UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of May 2020

Commission File Number:  001-36028

Ardmore Shipping Corporation

(Translation of registrant's name into English)

 

Belvedere Building

Ground Floor

69 Pitts Bay Road

Pembroke HM08

Bermuda

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [X]       Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ].

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ].



INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this Report on Form 6-K as Exhibit 99.1 is a copy of the press release of Ardmore Shipping Corporation, announcing the Company’s First Quarter 2020 results.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: May 4, 2020

          ARDMORE SHIPPING CORPORATION

 

 

By:     /s/ Paul Tivnan                                        

               Paul Tivnan

                Chief Financial Officer, Treasurer and Secretary

 

 

 

Exhibit 99.1

Ardmore Shipping Corporation Announces Financial Results For The Three Months Ended March 31, 2020

HAMILTON, Bermuda, May 5, 2020 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we") today announced results for the three months ended March 31, 2020.

Highlights and Recent Activity

Anthony Gurnee, the Company's Chief Executive Officer, commented:

"That the tanker market is achieving record-high charter rates is no source of satisfaction given the cause: the coronavirus pandemic, with its human toll and economic impact. Our principal concern is for the well-being of our staff ashore and afloat; in particular we want to thank all seafarers regardless of company or sector for their dedication and professionalism during these difficult times.

Much attention has been on the crude tanker market, in particular on the impact of higher cargo volumes, floating storage, and the resulting extraordinarily high rates achieved. More recently those conditions have arrived for the product tanker market and we believe they may be more persistent, potentially for many months, as the physical oil market continues its extreme gyrations around demand and supply.

In particular, if and when the oil market reaches max capacity for shore oil storage, we may enter a new and potentially more volatile phase of the tanker market, and if and when oil demand rebounds with an economic recovery sometime in the third quarter as the IEA are forecasting, we would expect more demand-driven volatility, potentially carrying into the winter.

To fully explain the impact of these events, we have to describe our recent chartering activity: last week we fixed a 55-day voyage at $72,000 per day, equivalent to a VLCC at $200,000+ per day. Our MR voyages in progress, representing roughly the last three weeks' fixtures, now stands at $28,200 per day; lower than brokerage reports or the above fixture, but higher than anything we achieved before. If rates for our fleet averaged $28,200 per day for a full year, taking 1Q20 as a base, we estimate that our annual earnings would be $110 million or $3.30 per share; we are not forecasting any future results, but rather just contextualizing what is happening.

The fact the tanker market is soaring at a time when virtually every other industry is suffering is not illogical: shipping rates typically strengthen with volatility and disruption. We are saddened by the widespread suffering from the pandemic, but it should be understood that as an industry we respond to demand shifts through a market mechanism whose function is to optimally allocate transport (and storage) resources, often in surplus, sometimes in scarcity."

Summary of Recent and First Quarter 2020 Events

Fleet

Fleet Operations and Employment

As at March 31, 2020, the Company had 25 vessels in operation, including 19 Eco MR tankers ranging from 45,000 deadweight tonnes (Dwt) to 49,999 Dwt (15 Eco-Design and four Eco-Mod) and six Eco-Design IMO 2 product / chemical tankers ranging from 25,000 Dwt to 37,800 Dwt.

MR Tankers (45,000 Dwt – 49,999 Dwt)

At the end of the first quarter of 2020, the Company had 19 Eco MR tankers trading in the spot market. The Eco MR tankers earned an average TCE rate of $19,307 per day in the first quarter of 2020. The Company's 15 Eco-Design MR tankers earned an average TCE rate of $19,564 per day in the first quarter of 2020, and the Company's four Eco-Mod MR tankers earned an average TCE rate of $18,341 per day.

In the second quarter of 2020, the Company expects to have all revenue days for its MR Eco-Design and MR Eco-Mod tankers employed in the spot market or on short-term time charter. As of May 5, 2020, the Company had fixed approximately 55% of its total MR revenue days for the second quarter of 2020 at an average TCE rate of approximately $24,000 per day.

Product / Chemical Tankers (IMO 2: 25,000 Dwt – 37,800 Dwt)

At the end of the first quarter of 2020, the Company had six Eco-Design IMO 2 product / chemical tankers in operation, all of which were trading in the spot market. During the first quarter of 2020, the Company's six Eco-Design product / chemical vessels earned an average TCE rate of $19,707 per day.

