Slide 1: Ardmore Shipping Second Quarter 2024
Ardmore Shipping Second Quarter 2024
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. Ardmore’s Leadership Transition II. Earnings Highlights III. Product and Chemical Tanker Fundamentals IV. Operating and Financial Performance V. Summary VI. Appendix 3
Slide 4: Ardmore's Leadership Transition
Ardmore’s Leadership Transition Comprehensive Succession Process Highly Experienced Team Continuity of Approach Bart Kelleher, Gernot Ruppelt, and Anthony Gurnee 4
Slide 5: Executing on a Consistent Strategy
Executing on a Consistent Strategy 5
Slide 6: Our Philosophy: Combining Performance & Progress
Our Philosophy: Combining Performance & Progress 6 Driving performance today while simultaneously pursuing progress Performance TCE (T4Q Avg) Cash Breakeven Dividend Yield $12,650 (1) $35,000 7.5% Consistent TCE outperformance Driving down breakeven through Consistent quarterly dividend cost efficie
Slide 7: Contents
Contents 7 I. Ardmore’s Leadership Transition II. Earnings Highlights III. Product and Chemical Tanker Fundamentals IV. Operating and Financial Performance V. Summary VI. Appendix 7
Slide 8: Highlights
Highlights 8 Ardmore is reporting adjusted earnings(1) of $47.6 million or MR TCE: Rates Notably Stronger Year-on-Year(2) $1.13 per share for 2Q 2024, with continued strength during the seasonally slower third quarter $41,400 o MRs earned $41,400 / day for 2Q24, with 45% of the third +50% quarter
Slide 9: Near-Term Product and Chemical Tanker Outlook
Near-Term Product and Chemical Tanker Outlook 9 Positive market outlook driven by strong supply-demand fundamentals EU Refined Products Embargo and bifurcation of the global Emerging Trade Routes Supporting Market Strength fleet has led to a persistent re-routing of trades and significantly added
Slide 10: Capital Allocation Policy
Capital Allocation Policy 10 Building financial strength & flexibility while investing in our fleet and returning capital to shareholders Continue to invest in fleet to improve performance and reduce Maintain fleet over time emissions Focus on maintaining low leverage through market cycles; Sustain
Slide 11: Contents
Contents 11 I. Ardmore’s Leadership Transition II. Earnings Highlights III. Product and Chemical Tanker Fundamentals IV. Operating and Financial Performance V. Summary VI. Appendix 11
Slide 12: Significant Supply-Demand Gap
Significant Supply-Demand Gap 12 Projected tonne-mile increases continuing to outpace net fleet growth CPP Tonne-Mile Demand vs. Net Fleet Growth(1)(2)(3)(4) 0.1 8.8% 0.08 7.0% 2025 MR net fleet 6.4% growth = 2.2% 0.06 4.9% 3.9% 0.04 3.1% 3.5% 3.2% 2.5% 2.6% 2.0% 2.1% 1.8% 2.0% 1.7% 1.4% 1.4% 1.3% 0
Slide 13: Aging Fleet & Low Orderbook
Aging Fleet & Low Orderbook 13 Historically high average fleet age while MR orderbook remains low MR Fleet Age at Historical High(1)(2) Global MR Tanker Fleet Aging Rapidly(1)(2) 50% 9 2008 Fleet >15yrs is 4x 2007 45% 8 Current Orderbook 40% 2009 7 35% Fleet (million Dwt) 2006 2005 Orderbook as % Fl
Slide 14: Robust Long-Term Demand Drivers
Robust Long-Term Demand Drivers 14 Strong underlying demand growth in product and chemical tanker markets Continued Growth in Oil Demand Russia-Ukraine conflict and EU Refined Products Embargo have led to a persistent re-ordering of global product trades, 108 significantly adding to overall tonne-
Slide 15: Contents
Contents 15 I. Ardmore’s Leadership Transition II. Earnings Highlights III. Product and Chemical Tanker Fundamentals IV. Operating and Financial Performance V. Summary VI. Appendix 15
Slide 16: Continued Focus on Financial Strength
Continued Focus on Financial Strength 16 Robust balance sheet and conservative capital structure, supporting lower breakeven Continuing to Build Financial Strength Continuing to further reduce cash breakeven (now $12,650 per day(1)), through effective cost control, lower debt levels, US$ millions,
