Ardmore Shipping Corporation Announces Financial Results For The Three and Six Months Ended June 30, 2025
HAMILTON, Bermuda, July 30, 2025 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE:ASC) ("Ardmore", the "Company" or "we") today announced results for the three and six months ended June 30, 2025.
Highlights and Recent Activity
Reported Adjusted earnings and net income attributable to common stockholders of $9.0 million for the three months ended June 30, 2025, or $0.22 earnings per basic and diluted share, compared to Adjusted earnings of $47.6 million and net income attributable to common stockholders of $61.8 million, or $1.14 Adjusted earnings per basic share and $1.13 Adjusted earnings per diluted share for the three months ended June 30, 2024. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section. The major driver of the variance between Adjusted earnings and net income attributable to common stockholders for the three months ended June 30, 2024, was a $12.3 million gain from the sale of the Ardmore Seafarer in April 2024)
Reported Adjusted earnings and net income attributable to common stockholders of $14.6 million for the six months ended June 30, 2025, or $0.36 earnings per basic and diluted share, compared to Adjusted earnings of $86.0 million and net income attributable to common stockholders of $100.2 million, or $2.07 Adjusted earnings per basic share and $2.05 Adjusted earnings per diluted share for the six months ended June 30, 2024. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section. The major driver of the variance between Adjusted earnings and net income attributable to common stockholders for the six months ended June 30, 2024, was a $12.3 million gain from the sale of the Ardmore Seafarer in April 2024)
Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, the Board of Directors declared a cash dividend on July 30, 2025, of $0.07 per common share for the quarter ended June 30, 2025. The dividend will be paid on September 12, 2025, to all shareholders of record on August 29, 2025.
MR Eco-Design tankers earned an average spot TCE rate of $23,441 per day for the three months ended June 30, 2025. Chemical tankers earned an average spot TCE rate of $20,409 per day for the three months ended June 30, 2025. Based on approximately 50% of total revenue days currently fixed for the third quarter of 2025, the average spot TCE rate is approximately $25,450 per day for MR Eco-Design tankers; based on approximately 65% of revenue days fixed for the third quarter of 2025, the average spot TCE rate for chemical tankers is approximately $21,650 per day.
The Company agreed to acquire three modern, high-quality, Korean-built MR tankers in two separate transactions for an aggregate purchase price of $103.9 million; one 2020-built scrubber-installed vessel for $38.3 million and two 2017-built vessels for $32.8 million each. Deliveries of these vessels are expected to be completed during the quarter ending September 30, 2025 and will be financed by cash on hand and revolving credit facilities, maintaining a modest leverage level while lowering average fleet age.
The Company closed a $350 million revolving credit facility with top-tier banks and secured by 20 of Ardmore's owned vessels. The facility has a margin of 1.8% and matures in 2031.
While predominately trading its tankers in the spot market, the Company committed one of its 25,000-ton chemical tankers to a three-year time-charter-out contract at $19,250 per day to a top-tier chemical producer. Furthermore, the Company executed two tactical MR charters out, thereby increasing MR fixed rate coverage to four vessels at an average rate of $22,500 per day with varying durations between six to 12 months.
Gernot Ruppelt, the Company's Chief Executive Officer, commented:
"Earnings have continued to strengthen through the first half of 2025 and into the third quarter. Ardmore has executed a series of well-timed transactions and initiatives that further enhance our strong performance and earnings power. We agreed to acquire three modern, high-quality Korean-built MR tankers with near-term delivery, and we refinanced our bank debt at favorable terms with top-tier lenders. In addition, we selectively locked in quality time charter-out contracts for a portion of our existing fleet, thereby securing attractive near-term and multi-year returns. Furthermore, our previously announced tank coating upgrades have now been completed on the majority of our chemical tankers, delivering early wins by accessing an even wider cargo slate. This has resulted in premium returns for our chemical fleet, and it matches our focused strategy to interchangeably leverage product and chemical markets.
Guided by Ardmore's strong governance and consistent approach to capital allocation, enabled by our high-performing organization and our robust balance sheet, Ardmore continues to decisively deliver on its strategy to create long-term value through market cycles."
Summary of Recent and Second Quarter 2025 Events
Fleet
Fleet Operations and Employment
As of June 30, 2025, the Company had 26 vessels in operation (including four chartered-in vessels), consisting of 20 MR tankers (16 owned Eco-Design and four chartered-in Eco-Mod) ranging in size from 45,000 deadweight tons ("dwt") to 49,999 dwt and six owned Eco-Design IMO 2 product/chemical tankers ranging in size from 25,000 dwt to 37,800 dwt.
