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- **Record Earnings and Strong Rates**: Q3 2025 adjusted earnings of $12.6 million, with MR tankers earning $24,700/day and chemical tankers $22,600/day, up 50% year-over-year in California.
- **Strategic Fleet Expansion**: Acquired 3 modern MRs at $38 million, now worth $43 million+ due to market tightening, and secured a 2-year charter at $21,250/day.
- **Market Tightness**: 16% of global fleet under sanctions, aging MR fleet (oldest in 20 years), and 13% order book vs. 4x more vessels nearing scrapping age.
- **Operational Excellence**: 99% on-hire availability, $10,000/day TCE increase adds $2.15 per share annually, and 12th consecutive dividend declared.

**【CEO Opening Remarks】**
- Reported Q3 2025 adjusted earnings of $12.6 million ($0.31 per share), driven by record refined product volumes and strong TCE rates.
- MR tankers earned $24,700/day in Q3, with $24,900/day booked for 40% of Q4. Chemical tankers earned $22,600/day in Q3 and $22,200/day in Q4 (35% booked).
- Acquired 3 modern MR tankers during market uncertainty, which are now outperforming with fuel savings and higher earnings power.
- Declared 12th consecutive dividend, paying 1/3 of adjusted earnings, and redeemed $30 million preferred shares to reduce cash breakeven.
- Secured a 2-year charter for an MR tanker with an oil major at $21,250/day, enhancing earnings quality.

**【President's Market Outlook】**
- Export volumes of refined products and crude reached record levels, driving demand for product tankers.
- 16% of global tanker fleet now subject to sanctions, tightening supply and increasing voyage distances (e.g., EU restrictions on Russian refined products).
- Aging fleet dynamics: MR fleet is the oldest in 20 years, with 4x more vessels approaching scrapping age than newbuild orders.
- Geopolitical shifts (e.g., European refinery closures, U.S. imports up 50% in California) driving long-haul substitution flows and ton-mile demand.

**【Financial Performance】**
- EBITDAR of $27.6 million in Q3, with cash breakeven reduced to $11,700/day (including CapEx) and operating breakeven at $10,800/day.
- 2025 capital expenditures of $37 million, with $18.5 million in elective upgrades (e.g., fuel efficiency, tank coatings) delivering early returns.
- Strong operating leverage: $10,000/day increase in TCE rates translates to $2.15 per share in annual earnings.

**【Fleet Operations】**
- 99% on-hire availability in Q3, with minimal drydocking scheduled for 2026.
- Investing in AI and digitalization (e.g., high-frequency data for voyage optimization) and biofuel compliance for EU trade.

**【Q&A Highlights】**
- **Market Correlation with VLCCs**: While MR rates lag VLCCs, product tanker demand is driven by refined product trade flows, not just crude. Geopolitical disruptions (e.g., Russia importing Asian CPP) and aging fleet dynamics support higher rates.
- **Charging Strategy**: Balancing spot exposure with long-term charters to lock in returns while maintaining flexibility. Recent 2-year charter reflects confidence in long-term demand from high-quality counterparties.
- **Capital Allocation**: With no debt repayments and no drydocks in 2026, focus on value-enhancing transactions (e.g., vessel acquisitions, upgrades) and returning capital to shareholders through dividends and buybacks.

Ardmore Shipping Corporation (ASC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Impairment of Other Assets

Loss on Disposal of Assets

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Net Income

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Preferred Stock Dividends

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

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ASC

ASC fundamentals

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