Ardmore Shipping Corporation · NYSE:ASC
Ardmore Shipping — Q4 2020 Earnings Presentation
19 slides from Ardmore Shipping's earnings presentation, Feb 10, 2021
Slide 1: Earnings Presentation | Fourth Quarter and Full Year 2020
Earnings Presentation | Fourth Quarter and Full Year 2020
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: Fourth Quarter and Full Year 2020 3 Agenda ▪ Financial Highlights ▪ Market Outlook ▪ Energy Transition: Ardmore’s Approach ▪ Product and Chemical Tanker Fundamentals ▪ Financial Review ▪ Capital Allocation and Financial Activity ▪ Summary 3
Slide 4: Financial Highlights
Financial Highlights 4 ▪ Last year started off strong with IMO 2020, rose to record highs with the Saudi “oil price war” and pandemic disruption, then to new lows by year- end, resulting in overall positive 2020 adjusted net earnings(1) of $0.5 million, or $0.02 per share, and spot MR performance of
Slide 5: Market Outlook
Market Outlook 5 ▪ Ardmore MR spot performance enjoyed a partial rebound so far this year on the back of winter market activity and modest economic recovery, with 1Q21 quarter-to-date spot MR performance of $11,677 / day(1) ▪ We expect continued challenging market conditions until a full economic re
Slide 6: Energy Transition: Ardmore's Approach
Energy Transition: Ardmore’s Approach 6 ▪ The global energy transition will have a profound impact on the shipping industry, including the product and chemical tanker segments ▪ While this will unfold over years, the impact is already being felt through anticipated EEXI (1) and CII(2) regulations an
Slide 7: Product and Chemical Tanker Fundamentals
Product and Chemical Tanker Fundamentals 7 7
Slide 8: Product and Chemical Tanker Fundamentals
Product and Chemical Tanker Fundamentals 8 ▪ Outlook for product and chemical tanker demand remains very positive: Global Oil Demand Recovering: pre-COVID to 2022(3) o Economic rebound is widely expected post-pandemic; global economy 100 expected to expand by 4% in 2021(1), with China alone forecast
Slide 9: Financial Review
Financial Review 9 9
Slide 10: Financial Performance
Financial Performance INCOME STATEMENT DATA Three Months Twelve Months ▪ Reporting adjusted earnings(1) of $0.5 million, or $0.02 per share, for the year ended December 31, 2020 US$ millions, unless otherwise stated Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 excluding loss on the sale of th
Slide 11: Product and Chemical Tanker Charter Rates
Product and Chemical Tanker Charter Rates 11 Time Charter Equivalent ($ / day)(1) FY2020 TCE RATES(1)(2)(3) MR ECO-DES(2) MR ECO-MOD(2) CHEMICAL(3) 22,010 21,539 20,192 19,564 18,341 19,707 18,003 15,721 16,337 15,993 15,355 13,036 14,284 14,332 12,291 11,893 11,765 11,683 11,677 11,009 9,603 11,037
Slide 12: Fleet and Operations Update
Fleet and Operations Update ▪ Fleet continues to perform well, with all COVID-19 challenges being Carbon Emissions: 11% Better than Poseidon Target(1) carefully managed: 6.90 6.80 6.80 6.80 6.80 7.0 o Crewing and seafarer welfare remain a top priority; Ardmore, along with 6.5 other leading ship owne
Slide 13: Capital Allocation and Financial Activity
Capital Allocation and Financial Activity 13 Balance Sheet Summary ▪ Continuing to focus on financial strength and liquidity; $58.4 million in December 31, December 31, cash at year end US$ millions, unless otherwise stated 2020 2019 Cash 58.4 51.7 ▪ Total net debt as at end of December was $347 mil
Slide 14: Summary
Summary 14 14
Slide 15: Summary
Summary 15 ▪ 2020 overall was a profitable year, but a roller-coaster in terms of performance, a show-case of market volatility, and a reminder of our earnings potential, with our best long-haul earning voyage earning $77,000 / day over 50 days ▪ While the market remains challenging, rates have impr
Slide 16: Appendix
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Slide 17: Supplementary Charts
Supplementary Charts 17 Global Refinery Shift: 2020 - 2024(1) Global Refinery Closures 2020(1) Expected Refinery Developments from 2020 to 2024 Refinery Status Region Capacity (kbd) Convent, Louisiana Indefinite closure America 115 Martinez, California Indefinite closure America 161 Gallup, New Mexi
Slide 18: Supplementary Charts (Cont'd)
Supplementary Charts (Cont’d) 18 Chemical Tanker Orderbook(1) Product Tanker Orderbook(1)(2) 45 80% 200 70% 40 70% 180 6.3% 60% 35 3.6% 160 60% Orderbook as % Fleet Orderbook as % Fleet Fleet (Million DWT) 50% Fleet (Million DWT) 30 140 50% 120 40% 25 40% 100 20 30% 30% 80 15 60 20% 10 20% 40 5 10%
Slide 19: Fleet Profile
Fleet Profile 19 High Quality Vessels Vessel Name Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea MI Eco-design ✓ Modern, highly fuel-efficient Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea MI Eco-design fleet of MRs Ardm