HAMILTON, Bermuda, Nov. 10, 2021 /PRNewswire/ -- Ardmore
Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we")
today announced results for the three and nine months ended
September 30, 2021.
Highlights and Recent Activity
- Reported a net loss of $12.8
million for the three months ended September 30, 2021, or $0.37 loss per basic and diluted share. This
compares to net loss of $6.6 million,
or $0.20 loss per basic and diluted
share, for the three months ended September
30, 2020. Reported EBITDA (see Non-GAAP Measures section) of
$1.3 million for the three months
ended September 30, 2021 as compared
to $7.2 million for the three months
ended September 30, 2020.
- Reported a net loss of $29.5
million for the nine months ended September 30, 2021 or $0.88 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 $29.0 million, or $0.86 Adjusted loss per basic and diluted share.
This compares to net income of $13.5
million, or $0.41 basic and
$0.40 diluted earnings per share for
the nine months ended September 30,
2020. Adjusted earnings were $13.6
million, or $0.41 Adjusted
earnings per basic and diluted share for the nine months ended
September 30, 2020. Reported EBITDA
(see Non-GAAP Measures section) of $11.2
million for the nine months ended September 30, 2021, as compared to $56.1 million for the nine months ended
September 30, 2020
- MR tankers earned an average TCE rate of $10,904 per day for the three months ended
September 30, 2021 and $11,237 per day for the nine months ended
September 30, 2021. Chemical tankers
earned an average TCE rate of $8,400
per day (comprising average rates of $10,387 per day on chemical cargos and
$6,652 per day on Clean Petroleum
Product ("CPP") cargos) for the three months ended September 30, 2021 and $10,882 per day for the nine months ended
September 30, 2021.
- In September 2021, Ardmore
extended its sustainability-linked finance facility with
ABN AMRO for a further year until
June 2023; the facility contains a
pricing adjustment feature linked to Ardmore's performance on
carbon emission reduction and other environmental and social
initiatives. The facility's performance targets for carbon emission
reduction align with the International Maritime Organization's
targets for GHG emissions reduction.
- In July 2021, Ardmore extended an
agreement to time charter-in a 2010 Japanese-built MR product
tanker for one year at a net rate of $11,500 per day, plus a one-year extension
option.
- In October, e1 Marine completed its first sale of a hydrogen
generator to a leading US based global marine engine manufacturer
for a pilot project. The sale is on profitable terms and expected
to lead to a commercial licensing agreement for e1 Marine. In
addition, Element 1 Corp. is entering into a joint research
agreement with Aramco Americas to apply a carbon capture system to
Element 1's hydrogen
generator.
Anthony Gurnee, the Company's
Chief Executive Officer, commented:
"While our earnings through the first nine months of 2021
reflect the very tough prevailing market conditions during the
period, our strong balance sheet and low-cost structure have
enabled us to hold our own and we believe that we have now
reached a turning point, with the product and chemical tanker
markets showing signs of real recovery.
Having experienced an unprecedentedly sharp drop in tanker
demand earlier in the pandemic, a full oil demand recovery is now
well underway, and an extensive global oil inventory
destocking seems to be reaching its logical end-point.
As a consequence, we believe that we are now very close to an
inflection point for product and chemical tanker demand, beyond
which rates should rebound strongly.
At the moment, we are seeing improved spot performance, as
well as higher period and FFA (futures) rates being taken by
charterers looking to secure cover in what is expected to be a much
stronger market. Our spot MR voyages booked over the last two
weeks have averaged $15,300 / day and
our chemical tankers $17,400 / day,
while Eco-Design MR one-year TC rates have improved to $15,500 / day, and the FFA Atlantic triangulation
TCE rates for December through March now stand at $16,200 / day.
On this basis, we expect a much improved second half of the
fourth quarter and a good run through the winter, where many
additional factors may be in play that provide a further boost to
tonne-mile demand, such as low Atlantic Basin refined product
inventories, an end to oil inventory de-stocking, "energy crisis"
spill over in the form of gas-to-oil switching for power
generation, and typical winter weather disruptions and
supply dislocations. Longer term, we are very positive given
the fundamentals of demand growth and the visibility that we have
on highly constrained product and chemical tanker supply
growth.
In the meantime, Ardmore remains well positioned in terms of
both market upside and financial strength, is maintaining its
low-cost structure and strong relative chartering performance and
is making good progress in our energy transition plan including
multiple positive developments with e1 Marine alongside world-class
commercial partners."
