)
|
Payments for equity
investments
|
|
(5,541,364)
|
|
—
|
Net cash provided
by / (used in) investing activities
|
|
1,626,560
|
|
(20,993,433)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
long-term debt
|
|
—
|
|
20,375,243
|
Repayments of
long-term debt
|
|
(66,911,512)
|
|
(18,017,863)
|
Proceeds from finance
leases
|
|
49,000,000
|
|
—
|
Repayments of finance
leases
|
|
(19,959,944)
|
|
(18,650,009)
|
Payments for deferred
finance fees
|
|
(980,000)
|
|
(220,000)
|
Repurchase of common
stock
|
|
—
|
|
(286,856)
|
Payment of
dividend
|
|
—
|
|
(1,659,308)
|
Issuance of preferred
stock, net
|
|
37,985,646
|
|
—
|
Payment of preferred
dividend
|
|
(791,781)
|
|
—
|
Net cash used in
financing activities
|
|
(1,657,591)
|
|
(18,458,793)
|
|
|
|
|
|
Net (decrease) /
increase in cash and cash equivalents
|
|
(2,916,435)
|
|
6,642,223
|
|
|
|
|
|
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
|
|
55,448,895
|
|
58,365,330
|
Ardmore Shipping
Corporation
Unaudited Other Operating Data
(Expressed in U.S. Dollars, unless otherwise
stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
December 31, 2021
|
|
December 31, 2020
|
Adjusted EBITDA
(1)
|
|
5,453,496
|
|
899,892
|
|
16,628,623
|
|
56,986,257
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MR Tankers Eco-Design
Spot TCE
per day (2)
|
|
11,024
|
|
9,436
|
|
10,931
|
|
15,650
|
|
|
|
|
|
|
|
|
|
Fleet TCE per day
(2)
|
|
11,390
|
|
9,764
|
|
11,216
|
|
15,355
|
|
|
|
|
|
|
|
|
|
Fleet operating
expenses per day (3)
|
|
6,141
|
|
6,134
|
|
5,967
|
|
6,073
|
Technical management
fees per day (4)
|
|
451
|
|
384
|
|
459
|
|
439
|
|
|
6,592
|
|
6,518
|
|
6,426
|
|
6,512
|
|
|
|
|
|
|
|
|
|
MR Tankers
Eco-Design
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
11,614
|
|
9,603
|
|
11,501
|
|
15,993
|
Vessel operating
expenses per day (5)
|
|
6,712
|
|
6,560
|
|
6,485
|
|
6,530
|
|
|
|
|
|
|
|
|
|
MR Tankers
Eco-Mod
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
10,950
|
|
9,052
|
|
10,667
|
|
14,284
|
Vessel operating
expenses per day (5)
|
|
6,366
|
|
6,447
|
|
6,359
|
|
6,559
|
|
|
|
|
|
|
|
|
|
Prod/Chem Tankers
Eco-Design (25k
- 38k Dwt)
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
11,274
|
|
10,916
|
|
10,982
|
|
14,332
|
Vessel operating
expenses per day (5)
|
|
6,441
|
|
6,475
|
|
6,324
|
|
6,434
|
|
|
|
|
|
|
|
|
|
FLEET
|
|
|
|
|
|
|
|
|
Average number of
owned operating
vessels
|
|
25.0
|
|
26.0
|
|
25.0
|
|
25.4
|
|
|
|
|
(1)
|
Adjusted 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 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 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 December 31, 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
|
|
December 31, 2021
|
|
Value
(2)
|
Seavaliant
|
|
IMO2/3
|
|
Feb–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
26.34
|
Seaventure
|
|
IMO2/3
|
|
Jun–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
26.73
|
Seavantage
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.61
|
Seavanguard
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.72
|
Sealion
|
|
IMO2/3
|
|
May–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
29.55
|
Seafox
|
|
IMO2/3
|
|
Jun–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
29.67
|
Seawolf
|
|
IMO2/3
|
|
Aug–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
29.86
|
Seahawk
|
|
IMO2/3
|
|
Nov–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
30.17
|
Endeavour
|
|
IMO2/3
|
|
Jul–13
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
26.91
|
Enterprise
|
|
IMO2/3
|
|
Sep–13
|
|
S. Korea
|
|
49,453
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.14
|
Endurance
|
|
IMO2/3
|
|
Dec–13
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.47
|
Encounter
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,478
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.53
|
Explorer
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,494
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.64
|
Exporter
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.75
|
Engineer
|
|
IMO2/3
|
|
Mar–14
|
|
S. Korea
|
|
49,420
|
|
Eco-Design
|
|
$
|
39.00
|
|
$
|
27.85
|
Sealeader
|
|
IMO3
|
|
Jun–08
|
|
Japan
|
|
47,463
|
|
Eco-Mod
|
|
$
|
39.00
|
|
$
|
19.27
|
Sealifter
|
|
IMO3
|
|
Aug–08
|
|
Japan
|
|
47,472
|
|
Eco-Mod
|
|
$
|
39.00
|
|
$
|
19.56
|
Sealancer
|
|
IMO3
|
|
Jul–08
|
|
Japan
|
|
47,451
|
|
Eco-Mod
|
|
$
|
39.00
|
|
$
|
19.39
|
Seafarer
|
|
IMO3
|
|
Jun–10
|
|
Japan
|
|
49,999
|
|
Eco-Mod
|
|
$
|
39.00
|
|
$
|
22.24
|
Dauntless
|
|
IMO2
|
|
Feb–15
|
|
S. Korea
|
|
37,764
|
|
Eco-Design
|
|
$
|
36.00
|
|
$
|
26.83
|
Defender
|
|
IMO2
|
|
Feb–15
|
|
S. Korea
|
|
37,791
|
|
Eco-Design
|
|
$
|
36.00
|
|
$
|
26.87
|
Cherokee
|
|
IMO2
|
|
Jan–15
|
|
Japan
|
|
25,215
|
|
Eco-Design
|
|
$
|
33.00
|
|
$
|
24.31
|
Cheyenne
|
|
IMO2
|
|
Mar–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
33.00
|
|
$
|
24.59
|
Chinook
|
|
IMO2
|
|
Jul–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
33.00
|
|
$
|
24.97
|
Chippewa
|
|
IMO2
|
|
Nov–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
33.00
|
|
$
|
25.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
653.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash / Debt / Work.
