Ardmore Shipping Results Beat Estimates as Fleet Grows

Ardmore Shipping Corporation announced results for the three and nine months ended September 30, 2025.

Highlights and Recent Activity

Reported Adjusted earnings of $12.6 million and net income attributable to common stockholders of $12.1 million for the three months ended September 30, 2025, or $0.31 Adjusted earnings per basic and diluted share, compared to Adjusted earnings and net income attributable to common stockholders of $23.3 million, or $0.55 Adjusted earnings per basic and diluted share for the three months ended September 30, 2024. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section.)

Reported Adjusted earnings of $27.2 million and net income attributable to common stockholders of $26.7 million for the nine months ended September 30, 2025, or $0.67 Adjusted earnings per basic and diluted share, compared to Adjusted earnings of $109.3 million and net income attributable to common stockholders of $123.5 million, or $2.62 Adjusted earnings per basic share and $2.60 Adjusted earnings per diluted share for the nine months ended September 30, 2024. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section.) The major driver of the variance between Adjusted earnings and net income attributable to common stockholders for the nine months ended September 30, 2024, was a $12.3 million gain from the sale of the Ardmore Seafarer in April 2024.

Consistent with the Company’s variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, the Board of Directors declared a cash dividend on November 5, 2025, of $0.10 per common share for the quarter ended September 30, 2025. The dividend will be paid on December 12, 2025, to all shareholders of record on November 28, 2025.

MR tankers earned an average spot TCE rate of $24,697 per day for the three months ended September 30, 2025. Chemical tankers earned an average spot TCE rate of $22,611 per day for the three months ended September 30, 2025. Based on approximately 40% of total revenue days currently fixed for the fourth quarter of 2025, the average spot TCE rate is approximately $24,900 per day for MR tankers; based on approximately 35% of revenue days fixed for the fourth quarter of 2025, the average spot TCE rate for chemical tankers is approximately $22,200 per day.

On October 31, 2025, the Company fully redeemed all outstanding shares of its Series A Preferred Stock, for $30.6 million.

While primarily trading its fleet in the spot market, the Company recently committed one of its 2014-built MRs on a two-year time charter at $21,250 per day to a top-tier oil major.

Deliveries of the previously announced acquisitions of three modern, high-quality, Korean-built MR tankers, totaling $103.9 million, were completed during the quarter ended September 30, 2025. The acquisitions were financed by cash on hand and bank debt, maintaining a modest leverage level and lowering average fleet age. Gernot Ruppelt, the Company’s Chief Executive Officer, commented:

“Earnings have increased throughout the third quarter and into the fourth, driven by record volumes of refined product on the water. During the quarter, Ardmore took delivery of three modern MR tankers, opportunistically acquired at attractive prices. Now fully integrated into our fleet, these vessels are capturing strong spot markets, increase the company’s long-term earnings power and provide compelling fuel savings. In addition, we are further enhancing the value of our trading book through high-quality multi-year charter contracts with top-tier counterparties. In line with our transparent capital allocation policy, we have also fully redeemed our outstanding preferred shares while declaring our twelfth consecutive dividend.

Freight markets have remained strong, driven by long-term sectoral trends and healthy refining margins. Sanctions enforcement, continued trade shifts and dislocation due to geopolitical events are adding additional momentum, against the backdrop of an already tight global supply and demand balance. Ardmore continues to dynamically navigate these markets, guided by strong governance, enabled by its high performing operating platform and a robust balance sheet.”

Summary of Recent and Third Quarter 2025 Events

Fleet

Fleet Operations and Employment

As of September 30, 2025, the Company had 27 vessels in operation (including two chartered-in vessels), consisting of 21 MR tankers (19 owned Eco-Design and two 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.

Drydocking

The Company had 83 drydocking days in the third quarter of 2025. The Company is currently scheduled to have approximately 92 drydocking days in the fourth quarter of 2025.

Preferred Stock Redemption

On October 31, 2025, the Company fully redeemed all outstanding shares of its Series A Preferred Stock, for $30.6 million, which represents the stipulated redemption price of 102% of the liquidation preference per share.

Fleet

During the quarter ended September 30, 3025, the Company took delivery of the previously announced acquisitions of three modern, high-quality, Korean-built MR tankers, totaling $103.9 million. The vessel acquisitions were financed by cash on hand and bank debt, maintaining a modest leverage level and lowering average fleet age.

While primarily trading its fleet in the spot market, the Company recently committed one of its 2014-built MRs on a two-year time charter at $21,250 per day to a top-tier oil major.

Financing

In July 2025, the Company closed a $350 million revolving credit facility with top-tier banks, secured by 20 of its owned vessels. The facility is priced at SOFR plus a margin of 1.80% and matures in 2031. The bank group in the revolving credit facility is comprised of Nordea Bank, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Bank, and Danske Bank A/S.

Dividend on Common Shares

Consistent with the Company’s variable dividend policy of paying out dividends on its shares of common stock equal to 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 November 5, 2025 of $0.10 per common share for the quarter ended September 30, 2025. The dividend will be paid on December 12, 2025, to all shareholders of record on November 28, 2025.

Geopolitical Conflicts

The ongoing Russia-Ukraine conflict has disrupted energy supply chains, caused instability and significant volatility in the global economy and resulted in economic sanctions by several nations. This conflict has contributed to increases in spot tanker rates.

