Ardmore Shipping has narrowed its third-quarter net loss from operations while beating analysts' estimates.
The New York-listed tanker owner posted a loss from continuing operations of $4.6m for the period, compared to net loss of $4.8m a year earlier.
Its loss per share for the quarter came in at $0.14. As a result, the company said it will not pay a dividend.
Ardmore reported its medium-range tankers trading in both spot markets and pools earned an average of $12,970, while its eco-design chemical tankers made an average of $10,768 per day.
Chief executive Anthony Gurnee says "short-term oil market dynamics continue to dominate the product tanker market" but that is expected to shift to the positive as the impact of Hurricane Harvey lessens.
Further, global oil inventories are heading toward normal levels after an extended period of destocking, he adds.
"As a consequence, we believe the product tanker market is poised for a seasonal rebound this winter," Gurnee said.
Looking further out, Gurnee believes the underlying fundamentals are positive as global demand growth is strong and export-oriented refinery capacity is gaining to meet the demand.
"Therefore, MR tonne mile demand should keep growing at about 5%, while supply growth is estimated at 1.8% for this year and 1.1% for 2018, tightening the MR supply-demand balance," he said.
"In addition, shipyards continue to be capital constrained and, as a consequence, we don't anticipate any major ordering activity until a recovery is well underway."
Ardmore's shares gained 0.6%, or $0.05, in late-morning trading to $8.35.