Cap / Other Assets
|
|
$
|
(301.06)
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets) (3)
|
|
$
|
352.24
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
10.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ardmore Commercial
Management (5)
|
|
$
|
19.53
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets & Commercial Management) (3)
|
|
$
|
371.77
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
10.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Element
1 Corp. / e1 Marine (6)
|
|
$
|
10.54
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets, Commercial Management &
Investments) (3)
|
|
$
|
382.31
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)(6)
|
|
|
|
|
|
|
$
|
11.13
|
|
|
|
|
|
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 December
31, 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
December 31, 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 joint venture with E1 Corp
and Maritime Partners, LLC, of which ASC 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
December 31, 2021
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Number of Owned &
TC-In Vessels in Operation (at
period end)
|
|
27
|
|
27
|
|
27
|
|
27
|
|
Fleet Average
Age
|
|
8.6
|
|
7.7
|
|
8.6
|
|
7.7
|
|
|
|
|
|
|
|
|
|
|
|
CO2
Emissions Generated in Metric Tonnes
|
|
104,499
|
|
99,479
|
|
406,721
|
|
389,721
|
|
Distance Travelled
(Miles)
|
|
400,978
|
|
359,556
|
|
1,554,032
|
|
1,441,703
|
|
Fuel Consumed in
Metric Tonnes
|
|
33,073
|
|
31,355
|
|
128,472
|
|
122,899
|
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and
Tank Cleaning Fuel Consumption
|
|
|
|
|
|
|
|
|
|
Fuel Consumed in
Metric Tonnes
|
|
687
|
|
871
|
|
4,048
|
|
3,178
|
|
% of Total Fuel
Consumed
|
|
2.08%
|
|
2.78%
|
|
3.15%
|
|
2.59%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency
Ratio (AER) for the period(2)
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
5.81g / tm
|
|
6.18g / tm
|
|
5.84g / tm
|
|
6.04g / tm
|
|
MR
Eco-Design
|
|
5.53g / tm
|
|
5.87g / tm
|
|
5.59g / tm
|
|
5.71g / tm
|
|
MR Eco-Mod
|
|
5.77g / tm
|
|
6.58g / tm
|
|
5.90g / tm
|
|
6.36g / tm
|
|
Chemical
|
|
7.43g / tm
|
|
7.22g / tm
|
|
7.19g / tm
|
|
7.40g / tm
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(3)
|
|
6.75g / tm
|
|
6.50g / tm
|
|
6.33g / tm
|
|
6.52g / tm
|
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency
Operational Indicator (EEOI) for
the period (4)
|
|
|
|
|
|
|
|
|
|
Fleet
|
|
12.07g /
ctm
|
|
12.63g /
ctm
|
|
12.26g /
ctm
|
|
11.77g /
tm
|
|
MR
Eco-Design
|
|
11.55g /
ctm
|
|
12.17g /
ctm
|
|
12.33g /
ctm
|
|
11.32g /
tm
|
|
MR Eco-Mod
|
|
13.11g /
ctm
|
|
13.36g /
ctm
|
|
11.66g /
ctm
|
|
11.72g /
tm
|
|
Chemical
|
|
13.00g /
ctm
|
|
13.55g /
ctm
|
|
12.70g /
ctm
|
|
13.64g /
tm
|
|
Chemical (Less Cargo
Heating & Tank Cleaning)(3)
|
|
12.67g /
ctm
|
|
10.90g /
ctm
|
|
11.43g /
ctm
|
|
11.62g /
ctm
|
|
|
|
|
|
|
|
|
|
|
|
Wind Force (% greater
than 4 on BF)
|
|
46.10%
|
|
50.70%
|
|
46.64%
|
|
42.16%
|
|
% Idle
Time(5)
|
|
3.69%
|
|
9.43%
|
|
4.59%
|
|
6.76%
|
|
|
|
|
|
|
|
|
|
|
|
tm =
tonne-mile
|
|
|
|
|
|
|
|
|
|
ctm = cargo
tonne-mile
|
|
|
|
|
|
|
|
|
|
Ardmore Performance
Ardmore is continuing to perform well on both AER and
EEOI. Results vary quarter to quarter depending on ship
activity, ballast / laden ratio, cargo carried, weather, waiting
time and time in port, 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) 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 trailing
12-month period have increased 4.4% to 406,721 metric tonnes of
CO2, in comparison to the same 12-month period in 2020, mainly as a
result of an increase in distance travelled. However, the fleet AER
for the period has decreased by 3.3% to 5.84 g / tm, from 6.04 g /
tm, while the EEOI also showed a decrease of 2.7% to 12.03 g / ctm,
from 12.37 g / ctm.