Summary of Recent and Third Quarter 2021 Events
Fleet
Fleet Operations and Employment
As at September 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 third 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 $10,904 per day in the third quarter of 2021. In
the third quarter of 2021, the Company's 15 Eco-Design MR tankers
earned an average TCE rate of $11,051
and the Company's six Eco-Mod MR tankers earned an average TCE rate
of $10,422 per day.
In the fourth quarter of 2021, the Company expects to have 30%
of its revenue days for its MR Eco-Design tankers on time
charter. The remaining 70% 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 November 10, 2021, the
Company had fixed approximately 50% of its total MR
revenue days for the fourth quarter of 2021 at an average TCE
rate of approximately $10,450 per
day.
Product / Chemical Tankers (IMO 2: 25,000 Dwt –
37,800 Dwt)
At the end of the third 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 third quarter of
2021, the Company's six Eco-Design product / chemical vessels
earned an average TCE rate of $8,400
per day (comprising average rates of $10,387 per day on chemical cargos and
$6,652 per day on Clean Petroleum
Product ("CPP") cargos).
In the fourth 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 November 10, 2021, the Company had fixed
approximately 60% of its Eco-Design IMO 2 product / chemical
tankers spot revenue days for the fourth quarter of 2021 at an
average TCE rate of approximately $11,400 per day.
Drydocking
The Company had 80 drydock days (including repositioning) in the
third quarter of 2021. The Company expects to have no
drydock days in the fourth 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 third quarter of 2021.
Financing
In September 2021, the Company
extended its sustainability-linked finance facility with
ABN AMRO for a further year until
June 2023; the facility was
originally completed in July 2020 on
a two-year term and contains a pricing adjustment feature linked to
the Company's performance on carbon emission reduction and other
environmental and social initiatives. The facility's performance
targets for carbon emission reduction align with the International
Maritime Organization's targets for GHG emissions reduction. The
facility reflects Ardmore's current strong performance on
Environmental Social and Governance ("ESG") initiatives, including
(a) carbon emission levels which significantly outperform the
targets set out under the Poseidon Principles, (a global framework
for responsible ship finance to help incentivize decarbonization in
the shipping industry) and (b) having a very diverse organization
with employees representing 10 nationalities and of which 59% are
female. The pricing structure in the facility will reward the
Company for maintaining its carbon emission reduction trajectory
and overall performance on ESG.
Chartered-in Vessel
In July 2021, the Company extended
an agreement to time charter-in a 2010 Japanese-built MR product
tanker for one year at a net rate of $11,500 per day, plus a one-year extension
option.
Investments: e1 Marine and Element 1 Corp
In October, e1 Marine (the Company owns 33% of e1 Marine)
completed its first sale of a hydrogen generator to a leading US
based global marine engine manufacturer for a pilot project. The
sale is on profitable terms and expected to lead to a commercial
licensing agreement for e1 Marine. In addition, Element 1
Corp. (the Company owns 10% of Element 1 Corp.) is entering into a
joint research agreement with Aramco Americas to apply a carbon
capture system to Element 1's hydrogen generator.
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
September 30, 2021 and 2020
The Company reported a net loss of $12.8
million for the three months ended
September 30, 2021, or $0.37 loss per basic and diluted share, as
compared to a net loss of $6.6
million, or $0.20 loss per
basic and diluted share for the three months ended
September 30, 2020. The Company reported EBITDA (see
Non-GAAP Measures section) of $1.3
million for the three months ended
September 30, 2021, as compared to $7.2 million for the three months ended
September 30, 2020.
Results for the nine months ended
September 30, 2021 and 2020
The Company reported a net loss of $29.5
million for the nine months ended
September 30, 2021, or $0.88 loss per basic and diluted share, as
compared to net income of $13.5
million, or $0.41 basic and
$0.40 diluted earnings per share for
the nine months ended September 30, 2020. The Company
reported EBITDA (see Non-GAAP Measures section) of $11.2 million for the nine months ended
September 30, 2021.
The Company reported an Adjusted loss (see Non–GAAP Measures
section) of $29.0 million for the
nine months ended September 30, 2021, or $0.86 Adjusted loss per basic and diluted share,
as compared to Adjusted earnings of $13.6
million, or $0.41 Adjusted
earnings per basic and diluted share, for the nine months ended
September 30, 2020.
Management's Discussion and Analysis of Financial Results for
the three months ended September 30, 2021 and
2020
Revenue. Revenue for the three months ended
September 30, 2021 was $47.2
million, an increase of $2.0
million from $45.2 million for
the three months ended September 30, 2020.
The Company's average number of operating vessels increased to
27 for the three months ended September 30, 2021, from
25.5 for the three months ended September 30, 2020.