MR Tankers (45,000 dwt, 49,999 dwt)
Below is a summary of the average daily MR Tanker TCE rates earned during the second quarter of 2025 and thus far in the third quarter of 2025, together with the corresponding percentage of currently fixed total revenue days for the third quarter:
Number of Vessels
2Q 2025 Average Daily TCE
3Q 2025 As of July 30, 2025
TCE
% Fixed
MR Eco-Design
16
$23,441
$25,450
50 %
MR Eco-Mod
4
$21,826
$20,550
35 %
MR Combined
20
$23,136
$24,650
50 %
Product / Chemical Tankers (IMO 2: 25,000 dwt, 37,800 dwt)
Below is a summary of the average daily Chemical Tanker TCE rates earned during the second quarter of 2025 and thus far in the third quarter of 2025, together with the corresponding percentage of currently fixed total revenue days for the third quarter:
Number of Vessels
2Q 2025 Average Daily TCE
3Q 2025 As of July 30, 2025
TCE
% Fixed
Chemical Tankers
6
$20,409
$21,650
65 %
Drydocking
The Company had 194 drydocking days in the second quarter of 2025. The Company is currently scheduled to have approximately 110 drydocking days in the third quarter of 2025.
Fleet
The Company agreed to acquire three modern, high-quality, Korean-built MR tankers in two separate transactions, for an aggregate purchase price of $103.9 million; one 2020-built scrubber-installed vessel for $38.3 million and two 2017-built vessels for $32.8 million each. Deliveries of these vessels are expected to be completed during the quarter ending September 30, 2025, and will be financed by cash on hand and revolving credit facilities, maintaining a modest leverage level while lowering average fleet age.
While predominately trading its tankers in the spot market, the Company committed one of its 25,000-ton chemical tankers to a three-year time-charter-out contract at $19,250 per day to a top-tier chemical producer. Furthermore, the Company executed two tactical MR charters out, thereby increasing MR fixed rate coverage to four vessels at an average rate of $22,500 per day, with varying durations between six to 12 months.
Financing
In July 2025, the Company closed a $350 million revolving credit facility with top-tier banks, secured by 20 of its owned vessels. The facility is priced at SOFR plus a margin of 1.80% and matures in 2031. The revolving credit facility comprises Nordea Bank, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Bank, and Danske Bank A/S.
Dividend on Common Shares
Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, as calculated for dividends (see Adjusted earnings (for purposes of dividend calculations) in the Non-GAAP Measures section), the Board of Directors declared a cash dividend on July 30, 2025 of $0.07 per common share for the quarter ended June 30, 2025. The dividend will be paid on September 12, 2025, to all shareholders of record on August 29, 2025.
Geopolitical Conflicts
The ongoing Russia-Ukraine conflict has disrupted energy supply chains, caused instability and significant volatility in the global economy and resulted in economic sanctions by several nations. This conflict has contributed to increases in spot tanker rates.
Geopolitical tensions have increased since commencement of the Israel-Hamas conflict in October 2023. Since mid-December 2023, Houthi rebels in Yemen have carried out numerous attacks on vessels in the Red Sea area. As a result of these attacks, many shipping companies have routed their vessels away from the Red Sea, which has affected trading patterns, rates and expenses. Although these vessel attacks generally decreased in the first half of 2025, they have recently increased, and the situation remains volatile. Military and other intervention intended to reduce or stop the attacks, including airstrikes targeting Houthi rebels has not resolved hostilities in the region. Further escalation or expansion of hostilities in the Middle East or elsewhere could continue to affect the price of crude oil and the oil industry, the tanker industry and demand for the Company's services.
Geopolitical and Economic Uncertainty
In recent months, governments have taken actions to implement new or increased tariffs on foreign imports. These activities have resulted in tariffs being levied on various goods and commodities, which may trigger an escalation of trade wars. These actions have been disruptive to global markets, resulting in significant volatility in stock and commodity prices and an increase in general global economic uncertainty, including the risk of economic recessions. As a result of this rapidly changing and unpredictable geopolitical climate, the shipping industry is experiencing uncertainty as to future vessel demand, trade routes, rates and operating costs.
Results for the Three Months Ended June 30, 2025 and 2024
The Company reported net income attributable to common stockholders of $9.0 million for the three months ended June 30, 2025, or $0.22 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $61.8 million, or $1.48 earnings per basic share and $1.47 earnings per diluted share for the three months ended June 30, 2024.
Results for the Six Months Ended June 30, 2025 and 2024
The Company reported net income attributable to common stockholders of $14.6 million for the six months ended June 30, 2025, or $0.36 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $100.2 million, or $2.41 earnings per basic share and $2.39 earnings per diluted share for the six months ended June 30, 2024.
