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Ardmore Shipping Corporation Announces Financial Results For The Three and Twelve Months Ended December 31, 2021

·23 min read
Cision

HAMILTON, Bermuda, Feb. 15, 2022 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we") today announced results for the three and twelve months ended December 31, 2021.

Highlights and Recent Activity

  • Reported a net loss of $8.6 million for the three months ended December 31, 2021, or $0.25 loss per basic and diluted share. This compares to a net loss of $19.5 million, or $0.59 loss per basic and diluted share, for the three months ended December 31, 2020. Reported Adjusted EBITDA, which includes unrealized losses on derivatives and amortization of drydock expenditure (see Non-GAAP Measures section), of $5.5 million for the three months ended December 31, 2021 as compared to $0.9 million for the three months ended December 31, 2020.

  • Reported a net loss of $38.1 million for the year ended December 31, 2021 or $1.12 loss per basic and diluted share, which includes deferred finance fees written off; losses adjusted for these items (see Adjusted (loss) / earnings in the Non-GAAP Measures section) are $37.5 million, or $1.11 Adjusted loss per basic and diluted share. This compares to a net loss of $6.0 million, or $0.18 loss per basic and diluted share, and Adjusted earnings of $0.4 million, or $0.01 Adjusted earnings per basic and diluted share, for the year ended December 31, 2020. Reported Adjusted EBITDA (see Non-GAAP Measures section) of $16.6 million for the year ended December 31, 2021, as compared to $57.0 million for the year ended December 31, 2020.

  • MR tankers earned an average TCE rate of $11,424 per day for the three months ended December 31, 2021 and $11,286 per day for the year ended December 31, 2021. Chemical tankers earned an average TCE rate of $11,274 per day for the three months ended December 31, 2021 and $10,982 per day for the year ended December 31, 2021.

  • In November 2021, e1 Marine announced it has signed a memorandum of understanding with Maritime Partners LLC, Elliott Bay Design Group and ABB to develop the world's first methanol-to-hydrogen fueled towboat, Hydrogen One, which will be powered by e1 Marine's reformer technology.

  • In December 2021, Ardmore completed the issuance of an additional 15,000 Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares to Maritime Partners, LLC for a purchase price of $15.0 million.

Anthony Gurnee, the Company's Chief Executive Officer, commented:

"The tanker market overall was weak throughout 2021, lagging other shipping sectors mainly due to the pandemic's negative impact on mobility and transport fuels. Given the direct connection to economic activity and consumer demand, the product and chemical tanker sectors did recover in the fourth quarter along with the global economy; however, it was not until year-end that charter rates began to properly improve, as reflected in our fourth quarter results.

Based upon clear and encouraging fundamentals, we expect our sectors to continue a recovery in 2022 from an already improved first quarter to-date, but also potentially influenced by many competing factors, including the evolution of the pandemic and the global economy, geopolitical concerns, and currently high oil prices impacting cargo movement and bunker costs.

Notwithstanding these factors, the big picture is very much one of an ongoing economic recovery, rising tonne-mile demand, and a tight tonnage supply outlook aided by heightened tanker scrapping and a rush of newbuilding orders in other shipping sectors that has pushed tanker newbuilding prices up and delivery schedules out.

Given this outlook, we have been increasing our spot exposure, while continuing a financially conservative stance in view of the potential cross currents in the market. Moving forward, Ardmore remains well positioned in terms of market upside and financial strength, with a high-quality modern fleet and a strong balance sheet."

Summary of Recent and Fourth Quarter 2021 Events

Fleet

Fleet Operations and Employment

As at December 31, 2021, the Company had 27 vessels in operation, including 21 MR tankers ranging from 45,000 deadweight tonnes (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.

MR Tankers (45,000 Dwt – 49,999 Dwt)

At the end of the fourth quarter of 2021, the Company had 21 MR tankers trading in the spot market or on time charters. The MR tankers earned an average TCE rate of $11,424 per day in the fourth quarter of 2021. In the fourth quarter of 2021, the Company's 15 Eco-Design MR tankers earned an average TCE rate of $11,614 and the Company's six Eco-Mod MR tankers earned an average TCE rate of $10,950 per day.

