Chemical tanker company posts record Q2 earnings
Bermudian-headquartered Ardmore Shipping Corporation, which owns and operates product and chemical tankers, has reported a net profit of $28.8 million for the second quarter of the year.
That compares with a net loss of $8.2 million for the second quarter of 2021.
Medium range tankers earned an average time charter equivalent rate of $30,480 per day for the first quarter.
Chemical tankers earned an average TCE rate of $20,254 per day for the same period.
Ardmore finalised terms for three new sustainability-linked senior loan facilities with its existing relationship banks for $308 million in the aggregate on improved terms and pricing.
Aggregate proceeds of $293 million from two of the facilities will be used to refinance 19 vessels, including nine vessels currently financed under lease arrangements.
The third loan is a sustainability-linked $15 million receivables facility, which replaces Ardmore's existing receivables facility scheduled to mature in July 2023.
The new financing will substantially reduce interest cost, provide for significant flexibility and extend maturities through to mid-2027, the company said.
Ardmore also announced the planned departure of current chief financial officer Paul Tivnan and appointment of its new CFO Bart Kelleher, effective September 28.
Anthony Gurnee, the company's chief executive officer, said: "We are pleased to report record earnings for the second quarter with net income of $29 million or $0.82 earnings per share, reflecting improved market conditions and MR TCE performance of $31,000 per day.
“The product tanker market has continued to strengthen so far into the third quarter, with our MR's earning $46,600 with 45 per cent of days booked, setting the stage for an even better quarter and an anticipated strong finish for the year.”
He added: “We believe the strong product tanker market is being driven primarily by two factors: firstly, a multifaceted energy crisis likely to persist for some time, with extreme price swings and supply issues for virtually all energy classes, low global energy inventories, and physical supply-demand dislocation for oil products driving tonne-mile demand; and secondly, improving demand/supply fundamentals, most notably the ongoing recovery of oil demand – in particular jet fuel – and the combined effect of supply constraints at shipyards and ongoing scrapping.”
Mr Tivnan leaves Ardmore after “12 great years”, Mr Gurnee said.
He added: “Paul has been instrumental to what Ardmore has accomplished and has been a core part of the senior management team. It has been a privilege to work with him over these many years. We wish him the very best as he passes the torch and moves on to the next chapter of his career.
“Bart brings to Ardmore a wealth of experience in shipping and related industries across many functions, including notable financial sector and CFO experience, as well as expertise in the chemical sector as CEO of Chembulk Tankers. We are confident that he will play a pivotal role in driving Ardmore strategically and financially towards even greater future success."