Ardmore Shipping Corporation Q2 FY2025 earnings call

• Acquired three high-quality MR tankers in the second-hand market, expect delivery this quarter, with attractive prices reflecting disciplined fleet growth.
• Closed a comprehensive refinancing into a $350 million fully revolving credit facility, enhancing financial flexibility and supporting low cash breakeven.
• Secured a three-year time charter at $19,250 per day for a chemical tanker and increased short-term coverage with fixed rate charters on two MR tankers, bringing MR fixed rate coverage to four vessels at an average $22,500 per day.
• Declared eleventh consecutive dividend since 2022.
• Almost done with chemical tanker recoating project, five of six completed, final vessel scheduled this quarter, with benefits like accessing premium cargoes and boosting earnings power.
• Majority of drydocking work for 2025 behind us, limited dockings ahead, 2025 drydocking and capex projected $35M-$38M, half related to tank coatings and efficiency upgrades.
• Investing in digitalization tools and AI, seeing benefits across fleet and shore side operations, on hire availability 99% in second quarter.

For MR tankers, the second quarter earned $23,500 per day and the third quarter so far is $25,500 with 50% booked. For chemical tankers, the second quarter earned $20,400 per day and the third quarter is $21,700 with 65% booked. These rates are about double the cash breakeven. The MR tankers contribute with their earnings per day and booking percentages, and chemical tankers similarly with their respective figures.

• Third quarter guidance numbers available in appendix on slide 25.
• 2025 drydocking and capital expenditures projected to be $35 million to $38 million.

Q: Omar Nokta asked about target leverage and how the company is approaching capital allocation, and Gernot Ruppelt responded about focusing on value, being opportunistic, maintaining financial flexibility, and dry powder for opportunities.

Q: Omar Nokta asked about US pressure on Russia affecting the product market, and Gernot Ruppelt responded about market direction, reshift in trade, and how the company is geared for shifting trade flows