In the first quarter of 2022, the Company expects to have 18% of its revenue days for its MR Eco-Design tankers on time charter. The remaining 82% of days for its MR Eco-Design and all of its MR Eco-Mod tankers are expected to be employed in the spot market. As of February 15, 2022, the Company had fixed approximately 60% of its total MR revenue days for the first quarter of 2022 at an average TCE rate of approximately $13,725 per day.

Product / Chemical Tankers (IMO 2: 25,000 Dwt – 37,800 Dwt)

At the end of the fourth quarter of 2021, the Company had six Eco-Design IMO 2 product / chemical tankers in operation, all of which were trading in the spot market. During the fourth quarter of 2021, the Company's six Eco-Design product / chemical vessels earned an average TCE rate of $11,274 per day.

In the first quarter of 2022, the Company expects to have all revenue days for its Eco-Design IMO 2 product / chemical tankers employed in the spot market. As of February 15, 2022, the Company had fixed approximately 70% of its Eco-Design IMO 2 product / chemical tankers spot revenue days for the first quarter of 2022 at an average TCE rate of approximately $13,325 per day.

Drydocking

The Company had no drydock or repositioning days in the fourth quarter of 2021. The Company does not expect to have any drydock days in the first quarter of 2022.

Capital Allocation Policy

Consistent with the Company's capital allocation policy, the Company is not declaring a dividend, in respect of its common shares, for the fourth quarter of 2021.

Financing

In December 2021, Ardmore completed the issuance of an additional 15,000 Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares to Maritime Partners, LLC for a purchase price of $15.0 million

Investments: e1 Marine and Element 1 Corp

In November 2021, e1 Marine announced it has signed a memorandum of understanding with Maritime Partners LLC, Elliott Bay Design Group and ABB to develop the world's first methanol-to-hydrogen fueled towboat, Hydrogen One, which will be powered by e1 Marine's reformer technology.

COVID-19

In response to the COVID-19 pandemic, many countries, ports and organizations, including those where Ardmore conducts a large part of its operations, have implemented measures to combat the outbreak, such as quarantines and travel restrictions. Such measures have caused severe trade disruptions. In addition, the pandemic has resulted and may continue to result in a significant decline in global demand for refined oil products. As Ardmore's business is the transportation of refined oil products on behalf of oil majors, oil traders and other customers, any significant decrease in demand for the cargo Ardmore transports could adversely affect demand for its vessels and services. The extent to which the pandemic may impact Ardmore's results of operations and financial condition, including possible impairments, will depend on future developments, which are highly uncertain and cannot be predicted, including, among others, new information which may emerge concerning the virus and of its variants and the level of the effectiveness and delivery of vaccines and other actions to contain or treat its impact. Accordingly, an estimate of the impact of the COVID-19 pandemic on the Company cannot be made at this time.

Results for the three months ended December 31, 2021 and 2020

The Company reported a net loss of $8.6 million for the three months ended December 31, 2021, or $0.25 loss per basic and diluted share, as compared to a net loss of $19.5 million, or $0.59 loss per basic and diluted share, for the three months ended December 31, 2020. The Company reported Adjusted EBITDA (see Non-GAAP Measures section) of $5.5 million for the three months ended December 31, 2021, as compared to $0.9 million for the three months ended December 31, 2020.

Results for the year ended December 31, 2021 and 2020

The Company reported a net loss of $38.1 million for the year ended December 31, 2021, or $1.12 loss per basic and diluted share, as compared to a net loss of $6.0 million, or $0.18 loss per basic and diluted share, for the year ended December 31, 2020. The Company reported Adjusted EBITDA (see Non-GAAP Measures section) of $16.6 million for the year ended December 31, 2021, as compared to Adjusted EBITDA of $57.0 million for the year ended December 31, 2020.

The Company reported an Adjusted loss (see Non–GAAP Measures section) of $37.5 million for the year ended December 31, 2021, or $1.11 Adjusted loss per basic and diluted share, as compared to Adjusted earnings of $0.4 million, or $0.01 Adjusted earnings per basic and diluted share, for the year ended December 31, 2020.

Management's Discussion and Analysis of Financial Results for the three months ended December 31, 2021 and 2020

Revenue. Revenue for the three months ended December 31, 2021 was $52.5 million, an increase of $10.8 million from $41.7 million for the three months ended December 31, 2020.

The Company's average number of operating vessels increased to 27 for the three months ended December 31, 2021, compared to 26 for the three months ended December 31, 2020.

