HAMILTON, Bermuda, May 7, 2026 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we") today announced results for the three months ended March 31, 2026.
Highlights and Recent Activity
-- Reported Adjusted earnings and net income attributable to common
stockholders of $23.6 million for the three months ended March 31, 2026,
or $0.58 Adjusted earnings per basic and diluted share, compared to
Adjusted earnings and net income attributable to common stockholders of
$5.6 million, or $0.14 Adjusted earnings per basic and diluted share for
the three months ended March 31, 2025. (See reconciliation of net income
to Adjusted earnings in the Non-GAAP Measures section.)
-- The Company has signed contracts for the construction of two
highly-efficient and versatile 40,500 dwt Handysize product/chemical
tankers at Wuhu Shipyard, at a price of $44.9 million per vessel,
inclusive of approximately $3 million for full IMO2 specification and
MarineLine tank coatings. In addition, the Company is commissioning
various performance and safety upgrades. The agreement also includes
options to acquire two additional vessels on the same terms. Deliveries
are scheduled from late 2028.
-- The Company is doubling its dividend payout ratio on its shares of common
stock to two-thirds (increased from one-third) of Adjusted earnings. The
Board of Directors declared a cash dividend on May 7, 2026, of $0.39 per
common share for the quarter ended March 31, 2026. The dividend will be
paid on June 12, 2026, to all shareholders of record on May 29, 2026.
-- The Company has agreed to the sale of the 2014-built Ardmore Engineer for
$35.5 million. The vessel is expected to be delivered to the buyer in
June 2026.
-- MR tankers earned an average spot TCE rate of $33,705 per day for the
three months ended March 31, 2026. Chemical tankers earned an average
spot TCE rate of $22,284 per day for the three months ended March 31,
2026. Based on approximately 55% of total revenue days currently fixed
for the second quarter of 2026, the average spot TCE rate is
approximately $52,100 per day for MR tankers; based on approximately 65%
of revenue days fixed for the second quarter of 2026, the average spot
TCE rate for chemical tankers is approximately $32,500 per day.
Gernot Ruppelt, the Company's Chief Executive Officer, commented:
"Ardmore continues to advance as we execute on our capital allocation priorities: investing in two highly versatile IMO2 Handysize newbuildings plus options, realizing value through the opportunistic sale of a 2014-built MR tanker at an attractive spread, and doubling our dividend payout ratio to two-thirds of adjusted earnings. Freight rates have continued to accelerate, and to date our second-quarter spot-trading MR tankers are booked at an average TCE of $52,100 per day. We continue to focus on delivering value through market cycles, guided by our long-term strategy, backed by a robust balance sheet and low cash breakevens, and enabled by our strong organization."
First Quarter 2026 Highlights and Recent Developments
Fleet
Fleet Operations and Employment
As of March 31, 2026, the Company had 26 vessels in operation (including one chartered-in vessel), consisting of 20 MR tankers (19 owned Eco-Design and one chartered-in Eco-Mod) ranging in size from 45,000 deadweight tons ("dwt") to 50,200 dwt and six owned Eco-Design IMO 2 product/chemical tankers ranging in size from 25,000 dwt to 37,800 dwt.
MR Tankers (IMO 2/3: 45,000 -- 50,200 dwt)
Below is a summary of the average daily MR Tanker spot TCE rates earned during the first quarter of 2026 and rates thus far in the second quarter of 2026, together with the corresponding percentage of currently fixed total revenue days for the first quarter:
2Q 2026
1Q 2026 As of
Average Daily TCE May 7, 2026
TCE % Fixed
Spot MR Tankers $33,705 $52,100 55 %
----------------- ------------------ ------- -------
Product / Chemical Tankers (IMO 2: 25,000 -- 37,800 dwt)
Below is a summary of the average daily Chemical Tanker spot TCE rates earned during the first quarter of 2026 and rates thus far in the second quarter of 2026, together with the corresponding percentage of currently fixed total revenue days for the first quarter:
2Q 2026
1Q 2026 As of
Average Daily TCE May 7, 2026
TCE % Fixed
Spot Chemical Tankers $22,284 $32,500 65 %
----------------------- ------------------ ------- -------
Drydocking
The Company does not currently have any scheduled statutory drydocking days in the second quarter of 2026.
