Ardmore Shipping Corp. Q3 FY2024 earnings call

• Strong third quarter results: adjusted earnings of $23.3 million or $0.55 per share due to elevated TCE rates.
• Market outlook: seasonally stronger winter market approaching, supported by geopolitical disruptions driving ton miles and underlying demand drivers.
• Capital allocation: declared $0.18 per share dividend, investing in fleet for performance and emissions reduction.
• Fleet operations: completed 2024 dry dockings, $15M invested in efficiency tech in 2024, $30-35M CapEx planned for 2025 including specialized tank coatings.
• Strong operating leverage: seasonality can boost charter rates significantly.

For product tankers (MRs), the third quarter earnings were $28,500 per day, and so far in the fourth quarter, it's $25,000 per day with 50% booked. For chemical tankers, the third quarter earnings were $21,600 per day, and in the fourth quarter so far, it's $25,150 per day with 55% booked.

• Q4 MRs booked at $25,000 per day (50%), chemical tankers $25,150 per day (55%) so far.
• 2025 CapEx forecasted at $30-35M.
• Continued deleveraging and focus on returning cash to shareholders.

• Short term market volatility.
• Geopolitical disruptions impacting global product trades.
• Uncertainty in the Red Sea affecting shipping operations.

Q: Any impact of Trump win on the product market?

A: Fundamentals remain positive, incoming President likely to not restrict oil product circulation to keep pump prices down, potentially leading to more refinery output and trading activity.

Q: Bookings compared to spot market indices?

A: Strong bookings due to integrated platform and fleet investments that enable access to premium trades.

Q: Thoughts on asset pricing and buying assets?

A: Disciplined and selective, making investment decisions that meet value criteria.

Q: Thoughts on preferreds buyback?

A: Chipping away at preferred equity to reduce break even, can redeem any amount as there are no restrictions.