The Company had four product tankers employed under time charters as at December 31, 2021, compared with none as at December 31, 2020. Revenue days derived from time charters were 364 for the three months ended December 31, 2021, as compared to none for the three months ended December 31, 2020. The increase in revenue days for time-chartered vessels resulted in an increase in revenue of $5.3 million.

The Company had 2,112 spot revenue days for the three months ended December 31, 2021, as compared to 2,267 for the three months ended December 31, 2020. The Company had 23 and 26 vessels employed directly in the spot market as of the years ended December 31, 2021 and 2020, respectively. The decrease in spot revenue days resulted in a decrease in revenue of $2.9 million, while changes in spot rates resulted in an increase in revenue of $8.1 million for the three months ended December 31, 2021, as compared to the three months ended December 31, 2020. The Company managed four third party chemical tankers employed under spot as at December 31, 2021, compared with none as at December 31, 2020. This resulted in an increase in revenue of $0.3 million.

Voyage Expenses. Voyage expenses were $24.6 million for the three months ended December 31, 2021, an increase of $4.7 million from $19.9 million for the three months ended December 31, 2020. Voyage expenses increased primarily due to the increase in bunker prices resulting in an increase of $6.1 million, partially offset by a decrease in spot revenue days of $1.4 million for the three months ended December 31, 2021, as compared to the three months ended December 31, 2020.

TCE Rate. The average TCE rate for the Company's fleet was $11,390 per day for the three months ended December 31, 2021, an increase of $1,626 per day from $9,764 per day for the three months ended December 31, 2020. The increase in average TCE rate was the result of higher spot rates for the three months ended December 31, 2021, as compared to the three months ended December 31, 2020. TCE rates represent net revenues (or revenue less voyage expenses) divided by revenue days.

Vessel Operating Expenses. Vessel operating expenses were $15.8 million for the three months ended December 31, 2021, a decrease of $0.6 million from $16.4 million for the three months ended December 31, 2020. This decrease is due to one less vessel in operation in the three months ended December 31, 2021, as compared to the three months ended December 31, 2020. Vessel operating expenses, by their nature, are prone to fluctuations between periods. Average fleet operating expenses per day, including technical management fees, were $6,592 per vessel for the three months ended December 31, 2021, as compared to $6,518 per vessel for the three months ended December 31, 2020.

Charter Hire Costs. Charter hire costs were $2.1 million for the three months ended December 31, 2021, an increase of $0.9 million from $1.2 million for the three months ended December 31, 2020. The Company currently has two vessels chartered-in, as compared to one vessel chartered-in as at December 31, 2020.

Depreciation. Depreciation expense for the three months ended December 31, 2021 was $8.0 million, as compared to $8.3 million for the three months ended December 31, 2020.

Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended December 31, 2021 was $1.3 million, a decrease of $0.4 million from $1.7 million for the three months ended December 31, 2020. The deferred costs of drydockings for a given vessel are amortized on a straight-line basis to the next scheduled drydocking of the vessel.

General and Administrative Expenses: Corporate. Corporate-related general and administrative expenses for the three months ended December 31, 2021 were $3.3 million, an increase of $0.2 million from $3.1 million for the three months ended December 31, 2020.

General and Administrative Expenses: Commercial and Chartering. Commercial and chartering expenses are the expenses attributable to Ardmore's chartering and commercial operations departments in connection with its spot trading activities. Commercial and chartering expenses for the three months ended December 31, 2021 were $0.9 million, an increase of $0.7 million from $0.2 million for the three months ended December 31, 2020.

Interest Expense and Finance Costs. Interest expense and finance costs include loan interest, finance lease interest, and amortization of deferred finance fees. Interest expense and finance costs for the three months ended December 31, 2021 were $4.3 million, an increase of $0.4 million from $3.9 million for the three months ended December 31, 2020. Cash interest expense increased by $0.4 million to $3.8 million for the three months ended December 31, 2021, from $3.4 million for the three months ended December 31, 2020, primarily due to increased interest costs following the refinancing of two vessels in June 2021. Amortization of deferred finance fees for the three months ended December 31, 2021 was $0.4 million, consistent with $0.5 million for the three months ended December 31, 2020.