Management's Discussion and Analysis of Financial Results for the Three Months Ended June 30, 2025 and 2024
Revenue. Revenue for the three months ended June 30, 2025 was $72.0 million, a decrease of $49.3 million from $121.3 million for the three months ended June 30, 2024.
The Company's average number of operating vessels was 26.0 for the three months ended June 30, 2025, consistent with 26.0 for the three months ended June 30, 2024.
The Company had 1,975 spot revenue days for the three months ended June 30, 2025, as compared to 2,093 for the three months ended June 30, 2024. The Company had 23 vessels employed directly in the spot market as of June 30, 2025, as compared to 24 vessels as of June 30, 2024. Decreases in spot rates during the three months ended June 30, 2025 resulted in a decrease in revenue of $40.0 million, while the decrease in spot revenue days resulted in a decrease in revenue of $6.7 million for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.
The Company had three product tankers employed under time charter as of June 30, 2025, as compared to two as of June 30, 2024. There were 218 revenue days derived from time charters for the three months ended June 30, 2025, as compared to 186 revenue days for the three months ended June 30, 2024. The increase in revenue days for time-chartered vessels was offset by a decrease in time-charter rates, which resulted in a net decrease in revenue of $2.6 million for the three months ended June 30, 2025.
Voyage Expenses. Voyage expenses were $25.2 million for the three months ended June 30, 2025, a decrease of $9.5 million from $34.7 million for the three months ended June 30, 2024. The decrease is primarily due to a $6.6 million reduction in bunker costs and a $2.9 million decrease in port, agency and broker commission costs.
TCE Rate. The average TCE rate for the Company's fleet was $22,468 per day for the three months ended June 30, 2025, a decrease of $15,294 per day from $37,762 per day for the three months ended June 30, 2024. TCE rates represent net revenues (a non-GAAP measure representing revenue less voyage expenses) divided by revenue days. Net revenue utilized to calculate TCE is determined on a discharge-to-discharge basis, which is different from how the Company records revenue under U.S. GAAP.
Vessel Operating Expenses. Vessel operating expenses were $15.4 million for the three months ended June 30, 2025, a decrease of $0.8 million from $16.2 million for the three months ended June 30, 2024. The decrease reflects the timing of vessel operating expenses between quarters. Vessel operating expenses, by their nature, can be prone to fluctuations between periods.
Charter Hire Costs. Total charter hire expense was $5.7 million for the three months ended June 30, 2025, generally consistent with $5.6 million for the three months ended June 30, 2024. Total charter hire expense for the three months ended June 30, 2025 was comprised of an operating expense component of $3.0 million and a vessel lease expense component of $2.7 million (June 30, 2024: $2.9 million and $2.7 million, respectively).
Depreciation. Depreciation expense for the three months ended June 30, 2025 was $7.9 million, an increase of $0.3 million from $7.6 million for the three months ended June 30, 2024. This increase is primarily attributable to the installation of energy saving devices and other upgrades on several vessels during their most recent drydocking cycles in the second quarter of 2025.
Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended June 30, 2025 was $1.3 million, an increase of $0.4 million from $0.9 million for the three months ended June 30, 2024. Deferred drydocking costs for a given vessel are amortized on a straight-line basis to the next scheduled drydocking of the vessel.
General and Administrative Expenses: Corporate. Corporate-related general and administrative expenses for the three months ended June 30, 2025 were $4.8 million, a decrease of $0.5 million from $5.3 million for the three months ended June 30, 2024. The decrease in costs reflects savings versus the prior period one-time expenses related to the Company's leadership transition.
General and Administrative Expenses: Commercial and Chartering. Commercial and chartering expenses are the expenses attributable to Ardmore's chartering and commercial operations departments in connection with its spot trading activities. Commercial and chartering expenses for the three months ended June 30, 2025 were $1.3 million, an increase of $0.3 million from $1.0 million for the three months ended June 30, 2024. The cost increase for the three months ended June 30, 2025 was primarily due to one-time related costs.
Gain on Vessel Sold. The Company did not sell any vessels during the three months ended June 30, 2025. During the three months ended June 30, 2024, the Company recorded a gain of $12.3 million relating to the gain on the sale of the Ardmore Seafarer in April 2024.
Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended June 30, 2025 were $1.0 million, a decrease of $1.0 million from $2.0 million for the three months ended June 30, 2024. The decrease in costs was due to the reduction of the Company's average outstanding debt balance as a result of the conversion of its term loan into a fully revolving facility in March 2024 as well as the repayment of its last remaining finance lease facility in June 2024.
