#financial results #Bermuda #Hamilton #Q2 2025 #Ardmore Shipping

Ardmore Shipping Corporation Reports Mixed Financial Results for Second Quarter 2025

Ardmore Shipping Corporation, listed on NYSE under the ticker ASC, has released its financial results for the three and six months that ended on June 30, 2025. The report outlines significant changes and distress in financial performance compared to the same periods in the previous year.

Key Financial Highlights

For the three months ending on June 30, 2025, Ardmore reported adjusted earnings attributable to common stockholders of $9.0 million or $0.22 per share. This marks a sharp decline compared to the adjusted earnings of $47.6 million and a net income of $61.8 million (or $1.14 per share) from the previous year, indicating a drasticffect from market instabilities.

In the first half of 2025, the company reported a total net income of $14.6 million, equating to $0.36 per share, which also reflects a noticeable drop when juxtaposed with $100.2 million and $2.07 per share from the same half last year. Major contributing factors for this variance include fluctuations in spot rates and reduced revenue days attributed to the ongoing geopolitical conflicts and disruptions.

Operational Overview

The company successfully maintained an operational fleet of 26 vessels as of June 30, 2025. This fleet comprises 20 MR tankers and six IMO 2 product/chemical tankers. The MR Eco-Design tankers reported an average spot TCE (Time Charter Equivalent) rate of $23,441 per day, while the chemical tankers earned an average of $20,409 per day.

As part of their growth strategy, Ardmore Shipping plans to enhance its fleet by acquiring three modern MR tankers from Korea at a total cost of $103.9 million. The acquisition will predominantly rely on cash reserves and revolving credit facilities. Deliveries are expected to complete by the end of September 2025, which will help to modernize the fleet, contributing to its operational efficiency.

Dividend Declaration

In line with its variable dividend policy, Ardmore's Board of Directors declared a dividend of $0.07 per share for the quarter ending June 30, 2025, reflecting a payout that aligns with one-third of their adjusted earnings. This dividend is scheduled for payment on September 12, 2025, to shareholders on record by August 29, 2025.

Impact of Geopolitical Factors

Ongoing geopolitical events, particularly the Russia-Ukraine conflict and rising tensions in the Middle East, have led to significant disruptions in energy supply chains, creating volatility in shipping rates. Ardmore acknowledges that these global tensions have introduced uncertainties around trade routes and demand for tanker services. They remain vigilant in adapting operational strategies to navigate these challenges while optimizing their operational performance.

Future Outlook

Ardmore's CEO, Gernot Ruppelt, expressed optimism for the future, stating that the company has made strategic adjustments through a series of tactical transactions to strengthen its operational and financial positioning. Ardmore continues to focus on operational efficiency and strategic acquisitions to establish a modern fleet that can leverage both product and chemical markets.

In summary, while Ardmore Shipping has faced significant challenges in Q2 2025, their proactive measures in fleet modernization and strategic acquisitions indicate a cautious yet optimistic approach to sustain long-term growth and maintain their competitive market position.