Liquidity

As at December 31, 2021, the Company had $67.0 million in liquidity available, with cash and cash equivalents of $55.4 million (December 31, 2020: $58.4 million) and amounts available and undrawn under its revolving credit facilities of $11.6 million (December 31, 2020: $0.0 million). During the fourth quarter of 2021, the Company decreased the outstanding amounts under its revolving credit facilities through a $23.0 million repayment. The following debt and lease liabilities (net of deferred finance fees) were outstanding as at the dates indicated:










As at



December 31, 2021


December 31, 2020

Cash


$

55,448,895


$

58,365,330








Finance leases (net of sellers' credit)



223,574,677



194,824,384

Senior Debt



114,467,634



157,710,865

Revolving Credit Facilities



30,633,757



53,631,491

Total debt



368,676,068



406,166,740








Total net debt


$

313,227,173


$

347,801,410

Conference Call

The Company plans to have a conference call on February 15, 2022 at 10:00 a.m. Eastern Time to discuss its results for the quarter and year ended December 31, 2021. All interested parties are invited to listen to the live conference call and review the related slide presentation by choosing from the following options:

  1. By dialing 844–492–3728 (U.S.) or 412–542–4189 (International) and referencing "Ardmore Shipping."

  2. By accessing the live webcast at Ardmore Shipping's website at www.ardmoreshipping.com.

Participants should dial into the call 10 minutes before the scheduled time.

If you are unable to participate at this time, an audio replay of the call will be available through February 22, 2022 at 877–344–7529 or 412–317–0088. Enter the passcode 6746358 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

About Ardmore Shipping Corporation

Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size tankers.

Ardmore's core strategy is to continue to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships and maintain its cost advantage in assets, operations and overhead, while creating synergies and economies of scale as the company grows. Ardmore provides its services to customers through voyage charters, commercial pools, and time charters, and enjoys close working relationships with key commercial and technical management partners.

Ardmore's Energy Transition Plan ("ETP") focusses on three key areas: transition technologies, transition projects, and sustainable (non-fossil fuel) cargos. The ETP is an extension of Ardmore's strategy, building on its core strengths of tanker chartering, shipping operations, technical and operational fuel efficiency improvements, technical management, construction supervision, project management, investment analysis, and ship finance. Ardmore has established Ardmore Ventures as Ardmore's holding company for existing and future potential investments related to the Energy Transition Plan and completed its first projects under the ETP in June 2021.

Ardmore Shipping Corporation
Unaudited Consolidated Balance Sheets
(Expressed in U.S. Dollars, except for shares)









As at



December 31, 2021


December 31, 2020

ASSETS





Current assets





Cash and cash equivalents


55,448,895


58,365,330

Receivables, net of allowance for bad debts of $0.8 million (2020: $0.5 million)


20,303,507


17,808,496

Prepaid expenses and other assets


3,511,349


3,683,910

Advances and deposits


3,550,942


2,516,646

Inventories


11,095,318


10,274,062

Current portion of derivative assets


306,912


Vessel held for sale



9,895,000

Total current assets


94,216,923


102,543,444






Non-current assets





Investments and other assets, net


11,081,579


678,632

Vessels and vessel equipment, net


603,227,228


631,458,305

Deferred drydock expenditures, net


8,878,578


10,216,090

Advances for ballast water treatment systems


2,032,894


2,568,874

Amount receivable in respect of finance leases


2,880,000


2,880,000

Non-current portion of derivative assets


981,835


Operating lease, right-of-use asset


1,231,877


1,662,510

Total non-current assets


630,313,991


649,464,411






TOTAL ASSETS


724,530,914


752,007,855






LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY





Current liabilities





Accounts payable


8,577,567


9,125,321

Accrued expenses and other liabilities


10,741,500


11,233,767

Deferred revenue


2,069,750


Accrued interest on debt and finance leases


650,742


769,304

Current portion of long-term debt


15,103,186


22,456,396

Current portion of finance lease obligations


21,083,831


18,454,222

Current portion of derivative liabilities



397,418

Current portion of operating lease obligations


273,141


463,559

Total current liabilities


58,499,717


62,899,987






Non-current liabilities





Non-current portion of long-term debt


129,998,205


188,054,568

Non-current portion of finance lease obligations


205,370,846


179,250,162

Non-current portion of derivative liabilities



433,974

Non-current portion of operating lease obligations


722,085


1,034,218

Other non-current liabilities


942,508


Total non-current liabilities


337,033,644


368,772,922






TOTAL LIABILITIES


395,533,361


431,672,909






Redeemable Preferred Stock





Cumulative Series A 8.5% redeemable preferred stock


37,043,138


Total redeemable preferred stock


37,043,138







Stockholders' equity





Common stock


363,839


352,067

Additional paid in capital


426,102,179


418,180,983

Accumulated other comprehensive income / (loss)


