Tag: Lucas

Strong Tanker Market Pushes Ardmore’s Earnings

first_imgzoom Owner and operator of mid-size product and chemical tankers Ardmore Shipping Corporation reported a net profit of USD 5.4 million for the three months ended December 31, 2015, as compared to USD 1.9 million, for the corresponding period in 2014. The company reported a net profit of USD 32.0 million for the twelve months ended December 31, 2015, as compared to USD 1.7 million recorded for 2014.“We are pleased to report record profits for the full year 2015, which are attributable to well-timed fleet growth, a highly efficient operating platform, and successful execution of our chartering strategy in strong market conditions,” Anthony Gurnee, the Company’s Chief Executive Officer, said.Ardmore Shipping said it delivered a strong chartering performance for the year, with spot and pool MR tankers earning approximately USD 21,548 per day for the twelve months ended December 31, 2015 with an average of 20 ships in operation.During the quarter the company took delivery of two product and chemical tankers, namely the 25,217 dwt Ardmore Chippewa and the 49,999 dwt Ardmore Seahawk.Ardmore also decided to sell its 17,600 dwt IMO 2 chemical tankers, Ardmore Calypso and Ardmore Capella, for a price tag of USD 38.5 million.“Following a seasonal pullback in rates early in the fourth quarter, the charter rate environment firmed once again in the latter part of the quarter and into early 2016. Demand continues to be strong, driven by underlying secular demand growth resulting from Middle East refinery expansion, a growing dislocation of refined product production versus consumption, and continuing regional product-slate imbalances,” he said.“The new oil market, characterized by oil price volatility and supply-chain congestion, continues to bolster demand and is expected to persist for the foreseeable future. Meanwhile, we believe that product tanker supply growth has peaked and the MR orderbook now stands at approximately 9.5% of standing capacity, which is the lowest level in 15 years and is the least of all tanker sectors. Given the increasing disparity between solid demand growth for refined product transportation and the shrinking orderbook, we remain bullish on the market for the duration of 2016 and beyond,” Gurnee added.last_img read more