Slide 1: Ardmore Shipping Third Quarter 2023
Ardmore Shipping Third Quarter 2023
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 3 I. Highlights II. Product and Chemical Tanker Fundamentals III. Operating and Financial Performance IV. Summary V. Appendices 3
Slide 4: Highlights
Highlights 4 ▪ Ardmore is reporting adjusted earnings (1) of $20.3 million or $0.49 Strong MR TCE Rates Well Above Cash Breakeven (2) per share for 3Q23, with continued strength into the fourth quarter $30,100 o MRs earned $28,500 / day for 3Q23, with 50% of the fourth quarter $28,500 booked at $30,
Slide 5: Near-Term Product and Chemical Tanker Outlook
Near-Term Product and Chemical Tanker Outlook 5 Robust near-term demand drivers approaching seasonally stronger winter months OECD Global Product Inventory Levels Below 5-Year Avg. (1) ▪ The EU Refined Products Embargo (commenced February 5, 2023) continuing to impact the market 1,550 ▪ Mi l lion Ba
Slide 6: EU Refined Product Embargo
EU Refined Product Embargo 6 First full winter season since commencement of EU Embargo in February 2023 Consistent Diesel Demand and Declining Imports(1) ▪ EU diesel demand has remained consistent while imports have shown a significant decline Diesel imports -15% since Embargo 55.0 8.0 ▪ EU diesel i
Slide 7: Capital Allocation Policy
Capital Allocation Policy 7 Investing in fleet efficiency improvements while continuing our variable dividend payments Continue to invest in fleet to improve performance and reduce Maintain fleet over time carbon emissions, generating strong financial returns Focus on maintaining low leverage throug
Slide 8: Contents
Contents 8 I. Highlights II. Product and Chemical Tanker Fundamentals III. Operating and Financial Performance IV. Summary V. Appendices 8
Slide 9: Significant Supply-Demand Gap
Significant Supply-Demand Gap 9 Robust market fundamentals as net fleet growth remains at low levels Product and Chemical Tanker Demand vs. Net Fleet Growth(1)(2)(3)(4) 15.0% 12.1% 2024 demand assumes full year of enhanced tonne- miles due to EU Embargo 10.0% 8.8% 6.8% 4.9% 5.0% 3.9% 3.1% 3.5% 2.6%
Slide 10: Aging Fleet & Low Orderbook
Aging Fleet & Low Orderbook 10 Aging fleet greatly exceeds vessel orderbook Orderbook for Product Tankers at Historical Lows (1)(2) Global Product Tanker Fleet Aging Rapidly(1) 200 MR Orderbook: 6.5% of fleet 70% 16 37% of fleet > 20 Product Tanker Orderbook: 10.0% of fleet years old in 5 years 180
Slide 11: Robust Long-Term Demand Drivers
Robust Long-Term Demand Drivers 11 Strong underlying demand growth in product and chemical tanker markets ▪ Heightened energy security concerns following Russia-Ukraine IEA Forecasting Continued Growth in Oil Demand(3) conflict has led to a persistent re-ordering of global product trades 110 104.8 1
Slide 12: Contents
Contents 12 I. Highlights II. Product and Chemical Tanker Fundamentals III. Operating and Financial Performance IV. Summary V. Appendices 12
Slide 13: Continued Focus on Financial Strength
Continued Focus on Financial Strength 13 Maintaining conservative capital structure ▪ Managing cash breakeven level at approximately $14,000 per Continuing to Build Financial Strength day through effective cost control, reduced debt levels, and US$ millions, unless otherwise stated Sep 30, 2023 Sep
Slide 14: Financial Highlights
Financial Highlights Resilient TCE performance and effective cost control Fleet TCE(2) ▪ Adjusted earnings of $20.3 million, or $0.49 per share, for 3Q 2023 3Q 2023 3Q 2022 MR(3) $28,493 $44,228 ▪ Adjusted EBITDAR(1) (i.e., EBITDA plus bareboat equivalent Chemical Tankers $20,023 $31,536 lease expen
