Ardmore to Acquire 47,500 dwt Japanese-Built Product Tanker

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Bermuda-based Ardmore Shipping Corporation has proposed an acquisition of a 47,500 dwt 2008 Japanese-built product tanker. The acquisition is subject to completion of financing under a lease arrangement on terms acceptable to Ardmore. If successful, the vessel is expected to be delivered in December 2017 or January 2018, the company said while releasing the Q3 financial results for 2017.

Ardmore reported a net loss of USD 4.6 million during the third quarter of 2017, or USD 0.14 basic and diluted loss per share. The company had reported a a net loss of USD 4.8 million during the same period in 2016. For the nine-month period, Ardmore posted a net loss of USD 8.7 million, reversing from a net income of USD 7.4 million recorded a year earlier.

The company has earned an average of USD 12,970 per day from its spot and pool tanker fleet, while the eco-Design chemical tankers earned it an average of USD 10,768 per day. Ardmore will be maintaining its dividend policy of paying out 60 per cent of earnings from continuing operations.

CEO of Ardmore Anthony Gurnee said that the short-term oil market dynamics continue to dominate the product tanker market. Though the proposed purchase is a single-ship acquisition, together with attractive lease financing, the transaction will provide a meaningful boost to earnings and cashflow, he said.

“While this has been a significant negative for some time, we believe this is shifting to the positive with the impact of Hurricane Harvey abating and global oil inventories heading toward normal levels after an extended period of destocking. As a consequence, we believe the product tanker market is poised for a seasonal rebound this winter,” Gurnee said.

Currently, the company has 27 vessels in operation, comprising 21 Eco MR tankers ranging from 45,000 dwt to 49,999 dwt (15 Eco-Design and six Eco-Mod) and six Eco-Design IMO 2 product/chemical tankers ranging from 25,000 dwt to 37,800 dwt.

Sea News, November 2

Baibhav Mishra
Author: Baibhav Mishra

Associate Editor, Sea News