Newbuildings
In April 2026, the Company signed contracts for the construction of two highly-efficient and versatile 40,500 dwt Handysize product/chemical tankers at Wuhu Shipyard, at a price of $44.9 million per vessel. In addition, the Company is commissioning various performance and safety upgrades. The agreement also includes options to acquire two additional vessels on the same terms. Deliveries are scheduled from late 2028.
Dividend on Common Shares
Consistent with the Company's recently-updated variable dividend policy of paying out dividends on its shares of common stock equal to two-thirds (increased from one-third) of Adjusted earnings, as calculated for dividends (see "Adjusted earnings (for purposes of dividend calculations)" in the Non-GAAP Measures section), the Board of Directors declared a cash dividend on May 7, 2026 of $0.39 per common share for the quarter ended March 31, 2026. The dividend will be paid on June 12, 2026, to all shareholders of record on May 29, 2026.
Vessel Sale
In March 2026, the Company agreed to sell the 2014-built Ardmore Engineer for $35.5 million. The vessel is expected to be delivered to the buyer in June 2026.
Geopolitical Conflicts
Geopolitical tensions cause volatility in the market. The recent U.S./Israel-Iran conflict has significantly disrupted shipping transits via the Strait of Hormuz, a major oil and gas trade route, and the conflict has widened across the Middle East, increasing security concerns and uncertainty. Notably, none of our vessels have been detained in the Strait of Hormuz since the commencement of hostilities between the U.S./Israel and Iran. In addition, the conflict in Ukraine has significantly increased tanker demand and rates by reordering global oil trading patterns. Changes in or resolution of these conflicts may lead to a reversal of these trading patterns or other effects that could significantly decrease tanker demand and rates.
Since mid-December 2023 Houthi rebels in Yemen have carried out numerous attacks on vessels in the Red Sea. As a result of these attacks, many shipping companies have routed their vessels away from transiting the Red Sea, which has affected trading patterns, rates, and expenses. Although these vessel attacks decreased in the first quarter of 2025, Houthi activity levels remain uncertain. The U.S. military operation in Venezuela, including the U.S.' recent seizures of certain sanctioned oil tankers calling on Venezuelan ports, has similarly added uncertainty in that region.
Further escalation or expansion of international hostilities could continue to affect the price of crude oil and the oil industry, the tanker industry, demand for our services, and our business, results of operations, financial condition, and cash flows.
Geopolitical and Economic Uncertainty
Governments continue to take actions to implement new or increased tariffs on foreign imports and port fees. These activities have resulted in tariffs being levied on various goods and commodities, which may trigger an escalation of trade wars. These actions have been disruptive to global markets, resulting in significant volatility in stock and commodity prices and an increase in general global economic uncertainty, including the risk of economic recessions. As a result of the rapidly changing and unpredictable geopolitical climate, the shipping industry is experiencing uncertainty as to future vessel demand, trade routes, rates and operating costs.
Results for the Three Months Ended March 31, 2026 and 2025
The Company reported net income attributable to common stockholders of $23.6 million for the three months ended March 31, 2026, or $0.58 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $5.6 million, or $0.14 earnings per basic and diluted share for the three months ended March 31, 2025.
Management's Discussion and Analysis of Financial Results for the Three Months Ended March 31, 2026 and 2025
Revenue. Revenue for the three months ended March 31, 2026 was $87.9 million, an increase of $13.9 million from $74.0 million for the three months ended March 31, 2025.
The Company's average number of operating vessels was 26.0 for the three months ended March 31, 2026, consistent with 26.0 for the three months ended March 31, 2025.
The Company had 1,629 spot revenue days for the three months ended March 31, 2026, as compared to 1,995 for the three months ended March 31, 2025. The Company had 21 vessels employed directly in the spot market as of March 31, 2026, as compared to 25 vessels as of March 31, 2025. While there was a decrease in spot revenue days, increases in spot charter rates resulted in a net increase in revenue of $4.2 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.
The Company had four product tankers and one chemical tanker employed under time charters as of March 31, 2026, as compared to one product tanker and no chemical tankers as of March 31, 2025. There were 585 revenue days derived from time charters for the three months ended March 31, 2026, as compared to 90 revenue days for the three months ended March 31, 2025. The increase in revenue days for time-chartered vessels resulted in an increase in revenue of $9.7 million for the three months ended March 31, 2026.
