Ardmore Shipping Corp. Q1 FY2025 earnings call

• Ardmore's balance sheet and low break-even make it robust across economic scenarios. - Product freight markets have remained resilient despite macro headwinds. - Upgraded tank holdings on chemical tankers to expand revenue opportunities. - Declared a quarterly cash dividend of one-third of adjusted earnings. - Invested in efficiency projects with low payback periods and high IRRs. - Upgraded coatings on chemical tankers to move into premium cargo slate. - Reduced debt levels over the past years. - Realizing benefits from AI and digitalization tools. - EU fuel regulations creating opportunities to optimize fleet deployment.

For the MR segment, in the first quarter, MRs earned $20,900 per day. So far in the second quarter, MRs have earned $22,100 per day with 50% booked. For the chemical tankers segment, in the first quarter, they earned $15,000 per day, and in the second quarter, they have earned $19,500 per day with 60% booked.

• Second quarter MR earnings projected at $22,100 per day with 50% booked. - Second quarter chemical tanker earnings projected at $19,500 per day with 60% booked. - 2025 fleet capital expenditures forecasted approximately $35 million, including $15 million of elective CapEx for tank coatings and efficiency upgrades.

• Macro economic uncertainty. - U.S. trade representative proposal to impose fees on Chinese vessels could impact supply. - Further expansion of Western sanctions, with sanctioned fleet increasing and affecting supply dynamics.

Q: On the $2 million spread time charter in time charter out, are there other opportunities above and beyond that with the time charter in fleet? Do the other three expiring this summer have options and potential spread opportunities?

A: Probably not going to be able to go into whole detail as some are commercially sensitive; constantly in touch with opportunities on both charter in and charter out; currently no options as such with other chartered in ships but have good operating relationship with head owner and will try to continue relationships.

Q: On management changes and strategic implications, any changes anticipated strategically or how business is run going forward with updated management setup?

A: Mark Cameron's retirement is a loss but Ardmore has built incredible internal talent; continuity around strategy, governance, values; foundational principles remain the same even with people stepping into different leadership ranks.

Q: On market and asset values, how OPEC production increases filter into MR market and product tankers?

A: OPEC production increases impact refining margins, giving refiners stronger incentive to produce cargoes, creating incremental need to transport; bodes favorably on top of supply story; tracking correction in secondhand values, market is fragmented with various motivations to sell/buy.