The Company had 4 product tankers employed under time charters
as at September 30, 2021, compared with none as at
September 30, 2020. Revenue days derived from time
charters were 362 for the three months ended
September 30, 2021, as compared to none for the three
months ended September 30, 2020. The increase in revenue
days for time-chartered vessels resulted in an increase in revenue
of $5.0 million.
The Company had 2,024 spot revenue days for the
three months ended September 30, 2021, as compared
to 2,334 for the three months ended
September 30, 2020. The Company had 23 and 26 vessels
employed directly in the spot market as of
September 30, 2021 and 2020, respectively. The decrease
in spot revenue days resulted in a decrease in revenue of
$6.0 million, while changes in spot
rates resulted in an increase in revenue of $2.8 million for the three months ended
September 30, 2021 as compared to the three months ended
September 30, 2020.
Voyage Expenses. Voyage expenses were $23.1 million for the three months ended
September 30, 2021, an increase of $6.3 million from $16.8
million for the three months ended
September 30, 2020. Voyage expenses increased primarily
due to the increase in bunker prices resulting in an increase of
$8.5 million, partially offset by a
decrease in spot revenue days of $2.2
million for the three months ended
September 30, 2021, as compared to the three months
ended September 30, 2020.
TCE Rate. The average TCE rate for the Company's
fleet was $10,319 per day for the
three months ended September 30, 2021, a decrease of
$2,113 per day from $12,432 per day for the three months ended
September 30, 2020. The decrease in average TCE rate was
the result of lower spot rates for the three months ended
September 30, 2021, as compared to the three months ended
September 30, 2020. TCE rates represent net revenues (or
revenue less voyage expenses) divided by revenue days.
Vessel Operating Expenses. Vessel operating
expenses were $15.5 million for the three months
ended September 30, 2021, a decrease of $0.6
million from $16.1 million for the three months
ended September 30, 2020. This decrease 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 $6,373 per vessel
for the three months ended September 30, 2021, as
compared to $6,714 per vessel for the three months ended
September 30, 2020.
Charter Hire Costs. Charter hire costs were
$2.3 million for the three months
ended September 30, 2021, an increase of $2.1 million from $0.2
million for the three months ended
September 30, 2020. Ardmore chartered-in one vessel in
September 2020 and another in
June 2021.
Depreciation. Depreciation expense for the
three months ended September 30, 2021, was
$8.0 million, consistent with
$8.1 million for the
three months ended September 30, 2020.
Amortization of Deferred Drydock Expenditures.
Amortization of deferred drydock expenditures for the
three months ended September 30, 2021, was
$1.1 million, a decrease of
$0.6 million from $1.7 million for the three months ended
September 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 September 30, 2021, were $4.3 million, an increase of $0.2 million from $4.1
million for the three months ended
September 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 September 30, 2021, were $0.8 million, consistent with $0.8 million for the three months ended
September 30, 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
September 30, 2021, were $4.4
million, an increase of $0.4
million from $4.0 million for
the three months ended September 30, 2020. Cash
interest expense increased by $0.3
million to $3.9 million for
the three months ended September 30, 2021, from
$3.6 million for the
three months ended September 30, 2020, primarily due
to an increased average LIBOR during the three months ended
September 30, 2021, as compared to the three months
ended September 30, 2020.
Amortization of deferred finance fees for the three months
ended September 30, 2021 was $0.4
million, consistent with $0.4
million for the three months ended
September 30, 2020.