Voyage Expenses. Voyage expenses were $25.9 million for the three months ended March 31, 2026, a decrease of $5.1 million from $31.0 million for the three months ended March 31, 2025. The decrease is primarily due to a reduction in bunker consumption from fewer spot days, partially offset by an increase in fuel prices.
TCE Rate. The average TCE rate for the Company's fleet was $28,686 per day for the three months ended March 31, 2026, an increase of $8,144 per day from $20,542 per day for the three months ended March 31, 2025. TCE rates represent net revenues (a non-GAAP measure representing revenue less voyage expenses) divided by revenue days. Net revenue utilized to calculate TCE is determined on a discharge-to-discharge basis, which is different from how the Company records revenue under U.S. GAAP.
Vessel Operating Expenses. Vessel operating expenses were $17.8 million for the three months ended March 31, 2026, an increase of $2.6 million from $15.2 million for the three months ended March 31, 2025. The increase is due to the addition of three vessels to the Ardmore fleet during the third quarter of 2025 and the timing of vessel operating expenses between quarters. Vessel operating expenses can be prone to fluctuations between periods.
Charter Hire Costs. Total charter hire expense was $1.0 million for the three months ended March 31, 2026, a decrease of $4.8 million from $5.8 million for the three months ended March 31, 2025. This decrease is a result of the Company having one chartered-in vessel during the three months ended March 31, 2026, compared to four during the three months ended March 31, 2025. Total charter hire expenses in the first quarter of 2026 were comprised of an operating expense component of $0.5 million and a vessel lease expense component of $0.5 million (March 31, 2025: $3.0 million and $2.8 million, respectively).
Depreciation. Depreciation expense for the three months ended March 31, 2026 was $9.4 million, an increase of $1.7 million from $7.7 million for the three months ended March 31, 2025. This increase is primarily attributable to the addition of three vessels to the Ardmore fleet during the third quarter of 2025.
Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended March 31, 2026 was $1.8 million, an increase of $0.9 million from $0.9 million for the three months ended March 31, 2025 due to increased drydocking activity compared to the previous period. The deferred costs of drydockings for a given vessel are amortized on a straight-line basis to the next scheduled drydocking of the vessel.
General and Administrative Expenses: Corporate general and administrative expenses for the three months ended March 31, 2026 were $5.2 million, generally consistent with $5.0 million for the three months ended March 31, 2025.
General and Administrative Expenses: Commercial and Chartering expenses are the expenses attributable to Ardmore's chartering and commercial operations departments in connection with its spot trading activities. Commercial and chartering expenses for the three months ended March 31, 2026 were $1.2 million, in line with $1.2 million for the three months ended March 31, 2025.
Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended March 31, 2026 were $2.1 million, an increase of $1.2 million from $0.9 million for the three months ended March 31, 2025. The increase was primarily due to drawdowns on the Company's revolving credit facilities to finance the purchase of three MR tankers during the third quarter of 2025. In addition, amortization of deferred finance fees for the three months ended March 31, 2026 was $0.2 million, generally consistent with $0.3 million for the three months ended March 31, 2025.
As of March 31, 2026, the Company had $283.7 million in liquidity available, with cash and cash equivalents of $47.2 million (December 31, 2025: $46.8 million) and amounts available and undrawn under its revolving credit facilities of $236.5 million (December 31, 2025: $225.4 million).
Conference Call
The Company plans to host a conference call on May 7, 2026, at 10:00 a.m. Eastern Time to discuss its financial results for the quarter ended March 31, 2026. All interested parties are invited to listen to the live conference call and review the related slide presentation by choosing from the following options:
1. By dialing 800-836-8184 (U.S.) or +1-646-357-8785 (International) and
referencing "Ardmore Shipping."
2. By accessing the live webcast at Ardmore's website at
www.ardmoreshipping.com
Participants should dial into the call 10 minutes before the scheduled time.
If you are unable to participate at this time, an audio replay of the call will be available through May 14, 2026 at 888-660-6345 or 646-517-4150. Enter the passcode 89653 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company takes no responsibility for providing updated information.