Geopolitical tensions have increased since commencement of the Israel-Hamas conflict in October 2023. Since mid-December 2023, Houthi rebels in Yemen have carried out numerous attacks on vessels in the Red Sea area. As a result of these attacks, many shipping companies have routed their vessels away from the Red Sea, which has affected trading patterns, rates, and expenses. Continuing instability or any further escalation or expansion of hostilities in the Middle East or elsewhere could continue to affect the price of crude oil and the oil industry, the tanker industry and demand for the Company’s services.

Geopolitical and Economic Uncertainty

In recent months, governments have taken 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 this 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 September 30, 2025 and 2024

The Company reported net income attributable to common stockholders of $12.1 million for the three months ended September 30, 2025, or $0.30 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $23.3 million, or $0.55 earnings per basic and diluted share for the three months ended September 30, 2024.

Results for the Nine Months Ended September 30, 2025 and 2024

The Company reported net income attributable to common stockholders of $26.7 million for the nine months ended September 30, 2025, or $0.66 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $123.5 million, or $2.96 earnings per basic share and $2.93 earnings per diluted share for the nine months ended September 30, 2024.

Management’s Discussion and Analysis of Financial Results for the Three Months Ended September 30, 2025 and 2024

Revenue. Revenue for the three months ended September 30, 2025 was $81.2 million, a decrease of $14.9 million from $96.1 million for the three months ended September 30, 2024.

The Company’s average number of operating vessels was 26.8 for the three months ended September 30, 2025, a slight increase from 26.0 for the three months ended September 30, 2024.

The Company had 1,938 spot revenue days for the three months ended September 30, 2025, as compared to 2,279 for the three months ended September 30, 2024. The Company had 22 vessels employed directly in the spot market as of September 30, 2025, as compared to 25 vessels as of September 30, 2024. The decrease in spot revenue days resulted in a decrease in revenue of $14.0 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. Decreases in spot rates during the three months ended September 30, 2025 resulted in a decrease in revenue of $5.6 million.

The Company had four product tankers and one chemical tanker employed under time charters as of September 30, 2025, as compared to one product tanker as of September 30, 2024. There were 378 revenue days derived from time charters for the three months ended September 30, 2025, as compared to 92 revenue days for the three months ended September 30, 2024. The increase in revenue days for time-chartered vessels resulted in an increase in revenue of $4.7 million for the three months ended September 30, 2025.

Voyage Expenses. Voyage expenses were $28.5 million for the three months ended September 30, 2025, a decrease of $6.1 million from $34.6 million for the three months ended September 30, 2024. The decrease is primarily due to a reduction in bunker costs.

TCE Rate. The average TCE rate for the Company’s fleet was $23,475 per day for the three months ended September 30, 2025, a decrease of $3,153 per day from $26,628 per day for the three months ended September 30, 2024. 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 $16.4 million for the three months ended September 30, 2025, an increase of $2.5 million from $14.0 million for the three months ended September 30, 2024. The increase reflects the timing of vessel operating expenses between quarters and is also partly attributable to the addition of three vessels to the Company’s fleet during the three months ended September 30, 2025. Vessel operating expenses, by their nature, can be prone to fluctuations between periods.

Charter Hire Costs. Total charter hire expense was $4.6 million for the three months ended September 30, 2025, a decrease of $1.3 million from $5.9 million for the three months ended September 30, 2024. This decrease is a result of two chartered-in vessels redelivered at the end of their charter periods during the three months ended September 30, 2025. Total charter hire expense for the three months ended September 30, 2025 was comprised of an operating expense component of $2.4 million and a vessel lease expense component of $2.2 million (September 30, 2024: $3.1 million and $2.8 million, respectively).

Depreciation. Depreciation expense for the three months ended September 30, 2025 was $8.8 million, an increase of $1.0 million from $7.8 million for the three months ended September 30, 2024. This increase is primarily attributable to the addition of three vessels to the Company’s fleet during the third quarter of 2025.

Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended September 30, 2025 was $1.6 million, an increase of $0.6 million from $1.0 million for the three months ended September 30, 2024 due to increased drydocking activity compared to the previous period. Deferred drydocking costs for a given vessel are amortized on a straight-line basis to the next scheduled drydocking of the vessel.

General and Administrative Expenses: Corporate. Corporate-related general and administrative expenses for the three months ended September 30, 2025 were $5.3 million, a decrease of $1.0 million from $6.3 million for the three months ended September 30, 2024. The decrease primarily reflects one-time expenses related to the Company’s leadership transition during the three months ended September 30, 2024.

General and Administrative Expenses: Commercial and Chartering. 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 September 30, 2025 were $1.1 million, generally consistent with $1.2 million for the three months ended September 30, 2024.

Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended September 30, 2025 were $1.7 million, an increase of $0.6 million from $1.1 million for the three months ended September 30, 2024. The increase was due to drawdowns made on the Company’s revolving credit facilities to finance the purchase of three MR tankers during the three months ended September 30, 2025.

Amortization of deferred finance fees for the three months ended September 30, 2025 was $0.2 million, consistent with $0.3 million for the three months ended September 30, 2024.

Loss on Extinguishment of Debt. The Company recorded a loss on extinguishment of debt of $0.5 million during the three months ended September 30, 2025. Loss on extinguishment of debt relates to the partial write-off of deferred finance fees associated with the Company’s previous revolving credit facility. The Company recorded no gain or loss on extinguishment of debt during the three months ended September 30, 2024.

Liquidity

As of September 30, 2025, the Company had $296.0 million in liquidity available, with cash and cash equivalents of $47.1 million (December 31, 2024: $47.0 million) and amounts available and undrawn under its revolving credit facilities of $248.9 million (December 31, 2024: $196.4 million). Source: Ardmore Shipping Corporation