In the second quarter of 2020, the Company expects to have all revenue days for its Eco-Design IMO 2 product / chemical tankers employed in the spot market. As of May 5, 2020, the Company had fixed approximately 45% of its Eco-Design IMO 2 product / chemical tankers spot revenue days for the second quarter of 2020 at an average TCE rate of approximately $16,000 per day.

Drydocking

The Company had 91 drydock days, including repositioning days, in the first quarter of 2020, in respect of three drydockings. The Company does not expect to have any drydock days in the second quarter of 2020.

Capital Allocation Policy

The Company announced a new capital allocation policy on March 9, 2020, which sets out the Company's priorities among fleet maintenance, financial strength, accretive growth and returning capital to shareholders. Consistent with this policy, the Company is not declaring a dividend for the first quarter of 2020.

Financing

The Company drew down an additional $10.9 million from its revolving credit facilities in the first quarter, in order to maintain a strong liquidity position and financial flexibility.

Results for the Three Months Ended March 31, 2020 and 2019

The Company reported net income of $6.5 million for the three months ended March 31, 2020, or $0.20 earnings per basic and diluted share, as compared to a net loss of $9.2 million, or $0.28 loss per basic and diluted share, for the three months ended March 31, 2019. Net loss for the three months ended March 31, 2019 includes the loss on sale of the Ardmore Seamaster of $6.6 million. The Company reported EBITDA (see Non-GAAP Measures section) of $21.0 million for the three months ended March 31, 2020, as compared to $7.0 million for the three months ended March 31, 2019.

The Company reported Adjusted earnings (see Non–GAAP Measures section) of $6.5 million for the three months ended March 31, 2020, or $0.20 Adjusted earnings per basic and diluted share, as compared to an Adjusted loss of $2.6 million, or $0.08 Adjusted loss per basic and diluted share, for the three months ended March 31, 2019. The Company reported Adjusted EBITDA (see Non-GAAP Measures section) of $21.0 million for the three months ended March 31, 2020, as compared to $13.5 million for the three months ended March 31, 2019.

Management's Discussion and Analysis of Financial Results for the Three Months Ended March 31, 2020 and 2019

Revenue. Revenue for the three months ended March 31, 2020 was $65.2 million, an increase of $2.9 million from $62.3 million for the three months ended March 31, 2019.

The Company's average number of owned vessels decreased to 25.0 for the three months ended March 31, 2020, from 26.7 for the three months ended March 31, 2019, resulting in revenue days of 2,180 for the three months ended March 31, 2020, as compared to 2,260 for the three months ended March 31, 2019. The Company had 25 and 26 vessels employed directly in the spot market as at March 31, 2020 and 2019, respectively. The decrease in revenue days resulted in a decrease in revenue of $2.2 million, while changes in spot rates resulted in an increase in revenue of $5.1 million for the three months ended March 31, 2020.

Voyage Expenses. Voyage expenses were $23.7 million for the three months ended March 31, 2020, a decrease of $3.6 million from $27.3 million for the three months ended March 31, 2019. Voyage expenses decreased primarily due to the decrease in the average number of owned vessels to 25.0 for the three months ended March 31, 2020, compared to 26.7 for the three months ended March 31, 2019.

TCE Rate. The average TCE rate for the Company's fleet was $19,390 per day for the three months ended March 31, 2020, an increase of $4,385 per day from $15,005 per day for the three months ended March 31, 2019. The increase in average TCE rate was the result of higher spot rates and lower voyage expenses for the three months ended March 31, 2020. TCE rates represent net revenues (or revenue less voyage expenses) divided by revenue days.

Vessel Operating Expenses. Vessel operating expenses were $15.7 million for the three months ended March 31, 2020, a decrease of $1.1 million from $16.8 million for the three months ended March 31, 2019. This decrease is due to a decrease in the average number of vessels in operation for the three months ended March 31, 2020, and the timing of vessel operating expenses between quarters. Vessel operating expenses, by their nature, are prone to fluctuations between periods. Average fleet operating expenses per day, including technical management fees, were $6,484 per vessel for the three months ended March 31, 2020, as compared to $6,941 per vessel for the three months ended March 31, 2019.

Depreciation. Depreciation expense for the three months ended March 31, 2020 was $7.9 million, a decrease of $0.3 million from $8.2 million for the three months ended March 31, 2019. This decrease is primarily due to a decrease in the average number of owned vessels for the three months ended March 31, 2020.

Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended March 31, 2020 was $1.3 million, an increase of $0.2 million from $1.1 million for the three months ended March 31, 2019. The increase is primarily due to an increased number of drydockings as the Company's fleet ages. The deferred costs of drydockings 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 March 31, 2020 were $4.0 million, an increase of $0.4 million from $3.6 million for the three months ended March 31, 2019. The increase is primarily due to the issuance of stock appreciation rights and restricted stock units in the first quarter of 2020.

General and Administrative Expenses: Commercial and Chartering. Commercial and chartering expenses are the expenses attributable to the Company's chartering and commercial operations departments in connection with the Company's spot trading activities. Commercial and chartering expenses for the three months ended March 31, 2020 were $0.9 million, a decrease of $0.2 million from $1.1 million for the three months ended March 31, 2019. This decrease is as a result of lower headcount and less travel in the first quarter of 2020.

Loss on Sale of Vessel. There was no loss on sale of vessel for the three months ended March 31, 2020, compared to $6.6 million for the three months ended March 31, 2019 in relation to the sale of the Ardmore Seamaster.

Interest Expense and Finance Costs. Interest expense and finance costs include loan interest, finance lease interest, and amortization of deferred finance fees. Interest expense and finance costs for the three months ended March 31, 2020 were $5.4 million, a decrease of $1.6 million from $7.0 million for the three months ended March 31, 2019. Cash interest expense decreased by $1.5 million to $5.0 million for the three months ended March 31, 2020, from $6.5 million for the three months ended March 31, 2019, primarily due to a decreased average LIBOR during the three months ended March 31, 2020, compared to the three months ended March 31, 2019. Amortization of deferred finance fees for the three months ended March 31, 2020 was $0.4 million, a decrease of $0.1 million from $0.5 million for the three months ended March 31, 2019.

Liquidity

As at March 31, 2020, the Company had $64.5 million (December 31, 2019: $51.7 million) available in cash and cash equivalents. The following debt and lease liabilities (net of deferred finance fees) were outstanding as at the dates indicated:


As at


March 31, 2020


December 31, 2019

Finance leases

$ 211,240,676


$ 215,679,694

Senior Debt

$ 160,297,869


$ 163,264,006

Revolving Credit Facilities

$   54,967,734


$   44,019,007

Operating leases

$     1,592,226


$     1,471,753

Total

$ 428,098,505


$ 424,434,460

Conference Call

The Company plans to have a conference call on May 5, 2020 at 11:00 a.m. Eastern Time to discuss its results for the quarter ended March 31, 2020. All interested parties are invited to listen to the live conference call and slide presentation by choosing from the following options:

  1. By dialing 844-492-3728 (U.S.) or 412-542-4189 (International) and referencing "Ardmore Shipping."
  2. By accessing the live webcast at Ardmore Shipping's website at www.ardmoreshipping.com.

Participants should dial into the call 10 minutes before the scheduled time.

If you are unable to participate at this time, an audio replay of the call will be available through May 12, 2020 at 877-344-7529 or 412-317-0088. Enter the passcode 10143555 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

About Ardmore Shipping Corporation

Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size product and chemical tankers.

We are strategically focused on modern, fuel-efficient, mid-size product and chemical tankers. We actively pursue opportunities to exploit the overlap we believe exists between the clean petroleum product ("CPP") and chemical sectors in order to enhance earnings, and also seek to engage in more complex CPP trades, such as multi-grade and multi-port loading and discharging operations, where our knowledge of chemical operations is beneficial to our CPP customers. Our fuel-efficient operations are designed to enhance our investment returns and provide value-added service to our customers. We believe we are at the forefront of fuel efficiency and emissions reduction trends and are well positioned to capitalize on these developments with our fleet of Eco-design and Eco-mod vessels. Our acquisition strategy is to continue to build our fleet with Eco-design newbuildings and modern second-hand vessels that can be upgraded to Eco-mod. We have a resolute focus on both high-quality service and efficient operations, and we believe that our corporate overhead and operating expenses are among the lowest of our peers.

