Ardmore Shipping reported a third-quarter loss from operations that was in-line with analysts’ estimates.
But the company took a charge on last quarter’s sale of the 29,000-dwt Ardmore Centurion (built 2005).
The New York-listed tanker owner reported a loss from continuing operations of $1.8m, compared to a profit of $13.6m in the year-earlier quarter. Earnings per share loss of $0.05 for the third quarter met analysts’ estimates.
With the loss, the company said it will not be paying a dividend in the current quarter.
The company reported a loss on the sale of the Ardmore Centurion, which went for $15.7m. Including that charge, Ardmore’s third-quarter loss would have jumped to $4.8m, or $0.14 per share.
The company reported its medium-range (MR) tankers trading in both spot markets and pools earned $13,284 per day during the quarter, while year-to-date earnings were $15,944 per day.
Ardmore has taken delivery of five of the six MRs it bought from Frontline, with the sixth to be delivered this month.
Chief executive Anthony Gurnee said that third-quarter rates on MRs, which touched two-year lows, “reflect below-average oil trading activity, driven by relative oil price stability and gradual de-stocking of global clean petroleum product inventories, which we expect will continue for the next two to three quarters.”
But he is optimistic that the fourth quarter will bring rates up as a result of typical seasonal activity.
