Ardmore Shipping Corporation Announces Financial Results For The Three and Twelve Months Ended December 31, 2022

HAMILTON, Bermuda, Feb. 14, 2023 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we") today announced results for the three and twelve months ended December 31, 2022.

Highlights and Recent Activity

• Reported net income of $53.1 million for the three months ended December 31, 2022, or $1.31 earnings per basic share and $1.28 earnings per diluted share, compared to a net loss of $8.6 million, or $0.25 loss per basic and diluted share, for the three months ended December 31, 2021. Adjusted for certain costs (see Adjusted earnings / (loss) in the Non-GAAP Measures section), we reported Adjusted earnings of $54.0 million, or $1.33 Adjusted earnings per basic share and $1.30 Adjusted earnings per diluted share, for the three months ended December 31, 2022, compared to an Adjusted loss of $8.6 million, or $0.25 Adjusted loss per basic and diluted share, for the three months ended December 31, 2021.
  
  
• Reported record net income of $135.1 million for the year ended December 31, 2022, or $3.63 earnings per basic share and $3.52 earnings per diluted share, compared to a net loss of $38.1 million, or $1.12 loss per basic and diluted share, for the year ended December 31, 2021. Adjusted for certain costs (see Adjusted earnings / (loss) in the Non-GAAP Measures section), we reported Adjusted earnings of $143.5 million, or $3.86 Adjusted earnings per basic and $3.74 Adjusted earnings per diluted share for the year ended December 31, 2022, compared to an Adjusted loss of $37.5 million, or $1.11 Adjusted loss per basic and diluted share, for the year ended December 31, 2021.
  
  
• MR Eco-Design tankers earned an average spot TCE rate of $43,174 per day for the three months ended December 31, 2022. Chemical tankers earned an average TCE rate of $28,544 per day for the three months ended December 31, 2022. Based on approximately 55% total revenue days currently fixed for the first quarter of 2023, the average spot TCE rate is approximately $39,500 per day for MR Eco-Design tankers; based on approximately 70% of revenue days fixed for the first quarter of 2023, the average TCE rate for chemical tankers is approximately $27,750 per day.
  
  
• On January 9, 2023, Ardmore announced the appointment of Mr. James Fok to Ardmore's Board of Directors as a Class III director. He is also serving on the Audit and Nominating and Corporate Governance Committees.
  
  
• Consistent with the Company's capital allocation policy, the Board of Directors declared a cash dividend on February 14, 2023, of $0.45 per common share for the quarter ended December 31, 2022, based on Ardmore's current policy of paying out a third of Adjusted Earnings, as calculated for dividends. The dividend will be paid on March 15, 2023, to all shareholders of record on February 28, 2023.

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

"2022 was a tremendous year for product tanker markets and the most profitable year thus far for Ardmore, as supportive fundamentals created early momentum that was then amplified by a substantial re-ordering of global energy markets. This also followed a prolonged period of refined product inventory draws and post-pandemic energy consumption growth, and energy supply chains operating with little, if any, buffer to account for dislocations or unforeseen developments. 

In these tight and fast-changing markets, Ardmore's high-quality fleet of modern MR product and chemical tankers, its focus on operational excellence and ability to take advantage of market volatility, along with a strong balance sheet and low breakeven levels, have enabled us to generate strong profits and cash flow.

As a result, we are also now able to pursue our capital allocation policy priorities simultaneously: maintaining our fleet over time, continued de-levering of our balance sheet, paying our newly initiated quarterly dividend, and selectively evaluating accretive growth opportunities that support our long-term strategic goals.

As strong markets extend into 2023 and with the newbuilding orderbook remaining at a historically low level, we believe Ardmore is exceptionally well positioned to continue generating strong earnings and translating our current performance into lasting shareholder value."

Summary of Recent and Fourth Quarter 2022 Events

Fleet

Fleet Operations and Employment

As of December 31, 2022, the Company had 27 vessels in operation (including five chartered-in vessels), 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. The Company also commercially manages two of Carl Büttner's 24,000 Dwt chemical tankers.

MR Tankers (45,000 Dwt – 49,999 Dwt)

At the end of the fourth quarter of 2022, the Company had 21 MR tankers in operation, all of which were trading in the spot market. The MR tankers earned an average TCE rate of $41,911 per day in the fourth quarter of 2022. In the fourth quarter of 2022, the Company's 15 MR Eco-Design tankers earned an average TCE rate of $42,301 and the Company's six MR Eco-Mod tankers earned an average TCE rate of $40,990 per day.