Ardmore Shipping Corporation

Unaudited Interim Condensed Consolidated Balance Sheets

(Expressed in U.S. Dollars)



As at

ASSETS

March 31, 2020


December 31, 2019

Current assets




Cash and cash equivalents

64,468,662


51,723,107

Receivables, net of allowance for bad debts of $0.8 million
(2019: $0.9 million)

27,705,982


30,083,358

Prepaid expenses and other assets

2,068,890


1,940,030

Advances and deposits

4,083,461


4,114,065

Inventories

10,696,789


10,158,735

Total current assets

109,023,784


98,019,295





Non-current assets




Vessels and vessel equipment, net

653,611,582


660,823,330

Deferred drydock expenditures, net

10,172,068


7,668,711

Ballast water treatment systems, installation in progress

320,607


384,408

Other non-current assets, net

841,054


917,222

Amount receivable in respect of finance leases

2,880,000


2,880,000

Operating lease, right of use asset

1,921,419


1,745,464

Total non-current assets

669,746,730


674,419,135





TOTAL ASSETS

778,770,514


772,438,430





LIABILITIES AND EQUITY




Current liabilities




Accounts payable

6,679,219


4,789,935

Accrued expenses

11,547,706


16,278,084

Accrued interest on debt and finance leases

775,949


880,183

Current portion of long-term debt

32,638,262


20,216,171

Current portion of finance lease obligations 

18,069,882


17,975,322

Current portion of operating lease obligations

402,619


289,231

Total current liabilities

70,113,637


60,428,926





Non-current liabilities




Non-current portion of long-term debt

182,627,341


187,066,842

Non-current portion of finance lease obligations

193,170,794


197,704,372

Non-current portion of operating lease obligations

1,189,607


1,182,522

Total non-current liabilities

376,987,742


385,953,736





Stockholders' equity




Common stock

351,469


350,192

Additional paid in capital

415,934,903


416,841,494

Treasury stock

(15,348,909)


(15,348,909)

Accumulated deficit

(69,268,328)


(75,787,009)

Total stockholders' equity

331,669,135


326,055,768





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

778,770,514


772,438,430


Ardmore Shipping Corporation

Unaudited Interim Condensed Consolidated Statements of Comprehensive Income / (Loss)

(Expressed in U.S. Dollars, except for shares)



Three months ended


March 31, 2020


March 31, 2019





Revenue, net

65,193,515


62,266,387





Voyage expenses

(23,662,392)


(27,250,124)

Vessel operating expenses

(15,686,154)


(16,838,288)

Depreciation

(7,854,959)


(8,230,492)

Amortization of deferred drydock expenditures

(1,285,342)


(1,138,763)

General and administrative expenses




Corporate

(3,985,678)


(3,583,173)

Commercial and chartering

(867,387)


(1,056,621)

Loss on sale of vessel

-


(6,569,763)

Interest expense and finance costs

(5,446,621)


(6,957,660)

Interest income

144,202


238,338





Income / (loss) before taxes

6,549,184


(9,120,159)





Income tax

(30,503)


(33,620)





Net income / (loss) and comprehensive income / (loss)

6,518,681


(9,153,779)





Earnings / (loss) per share, basic

0.20


(0.28)

Earnings / (loss) per share, diluted

0.20


(0.28)





ADJUSTED EARNINGS / (LOSS) (1)




Adjusted earnings / (loss)

6,518,681


(2,584,016)

Adjusted earnings / (loss) per share, basic

0.20


(0.08)

Adjusted earnings / (loss) per share, diluted

0.20


(0.08)





Weighted average number of shares outstanding, basic

33,196,917


33,097,831

Weighted average number of shares outstanding, diluted

33,317,114


33,097,831

(1)

Adjusted earnings / (loss) is a non-GAAP measure and is defined and reconciled under the "Non-GAAP Measures" section. Adjusted earnings / (loss) has been calculated as Earnings per share reported under US GAAP as adjusted for unrealized and realized gains and losses and extraordinary items.

Ardmore Shipping Corporation

Unaudited Interim Condensed Consolidated Statements of Cash Flows

(Expressed in U.S. Dollars)



Three months ended


March 31, 2020


March 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES




Net income / (loss)

6,518,681


(9,153,779)

Adjustments to reconcile net income / (loss) to net cash provided by

operating activities:




Depreciation

7,854,959


8,230,492

Amortization of deferred drydock expenditures

1,285,342


1,138,763

Share-based compensation

753,994


442,051

Loss on sale of vessel

-


6,569,763

Amortization of deferred finance fees

435,046


514,887

Foreign exchange

(55,485)


(36,799)

Deferred drydock expenditures

(2,171,613)


(1,918,672)

Changes in operating assets and liabilities:




Receivables

2,377,376


(190,350)

