Ardmore Shipping Corporation · NYSE:ASC
Ardmore Shipping — Q2 2015 Earnings Presentation
22 slides from Ardmore Shipping's earnings presentation, August 2015
Slide 1: Second Quarter 2015 Earnings Presentation
ARDMORE SHIPPING CORPORATION Second Quarter 2015 Earnings Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable U.S. federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Ardmore Shippi
Slide 3: Agenda
Earnings Release – Second Quarter 2015 Agenda Performance and Recent Market Activity Product and Chemical Tanker Markets Fleet Update Financial Results Outlook and Summary Appendix Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to
Slide 4: Highlights
Highlights Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commerical capability 4
Slide 5: Performance and Recent Market Activity
Performance and Recent Market Activity Highlights Reported net income of $7.9 million and EBITDA of $16.8 million, equating to $0.30 per share for the quarter Continuing to deliver strong spot MR performance: $22,402 per day for the second quarter and presently ~$23,500 for voyages in progress
Slide 6: Product and Chemical Tanker Market
Product and Chemical Tanker Market Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commerical capability 6
Slide 7: Product Tanker Market
Product Tanker Market MR triangulations (East & West) have increased significantly from Average MR Triangulation Rates(1) same period last year(2): 2015 2014 TC 2/14 (Atlantic Basin) up 116% to ~$25,800 $35,000 TC 4/11 (East of Suez) up 66% to ~$21,900 $30,000 Time charter rates increasing:
Slide 8: Chemical Tanker Market
Chemical Tanker Market Chemical tanker charter rates have rebounded in 1H15 and are up 25k Dwt / 37k Dwt Chemical Tanker TCE $/day(1) 28% year-on-year(3) CHEM-25s CHEM-37s 20,000 Took delivery of five Eco-design IMO2 product / chemical tankers so far in 2015 with one more vessel to deliver in 4Q
Slide 9: Fleet Update and 3Q15 Outlook
Fleet Update and 3Q15 Outlook Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commerical capability 9
Slide 10: Chartering Profile
Chartering Profile Fleet Employment Profile Revenue Day Estimates 3Q15 Vessel Employment Min TC Expiry Ardmore Seavanguard Time Charter Jan-16 506 Ardmore Seavantage Time Charter Dec-15 460 Ardmore Seafarer Time Charter Dec-15 Ardmore Centurion Time Charter Jan-16 276 Ardmore Cheyenne Time Charter F
Slide 11: Fleet Update
Fleet Update Fleet Update Revenue Days Growth From New Deliveries Seven product / chemical tankers delivered so far in 2015 8,000 contributing to earnings and cash flow: +70% (Y-o-Y) o Ardmore Cherokee: 25,215 Dwt - Fukuoka, Japan 7,000 o Ardmore Dauntless: 37,764 Dwt - Hyundai Mipo, Korea o Ardmo
Slide 12: Financial
Financial Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commerical capability 12
Slide 13: Solid Financial Performance
Solid Financial Performance INCOME STATEMENT DATA Three months ended Six months ended US$ millions, unless otherwise stated Jun 30, 2015 Jun 30, 2014 Jun 30, 2015 Jun 30, 2014 Results Revenue 39.3 13.8 68.93 26.21 EBITDA(1) 16.8 5.0 28.94 8.97 Net profit/(loss) 7.9 0.1 12.99 (0.32) Net profit/(loss)
Slide 14: Charter Rates Continue to Build
Charter Rates Continue to Build (1) Time Charter Equivalent ($ / day) 20,732 20,212 19,020 17,806 16,599 16,769 15,913 14,793 14,310 12,228 11,404 - MR ECO-DES MR ECO-MOD PROD/CHEM ECO-DES PROD/CHEM ECO-MOD FY 2014 1Q 15 2Q 15 (2) For every $1,000/day increase in rates, EPS increases by $0.34 cents
Slide 15: Strong Balance Sheet
Strong Balance Sheet BALANCE SHEET DATA As at US$ millions, unless otherwise stated Jun 30, 2015 Dec 31, 2014 Cash 41.9 59.9 Receivables, Inventories and Other Assets 37.5 21.1 Vessels, Instalment Payments & Drydock 626.3 489.8 Total Assets 705.7 570.8 Payables and Accruals 14.3 10.1 Debt & Capital
Slide 16: Newbuildings Fully Funded
Newbuildings Fully Funded Ardmore is fully funded: three vessels on order have committed financing in place - Remaining newbuilding yard installments: $79 million - Bank debt committed for newbuildings: $83.5 million Low corporate leverage: ~51% as at June 30, 2015, peaking at ~56% with signific
Slide 17: Outlook and Summary
Outlook and Summary Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commerical capability 17
Slide 18: Capital Allocation
Capital Allocation To put things in perspective, tanker market experiencing a broad recovery, product tanker market outlook is especially positive, with strong ongoing secular trends expecting to propel financial performance well into the future Ardmore now in a good place: fleet in water has tr
Slide 19: Summary
Summary Reported strong financial results with net income of $7.9 million and EPS of $0.30 for the second quarter Oil production and refinery runs remaining strong leading to increased cargo volumes and trading activity Long term fundamentals continue to play out as Middle East refineries sign
Slide 20: Appendix
Appendix Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commerical capability 20
Slide 21: The Ardmore Fleet
The Ardmore Fleet Vessel Name Type Dwt IMO Built Country Flag Specification In Operation Ardmore Seavaliant Product/Chemical 49,998 3 Feb-13 Korea MI Eco-design Ardmore Seaventure Product/Chemical 49,998 3 Jun-13 Korea MI Eco-design Ardmore Seavantage Product/Chemical 49,997 3 Jan-14 Korea MI Eco-de
Slide 22: Non-GAAP Measures
Non-GAAP Measures NON-GAAP MEASURES Three months ended Six months ended expressed in US$, unless otherwise stated Jun 30, 2015 Jun 30, 2014 Jun 30, 2015 Jun 30, 2014 EBITDA & Adjusted EBITDA Net profit / (loss) 7,920,154 94,745 12,987,437 (318,707) Interest income (4,389) (8,278) (6,023) (10,300) In