1,044,067


(729,135)

Treasury stock


(15,635,765)


(15,635,765)

Accumulated deficit


(119,919,905)


(81,833,204)

Total stockholders' equity


291,954,415


320,334,946






Total redeemable preferred stock and stockholders' equity


328,997,553


320,334,946






TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY


724,530,914


752,007,855

Ardmore Shipping Corporation
Unaudited Consolidated Statements of Operations
(Expressed in U.S. Dollars, except for shares)













Three months ended


Year ended



December 31, 2021


December 31, 2020


December 31, 2021


December 31, 2020

Revenue, net


52,459,069


41,725,326


192,484,301


220,057,606










Voyage expenses


(24,592,032)


(19,888,091)


(88,577,719)


(81,253,212)

Vessel operating expenses


(15,800,667)


(16,422,424)


(60,833,537)


(62,546,733)

Charter hire costs


(2,084,859)


(1,211,978)


(6,930,193)


(1,367,528)

Depreciation


(8,009,390)


(8,268,960)


(31,703,305)


(32,187,324)

Amortization of deferred drydock
expenditures


(1,284,161)


(1,712,360)


(5,168,526)


(6,198,245)

General and administrative expenses









Corporate


(3,341,437)


(3,063,281)


(16,071,865)


(15,122,906)

Commercial and chartering


(928,386)


(239,660)


(3,125,574)


(2,780,970)

Unrealized gains / (losses) on derivatives


221,613


(25,588)


276,268


(113,591)

Interest expense and finance costs


(4,300,143)


(3,915,885)


(16,771,198)


(18,168,155)

Interest income


16,097


25,776


55,088


281,618

Loss on vessel held for sale



(6,447,309)



(6,447,309)










Loss before taxes


(7,644,296)


(19,444,434)


(36,366,260)


(5,846,749)










Income tax


(13,587)


(70,968)


(149,593)


(199,446)

Loss from equity method investments


(258,192)



(316,790)











Net loss


(7,916,075)


(19,515,402)


(36,832,643)


(6,046,195)










Preferred dividend


(636,935)



(1,254,058)











Net loss attributable to common
stockholders


(8,553,010)


(19,515,402)


(38,086,701)


(6,046,195)



















Loss per share, basic and diluted


(0.25)


(0.59)


(1.12)


(0.18)










Adjusted (loss) / earnings (1)


(8,553,010)


(13,068,093)


(37,517,863)


401,114

Adjusted (loss) / earnings per share,
basic


(0.25)


(0.39)


(1.11)


0.01

Adjusted (loss) / earnings per share,
diluted


(0.25)


(0.39)


(1.11)


0.01










Weighted average number of shares
outstanding, basic


34,363,884


33,237,297


33,882,932


33,241,936

Weighted average number of shares
outstanding, diluted


34,363,884


33,237,297


33,882,932


33,443,250
















(1)

Adjusted (loss) / earnings is a non-GAAP measure and is defined and reconciled under the "Non-GAAP Measures" section. Adjusted (loss) / earnings has been calculated as Earnings per share reported under US GAAP as adjusted for certain unrealized and realized gains and losses (see Non-GAAP Measures Section).

Ardmore Shipping Corporation
Unaudited Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)









Year ended



December 31, 2021


December 31, 2020

CASH FLOWS FROM OPERATING ACTIVITIES










Net loss


(36,832,643)


(6,046,195)

Adjustments to reconcile net loss to net cash (used in) / provided by operating
activities:





Depreciation


31,703,305


32,187,324

Amortization of deferred drydock expenditures


5,168,526


6,198,245

Share-based compensation


2,612,968


3,000,672

Loss on vessel held for sale



6,447,309

Amortization of deferred finance fees


2,192,177


1,765,271

Unrealized (gains) / losses on derivatives


(276,268)


113,591

Foreign exchange


(71,917)


108,978

Loss from equity method investments


316,790


Payments for drydocks


(5,882,866)


(7,003,305)

Changes in operating assets and liabilities:





Receivables


(2,495,011)


