Ardmore Shipping (ASC) Q2 2024 earnings summary

Executive summary

• Adjusted earnings for Q2 2024 were $47.6 million ($1.13–$1.14 per share), with strong TCE performance and cost control.

• Net income for Q2 2024 was $61.8 million ($1.48 basic EPS), up from $23.7 million in Q2 2023, driven by a $12.3 million gain on vessel sale.

• Quarterly cash dividend of $0.38 per share declared, consistent with policy to pay out one-third of adjusted earnings.

• Leadership transition announced: Gernot Ruppelt to become CEO in September, ensuring continuity in strategy and management.

• Ongoing fleet investments focus on efficiency, emissions reduction, and compliance with upcoming regulations.

Financial highlights

• Q2 2024 revenue was $121.3 million, up from $91.9 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $58.5 million, and adjusted EBITDAR was $61.2 million, both up year-over-year.

• Cash and cash equivalents at June 30, 2024 were $47.4 million; total assets $742.0 million.

• Debt reduced to $44.2 million from $123.5 million year-over-year; leverage at 12%.

• Q2 2024 gain on vessel sold was $12.3 million (Ardmore Seafarer); gain on extinguishment of $1.4 million from early lease prepayment.

Outlook and guidance

• 45% of MR Eco-Design tanker revenue days fixed for Q3 2024 at $33,700/day; 50% of chemical tanker days fixed at $26,400/day.

• No drydocking days scheduled for Q3 2024.

• Market outlook remains positive, supported by strong supply-demand fundamentals, limited newbuilds, and robust ton mile demand.

• Global refinery runs have surpassed pre-COVID highs, with further growth forecasted into 2025.