Ardmore Shipping Corporation · NYSE:ASC
Ardmore Shipping — Q1 2025 Earnings Presentation
26 slides from Ardmore Shipping's earnings presentation, May 7, 2025
Slide 1: Ardmore Shipping First Quarter 2025
Ardmore Shipping First Quarter 2025
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable U.S. federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Ardmore Shippi
Slide 3: Contents
Contents I. Highlights II. Market Outlook III. Operating and Financial Performance IV. Summary V. Appendix 3
Slide 4: Earnings Highlights
Earnings Highlights Ardmore is financially strong; well positioned in current market Earnings Highlights 1Q 2025 Adjusted Earnings(1) $5.6m EPS(1) $0.14 Dynamically addressing all capital allocation priorities: o Declared consistent dividend of one-third of adjusted earnings o Upgrading tank coati
Slide 5: Earnings Highlights: Continued strength into the second quarter
Earnings Highlights Continued strength into the second quarter, contrary to seasonal norms TCE Remains Well Above Breakeven TCE Rates 1Q 2025 2Q 2025 TD $22,100 $22,100 MRs(1) $20,900 $20,900 (50% fixed) $19,500 $19,500 Chemicals $15,000 (60% fixed) $15,000 Cash breakeven of $11,500 / day Chemical T
Slide 6: Capital Allocation Policy
Capital Allocation Policy Dynamically addressing all priorities under our Capital Allocation Policy Priority Description Highlights Investing in efficiency projects with short paybacks and high IRRs Investing in fleet to boost Maintain fleet over time performance and reduce emissions Upgrading t
Slide 7: Contents
Contents I. Earnings Highlights II. Market Outlook III. Operating and Financial Performance IV. Summary V. Appendix 7
Slide 8: Positive Supply-Side Dynamics
Positive Supply-Side Dynamics Oldest MR fleet in decades; half approaching scrapping age MR Fleet Age at Historical High(1) Global MR Tanker Fleet Aging Rapidly(1) Scrapping Window in 5 yrs Orderbook 60% 8 2007 7 50% 2006 52m 14m 6 tons tons 2008 Fleet (million dwt) 2005 Orderbook as % Fleet 40% 5 3
Slide 9: Fleet Age and Utilization
Fleet Age and Utilization Significant decline in utilization levels for older vessels Aging MR Fleet(1) Lower Utilization of Older Vessels(2) Current After 5 years 47% 22% 62% 47% 53% 78% 0-19 Years 20+ Years 38% 53% 0-19 Years 20+ Years Ballast Laden 1) Clarksons Shipping Intelligence Network, Apri
Slide 10: USTR & Sanctions Impacting Vessel Supply
USTR & Sanctions Impacting Vessel Supply Ardmore’s Korea and Japan-built fleet a key strength in current market U.S. Trade Representative actions dampening ordering 60% of Product Tanker Orderbook to be Built in China(1) activity and imposing cost burdens on Chinese vessels Fleet (dwt) Orderbook (
Slide 11: Demand Fundamentals
Demand Fundamentals Overall fundamentals remain supportive to ton-mile demand Near-term demand drivers remain supportive, despite tariff Higher Refining Margins Supporting Trading Activity(1) related uncertainty and macro headwinds 29 o Higher refining margins supporting trading activity 25 o OPEC
Slide 12: Contents
Contents I. Earnings Highlights II. Market Outlook III. Operating and Financial Performance IV. Summary V. Appendix 12
Slide 13: Continued Focus on Financial Strength
Continued Focus on Financial Strength Strong balance sheet positions Ardmore to perform well through market cycles Ardmore continues to focus on optimizing TCE Continuing to Build Financial Strength performance, managing costs, and preserving a strong balance sheet US$ millions, unless otherwise s
Slide 14: Financial Highlights