Prepaid expenses and other assets

(128,860)


(166,937)

Advances and deposits

30,604


(724,475)

Inventories

(538,054)


1,547,871

Accounts payable

561,129


(2,742,536)

Accrued expenses and other liabilities

(4,907,658)


(1,961,724)

Accrued interest on debt and finance leases

(104,234)


16,496

Net cash provided by operating activities

11,911,227


1,565,051





CASH FLOWS FROM INVESTING ACTIVITIES




Proceeds from sale of vessels

-


17,558,372

Payments for vessel equipment and Ballast water treatment systems,
installation in progress

(605,523)


(888,890)

Payments for other non-current assets

(9,368)


(61,092)

Net cash (used in) / provided by investing activities

(614,891)


16,608,390





CASH FLOWS FROM FINANCING ACTIVITIES




Proceeds from long-term debt

10,948,727


3,048

Repayments of long-term debt

(3,229,177)


(10,003,609)

Repayments of finance leases

(4,611,023)


(12,787,540)

Payment of dividend

(1,659,308)


-

Net cash provided by / (used in) financing activities

1,449,219


(22,788,101)





Net increase / (decrease) in cash and cash equivalents

12,745,555


(4,614,660)





Cash and cash equivalents at the beginning of the year

51,723,107


56,903,038





Cash and cash equivalents at the end of the period

64,468,662


52,288,378

Ardmore Shipping Corporation

Unaudited Other Operating Data

(Expressed in U.S. Dollars, unless otherwise stated)



Three months ended


March 31, 2020


March 31, 2019





ADJUSTED EBITDA (1)

20,991,904


13,538,181





AVERAGE DAILY DATA PER VESSEL








MR Tankers Spot (2)

19,307


15,856





Fleet TCE per day (2)

19,390


15,005





Fleet operating expenses per day (3)

6,026


6,482

Technical management fees per day (4)

458


459


6,484


6,941





MR Tankers Eco-Design




TCE per day (2)

19,564


16,252

Vessel operating expenses per day (5)

6,361


6,883





MR Tankers Eco-Mod




TCE per day (2)

18,341


14,860

Vessel operating expenses per day (5)

6,559


6,886





Prod / Chem Tankers Eco-Design (25k - 38k Dwt)




TCE per day (2)

19,707


12,142

Vessel operating expenses per day (5)

6,743


6,734





FLEET




Average number of owned operating vessels

25.0


26.7

(1)

Adjusted EBITDA is a non-GAAP measure and is defined and reconciled to the most directly comparable U.S. GAAP measure under the "Non-GAAP Measures" section.

(2)

Time Charter Equivalent ("TCE") rate, a non-GAAP measure, represents net revenues (revenues less voyage expenses) divided by revenue days. Revenue days are the total number of calendar days the vessels are in the Company's possession less off-hire days generally associated with drydocking or repairs, and idle days associated with repositioning of vessels held for sale. 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. Under discharge to discharge, revenues are recognized beginning from the discharge of cargo from the prior voyage to the anticipated discharge of cargo in the current voyage, and voyage expenses are recognized as incurred.

(3)

Fleet operating expenses per day are routine operating expenses and comprise crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses.

(4)

Technical management fees are fees paid to third-party technical managers.

(5)

Vessel operating expenses per day include technical management fees.

Ardmore Shipping Corporation

Fleet Details at March 31, 2020

(Expressed in Millions of U.S. Dollars, other than per share amount)


Vessel

IMO

Built

Country

DWT

Cargo

Engine Type

Cargo

Inerting

Eco

Estimated Resale
Newbuilding


Estimated
Depreciated






Capacity (m3)


Segregations

System

Specification

Price (1)


Replacement











March 31, 2020


Value (2)

