Ardmore Shipping cautiously optimistic after volatility of 2020 – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

Ardmore Shipping cautiously optimistic after volatility of 2020

Ardmore Shipping Corporation made an adjusted profit of $500,000 million last year

Ardmore Shipping Corporation has reported a net loss of $6 million for the year, or 18 cents per share. That includes a $6.5 million loss on the sale of the tanker Ardmore Seamariner, and compares with a net loss of $22.9 million in 2019.

Adjusted profit for 2020 was $500,000, or two cents per share.

The Bermudian-based company had a fleet of 27 vessels in operation at the end of 2020, including 21 medium range tankers and six product/chemical tankers.

The product tanker market experienced an extreme period of volatility last year. Anthony Gurnee, chief executive officer of Ardmore Shipping, said: “During the first half, MR [medium range] charter rates rose to record highs, peaking at $77,000 per day, while the second half saw charter rates reach new lows as the pandemic impacted oil demand and cargo volumes.

“Overall, despite the pronounced weakness in the fourth quarter, we are pleased to report a profitable year, with adjusted earnings of $0.5 million, eco-design spot MR performance of $15,990, and year-end cash at $58 million.”

Mr Gurnee said rates had increased in the first quarter of this year, driven by “modest economic recovery”.

He said: “Overall, we remain cautious about the first half of 2021, but believe the second half will bring rapidly improving market conditions and set the stage for a full recovery driven by above-trend demand growth and constrained product tanker supply growth.”

Mr Gurnee added: “We must not forget the challenges and hardships the ongoing pandemic presents, most of all for our seafarers, but also our shore staff in lockdown and in travel-related quarantine on our behalf. We acknowledge their sacrifices and want to thank them sincerely for their perseverance and professionalism.”

The company sold Ardmore Seamariner, a medium range tanker, for $10 million in December, which was paid upon delivery of the vessel last month.

Ardmore Shipping’s total net debt at the end of December was $347 million, down from $368 million in 2019.

The company plans to publish its first annual progress report on February 15.

You must be registered or signed-in to post comment or to vote.

Published February 10, 2021 at 1:25 pm (Updated February 10, 2021 at 1:25 pm)

Ardmore Shipping cautiously optimistic after volatility of 2020

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon