Ardmore Shipping Corporation · NYSE:ASC
Ardmore Shipping — Q3 2021 Earnings Presentation
27 slides from Ardmore Shipping's earnings presentation, Nov 10, 2021
Slide 1: Earnings Presentation | Third Quarter 2021
Earnings Presentation | Third Quarter 2021
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: Agenda
Earnings Release: Third Quarter 2021 3 Agenda ▪ Highlights, Recent Market Activity and Outlook ▪ Product and Chemical Tanker Fundamentals ▪ Financial Performance ▪ Summary 3
Slide 4: Highlights
Highlights 4 ▪ Reporting an adjusted loss(1) of $12.8 million, or $0.37 per share for 3Q21 compared to an adjusted loss of $7.6 million, or $0.23 per share in 2Q21 ▪ MR’s averaged $10,280 / day for 3Q21 vs. $11,300 / day for 2Q21(2)(3), reflecting very tough market conditions: oil demand still low v
Slide 5: Recent Market Activity and Outlook
Recent Market Activity and Outlook 5 ▪ Most notable development is the rapid oil demand recovery from end-August to Oil Demand Recovering Rapidly(1)(3) end-December expected to be 3.2 million barrels per day(1), bringing oil demand Oil demand recovery +3.2 mbd from Aug – Dec 2021 close to levels at
Slide 6: Energy Transition Plan
Energy Transition Plan 6 ▪ Ardmore’s Energy Transition Plan (“ETP”) announced in March 2021 covers three key areas: transition technologies, sustainable cargoes, and transition projects E1 Hydrogen generator: ▪ Throughout the year we have made good progress on many fronts, most Unit sold to leading
Slide 7: Product and Chemical Tanker Fundamentals
Product and Chemical Tanker Fundamentals 7 7
Slide 8: Favorable Outlook For Product Tankers
Favorable Outlook For Product Tankers 8 ▪ Global oil demand fully recovering in early 2022 then continuing a Global Oil Demand: Continued Growth to 2025(2) growth trajectory: 110 104.1 104.8 105 102.8 99.7 100.3 o Global oil consumption is expected to exceed pre-COVID levels this 100 96.1 Million Ba
Slide 9: Very Positive Outlook For Chemical Tankers
Very Positive Outlook For Chemical Tankers 9 ▪ Chemical tanker trade is highly correlated to Global GDP: correlation Chemical Tanker Rates: High correlation to Global GDP(1)(2) coefficient 95% from 2010 to 2021(1) 300 95% Correlation since 2010 280 100 Global GDP (Trillion Dollars) ▪ Global economy
Slide 10: Supply Growth Increasingly Constrained
Supply Growth Increasingly Constrained 10 ▪ Significant increase in scrapping with both product and chemical Increase in Product Tanker Scrapping Forecasted for 2021(1) scrapping levels well above prior periods(1) 80 In next five years, 29% of the product 70 tanker fleet(6) (907 ships) will be over
Slide 11: Financial Performance
Financial Performance 11 11
Slide 12: Ardmore MR Eco-Design Tanker Rates
Ardmore MR Eco-Design Tanker Rates(1) 12 MR ECO-DESIGN TCE Pre-COVID Oil Demand Decline Due to COVID Market Now Trending Upwards $21,539 $19,564 $18,149 $16,200 $15,300 $15,400 $13,993 $13,036 $11,540 $11,805 $11,462 $11,051 $9,603 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 YTD21 Current (2) 1 Yea
Slide 13: Financial Highlights
Financial Highlights ▪ Reporting EBITDA of $1.3 million and adjusted loss of $12.8 INCOME STATEMENT DATA Three Months Ended million, or $0.37 per share, for the three months ended US$ millions, unless otherwise stated Sep 30, 2021 Sep 30, 2020 September 30, 2021(1) Results EBITDA(1) $1.3 $7.2 Adjust
Slide 14: Fleet and Operational Highlights
Fleet and Operational Highlights ▪ Continuing to invest in the fleet to optimize operating performance: Fleet Maintenance Capex(1) $8 o Three drydockings and one ballast water treatment system installation $6.8 $7 were completed in 3Q21; no further drydockings scheduled until 2H22 Total Capex (Milli
