Slide 1: Earnings Presentation Third Quarter 2022
Earnings Presentation Third Quarter 2022
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 2022 3 Agenda ▪ Highlights ▪ Market Outlook ▪ Capital Allocation Policy ▪ Product and Chemical Tanker Fundamentals ▪ Financial Performance ▪ Summary 3
Slide 4: Highlights
Highlights 4 ▪ Product and chemical tanker markets remain at historically high levels driving adjusted earnings(1) of $61.6 million or $1.59 per share for 3Q22, equating to an annualized ROE of 59%(2) o MRs earned $47,050 / day for 3Q22 up from $30,750 / day last quarter, with 40% of the fourth quar
Slide 5: Product and Chemical Tanker Outlook
Product and Chemical Tanker Outlook 5 ▪ The outlook for product and chemical tankers remains positive in a tightly Supply Dislocation = Longer Voyages balanced market o The Russia-Ukraine war continues to cause dislocation and upside volatility, and a more persistent re-ordering of global product tr
Slide 6: Capital Allocation Policy: Evolution
Capital Allocation Policy: Evolution 6 ▪ The Ardmore Capital Allocation Policy was introduced in March 2020 with Illustrative Example(2) the overall objective to build shareholder value in a highly cyclical industry Three Months Ended ▪ As a consequence of improved market conditions allowing us to m
Slide 7: Product and Chemical Tanker Fundamentals
Product and Chemical Tanker Fundamentals 7 7
Slide 8: Demand Fundamentals
Demand Fundamentals 8 ▪ Demand outlook for product and chemical tankers remains supportive Oil Demand: Continued Growth in Medium-term(1) 102.3 103.2 104.1 105 101.3 99.4 98.5 100.0 100.6 o IEA forecasting an overall increase of 1.7 mbd for 2023(1) 100 Million Barrels / Day o Increased tonne-miles g
Slide 9: Supply Fundamentals
Supply Fundamentals 9 ▪ Supply outlook for product tankers also remains very favorable Positive Multi-Year Supply / Demand Balance(1)(2)(3)5) 4.5% 3.9% ▪ Net fleet growth (deliveries less scrapping) is expected to be well below 4.0% 3.5% 3.5% 3.5% demand growth levels for the coming years 3.5% 3.1%
Slide 10: Operating and Financial Performance
Operating and Financial Performance 10 10
Slide 11: Fleet and Operational Highlights
Fleet and Operational Highlights ▪ Continuing to invest in the fleet to optimize performance Fleet Profile 30 o Strategically buying back leased vessels, while selling older tonnage and chartering back at favorable rates 25 4 5 5 o Expect to complete one drydocking and ballast water treatment system
Slide 12: Financial Highlights
Financial Highlights ▪ Adjusted earnings of $61.6 million, or $1.59 per share for 3Q22, INCOME STATEMENT DATA Three Months Ended representing our strongest quarter in Company history thus far, as we transition into a higher earnings environment(1) US$ millions, unless otherwise stated Sep 30, 2022 S
Slide 13: Ardmore Product and Chemical Tanker Rates
Ardmore Product and Chemical Tanker Rates(1) 13 FLEET AVERAGE TCE MR ECO-DES(2) CHEMICAL(3) $47,026 $45,010 $40,308 $40,860 $35,302 $35,890 $30,739 $27,806 $31,536 $31,541 $21,970 $16,513 $20,254 $15,155 $14,801 $12,217 $11,390 $11,024 $10,319 $10,281 $8,916 $13,645 $11,274 $8,400 3Q21 4Q21 1Q22 2Q2
Slide 14: Ardmore Has Significant Operating Leverage (Illustrative)
Ardmore Has Significant Operating Leverage (Illustrative) 14 $1,400 $1,316 $35.00 $33.94 $1,300 $1,200 $30.00 $1,072 $1,100 $27.66 Average Fleet TCE $1,000 3Q22 Net Income (Million USD) $25.00 $900 $828 $21.37 $800 $20.00 EPS $700 $585 $15.09 $600 $15.00 $500 $400 $10.00 $8.80 $341 $7.54 $292 $300 $
Slide 15: Continued Focus on Financial Strength
Continued Focus on Financial Strength 15 ▪ Ardmore continues to build financial strength, positioning the Company to Balance Sheet Summary capitalize on value-enhancing opportunities through the cycle US$ millions, unless otherwise stated Sep 30, 2022 Sep 30, 2021 Cash 50.6 54.5 o Net leverage of 34
Slide 16: Summary
Summary 16 16
Slide 17: Summary
Summary 17 ▪ Product and chemical tanker rates continue at historically high levels, resulting in very strong operating returns; in 3Q22 earnings of $62 million and EPS of $1.59, equating to an annualized book ROE(1) of 59% and current earnings yield(2) of 47% and so far in the fourth quarter we are
Slide 18: Appendix
Appendix 18 18
Slide 19: EBITDA + vessel lease expense component (i.e. EBITDAR)
EBITDA + vessel lease expense component (i.e. EBITDAR) 19 Three months ended Nine months ended Reconciliation of net income / (loss) to EBITDAR(1) September 30, 2022 September 30, 2022 In thousands of U.S. Dollars Net Income / (Loss) 61,832 84,518 Interest income (191) (221) Interest expense and fin
Slide 20: Fleet Profile
Fleet Profile High Quality Vessels Vessel Name Ownership Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Seavaliant Owned Product/Chemical 49,998 2/3 Feb-13 Korea MI Eco-Design ✓ Modern, highly fuel-efficient Ardmore Seaventure Owned Product/Chemical 49,998 2/3 Jun-13 Korea MI Eco-Desig
Slide 21: Refinery Summary and Seaborne Product Trade
Refinery Summary and Seaborne Product Trade 21 Regional Refinery Shift(1) Region Closures 2020 - 2026 Openings 2022 - 2026 Europe 1.2 0.1 Australia 0.5 - Middle East - 1.1 Africa 0.2 0.9 America 1.6 0.7 China 0.7 1.1 Asia (excl. China) 1.7 5.6 Total (mbd) 5.9 9.5 Seaborne Product Trade Balances(2) 2
Slide 22: Ardmore Indicative Guidance 4Q22
Ardmore Indicative Guidance 4Q22 22 MR Eco-Design Spot TCE: $45,000 (40% Fixed) Chemical Tanker Fleet TCE: $31,500 (50% Fixed) Revenue Days: 2,439 Operating Expenses: $14 million Charter-In Expenses: $6 million Depreciation and Amortization: $8.5 million Overhead (Commercial and Corporate): $6 milli