Ardmore Shipping is set for its first acquisition since snapping up the Frontline medium-range products tanker fleet last summer.
The New York-listed company has a deal in place, subject to financing, for a 47,500-dwt Japanese-built product tanker, its third quarter report says.
It explains the 2008-built ship will be delivered in December if acceptable lease financing can be secured.
While Ardmore does not name the vessel involved, shipbroking sources suggest the tanker is the Challenge Pearl (built 2008), owned by public Japanese owner Kyoei Tanker.
Brokers had placed a price of around $16m on the ship when it was reported sold in early October.
Back on acquisition trail
Ardmore has grown its fleet with second-hand and newbuilding deals since it was launched with a blank sheet of paper in 2010.
Its last acquisitive move prior to today was the $172.5m swoop for six tankers from John Fredriksen's Frontline in June 2016.
Doug Mavrinac, an analyst at Jefferies, describes the latest acquisition as timely.
"Based on the estimated acquisition cost and attractive financing provided through a Japanese Tax Lease, the single acquisition could boost Ardmore's overall EPS by 5% should MR spot charter rates return to $18,000 per day," he said.
John Gandolfo, an analyst at Clarksons Platou Securities, suggests the latest MR has been bought at a 30% discount to newbuilding parity.
"We see the conclusion of the sale to not only be accretive to Ardmore's bottom line in a firmer rate market but also adding some additional asset leverage as depressed secondhand valuations recover," the analyst said.
Ardmore has around $45.8m in cash, working capital of $27.7m and has just secured $15m under a new revolving credit facility, Gandolfo says.