Liquidity
As at September 30, 2021, the Company had $61.4 million in liquidity available, with cash
and cash equivalents of $54.5 million
(December 31, 2020: $58.4
million) and amounts available and undrawn under its
revolving credit facilities of $6.9
million (December 31, 2020:
$0.0 million). During the third
quarter of 2021, the Company decreased the outstanding amounts
under its revolving credit facilities through a $20.3 million repayment. The following debt and
lease liabilities (net of deferred finance fees) were outstanding
as at the dates indicated:
|
|
As at
|
|
|
September 30, 2021
|
|
December 31, 2020
|
Cash
|
|
$
|
54,476,651
|
|
$
|
58,365,330
|
|
|
|
|
|
|
|
Finance leases (net
of sellers' credit)
|
|
|
228,660,086
|
|
|
194,824,384
|
Senior
Debt
|
|
|
118,617,745
|
|
|
157,710,865
|
Revolving Credit
Facilities
|
|
|
33,332,031
|
|
|
53,631,491
|
Total
debt
|
|
|
380,609,862
|
|
|
406,166,740
|
|
|
|
|
|
|
|
Total net
debt
|
|
$
|
326,133,211
|
|
$
|
347,801,410
|
Conference Call
The Company plans to have a conference call on November 10, 2021 at 10:00 a.m. Eastern Time
to discuss its results for the quarter ended
September 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 November 17, 2021 at 877–344–7529 or
412–317–0088. Enter the passcode 10161121 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)
|
|
|
|
As
at
|
|
|
September 30, 2021
|
|
December 31, 2020
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
54,476,651
|
|
58,365,330
|
Receivables, net of
allowance for bad debts of $0.8 million (2020: $0.5
million)
|
|
18,523,409
|
|
17,808,496
|
Prepaid expenses and
other assets
|
|
3,161,888
|
|
3,683,910
|
Advances and
deposits
|
|
3,779,031
|
|
2,516,646
|
Inventories
|
|
10,267,752
|
|
10,274,062
|
Vessel held for
sale
|
|
—
|
|
9,895,000
|
Total current
assets
|
|
90,208,731
|
|
102,543,444
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Investments and other
assets, net
|
|
11,009,518
|
|
678,632
|
Vessels and vessel
equipment, net
|
|
610,733,088
|
|
631,458,305
|
Deferred drydock
expenditures, net
|
|
10,089,582
|
|
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
|
|
255,139
|
|
—
|
Operating lease,
right-of-use asset
|
|
1,348,032
|
|
1,662,510
|
Total non-current
assets
|
|
638,348,253
|
|
649,464,411
|
|
|
|
|
|
TOTAL
ASSETS
|
|
728,556,984
|
|
752,007,855
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
7,929,529
|
|
9,125,321
|
Accrued expenses and
other liabilities
|
|
12,378,288
|
|
11,233,767
|
Deferred
revenue
|
|
1,364,185
|
|
—
|
Accrued interest on
debt and finance leases
|
|
708,130
|
|
769,304
|
Current portion of
long-term debt
|
|
15,076,992
|
|
22,456,396
|
Current portion of
finance lease obligations
|
|
20,724,948
|
|
18,454,222
|
Current portion of
derivative liabilities
|
|
402,469
|
|
397,418
|
Current portion of
operating lease obligations
|
|
332,868
|
|
463,559
|
Total current
liabilities
|
|
58,917,409
|
|
62,899,987
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Non-current portion
of long-term debt
|
|
136,470,315
|
|
188,054,568
|
Non-current portion
of finance lease obligations
|
|
210,815,138
|
|
179,250,162
|
Non-current portion
of derivative liabilities
|
|
—
|
|
433,974
|
Non-current portion
of operating lease obligations
|
|
790,420
|
|
1,034,218
|
Total non-current
liabilities
|
|
348,075,873
|
|
368,772,922
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
406,993,282
|
|
431,672,909
|
|
|
|
|
|
Preferred
Stock
|
|
|
|
|
Cumulative Series A
8.5% redeemable preferred stock
|
|
23,041,348
|
|
—
|
Total preferred
stock
|
|
23,041,348
|
|
—
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common
stock
|
|
363,839
|
|
352,067
|
Additional paid in
capital
|
|
425,312,334
|
|
418,180,983
|
Accumulated other
comprehensive loss
|
|
(151,159)
|
|
(729,135)
|
Treasury
stock
|
|
(15,635,765)
|
|
(15,635,765)
|
Accumulated
deficit
|
|
(111,366,895)
|
|
(81,833,204)
|
Total
stockholders' equity
|
|
298,522,354
|
|
320,334,946
|
|
|
|
|
|
Total
stockholders' equity and preferred stock
|
|
321,563,702
|
|
320,334,946
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
728,556,984
|
|
752,007,855
|
Ardmore Shipping
Corporation
|
Unaudited Interim
Condensed Consolidated Statements of Operations
|
(Expressed in U.S.