The current flexibility of the Company's revolving facilities, with only $25.0 million drawn down as of June 30, 2025, has minimized the impact on the Company of the interest rate environment. Amortization of deferred finance fees for the three months ended June 30, 2025 was $0.3 million, consistent with $0.3 million for the three months ended June 30, 2024.
Gain on Extinguishment of Finance Leases. The Company recorded no gain or loss on extinguishment of finance leases during the three months ended June 30, 2025. Gain on extinguishment of finance leases for the three months ended June 30, 2024 was $1.4 million and related to the early prepayment of the finance lease related to the exercises by the Company of the vessel purchase options for the Ardmore Seawolf and Ardmore Seahawk in June 2024.
Liquidity
As of June 30, 2025, the Company had $243.3 million in liquidity available, with cash and cash equivalents of $49.5 million (December 31, 2024: $47.0 million) and amounts available and undrawn under its revolving credit facilities of $193.8 million (December 31, 2024: $196.4 million).
Conference Call
The Company plans to host a conference call on July 30, 2025, at 10:00 a.m. Eastern Time to discuss its financial results for the quarter ended June 30, 2025. All interested parties are invited to listen to the live conference call and review the related slide presentation by choosing from the following options:
By dialing 800‑836‑8184 (U.S.) or 646-357-8785 (International) and referencing "Ardmore Shipping."
By accessing the live webcast at Ardmore's website at www.ardmoreshipping.com.
Participants should dial into the call 10 minutes before the scheduled time.
If you are unable to participate at this time, an audio replay of the call will be available through August 6, 2025 at 888-660-6345 or 646-517-4150. Enter the passcode 24528 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company takes no responsibility for providing updated information.
About Ardmore Shipping Corporation
Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,000 deadweight tons. Ardmore provides, through its modern, fuel-efficient fleet of mid-size tankers, seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.
Ardmore's core strategy is to continue to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships and maintain its cost advantage in assets, operations and overhead, while creating synergies and economies of scale as the company grows. Ardmore provides its services to customers through voyage charters and time charters, and enjoys close working relationships with key commercial and technical management partners.
Ardmore's Energy Transition Plan ("ETP") focusses on three key areas: transition technologies, transition projects, and sustainable (non-fossil fuel) cargos. The ETP is an extension of Ardmore's strategy, building on its core strengths of tanker chartering, shipping operations, technical and operational fuel efficiency improvements, technical management, construction supervision, project management, investment analysis, and ship finance.
Ardmore Shipping CorporationUnaudited Condensed Consolidated Balance Sheets
As of
In thousands of U.S. Dollars, except as indicated
June 30, 2025
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents
49,479
46,988
Receivables, net of allowance for bad debts of $1.6 million (2024: $1.9 million)
52,790
60,871
Prepaid expenses and other assets
4,775
4,298
Advances and deposits
3,086
3,084
Inventories
9,997
11,308
Total current assets
120,127
126,549
Non-current assets
Investments and other assets, net
5,028
5,236
Vessels and vessel equipment, net
542,486
545,594
Deferred drydock expenditures, net
22,921
14,252
Advances for ballast water treatment and scrubber systems
3,738
4,845
Deposit for vessel acquisition
3,837
—
Deferred finance fees, net
2,205
2,746
Operating lease, right-of-use asset
3,477
5,577
Total non-current assets
583,692
578,250
TOTAL ASSETS
703,819
704,799
LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
Current liabilities
Accounts payable
8,659
6,070
Accrued expenses and other liabilities
17,686
18,313
Deferred revenue
2,532
482
Current portion of operating lease obligations
2,059
4,965
Total current liabilities
30,936
29,830
Non-current liabilities
Non-current portion of long-term debt
25,000
38,796
Non-current portion of operating lease obligations
1,577
476
Other non-current liabilities
273
273
Total non-current liabilities
26,850
39,545
TOTAL LIABILITIES
57,786
69,375
Redeemable Preferred Stock
Cumulative Series A 8.5% redeemable preferred stock
27,782
27,782
Total redeemable preferred stock
27,782
27,782
Stockholders' equity
Common stock
443
440
Additional paid in capital
477,098
475,812
Treasury stock
(33,524)
(33,524)
Retained earnings
174,234
164,914
Total stockholders' equity
618,251
607,642
Total redeemable preferred stock and stockholders' equity
646,033
635,424
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
703,819
704,799
Ardmore Shipping CorporationUnaudited Condensed Consolidated Statements of Operations
Three Months Ended
Six Months Ended
In thousands of U.S. Dollars except per share and sharedata
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Revenue, net
72,046
121,325
146,042
227,626
Voyage expenses
(25,177)
(34,720)
(56,209)
(65,267)
Vessel operating expenses
