Weak tanker market sinks Ardmore Shipping profit
Ardmore Shipping Corporation, the Bermudian-headquartered company that owns and operates product and chemical tankers, has reported a net loss of $38.1 million for fiscal year 2021.
That compares with a net loss of $6 million in 2020.
The company reported a net loss of $8.6 million for the fourth quarter of 2021, compared to a net loss of $19.5 million for the fourth quarter of 2020.
MR (medium range) tankers earned an average TCE (time charter equivalent) rate of $11,424 per day for the fourth quarter and $11,286 per day for the year.
Chemical tankers earned an average TCE rate of $11,274 per day for the fourth quarter and $10,982 per day for the year.
Anthony Gurnee, chief executive officer, said: "The tanker market overall was weak throughout 2021, lagging other shipping sectors mainly due to the pandemic's negative impact on mobility and transport fuels.
“Given the direct connection to economic activity and consumer demand, the product and chemical tanker sectors did recover in the fourth quarter along with the global economy. However, it was not until year-end that charter rates began to properly improve, as reflected in our fourth-quarter results.”
He added: “Based upon clear and encouraging fundamentals, we expect our sectors to continue a recovery in 2022 from an already improved first quarter to-date, but also potentially influenced by many competing factors, including the evolution of the pandemic and the global economy, geopolitical concerns, and currently high oil prices impacting cargo movement and bunker costs.
“Notwithstanding these factors, the big picture is very much one of an ongoing economic recovery, rising tonne-mile demand, and a tight tonnage supply outlook aided by heightened tanker scrapping and a rush of newbuilding orders in other shipping sectors that has pushed tanker newbuilding prices up and delivery schedules out.
“Given this outlook, we have been increasing our spot exposure, while continuing a financially conservative stance in view of the potential cross currents in the market. Moving forward, Ardmore remains well positioned in terms of market upside and financial strength, with a high-quality modern fleet and a strong balance sheet."
Ardmore is headquartered in Bermuda, with operating offices in Cork, Ireland, and Singapore.