Slide 17: Financial Highlights
Financial Highlights Continued strong TCE performance and effective cost control Adjusted earnings of $47.6 million, or $1.13 per share, for 2Q Continued Focus on Cost Control & Efficiency Improvements 2024 Three Months Ended Adjusted EBITDAR(1) (i.e., EBITDA plus bareboat equivalent US$ million
Slide 18: Fleet and Operational Highlights
Fleet and Operational Highlights Continuing to enhance the fleet to optimize operating performance and profitability Majority of our annual drydocking and fleet enhancement Increasing Revenue Days Following Completion of Drydockings program complete, supporting higher earnings potential 4,740 Ca
Slide 19: 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) $12.05 3Q 2024 $9.82 Fleet Fixed to Date: $32,000 $7.58 $5.35 $3.11 $30,000 $40,000 $50,000 $60,000 $70,000 Fleet Average TCE Additional $10,000 / day in TCE equates t
Slide 20: Contents
Contents 20 I. Ardmore’s Leadership Transition II. Earnings Highlights III. Product and Chemical Tanker Fundamentals IV. Operating and Financial Performance V. Summary VI. Appendix 20
Slide 21: Summary
Summary 21 Market: Rates continued their strong momentum in 2Q 2024 and have remained elevated into 3Q 2024 Persistent re-ordering of product tanker trade as a result of the EU Refined Products Embargo, boosted by ongoing geopolitical dislocation and the emergence of new trade routes Highly su
Slide 22: Concluding Remarks
Concluding Remarks 22 22
Slide 23: Contents
Contents 23 I. Ardmore’s Leadership Transition II. Earnings Highlights III. Product and Chemical Tanker Fundamentals IV. Operating and Financial Performance V. Summary VI. Appendix 23
Slide 24: Dividend Payment
Dividend Payment 24 In line with our consistent Dividend Policy, Ardmore is pleased to declare Dividend Calculation a quarterly cash dividend for 2Q 2024 of $0.38 per share Three Months Ended June 30, o Quarterly dividend calculated as one-third of adjusted earnings(1) 2024 Adjusted Earnings befor
Slide 25: Refinery Summary and Seaborne Product Trade
Refinery Summary and Seaborne Product Trade 25 Regional Refinery Shift(1)(2) Region Closures 2020 - 2026 Openings 2023 - 2026 Europe 1.3 0.1 Australia 0.4 - Middle East - 0.5 Africa 0.2 1.0 America 1.8 0.6 China 1.0 1.5 Asia (excl. China) 1.7 6.0 Total (mbd) 6.4 9.7 Seaborne Product Trade Balances(3
Slide 26: Refinery Dislocation Boosting Tonne-Mile Demand
Refinery Dislocation Boosting Tonne-Mile Demand(1) 26 (1) 1. Closures based on announcement periods 26
Slide 27: Ardmore Product and Chemical Tanker Rates
Ardmore Product and Chemical Tanker Rates 27 MR Eco-Des(1) Chemical(2) Fleet Average $41,385 $38,430 $37,762 $36,135 $34,720 $33,661 $32,542 $32,057 $30,900 $31,162 $29,100 $29,702 $30,330 $26,107 $26,421 $24,831 4Q23 1Q24 2Q24 3Q24 TD 4Q23 1Q24 2Q24 3Q24 TD 4Q23 1Q24 2Q24 3Q24 TD 1. Basis MR Eco-De
Slide 28: Fleet Profile
Fleet Profile High Quality Vessels Vessel Name Ownership Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Gibraltar Owned Product/Chemical 49,999 2/3 Apr-2017 Korea SG Eco-design Modern, highly fuel-efficient Ardmore Seahawk Leased Product/Chemical 49,999 2/3 Nov-2015 Korea MI Eco-desi
Slide 29: EBITDA + vessel lease expense component (i.e. EBITDAR)
EBITDA + vessel lease expense component (i.e. EBITDAR) 29 Three months ended Twelve months ended Reconciliation of net income / (loss) to EBITDAR(1) June 30, 2024 June 30, 2024 In thousands of U.S. Dollars Net income 62,692 150,139 Interest income (612) (2,129) Interest expense and finance costs 2,0
Slide 30: Ardmore Indicative Guidance 3Q 2024
Ardmore Indicative Guidance 3Q 2024(1) 30 MR Eco-Design Spot TCE: $33,700 (45% fixed) Chemical Tanker Fleet TCE: $26,400 (50% fixed) Revenue Days: 2,385 Operating Expenses: $15.0 million Charter-In Expenses: $6.0 million Depreciation and Amortization: $9.0 million Overhead (Commercial and Corporate)