Slide 15: Capital Allocation Focused on Financial Strength
Capital Allocation Focused on Financial Strength 15 Balance Sheet Summary ▪ Maintaining a strong balance sheet: US$ millions, unless otherwise stated Sep 30, 2021 Dec 31, 2020 Cash 54.5 58.4 o Strong liquidity position of $61.4 million (comprising cash of $54.5 Receivables, Inventories and Advances
Slide 16: Summary
Summary 16 16
Slide 17: Summary
Summary 17 ▪ 3Q21 was negatively impacted by a very challenging tanker market, but believe we are now at a turning point in the market ▪ Fixing at much higher levels than 3Q21, as indicated by last two weeks’ voyages for MRs at $15,300 / day and chemical tankers at $17,400 / day, and our most recent
Slide 18: Appendix
Appendix 18 18
Slide 19: Ardmore Product and Chemical Tanker Rates
Ardmore Product and Chemical Tanker Rates 19 FLEET AVERAGE TCE MR ECO-DES(1) MR ECO-MOD(1) CHEMICAL(2) $13,964 $13,036 $12,737 $12,432 $12,291 $11,893 $11,796 $11,805 $11,765 $11,349 $11,540 $11,051 $11,130 $12,308 $10,319 $10,422 $11,944 $10,096 $9,764 $9,603 $11,037 $10,916 $9,052 $8,916 $8,400 Ca
Slide 20: Key Performance Drivers
Key Performance Drivers 20 MR Spot TCE Quarterly(1) Modern High-Quality Fleet: Strong On-Hire Performance(2) $13,036 n/a n/a 21.4 Days n/a 26.6 days $11,145 $11,255 $10,281 $9,603 99.31% 98.66% 99.31% 99.39% 99.21% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 (3) 2Q21 3Q21 Average Days Per Drydock MR Eco
Slide 21: Refinery Dislocation Boosting Tonne-Mile
Refinery Dislocation Boosting Tonne-Mile 21 1. See slide 22 for illustrative tonne-mile impact of refinery dislocation 2. See slide 23 for further detail on refineries 21
Slide 22: Impact of Refinery Dislocation
Impact of Refinery Dislocation 22 1. “Refinery shift” means closure of refinery in one location (e.g., Europe or Australia) and opening of refinery in another location (e.g., Middle East or China) 2. An MR can carry approx. 300,000 barrels of refined products. Assumes voyage length of 30 days on a o
Slide 23: Fleet Profile
Fleet Profile Vessel Name Type Dwt Tonnes IMO Built Country Flag Specification High Quality Vessels Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea MI Eco-design Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea MI Eco-design ✓ Modern, highly fuel-efficient Ardmore Seavantage P
Slide 24: Supplementary Industry Data
Supplementary Industry Data 24 24
Slide 25: Refinery Summary and Seaborne Product Trade
Refinery Summary and Seaborne Product Trade 25 Regional Refinery Shift 2020 - 2025(1) Region Closures Openings Europe 1.1 0.1 Australia 0.5 - Middle East - 1.3 Africa 0.3 0.9 America 1.1 - China 0.7 1.7 Asia (excl. China) 1.4 5.7 Total 5.1 9.7 Forecast Seaborne Product Trade Balances(2) 2021 2022 Re
Slide 26: Refinery Development Details
Refinery Development Details 26 Global Refinery Openings(1) Global Refinery Closures(1) Capacity Capacity Refinery Status Country Date Refinery Status Country Date (bpd) (bpd) Rongsheng Opened China 2020 200,000 Kwinana (BP) Indefinite closure Australia 2020 (146,000) Lianyungang Opening China 2021
Slide 27: Supply Growth Remains Constrained
Supply Growth Remains Constrained Product Tanker Orderbook(1) Chemical Tanker Orderbook(1) 180 70% 40 80% 6.3% 4.4% 160 35 70% 60% 140 30 60% 50% Fleet (million DWT) Fleet (million DWT) Orderbook as % Fleet Orderbook as % Fleet 120 25 50% 100 40% 20 40% 80 30% 15 30% 60 20% 10 20% 40 10% 5 10% 20 -