About Ardmore Shipping Corporation
Ardmore delivers energy, mobility, and essential commodities, supporting global trade through the transportation of refined products, chemicals and other liquid goods. Operating as a fully integrated shipping company, all core commercial, technical, operational, and corporate functions are conducted within the Ardmore public company structure. Through its global platform, Ardmore maintains direct control over asset management, operations, and commercial execution, promoting consistent standards, efficiency, and accountability across the fleet.
Ardmore's core strategy is centered on the continued development and operation of a modern, high--quality fleet of product and chemical tankers, while continually evolving and innovating across the business to position the Company optimally for the future, leveraging its fully integrated model to build long--term customer relationships and maintain a sharp focus on cost, safety, and performance optimization.
Ardmore provides its services through voyage and time charter arrangements, delivering reliable and efficient transportation services to its first-class customer base -- all guided and coordinated by our team members at sea and ashore.
Ardmore Shipping Corporation
Unaudited Condensed Consolidated Balance Sheets
As of
---------------------------------
In thousands of U.S. Dollars, except
as indicated March 31, 2026 December 31, 2025
-------------- -----------------
ASSETS
Current assets
Cash and cash equivalents 47,214 46,845
Receivables, net of allowance for bad
debts of $1.3 million (2025: $1.3
million) 52,780 47,537
Prepaid expenses and other assets 4,660 3,687
Advances and deposits 5,548 4,869
Inventories 13,039 8,912
Vessel held for sale 22,944 --
-------------- -----------------
Total current assets 146,185 111,850
Non-current assets
Investments and other assets, net 4,941 4,983
Vessels and vessel equipment, net 607,939 638,123
Deferred drydock expenditures, net 24,151 27,068
Deferred finance fees, net 4,701 4,920
Operating lease, right-of-use asset 1,685 1,780
-------------- -----------------
Total non-current assets 643,417 676,874
TOTAL ASSETS 789,602 788,724
-------------- -----------------
LIABILITIES, REDEEMABLE PREFERRED
STOCK AND EQUITY
Current liabilities
Accounts payable 12,249 5,066
Accrued expenses and other liabilities 15,742 18,585
Deferred revenue 1,452 1,598
Current portion of operating lease
obligations 585 598
-------------- -----------------
Total current liabilities 30,028 25,847
Non-current liabilities
Non-current portion of long-term debt 103,359 127,000
Non-current portion of operating lease
obligations 1,161 1,272
Other non-current liabilities 268 268
-------------- -----------------
Total non-current liabilities 104,788 128,540
TOTAL LIABILITIES 134,816 154,387
Stockholders' equity
Common stock 444 443
Additional paid in capital 479,149 478,619
Treasury stock (33,524) (33,524)
Retained earnings 208,717 188,799
-------------- -----------------
Total stockholders' equity 654,786 634,337
Total redeemable preferred stock and
stockholders' equity 654,786 634,337
TOTAL LIABILITIES, REDEEMABLE PREFERRED
STOCK AND EQUITY 789,602 788,724
-------------- -----------------
Ardmore Shipping Corporation
Unaudited Condensed Consolidated Statements of Operations
Three Months Ended
------------------------------
In thousands of U.S. Dollars except per
share and share data March 31, 2026 March 31, 2025
-------------- --------------
Revenue, net 87,916 73,996
Voyage expenses (25,927) (31,032)
Vessel operating expenses (17,808) (15,196)
Time charter-in
Operating expense component (496) (3,039)
Vessel lease expense component (456) (2,796)
Depreciation (9,384) (7,653)
Amortization of deferred drydock
expenditures (1,845) (923)
General and administrative expenses
Corporate (5,184) (4,950)
Commercial and chartering (1,233) (1,237)
Interest expense and finance costs (2,089) (935)
Interest income 194 108
Income before taxes 23,688 6,343
-------------- --------------
Income tax (55) (26)
Loss from equity method investments (50) (64)
Net Income 23,583 6,253
-------------- --------------
Preferred dividends -- (629)
Net Income attributable to common
stockholders 23,583 5,624
-------------- --------------
Earnings per share, basic 0.58 0.14
Earnings per share, diluted 0.58 0.14
Adjusted earnings (1) 23,583 5,624
Adjusted earnings per share, basic 0.58 0.14
Adjusted earnings per share, diluted 0.58 0.14
Weighted average number of shares
outstanding, basic 40,752,969 40,472,079
Weighted average number of shares
outstanding, diluted 40,857,533 40,620,908
(1) Adjusted earnings is a non-GAAP measure and is defined and reconciled
under the "Non-GAAP Measures" section.
