• Adjusted Earnings: $5.6 million or $0.14 per share for Q1 2025.

• Quarterly Cash Dividend: Declared consistent with policy of paying out one-third of adjusted earnings.

• MR Earnings: $20,900 per day for Q1 2025; $22,100 per day for Q2 2025 with 50% booked.

• Chemical Tanker Earnings: $15,000 per day for Q1 2025; $19,500 per day for Q2 2025 with 60% booked.

• Cash Breakeven Level: $11,500 per day; $10,500 per day excluding pro forma CapEx.

• EBITDAR: $18.5 million for Q1 2025.

• Capital Expenditures: Forecasted approximately $35 million for 2025, including $15 million for tank coatings and efficiency upgrades.

• Operating Leverage: For every $10,000 per day increase in TCE, an additional $2.30 in EPS, nearly $100 million in free cash flow generation.

• Warning! GuruFocus has detected 7 Warning Sign with WTTR.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ardmore Shipping Corp (NYSE:ASC) reported adjusted earnings of $5.6 million or $0.14 per share for the first quarter of 2025.

• The company declared its 10th consecutive quarterly cash dividend, maintaining its policy of paying out one-third of adjusted earnings.

• ASC's fleet upgrades, including tank coatings on chemical tankers, are expected to expand revenue opportunities and increase cargo flexibility.

• The company's TCE performance remains strong, with MR earnings of $20,900 per day in Q1 and $22,100 per day so far in Q2.

• ASC has successfully reduced its cash breakeven level to $11,500 per day, enhancing financial resilience.

Negative Points

• The broader equity markets have experienced volatility, creating uncertainty about economic impacts.

• The aging global tanker fleet presents challenges, with more than half of the fleet over 20 years old within the next five years.

• The US trade representative's proposal to impose fees on Chinese vessels and expanded Western sanctions are limiting supply.

• Asset values have been volatile, with a correction taking place in secondhand values, impacting fleet expansion opportunities.

• There is uncertainty in the macroeconomic environment, with geopolitical events adding complexity to market conditions.

Q & A Highlights

Q: Can you provide more details on the $2 million spread time charter in, time charter out? Are there other opportunities with the time charter in fleet? A: Gernot Ruppelt, CEO: We are constantly exploring opportunities for both charter in and charter out. While I can't go into specifics due to commercial sensitivity, we are always looking for creative ways to create interesting spreads. Currently, there are no options on the other chartered-in ships, but we maintain strong relationships with head owners.