Seavaliant

IMO2/3

Feb-13

S. Korea

49,998

53,361

6S50 ME-C8.2

6

IG Plant

Eco-Design

$39.00


$28.85

Seaventure

IMO2/3

Jun-13

S. Korea

49,998

53,375

6S50 ME-C8.2

6

IG Plant

Eco-Design

$39.00


$29.24

Seavantage

IMO2/3

Jan-14

S. Korea

49,997

53,288

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$30.12

Seavanguard

IMO2/3

Feb-14

S. Korea

49,998

53,287

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$30.23

Sealion

IMO2/3

May-15

S. Korea

49,999

52,928

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$32.06

Seafox

IMO2/3

Jun-15

S. Korea

49,999

52,930

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$32.18

Seawolf

IMO2/3

Aug-15

S. Korea

49,999

52,931

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$32.37

Seahawk

IMO2/3

Nov-15

S. Korea

49,999

52,931

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$32.68

Endeavour

IMO2/3

Jul-13

S. Korea

49,997

53,637

6S50 ME-C8.2

6

IG Plant

Eco-Design

$39.00


$29.41

Enterprise

IMO2/3

Sep-13

S. Korea

49,453

52,774

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$29.64

Endurance

IMO2/3

Dec-13

S. Korea

49,466

52,770

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$29.97

Encounter

IMO2/3

Jan-14

S. Korea

49,494

52,776

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$30.05

Explorer

IMO2/3

Jan-14

S. Korea

49,478

52,775

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$30.14

Exporter

IMO2/3

Feb-14

S. Korea

49,466

52,770

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$30.25

Engineer

IMO2/3

Mar-14

S. Korea

49,420

52,789

6S50 ME-B9.2

6

IG Plant

Eco-Design

$39.00


$30.35

Seamariner

IMO3

Oct-06

Japan

45,726

52,280

6S50MC-6.1

3

Flue Gas

Eco-Mod

$39.00


$19.49

Sealeader

IMO3

Jun-08

Japan

47,451

52,527

6S50MC-6.1

3

Flue Gas

Eco-Mod

$39.00


$21.82

Sealifter

IMO3

Aug-08

Japan

47,463

52,534

6S50MC-6.1

3

Flue Gas

Eco-Mod

$39.00


$22.11

Sealancer

IMO3

Jul-08

Japan

47,472

52,467

6S50MC-6.1

3

Flue Gas

Eco-Mod

$39.00


$21.94

Dauntless

IMO2

Feb-15

S. Korea

37,764

41,620

6S50 ME-B9.2

14

Nitrogen

Eco-Design

$37.50


$30.36

Defender

IMO2

Feb-15

S. Korea

37,791

41,620

6S50 ME-B9.2

14

Nitrogen

Eco-Design

$37.50


$30.40

Cherokee

IMO2

Jan-15

Japan

25,215

28,475

6S46 ME-B8.3

12

Nitrogen

Eco-Design

$31.50


$25.31

Cheyenne

IMO2

Mar-15

Japan

25,217

28,490

6S46 ME-B8.3

12

Nitrogen

Eco-Design

$31.50


$25.57

Chinook

IMO2

Jul-15

Japan

25,217

28,483

6S46 ME-B8.3

12

Nitrogen

Eco-Design

$31.50


$25.93

Chippewa

IMO2

Nov-15

Japan

25,217

28,493

6S46 ME-B8.3

12

Nitrogen

Eco-Design

$31.50


$26.28













$706.75






















Cash / Debt / Working Capital / Other Assets


($339.88)









Total Asset Value (Assets) (5)


$366.87









DRV / Share (3)(5)


$11.04






















Ardmore Commercial Management (4)


$27.43









Total Asset Value (Assets & Commercial Mgt.) (5)


$394.30









DRV / Share (3)(5)


$11.87



























1.

Based on the average of two broker estimates of prompt resale for a newbuild vessel of equivalent deadweight tonne at a yard in South Korea as at March 31, 2020.

2.

Depreciated Replacement Value ("DRV") is based on estimated resale price for a newbuild vessel depreciated for the age of each vessel (assuming an estimated useful life of 25 years on a straight-line basis and assuming a residual scrap value of $300 per tonne which is in line with Ardmore's depreciation policy). The Company's estimates of DRV assume that its vessels are all in good and seaworthy condition without the need for repair and, if inspected, that they would be certified in class without notations of any kind. Vessel values are highly volatile and, as such, the Company's estimates of DRV may not be indicative of the current or future value of its vessels, or prices that the Company could achieve if it were to sell them.

3.

DRV / Share calculated using 33,225,535 shares outstanding as at March 31, 2020.

4.

Ardmore Commercial Management is management's estimate of the value of Ardmore's commercial management and pooling business. The estimate is based on industry standard commercial management and pooling fees in determining revenue less Ardmore's commercial and chartering overhead (as stated in Ardmore's Statement of Operations) and applying an illustrative multiple to the resulting net earnings of 7x. The multiple is illustrative only and may not be indicative of the valuation multiple the Company could achieve if it were to sell its commercial management and pooling business. Revenue of this business is comprised of (i) commission (1.25% for standard product tankers and 2.5% for chemical tankers) on gross freight based on estimated current TCE rates grossed up for voyage expenses and (ii) administration fee of $300 per vessel per day. These rates may vary over time.