Dollars, except for shares)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September 30, 2021
|
|
September 30, 2020
|
|
September 30, 2021
|
|
September 30, 2020
|
Revenue,
net
|
|
47,199,860
|
|
45,206,271
|
|
140,025,232
|
|
178,332,280
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
(23,100,685)
|
|
(16,830,964)
|
|
(63,985,687)
|
|
(61,365,121)
|
Vessel operating
expenses
|
|
(15,511,136)
|
|
(16,124,919)
|
|
(45,091,468)
|
|
(46,124,309)
|
Charter hire
costs
|
|
(2,281,452)
|
|
(155,550)
|
|
(4,845,334)
|
|
(155,550)
|
Depreciation
|
|
(7,978,252)
|
|
(8,117,971)
|
|
(23,693,915)
|
|
(23,918,364)
|
Amortization of
deferred drydock expenditures
|
|
(1,134,332)
|
|
(1,708,215)
|
|
(3,884,365)
|
|
(4,485,885)
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
Corporate
|
|
(4,293,560)
|
|
(4,116,490)
|
|
(12,730,427)
|
|
(12,054,616)
|
Commercial and
chartering
|
|
(750,472)
|
|
(791,220)
|
|
(2,197,189)
|
|
(2,546,319)
|
Unrealized (losses) /
gains on derivatives
|
|
(25,394)
|
|
11,289
|
|
54,655
|
|
(88,003)
|
Interest expense and
finance costs
|
|
(4,383,322)
|
|
(4,023,165)
|
|
(12,471,055)
|
|
(14,252,270)
|
Interest
income
|
|
9,000
|
|
37,652
|
|
38,991
|
|
255,842
|
Loss on vessel held
for sale
|
|
—
|
|
—
|
|
—
|
|
—
|
Loss on sale of
vessels
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
(Loss) / income
before taxes
|
|
(12,249,745)
|
|
(6,613,282)
|
|
(28,780,562)
|
|
13,597,685
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(44,792)
|
|
(19,715)
|
|
(136,006)
|
|
(128,478)
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income
|
|
(12,294,537)
|
|
(6,632,997)
|
|
(28,916,568)
|
|
13,469,207
|
|
|
|
|
|
|
|
|
|
Preferred
dividend
|
|
(535,616)
|
|
—
|
|
(617,123)
|
|
—
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income attributable to common stockholders
|
|
(12,830,153)
|
|
(6,632,997)
|
|
(29,533,691)
|
|
13,469,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) / earnings per
share, basic
|
|
(0.37)
|
|
(0.20)
|
|
(0.88)
|
|
0.41
|
(Loss) / earnings per
share, diluted
|
|
(0.37)
|
|
(0.20)
|
|
(0.88)
|
|
0.40
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) /
earnings (1)
|
|
(12,804,759)
|
|
(6,644,286)
|
|
(29,019,508)
|
|
13,557,210
|
Adjusted (loss) /
earnings per share, basic
|
|
(0.37)
|
|
(0.20)
|
|
(0.86)
|
|
0.41
|
Adjusted (loss) /
earnings per share, diluted
|
|
(0.37)
|
|
(0.20)
|
|
(0.86)
|
|
0.41
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding, basic
|
|
34,363,884
|
|
33,285,255
|
|
33,720,853
|
|
33,243,493
|
Weighted average
number of shares outstanding, diluted
|
|
34,363,884
|
|
33,285,255
|
|
33,720,853
|
|
33,426,412
|
|
|
|
|
|
|
|
|
|
_______________________
|
(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)
|
|
|
|
Nine months
ended
|
|
|
September 30, 2021
|
|
September 30, 2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income
|
|
(28,916,568)
|
|
13,469,207
|
Adjustments to
reconcile net (loss) / income to net cash (used in) / provided by
operating activities:
|
|
|
|
|
Depreciation
|
|
23,693,915
|
|
23,918,364
|
Amortization of
deferred drydock expenditures
|
|
3,884,365
|
|
4,485,885
|
Share-based
compensation
|
|
1,823,123
|
|
2,437,422
|
Amortization of
deferred finance fees
|
|
1,797,865
|
|
1,301,183
|
Unrealized (gains) /
losses on derivatives
|
|
(54,655)
|
|
88,003
|
Foreign
exchange
|
|
(60,011)
|
|
39,538
|
Deferred drydock
expenditures
|
|
(4,948,073)
|
|
(4,535,473)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
|
(714,913)
|
|
10,358,259
|
Prepaid expenses and
other assets
|
|
522,022
|
|
323,816
|
Advances and
deposits
|
|
(1,262,385)
|
|
1,232,291
|
Inventories
|
|
6,310
|
|
1,237,496
|
Accounts
payable
|
|
(150,015)
|
|
(936,126)
|
Accrued expenses and
other liabilities
|
|
812,594
|
|
(6,422,257)
|
Deferred
revenue
|
|
1,364,185
|
|
—
|
Accrued interest on
debt and finance leases
|
|
(104,187)
|
|
(81,654)
|
Net cash (used in)
/ provided by operating activities
|
|
(2,306,428)
|
|
46,915,954
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Proceeds from sale of
vessels
|
|
9,895,000
|
|
—
|
Payments for
acquisition of vessels and vessel equipment
|
|
(1,985,816)
|
|
(17,664,815)
|
Advances for ballast
water treatment systems
|
|
(157,879)
|
|
(2,248,826)
|
Payments for other
non-current assets
|
|
(80,308)
|
|
(121,425)
|
Payments for equity
investments
|
|
(5,112,593)
|
|
—
|
Net cash provided
by / (used in) investing activities
|
|
2,558,404
|
|
(20,035,066)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
long-term debt
|
|
—
|
|
7,801,248
|
Repayments of
long-term debt
|
|
(60,254,615)
|
|
(12,579,795)
|
Proceeds from finance
leases
|
|
49,000,000
|
|
—
|
Repayments of finance
leases
|
|
(14,691,204)
|
|
(13,948,978)
|
Payments for deferred
finance fees
|
|
(980,000)
|
|
—
|
Payment of
dividend
|
|
—
|
|
(1,659,308)
|
Issuance of preferred
stock, net
|
|
23,041,348
|
|
—
|
Payment of preferred
dividend
|
|
(256,184)
|
|
—
|
Net cash used in
financing activities
|
|
(4,140,655)
|
|
(20,386,833)
|
|
|
|
|
|
Net (decrease) /
increase in cash and cash equivalents
|
|
(3,888,679)
|
|
6,494,055
|
|
|
|
|
|
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
|
|
54,476,651
|
|
58,217,162
|
Ardmore Shipping
Corporation
|
Unaudited Other
Operating Data
|
(Expressed in U.S.
