Ardmore Shipping Corporation announced results for the three and twelve months ended December 31, 2024.
Highlights and Recent Activity
Reported Adjusted earnings of $10.3 million for the three months ended December 31, 2024, or $0.25 Adjusted earnings per basic share and diluted share, compared to Adjusted earnings of $26.1 million, or $0.63 Adjusted earnings per basic share and diluted share for the three months ended December 31, 2023. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section.)
Reported Adjusted earnings of $119.5 million for the year ended December 31, 2024, or $2.87 Adjusted earnings per basic share and $2.84 Adjusted earnings per diluted share, compared to Adjusted earnings of $113.4 million for the year ended December 31, 2023, or $2.76 Adjusted earnings per basic share and $2.71 Adjusted earnings per diluted share. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section, with the main driver of the variance being the gain on the sale of the Ardmore Seafarer in April 2024 of $12.3 million.)
Consistent with the Company’s variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, the Board of Directors declared a cash dividend on February 13, 2025, of $0.08 per common share for the quarter ended December 31, 2024. The dividend will be paid on March 14, 2025, to all shareholders of record on February 28, 2025.
In December 2024, the Company repurchased 1.56 million shares, or approximately 4% of its outstanding common stock, under Ardmore’s share repurchase plan, at a weighted average price of $11.49 per share, for a total cost of $17.9 million.
Reported net income attributable to common stockholders of $5.1 million for the three months ended December 31, 2024, or $0.12 earnings per basic share and diluted share, compared to net income attributable to common stockholders of $26.1 million, or $0.63 earnings per basic share and diluted share for the three months ended December 31, 2023.
Reported net income attributable to common stockholders of $128.6 million for the year ended December 31, 2024, or $3.09 earnings per basic share and $3.06 earnings per diluted share, compared to net income attributable to common stockholders of $113.4 million, or $2.76 earnings per basic share and $2.71 earnings per diluted share, for the year ended December 31, 2023.
MR Eco-Design tankers earned an average spot TCE rate of $22,663 per day for the three months ended December 31, 2024. Chemical tankers earned an average TCE rate of $21,406 per day for the three months ended December 31, 2024. Based on approximately 55% of total revenue days currently fixed for the first quarter of 2025, the average spot TCE rate is approximately $23,400 per day for MR Eco-Design tankers; based on approximately 40% of revenue days fixed for the first quarter of 2025, the average TCE rate for chemical tankers is approximately $14,000 per day.
Gernot Ruppelt, the Company’s Chief Executive Officer, commented:
“Ardmore’s consistent focus on optimizing our performance, strengthening our financial position, and maintaining low breakeven levels has served us well. With the combination of supportive fundamentals and the close coordination of our teams on shore and at sea, we have harnessed market volatility and delivered another profitable quarter.
We continue to execute on our capital allocation priorities with a focus on long-term value creation. We are making favorable higher return investments in our vessels, building balance sheet strength to enhance our ability to act decisively when attractive opportunities arise, and returning capital to our shareholders through both a quarterly dividend and recent use of our share repurchase program.
Moving forward, we expect steady growth in underlying demand for refined oil products and expanding biofuel trades that will support product tanker demand, while the MR fleet ages to its oldest level in decades. At the same time, the combination of regulatory uncertainty, the expansion of sanctions, and widespread geopolitical instability is underscoring the value of cargo and destination flexibility that is the hallmark of MR product tankers and chemical tankers.”
Summary of Recent and Fourth Quarter 2024 Events
Fleet
Fleet Operations and Employment
As of December 31, 2024, the Company had 26 vessels in operation (including four chartered-in vessels), consisting of 20 MR tankers ranging from 45,000 deadweight tonnes (“dwt”) to 49,999 dwt (16 owned Eco-Design and four chartered-in Eco-Mod) and six owned 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 2024, the Company had 20 MR tankers in operation, all but one of which was trading in the spot market.
Source: Ardmore Shipping Corporation