5.

Depreciated Asset Value ("DRV") and DRV per share are non-GAAP measures. Management believes that many investors use DRV as a reference point in assessing valuation of fleets of ships and similar assets.

CO2 Emissions Reporting (1)

In April 2018, the International Maritime Organization's ("IMO") Marine Environment Protection Committee ("MEPC") adopted an initial strategy for the reduction of greenhouse gas ("GHG") emissions from ships, setting out a vision to reduce GHG emissions from international shipping and phase them out as soon as possible.

Ardmore is committed to transparency and contributing to the reduction of CO2 emissions in the Company's industry. Effective July 1, 2019, the Company commenced reporting of carbon emissions data for its fleet. Ardmore's reporting methodology is in line with the framework set out within the IMO's Data Collection System ("DCS") initiated in January 2019.



Three months ended

Three months ended



March 31, 2020

December 31, 2019





Number of Vessels in Operation (at period end)


25

25

Fleet Average Age


6.7

6.4

CO2 Emissions Generated in Metric Tonnes


96,940

98,650





Annual Efficiency Ratio (AER) for the period (2)




Fleet


6.07g / tm

6.46g / tm

MR Eco-Design


5.51g / tm

6.20g / tm

MR Eco-Mod


6.56g / tm

6.05g / tm

Chemical


8.25g / tm

8.08g / tm





Energy Efficiency Operational Indicator (EEOI) for the period (3)




Fleet


12.03g / ctm

12.92g / ctm

MR Eco-Design


11.15g / ctm

13.33g / ctm

MR Eco-Mod


12.28g / ctm

12.96g / ctm

Chemical


16.26g / ctm

11.84g / ctm





tm = tonne-mile




ctm = cargo tonne-mile




It is expected that the shipping industry will continue to refine the performance measures for emissions and efficiency over time. AER and EEOI metrics are impacted by external factors such as charter speed, vessel orders and weather, in conjunction with overall market factors such as cargo load sizes and fleet utilization rate. As such, variance in performance can be found in the reported emissions between two periods for the same vessel and between vessels of a similar size and type. Furthermore, other companies may report slight variations in methodology(4) and consequently it is not always practical to directly compare emissions from different companies. The figures reported above represent Ardmore's initial findings; the Company is committed to improving the methodology and transparency of its emissions reporting in line with industry best practices. Accordingly, the above results may vary as the methodology and performance measures set out by the industry evolve.

1 Ardmore's emissions data is based on the reporting tools and information reasonably available to Ardmore and its applicable third-party technical managers. Management assesses such data and may adjust and restate the data to reflect latest information

2 Annual Efficiency Ratio ("AER") is a measure of carbon efficiency using the parameters of fuel consumption, distance travelled, and design deadweight tonnage ("DWT"). AER is reported in unit grams of CO2 per ton-mile (gCO2/dwt-nm). It is calculated by dividing (i) mass of fuel consumed by type converted to metric tonnes of CO2 by (ii) DWT multiplied by distance travelled in nautical miles

3 Energy Efficiency Operational Indicator ("EEOI") is a tool for measuring CO2 gas emissions in a given time period per unit of transport work performed. It is calculated by dividing (i) mass of fuel consumed by type converted to metric tonnes of CO2 by (ii) cargo carried in tonnes multiplied by laden voyage distance in nautical miles. This calculation is performed as per IMO MEPC.1/Circ684

4 Some shipping companies report CO2 in tonnes per kilometre as opposed to CO2 in tonnes per nautical mile

Non-GAAP Measures

This press release describes EBITDA, Adjusted EBITDA and Adjusted earnings / (loss), which are not measures prepared in accordance with U.S. GAAP and are defined and reconciled below. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels. Adjusted earnings / (loss) excludes certain items from net income / (loss), including gain or loss on sale of vessels and write-off of deferred finance fees, because they are considered to be not representative of its operating performance.

These non-GAAP measures are presented in this press release as the Company believes that they provide investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. EBITDA and Adjusted EBITDA increase the comparability of the Company's fundamental performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects between periods of interest expense, taxes, depreciation or amortization, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Company believes that including EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) as financial and operating measures assists investors in making investment decisions regarding the Company and its common stock.