Ardmore Shipping Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
Three Months Ended
------------------------------
In thousands of U.S. Dollars March 31, 2026 March 31, 2025
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 23,583 6,253
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 9,384 7,653
Amortization of deferred drydock
expenditures 1,845 923
Share-based compensation 531 647
Amortization of deferred finance fees 220 269
Operating lease ROU - lease liability,
net (30) 35
Loss from equity method investments 50 64
Deferred drydock payments (1,398) (1,454)
Changes in operating assets and
liabilities:
Receivables (5,241) 13,130
Prepaid expenses and other assets (974) (757)
Advances and deposits (679) (460)
Inventories (4,127) 118
Accounts payable 6,423 1,270
Accrued expenses and other liabilities (36) (1,149)
Deferred revenue (146) (285)
-------------- --------------
Net cash provided by operating activities 29,405 26,257
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisition of vessels and
vessel equipment, including deposits (1,024) (2,385)
Advances for vessel equipment (639) (1,151)
Payments for other non-current assets (66) (46)
-------------- --------------
Net cash (used in) investing activities (1,729) (3,582)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving facilities, net 6,359 25,000
Repayments on revolving facilities (30,000) (43,337)
Payment of common share dividends (3,666) (3,236)
Payment of preferred share dividends -- (643)
-------------- --------------
Net cash (used in) financing activities (27,307) (22,216)
Net increase in cash and cash equivalents 369 459
-------------- --------------
Cash and cash equivalents at the beginning
of the year 46,845 46,988
Cash and cash equivalents at the end of
the period 47,214 47,447
-------------- --------------
Ardmore Shipping Corporation
Unaudited Other Operating Data
Three Months Ended
------------------------------
March 31, 2026 March 31, 2025
-------------- --------------
In thousands of U.S. Dollars except Fleet
Data
Adjusted EBITDA(1) 36,812 15,746
Adjusted EBITDAR(1) 37,268 18,542
AVERAGE DAILY DATA
Fleet TCE per day(2) 28,686 20,542
Fleet operating expenses per day(3) 7,244 6,978
Technical management fees per day(4) 525 533
-------------- --------------
7,769 7,511
MR Tankers Spot TCE per day(2) 33,705 21,548
Vessel operating expenses per day(5) 7,921 7,634
Chemical Tankers Spot TCE per day(2) 22,284 14,975
Vessel operating expenses per day(5) 7,286 7,185
FLEET
Average number of operating vessels 26.0 26.0
(1) Adjusted EBITDA and Adjusted EBITDAR are non-GAAP measures and are
defined and reconciled to the most directly comparable U.S. GAAP measure
under the section of this release entitled "Non-GAAP Measures."
(2) Time Charter Equivalent ("TCE") rate, a non-GAAP measure, represents net
revenues (a non-GAAP measure representing revenues less voyage expenses)
divided by revenue days. Revenue days are the total number of calendar
days the vessels are in the Company's possession less off-hire days
generally associated with drydocking or repairs and idle days associated
with repositioning of vessels held for sale. Net revenue utilized to
calculate the TCE rate is determined on a discharge to discharge basis,
which is different from how the Company records revenue under U.S. GAAP.
Under discharge to discharge, revenues are recognized beginning from the
discharge of cargo from the prior voyage to the anticipated discharge of
cargo in the current voyage, and voyage expenses are recognized as
incurred.
(3) Fleet operating expenses per day are routine operating expenses and
comprise crewing, repairs and maintenance, insurance, stores, lube oils
and communication expenses. These amounts do not include expenditures
related to vessel upgrades and enhancements or other non-routine
expenditures, which were expensed during the period.
(4) Technical management fees consist of payments to Anglo Ardmore Ship
Management Limited, a joint venture entity of which we own 50%.
(5) Vessel operating expenses per day include technical management fees.
Non-GAAP Measures
EBITDA + vessel lease expense component (i.e., EBITDAR) and Adjusted EBITDAR
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