Continued improvements are being achieved through a combination
of technological advancements and operational optimization.
In addition, we have also presented our Chemical Tanker ratios,
with and without the impact of cargo heating and tank cleaning
operations to provide enhanced transparency and to highlight the
impact of this activity on our Chemical Tankers' ratios
|
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 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.
|
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
This press release describes EBITDA, Adjusted 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 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
(loss) / earnings excludes certain items from net (loss) / income,
including gain or loss on sale of vessels and write-off of deferred
finance fees 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 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 (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
|
|
Year
ended
|
Reconciliation of
net loss to EBITDA
|
|
December 31, 2021
|
|
December 31, 2020
|
|
December 31, 2021
|
|
December 31, 2020
|
Net loss
|
|
(7,916,075)
|
|
(19,515,402)
|
|
(36,832,643)
|
|
(6,046,195)
|
Interest
income
|
|
(16,097)
|
|
(25,776)
|
|
(55,088)
|
|
(281,618)
|
Interest expense and
finance costs
|
|
4,300,143
|
|
3,915,885
|
|
16,771,198
|
|
18,168,155
|
Income tax
|
|
13,587
|
|
70,968
|
|
149,593
|
|
199,446
|
Unrealized gains /
(losses) on derivatives
|
|
(221,613)
|
|
25,588
|
|
(276,268)
|
|
113,591
|
Depreciation
|
|
8,009,390
|
|
8,268,960
|
|
31,703,305
|
|
32,187,324
|
Amortization of
deferred drydock expenditures
|
|
1,284,161
|
|
1,712,360
|
|
5,168,526
|
|
6,198,245
|
EBITDA
|
|
5,453,496
|
|
(5,547,417)
|
|
16,628,623
|
|
50,538,948
|
Loss on vessel held
for sale
|
|
—
|
|
6,447,309
|
|
—
|
|
6,447,309
|
ADJUSTED
EBITDA
|
|
5,453,496
|
|
899,892
|
|
16,628,623
|
|
56,986,257
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
Reconciliation of
net loss to Adjusted (loss) / earnings
|
|
December 31, 2021
|
|
December 31, 2020
|
|
December 31, 2021
|
|
December 31, 2020
|
Net loss attributable
to common stockholders
|
|
(8,553,010)
|
|
(19,515,402)
|
|
(38,086,701)
|
|
(6,046,195)
|
Loss on vessel held
for sale
|
|
—
|
|
6,447,309
|
|
—
|
|
6,447,309
|
Write-off of deferred
finance fees
|
|
—
|
|
—
|
|
568,838
|
|
—
|
Adjusted (loss) /
earnings
|
|
(8,553,010)
|
|
(13,068,093)
|
|
(37,517,863)
|
|
401,114
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) /
earnings per share, basic
|
|
(0.25)
|
|
(0.39)
|
|
(1.11)
|
|
0.01
|
Adjusted (loss) /
earnings per share, diluted
|
|
(0.25)
|
|
(0.39)
|
|
(1.11)
|
|
0.01
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
outstanding, basic
|
|
34,363,884
|
|
33,237,297
|
|
33,882,932
|
|
33,241,936
|
Weighted average
number of shares
outstanding, diluted
|
|
34,363,884
|
|
33,237,297
|
|
33,882,932
|
|
33,443,250
|
|
|
|
|
|
|
|
|
|
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; expected oil demand
recovery and future tankers rates, and factors that may affect such
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 first quarter of 2022; expected
drydocking days in the first quarter of 2022; 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 Company of
performance measures for emissions and efficiency; and the expected
implementation timing of e1 Marine's recently announced
initiatives. 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 first quarter of 2022 in the spot
market; vessels breakdowns and instances of off-hire; the ability
of e1 Marine to complete it's contemplated projects on time; 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-twelve-months-ended-december-31-2021-301482525.html
SOURCE Ardmore Shipping Corporation