These non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. In addition, these non-GAAP measures may not have a standardized meaning and therefore may not be comparable to similar measures presented by other companies. All amounts in the tables below are expressed in U.S. dollars, unless otherwise stated.

Reconciliation of net income / (loss) to EBITDA and Adjusted EBITDA


Three months ended


March 31, 2020


March 31, 2019





Net income / (loss)

6,518,681


(9,153,779)

Interest income

(144,202)


(238,338)

Interest expense and finance costs

5,446,621


6,957,660

Income tax

30,503


33,620

Depreciation

7,854,959


8,230,492

Amortization of deferred drydock expenditures

1,285,342


1,138,763

EBITDA

20,991,904


6,968,418

Loss on sale of vessel

-


6,569,763

ADJUSTED EBITDA

20,991,904


13,538,181













Reconciliation of net income / (loss) to Adjusted earnings / (loss)


Three months ended


March 31, 2020


March 31, 2019





Net income / (loss)

6,518,681


(9,153,779)

Loss on sale of vessel

-


6,569,763

Adjusted earnings / (loss) ([3])

6,518,681


(2,584,016)





Adjusted earnings / (loss) per share, basic

0.20


(0.08)

Adjusted earnings / (loss) per share, diluted

0.20


(0.08)





Weighted average number of shares, basic

33,196,917


33,097,831

Weighted average number of shares, diluted

33,317,114


33,097,831

Adjusted earnings / (loss) has been calculated as Earnings per share reported under US GAAP as adjusted for unrealized and realized gains and losses and extraordinary items.

Forward Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. In some cases, you can identify the forward-looking statements by the use of words such as "believe", "anticipate", "intends", "estimate", "forecast", "plan", "potential", "may", "expect", and similar expressions.

Forward looking statements in this press release include, among others, the following statements: future operating or financial results; global and regional economic conditions and trends; shipping market trends and market fundamentals, including expected tanker demand and scrapping levels, the use of tankers for storage purposes and the sustainability of current market improvement; the Company's liquidity, financial flexibility and strength; the Company's capital allocation policy and intended actions; the effect of the novel coronavirus pandemic on the Company's business, financial condition and the results of operation; the effect on tanker demand of the IMO 2020 regulations; expected global oil consumption and refinery capacity growth; the effects and expected duration of regulatory uncertainty on the global maritime industry regarding greenhouse gas emissions; the time it will take for new technologies addressing greenhouse gas emissions to emerge; expected employment of the Company's vessels during the second quarter of 2020; expected drydocking days in the second quarter of 2020; management's estimate of the value of the Company's commercial management and pooling business; the benefits of the Company's commitment to transparency regarding emissions; and expected continuation of refinement by the shipping industry of performance measures for emissions and efficiency. The forward-looking statements in this press release are based upon various assumptions, including, without limitation, Ardmore management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. The Company cautions readers of this release not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements. These forward-looking statements are not guarantees of the Company's future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: the amount of the world tanker fleet used for storage purposes; current expected spot rates compared with current and expected charter rates; the failure of counterparties to fully perform their contracts with the Company; the strength of world economies and currencies; general market conditions, including fluctuations in charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the projections of spot and time charter or pool trading of the Company's vessels; the effect of the novel coronavirus pandemic on, among others, oil demand, the Company's business, financial condition and results of operation, including our liquidity; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; general domestic and international political conditions; potential disruption of shipping routes due to accidents, piracy or political events; the market for the Company's vessels; competition in the tanker industry; availability of financing and refinancing; charter counterparty performance; changes in governmental rules and regulations or actions taken by regulatory authorities; the Company's ability to charter vessels for all remaining revenue days during the second quarter of 2020 in the spot market; vessels breakdowns and instances of off-hire; and other factors. Please see the Company's filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F for the year ended December 31, 2019, for a more complete discussion of these and other risks and uncertainties.

Investor Relations Enquiries:

Mr. Leon Berman       

Mr. Bryan Degnan

The IGB Group        

The IGB Group

45 Broadway, Suite 1150    

45 Broadway, Suite 1150

New York, NY 10006      

New York, NY 10006

Tel: 212-477-8438       

Tel: 646-673-9701

Fax: 212-477-8636     

Fax: 212-477-8636

Email: lberman@igbir.com     

Email: bdegnan@igbir.com