Ardmore Shipping’s second-quarter performance outpaced Wall Street expectations as the product tanker market continues to show strength.
The New York-listed shipowner reported a $61.8m profit for the three months ending on 30 June, good for $1.48 per share. Adjusted earnings per share of $1.13 bested the $1.06 consensus expectation from analysts.
Its 20 MR tankers earned time charter equivalent rates of $40,652 per day during the quarter while its six smaller IMO 2 tankers fetched $30,330 per day.
Outgoing chief executive Anthony Gurnee said: “Market conditions and charter rates continue to be exceptionally robust during an otherwise seasonally slow point in the year, a result of limited newbuildings delivering, an ageing fleet and steady oil demand growth providing a robust baseline.
“In addition, a number of geopolitical factors, most notably the rerouting related to the Russia-Ukraine conflict, is further supporting these strong market conditions.”
Gurnee — who will make way for Gernot Ruppelt at Ardmore’s helm in September — added that following its dry-docking and upgrade programme that ran from last year through to the beginning of this year, the fleet is positioned to continue capitalising on the fundamentally strong market.
The second-quarter bottom line was a significant jump from the same period last year, when the company reported a $23.7m profit.
Revenue hit $121.3m, up from $91.9m year over year.
Nearly the entire climb was attributable to improved spot rates, which drove an additional $30m into Ardmore’s coffers, while a dip in spot revenue days ate away at the top line by $7.9m.
But that $7.9m was largely offset by $7.3m in increased time charter revenues.
So far in the third quarter, Ardmore has covered 45% of its MR revenue days at $34,400 per day and 50% of its smaller tankers at $26,400 per day.
Its MR tankers will spend 95% of revenue days in the spot market, while all smaller tankers will be in the spot market.
Its shares closed up $0.02 to $20.92 on Tuesday, but climbed $0.08 in premarket trading to $21.