Dollars, unless otherwise stated)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September 30, 2021
|
|
September 30, 2020
|
|
September 30, 2021
|
|
September 30, 2020
|
EBITDA
(1)
|
|
1,262,555
|
|
7,187,128
|
|
11,175,127
|
|
56,086,365
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MR Tankers Eco-Design
Spot TCE per day (2)
|
|
10,281
|
|
13,036
|
|
10,900
|
|
18,040
|
|
|
|
|
|
|
|
|
|
Fleet TCE per day
(2)
|
|
10,319
|
|
12,432
|
|
11,153
|
|
17,224
|
|
|
|
|
|
|
|
|
|
Fleet operating
expenses per day (3)
|
|
5,922
|
|
6,257
|
|
5,909
|
|
6,052
|
Technical management
fees per day (4)
|
|
451
|
|
457
|
|
461
|
|
458
|
|
|
6,373
|
|
6,714
|
|
6,370
|
|
6,510
|
|
|
|
|
|
|
|
|
|
MR Tankers
Eco-Design
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
11,051
|
|
13,036
|
|
11,462
|
|
18,040
|
Vessel operating
expenses per day (5)
|
|
6,430
|
|
6,901
|
|
6,408
|
|
6,520
|
|
|
|
|
|
|
|
|
|
MR Tankers
Eco-Mod
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
10,422
|
|
12,291
|
|
10,547
|
|
16,724
|
Vessel operating
expenses per day (5)
|
|
6,233
|
|
6,770
|
|
6,357
|
|
6,604
|
|
|
|
|
|
|
|
|
|
Prod/Chem Tankers
Eco-Design (25k - 38k Dwt)
|
|
|
|
|
|
|
|
|
TCE per day
(2)
|
|
8,400
|
|
11,037
|
|
10,882
|
|
15,442
|
Vessel operating
expenses per day (5)
|
|
6,325
|
|
6,205
|
|
6,285
|
|
6,420
|
|
|
|
|
|
|
|
|
|
FLEET
|
|
|
|
|
|
|
|
|
Average number of
owned operating vessels
|
|
25.0
|
|
25.5
|
|
25.0
|
|
25.2
|
_______________________
|
(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
September 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
|
|
September 30, 2021
|
|
Value
(2)
|
Seavaliant
|
|
IMO2/3
|
|
Feb–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.05
|
Seaventure
|
|
IMO2/3
|
|
Jun–13
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.43
|
Seavantage
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.28
|
Seavanguard
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,998
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.38
|
Sealion
|
|
IMO2/3
|
|
May–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.17
|
Seafox
|
|
IMO2/3
|
|
Jun–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.28
|
Seawolf
|
|
IMO2/3
|
|
Aug–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.47
|
Seahawk
|
|
IMO2/3
|
|
Nov–15
|
|
S. Korea
|
|
49,999
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
29.77
|
Endeavour
|
|
IMO2/3
|
|
Jul–13
|
|
S. Korea
|
|
49,997
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.60
|
Enterprise
|
|
IMO2/3
|
|
Sep–13
|
|
S. Korea
|
|
49,453
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
26.82
|
Endurance
|
|
IMO2/3
|
|
Dec–13
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.14
|
Encounter
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,494
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.21
|
Explorer
|
|
IMO2/3
|
|
Jan–14
|
|
S. Korea
|
|
49,478
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.31
|
Exporter
|
|
IMO2/3
|
|
Feb–14
|
|
S. Korea
|
|
49,466
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.41
|
Engineer
|
|
IMO2/3
|
|
Mar–14
|
|
S. Korea
|
|
49,420
|
|
Eco-Design
|
|
$
|
38.00
|
|
$
|
27.51
|
Sealeader
|
|
IMO3
|
|
Jun–08
|
|
Japan
|
|
47,451
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
19.17
|
Sealifter
|
|
IMO3
|
|
Aug–08
|
|
Japan
|
|
47,463
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
19.45
|
Sealancer
|
|
IMO3
|
|
Jul–08
|
|
Japan
|
|
47,472
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
19.29
|
Seafarer
|
|
IMO3
|
|
Jun–10
|
|
Japan
|
|
49,999
|
|
Eco-Mod
|
|
$
|
38.00
|
|
$
|
22.05
|
Dauntless
|
|
IMO2
|
|
Feb–15
|
|
S. Korea
|
|
37,764
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
26.43
|
Defender
|
|
IMO2
|
|
Feb–15
|
|
S. Korea
|
|
37,791
|
|
Eco-Design
|
|
$
|
35.00
|
|
$
|
26.47
|
Cherokee
|
|
IMO2
|
|
