Ardmore Shipping Q2 Revenue Down 40% YoY, Strategic Moves Bolster Future Prospects

Ardmore Shipping Corporation reported a 40% drop in Q2 revenue to $72mln, but CEO highlighted ongoing strength in earnings and strategic moves to boost future prospects. The company acquired three modern MR tankers, refinanced bank debt, and secured strong returns through time charter-out contracts and tank coating upgrades. Ardmore's financial health is underscored by strong margins and robust liquidity. Despite recent declines, strategic initiatives position the company well for future growth.

Ardmore Shipping Corporation (ASC) announced its financial results for the second quarter of 2025, revealing a significant decline in earnings to $9.0 million, down from $47.6 million in the same period last year. This 81% year-over-year (YoY) decrease in earnings is primarily attributed to lower spot tanker rates [1].

Despite the earnings decline, CEO Gernot Ruppelt emphasized the company's strategic initiatives to bolster future prospects. Ardmore expanded its fleet by acquiring three modern MR tankers built in Korea for a total of $103.9 million. This acquisition includes one 2020-built vessel and two 2017-built vessels, with deliveries expected in Q3 2025 [1].

The company also secured a new $350 million revolving credit facility at favorable terms (SOFR plus 1.8% margin), maturing in 2031. This facility is backed by 20 of Ardmore's owned vessels, indicating the company's continued access to capital despite market challenges [1].

Ardmore's operational strategy includes increasing its time charter coverage. Chemical tankers are fixed at $19,250 per day for three-year contracts, and MR tankers at an average rate of $22,500 per day. Furthermore, approximately 50% of MR Eco-Design tanker revenue days are fixed at $25,450 per day, while 65% of chemical tanker revenue days are fixed at $21,650 per day for Q3 2025 [2].

Despite the decline in earnings, Ardmore declared a cash dividend of $0.07 per share for Q2 2025, adhering to its variable dividend policy. The dividend will be paid on September 12, 2025, to shareholders on record as of August 29, 2025 [1].

References:
[1] https://www.gurufocus.com/news/3016416/ardmore-shipping-corporation-announces-financial-results-for-the-three-and-six-months-ended-june-30-2025-asc-stock-news
[2] https://www.prnewswire.com/news-releases/ardmore-shipping-corporation-announces-financial-results-for-the-three-and-six-months-ended-june-30-2025-302516738.html