Financial Highlights TCE strength and cost focus driving continued cash flow generation Utilizing revolving capacity to minimize interest expense Focus on Cost Control & Efficiency Three Months Ended Adjusted EBITDAR(1) of $18.5 million in 1Q 2025 (full bridge on slide 25) US$ millions, unless o
Slide 15: Fleet and Operational Highlights
Fleet and Operational Highlights Optimizing operating performance and earnings, while investing in fleet Remaining nimble; capturing value with continued strong Majority of Drydockings in 1H 2025 charter performance o Opportunistic time-charter spread play to realize $2m 4 value over 12 months 3 o
Slide 16: Market Volatility = Operating Leverage Opportunity
Market Volatility = Operating Leverage Opportunity Every $10,000 / day increase in rates increases EPS by ~$2.30 / share annually(1) $5.62 $4.46 $3.31 $2.15 $1.00 $20,000 $25,000 $30,000 $35,000 $40,000 Fleet Average TCE Additional $10,000 / day equates to annual free cash flow of $95m(1)(2) 1) Illu
Slide 17: Contents
Contents I. Earnings Highlights II. Market Outlook III. Operating and Financial Performance IV. Summary V. Appendix 17
Slide 18: Summary
Summary Market Volatility = Operating Leverage Opportunity Summary Ardmore built to withstand uncertainty and harness volatility Strong TCE Robust Performance Financial $21,000 Position Low Cash Breakeven Innovation Mindset $11,500 18
Slide 19: Contents
Contents I. Earnings Highlights II. Market Outlook III. Operating and Financial Performance IV. Summary V. Appendix 19
Slide 20: Modern High-Quality, Korea and Japan-Built Fleet
Modern High-Quality, Korea and Japan-Built Fleet Vessel Name Ownership Type Dwt Tons IMO Built Country Specification Ardmore Gibraltar Owned Product/Chemical 49,999 2/3 Apr-2017 Korea Eco-design Ardmore Seahawk Owned Product/Chemical 49,999 2/3 Nov-2015 Korea Eco-design Ardmore Seawolf Owned Product
Slide 21: Dividend Payment
Dividend Payment Dividend Calculation In line with our consistent Dividend Policy, Ardmore declared a quarterly cash dividend for 1Q 2025 of $0.05 per share Three Months Ended Mar 31, o Quarterly dividend calculated as one-third of Adjusted earnings(1) 2025 Adjusted earnings before exclusions $5,6
Slide 22: Refinery Summary and Seaborne Product Trade
Refinery Summary and Seaborne Product Trade Regional Refinery Shift(1)(2) Region Closures 2020 - 2026 Openings 2020 - 2026 Europe 1.3 0.1 Australia 0.4 - Middle East - 1.9 Africa 0.2 1.0 America 1.9 0.6 China 1.4 2.7 Asia (excl. China) 1.5 6.6 Total (mbd) 6.7 12.9 Seaborne Product Trade Balances(3)
Slide 23: Refinery Dislocation Boosting Ton-Mile Demand
Refinery Dislocation Boosting Ton-Mile Demand(1) 1) Closures based on announcement periods 23
Slide 24: Uplift From Increasing Regulations
Uplift From Increasing Regulations Creating new opportunities and increasing returns on fuel-efficiency upgrades Regulation Description Ardmore Execution Optimizing fleet deployment to maximize Targets GHG intensity of energy used on-board TCE Entered into force in January 2025 Recently fixe
Slide 25: EBITDA + vessel lease expense component (i.e. EBITDAR)
EBITDA + vessel lease expense component (i.e. EBITDAR) Three months ended Twelve months ended Reconciliation of net income / (loss) to EBITDAR(1) March 31, 2025 March 31, 2025 In thousands of U.S. Dollars Net income 6,253 100,022 Interest income (108) (1,381) Interest expense and finance costs 935 5
Slide 26: Ardmore Indicative Guidance 2Q 2025
Ardmore Indicative Guidance 2Q 2025(1) MR Combined Spot TCE: $22,100 (50% fixed) Chemical Tanker Fleet TCE: $19,500 (60% fixed) Revenue Days: 2,150 Operating Expenses: $15.5 million Charter-In Expenses: $5.5 million Depreciation and Amortization: $9.5 million Overhead (Commercial and Corporate): $6.