Jan–15
|
|
Japan
|
|
25,215
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
23.53
|
Cheyenne
|
|
IMO2
|
|
Mar–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
23.79
|
Chinook
|
|
IMO2
|
|
Jul–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
24.15
|
Chippewa
|
|
IMO2
|
|
Nov–15
|
|
Japan
|
|
25,217
|
|
Eco-Design
|
|
$
|
31.50
|
|
$
|
24.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
643.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash / Debt / Work.
Cap / Other Assets
|
|
$
|
(316.98)
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets) (3)
|
|
$
|
326.67
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
9.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ardmore Commercial
Management (5)
|
|
$
|
19.13
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets & Commercial Management) (3)
|
|
$
|
345.80
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)
|
|
$
|
10.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Element
1 Corp. / e1 Marine (6)
|
|
$
|
10.43
|
|
|
|
|
|
|
|
|
Total Asset Value
(Assets, Commercial Management & Investments)
(3)
|
$
|
356.23
|
|
|
|
|
|
|
|
|
DRV / Share
(3)(4)(6)
|
|
|
$
|
10.37
|
__________________________
|
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
September 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
September 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 joint venture with E1 Corp
and Maritime Partners, LLC, 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
|
|
|
September 30, 2021
|
|
September 30, 2020
|
|
September 30, 2021
|
|
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
Number of Owned &
TC-In Vessels in Operation (at period end)
|
27
|
|
26
|
|
27
|
|
26
|
|
Fleet Average
Age
|
8.3
|
|
7.3
|
|
8.3
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
CO2
Emissions Generated in Metric Tonnes
|
103,379
|
|
96,476
|
|
401,701
|
|
388,455
|
|
Distance Travelled
(Miles)
|
395,221
|
|
353,024
|
|
1,512,609
|
|
1,424,169
|
|
Fuel Consumed in
Metric Tonnes
|
32,684
|
|
30,477
|
|
126,754
|
|
122,929
|
|
|
|
|
|
|
|
|
|
|
Cargo Heating and
Tank Cleaning Fuel Consumption
|
|
|
|
|
|
|
|
|
Fuel Consumed in
Metric Tonnes
|
1,064
|
|
950
|
|
4,676
|
|
N/A
|
|
% of Total Fuel
Consumed
|
3.25%
|
|
3.12%
|
|
3.69%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Efficiency
Ratio (AER) for the period (2)
|
|
|
|
|
|
|
|
|
Fleet
|
5.84g / tm
|
|
6.10g / tm
|
|
5.92g / tm
|
|
6.11g / tm
|
|
MR
Eco-Design
|
5.47g / tm
|
|
5.81g / tm
|
|
5.67g / tm
|
|
5.78g / tm
|
|
MR Eco-Mod
|
6.15g / tm
|
|
6.31g / tm
|
|
6.11g / tm
|
|
6.21g / tm
|
|
Chemical
|
7.17g / tm
|
|
7.37g / tm
|
|
7.14g / tm
|
|
7.63g / tm
|
|
|
|
|
|
|
|
|
|
|
Energy Efficiency
Operational Indicator (EEOI) for the period
(3)
|
|
|
|
|
|
|
|
|
Fleet
|
12.07g /
ctm
|
|
12.63g /
ctm
|
|
12.75g /
ctm
|
|
12.04g /
tm
|
|
MR
Eco-Design
|
11.55g /
ctm
|
|
12.17g /
ctm
|
|
12.87g /
ctm
|
|
11.75g /
tm
|
|
MR Eco-Mod
|
13.11g /
ctm
|
|
13.36g /
ctm
|
|
11.63g /
ctm
|
|
12.01g /
tm
|
|
Chemical
|
13.00g /
ctm
|
|
13.55g /
ctm
|
|
12.55g /
ctm
|
|
13.10g /
tm
|
|
|
|
|
|
|
|
|
|
|
Wind Force (% greater
than 4 on BF)
|
45.90%
|
|
39.80%
|
|
47.81%
|
|
41.24%
|
|
% Idle Time
(4)
|
5.07%
|
|
5.65%
|
|
5.79%
|
|
5.86%
|
|
|
|
|
|
|
|
|
|
|
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 various
factors, primarily ship activity, ballast / laden ratio, cargo
carried, weather, waiting time and time in port, however, the
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 increased 3.4% to 401,701 metric tonnes of CO2, in
comparison to the same 12-month period from 2019 to 2020, mainly as
a result of an increase in distance travelled. However, the fleet
AER for the period decreased by 3.1% to 5.92 g / tm, from 6.11 g /
tm, while the EEOI shows an increase of a 5.9% to 12.75 g / ctm,
from 12.04 g / ctm.