12,274,862

Prepaid expenses and other assets


172,561


(1,743,880)

Advances and deposits


(1,034,296)


1,597,419

Inventories


(821,256)


(115,327)

Accounts payable


1,151,201


2,543,080

Accrued expenses and other liabilities


(701,459)


(5,098,531)

Deferred revenue


2,069,750


Accrued interest on debt and finance leases


(156,966)


(135,064)

Net cash (used in) / provided by operating activities


(2,885,404)


46,094,449






CASH FLOWS FROM INVESTING ACTIVITIES





Proceeds from sale of vessels


9,895,000


Payments for acquisition of vessels and vessel equipment


(2,475,399)


(18,720,337)

Advances for ballast water treatment systems


(157,879)


(2,184,466)

Payments for other non-current assets


(93,798)


(88,630)

Payments for equity investments


(5,541,364)


Net cash provided by / (used in) investing activities


1,626,560


(20,993,433)






CASH FLOWS FROM FINANCING ACTIVITIES





Proceeds from long-term debt



20,375,243

Repayments of long-term debt


(66,911,512)


(18,017,863)

Proceeds from finance leases


49,000,000


Repayments of finance leases


(19,959,944)


(18,650,009)

Payments for deferred finance fees


(980,000)


(220,000)

Repurchase of common stock



(286,856)

Payment of dividend



(1,659,308)

Issuance of preferred stock, net


37,985,646


Payment of preferred dividend


(791,781)


Net cash used in financing activities


(1,657,591)


(18,458,793)






Net (decrease) / increase in cash and cash equivalents


(2,916,435)


6,642,223






Cash and cash equivalents at the beginning of the year


58,365,330


51,723,107






Cash and cash equivalents at the end of the period


55,448,895


58,365,330

Ardmore Shipping Corporation
Unaudited Other Operating Data
(Expressed in U.S. Dollars, unless otherwise stated)













Three months ended


Year ended



December 31, 2021


December 31, 2020


December 31, 2021


December 31, 2020

Adjusted EBITDA (1)


5,453,496


899,892


16,628,623


56,986,257










AVERAGE DAILY DATA


















MR Tankers Eco-Design Spot TCE
per day (2)


11,024


9,436


10,931


15,650










Fleet TCE per day (2)


11,390


9,764


11,216


15,355










Fleet operating expenses per day (3)


6,141


6,134


5,967


6,073

Technical management fees per day (4)


451


384


459


439



6,592


6,518


6,426


6,512










MR Tankers Eco-Design









TCE per day (2)


11,614


9,603


11,501


15,993

Vessel operating expenses per day (5)


6,712


6,560


6,485


6,530










MR Tankers Eco-Mod









TCE per day (2)


10,950


9,052


10,667


14,284

Vessel operating expenses per day (5)


6,366


6,447


6,359


6,559










Prod/Chem Tankers Eco-Design (25k
- 38k Dwt)









TCE per day (2)


11,274


10,916


10,982


14,332

Vessel operating expenses per day (5)


6,441


6,475


6,324


6,434










FLEET









Average number of owned operating
vessels


25.0


26.0


25.0


25.4






(1)

Adjusted EBITDA is a non-GAAP measure and is defined and reconciled to the most directly comparable U.S. GAAP measure under the "Non-GAAP Measures" section.

(2)

Time Charter Equivalent ("TCE") rate, a non-GAAP measure, represents net revenues (revenues less voyage expenses) divided by revenue days. Revenue days are the total number of calendar days the vessels are in the Company's possession less off-hire days generally associated with drydocking or repairs and idle days associated with repositioning of vessels held for sale. Net revenue utilized to calculate the TCE rate is determined on a discharge to discharge basis, which is different from how the Company records revenue under U.S. GAAP. Under discharge to discharge, revenues are recognized beginning from the discharge of cargo from the prior voyage to the anticipated discharge of cargo in the current voyage, and voyage expenses are recognized as incurred.

(3)

Fleet operating expenses per day are routine operating expenses and comprise crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. These amounts do not include expenditures related to upgradings and enhancements or other non-routine expenditures which were expensed during the period.

(4)

Technical management fees are fees paid to third-party technical managers.

(5)

Vessel operating expenses per day include technical management fees.

Ardmore Shipping Corporation
Fleet Details at December 31, 2021
(Expressed in Millions of U.S. Dollars, other than per share amount)