Slide 15: Fleet and Operational Highlights
Fleet and Operational Highlights Continuing investments to improve fleet performance and reduce emissions Majority of Scheduled Drydockings to be Completed by Early ‘24 ▪ Significant investment in the fleet beyond routine drydockings 7 o Seven drydockings in 2023 at an estimated cost of $12mln o Inc
Slide 16: Significant Operating Leverage
Significant Operating Leverage For every $10,000 / day increase in TCE rates, EPS expected to increase by ~$2.30 / share annually (1) Additional $10,000 / day in TCE equates to annual free cash flow of $95mln (1)(2) $9.87 Current Market Level $7.60 $5.33 $3.06 $30,000 $40,000 $50,000 $60,000 Fleet A
Slide 17: Contents
Contents 17 I. Highlights II. Product and Chemical Tanker Fundamentals III. Operating and Financial Performance IV. Summary V. Appendices 17
Slide 18: Summary
Summary 18 Market: ✓ TCE rates are at an inflection point heading into the seasonally strong winter market ✓ Anticipating a substantial increase in European import tonne-miles due to low inventory levels and longer voyage distances ✓ Wide supply-demand gap supports strong product and chemical tanker
Slide 19: Contents
Contents 19 I. Highlights II. Product and Chemical Tanker Fundamentals III. Operating and Financial Performance IV. Summary V. Appendices 19
Slide 20: Dividend Payment
Dividend Payment 20 ▪ In line with our consistent Dividend Policy, Ardmore is pleased to declare Dividend Calculation a quarterly cash dividend for 3Q 2023 of $0.16 per share Three Months Ended Sep 30, o Quarterly dividend calculated as one-third of adjusted earnings(1) 2023 Adjusted Earnings before
Slide 21: Refinery Summary and Seaborne Product Trade
Refinery Summary and Seaborne Product Trade 21 Regional Refinery Shift(1)(2) Region Closures 2020 - 2026 Openings 2023 - 2026 Europe 1.2 0.1 Australia 0.4 - Middle East - 0.5 Africa 0.2 1.0 America 1.8 0.6 China 1.0 1.0 Asia (excl. China) 1.7 6.0 Total (mbd) 6.3 9.2 Seaborne Product Trade Balances(3
Slide 22: Refinery Dislocation Boosting Tonne-Mile Demand
Refinery Dislocation Boosting Tonne-Mile Demand(1) 22 (1) 1. Closures based on announcement periods 22
Slide 23: Ardmore Product and Chemical Tanker Rates
Ardmore Product and Chemical Tanker Rates (1) 23 FLEET AVERAGE TCE MR COMBINED(2) CHEMICAL(3) $35,685 $33,958 $31,982 $30,100 $28,493 $27,900 $27,508 $27,180 $26,541 $26,347 $25,800 $27,984 $24,555 $22,103 $23,000 $20,023 1Q23 2Q23 3Q23 4Q23 TD 1Q23 2Q23 3Q23 4Q23 TD 1Q23 2Q23 3Q23 4Q23 TD 1. Ardmor
Slide 24: Fleet Profile
Fleet Profile High Quality Vessels Vessel Name Ownership Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Seahawk Leased Product/Chemical 49,999 2/3 Nov-15 Korea MI Eco-design ✓ Modern, highly fuel-efficient Ardmore Seawolf Leased Product/Chemical 49,999 2/3 Aug-15 Korea MI Eco-design fl
Slide 25: EBITDA + vessel lease expense component (i.e. EBITDAR)
EBITDA + vessel lease expense component (i.e. EBITDAR) 25 Three months ended Twelve months ended Reconciliation of net income / (loss) to EBITDAR(1) September 30, 2023 September 30, 2023 In thousands of U.S. Dollars Net income 21,203 143,734 Interest income (418) (1,513) Interest expense and finance
Slide 26: Ardmore Indicative Guidance 4Q 2023
Ardmore Indicative Guidance 4Q 2023(1) 26 MR Combined TCE: $30,100 (50% fixed) Chemical Tanker Fleet TCE: $25,800 (60% fixed) Revenue Days: 2,287 Operating Expenses: $14.5 million Charter-In Expenses: $5.5 million Depreciation and Amortization: $8.5 million Overhead (Commercial and Corporate): $6.0