Continued improvements are being achieved through a combination
of technological advancements and operational optimization. In
addition, Ardmore notes that its Chemical Tanker ratios are
disproportionately impacted by cargo heating and tank cleaning;
Ardmore will continue to refine the methodology and transparency in
the components of fuel consumption in future reports.
_________________________________
|
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
|
4Idle 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
|
|
Nine months
ended
|
Reconciliation of
net (loss) / income to EBITDA
|
|
September 30, 2021
|
|
September 30, 2020
|
|
September 30, 2021
|
|
September 30, 2020
|
Net (loss) /
income
|
|
(12,294,537)
|
|
(6,632,997)
|
|
(28,916,568)
|
|
13,469,207
|
Interest
income
|
|
(9,000)
|
|
(37,652)
|
|
(38,991)
|
|
(255,842)
|
Interest expense and
finance costs
|
|
4,383,322
|
|
4,023,165
|
|
12,471,055
|
|
14,252,270
|
Income tax
|
|
44,792
|
|
19,715
|
|
136,006
|
|
128,478
|
Unrealized losses /
(gains) on derivatives
|
|
25,394
|
|
(11,289)
|
|
(54,655)
|
|
88,003
|
Depreciation
|
|
7,978,252
|
|
8,117,971
|
|
23,693,915
|
|
23,918,364
|
Amortization of
deferred drydock expenditures
|
|
1,134,332
|
|
1,708,215
|
|
3,884,365
|
|
4,485,885
|
EBITDA
|
|
1,262,555
|
|
7,187,128
|
|
11,175,127
|
|
56,086,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
Reconciliation of
net (loss) / income to Adjusted (loss) / earnings
|
|
September 30, 2021
|
|
September 30, 2020
|
|
September 30, 2021
|
|
September 30, 2020
|
Net (loss) / income
attributable to common stockholders
|
|
(12,830,153)
|
|
(6,632,997)
|
|
(29,533,691)
|
|
13,469,207
|
Write-off of deferred
finance fees
|
|
—
|
|
—
|
|
568,838
|
|
—
|
Unrealized losses /
(gains) on derivatives
|
|
25,394
|
|
(11,289)
|
|
(54,655)
|
|
88,003
|
Adjusted (loss)/
earnings
|
|
(12,804,759)
|
|
(6,644,286)
|
|
(29,019,508)
|
|
13,557,210
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) /
earnings per share, basic
|
|
(0.37)
|
|
(0.20)
|
|
(0.86)
|
|
0.41
|
Adjusted (loss) /
earnings per share, diluted
|
|
(0.37)
|
|
(0.20)
|
|
(0.86)
|
|
0.41
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding, basic
|
|
34,363,884
|
|
33,285,255
|
|
33,720,853
|
|
33,243,493
|
Weighted average
number of shares outstanding, diluted
|
|
34,363,884
|
|
33,285,255
|
|
33,720,853
|
|
33,426,412
|
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 fourth quarter of 2021; expected
drydocking days in the fourth 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
Element 1 Corp entering into a licensing agreement. 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 fourth quarter of 2021 in the spot
market; vessels breakdowns and instances of off-hire; the ability
of Element 1 Corp to negotiate and enter into licensing agreements;
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-nine-months-ended-september-30-2021-301420930.html
SOURCE Ardmore Shipping Corporation