In the first quarter of 2023, the Company expects to have all revenue days for its MR tankers employed in the spot market. As of February 14, 2023, the Company had fixed approximately 55% of its total MR revenue days for the first quarter of 2023 at an average TCE rate of approximately $37,500 per day which comprises MR Eco-Design tankers of $39,500 per day and MR Eco-Mod tankers of $32,000 per day.

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

At the end of the fourth quarter of 2022, 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 2022, the Company's six Eco-Design product / chemical vessels earned an average TCE rate of $28,544 per day.

In the first quarter of 2023, 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 14, 2023, the Company had fixed approximately 70% of its Eco-Design IMO 2 product / chemical tankers spot revenue days for the first quarter of 2023 at an average TCE rate of approximately $27,750 per day.

Drydocking

The Company had 23 drydock days and no repositioning days in the fourth quarter of 2022. The Company expects to have eight drydock days and six repositioning days in the first quarter of 2023.

Dividend

Consistent with the Company's capital allocation policy, the Board of Directors declared a cash dividend on February 14, 2023, of $0.45 per share for the quarter ended December 31, 2022, based on the Company's current policy of paying out dividends equal to one-third of Adjusted Earnings (see Adjusted Earnings (for purposes of dividend calculations) in the Non-GAAP Measures section). The dividend is payable on March 15, 2023 to all shareholders of record on February 28, 2023.

New Director Appointment

On January 9, 2023, the Company announced the appointment of Mr. James Fok to the Company's Board of Directors as a Class III director. He is also serving on the Nominating and Corporate Governance Committee and has replaced Mats Berglund on the Audit Committee. We thank Mats Berglund for his service on the Audit Committee and for his continued service on the Board of Directors and the Compensation and the Nominating and Corporate Governance Committees.

Mr. Fok has more than 20 years of experience as a financial and strategic advisor to corporations and governments, with particular expertise in Asian cross-border capital markets transactions and mechanisms. From 2012 until 2021, he served as a senior executive at Hong Kong Exchanges and Clearing (HKEX), playing a major role in a number of landmark capital markets internationalization initiatives. Previously, Mr. Fok served as an investment banker at multiple bulge bracket firms in both Europe and Asia, focusing on the financial services sector. He currently serves as an Advisor to Bain & Company, is on the Advisory Board of Hex Trust, a provider of bank-grade custody for digital assets, and serves as an International Member of Ireland for Finance's Industry Advisory Committee. Mr. Fok holds a BA (Hons) in Law and Chinese from the School of Oriental & African Studies of the University of London and is a published author on the subject of Sino-American financial relations.

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 initially resulted and may again 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 has and could continue to 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, the impact of the end of China's Zero Covid policy and of the development of variants of the COVID virus, and the level of the effectiveness and delivery of vaccines and other actions to contain or treat its impact.

Conflict in Ukraine

Russia's invasion of Ukraine in February 2022 and the subsequent conflict has disrupted supply chains and caused instability and significant volatility in the global economy.

Much uncertainty remains regarding the global impact of the conflict in Ukraine, and it is possible that such instability, uncertainty and resulting volatility could significantly increase our costs and adversely affect our business, including our ability to secure charters and financing on attractive terms. The ongoing conflict has contributed significantly to related increases in spot tanker rates.

As a result of Russia's invasion of Ukraine, the United States, several European Union nations, the United Kingdom and other countries have announced unprecedented sanctions and other measures against Russia, Belarus and certain Russian and Belarussian entities and nationals.

The sanctions announced by the U.S. and other countries against Russia and, in some instances, Belarus include, among others, restrictions on selling or importing goods, services or technology in or from affected regions, travel bans and asset freezes impacting connected individuals and political, military, business and financial organizations in Russia, severing large Russian banks from U.S. and/or other financial systems, and barring some Russian enterprises from raising money in the U.S. market. The U.S. has also banned the import of certain Russian energy products into the U.S., including crude oil, petroleum, petroleum fuels, oils, liquefied natural gas and coal. The U.S., EU nations and other countries could impose wider sanctions and take other actions. While it is difficult to anticipate the impact the sanctions announced to date may have on our business and us, these and any further sanctions imposed or actions taken by the U.S., EU nations or other countries, and any retaliatory measures by Russia in response, could lead to increased volatility in global oil demand which could have a material impact on our business, results of operations and financial condition. In addition, it is possible that third parties with which we do business may be impacted by events in Russia and Ukraine, which could adversely affect us.

Results for the three months ended December 31, 2022 and 2021

The Company reported net income of $53.1 million for the three months ended December 31, 2022, or $1.31 earnings per basic share and $1.28 earnings per diluted share, as compared to a net loss of $8.6 million, or $0.25 loss per basic and diluted share for the three months ended December 31, 2021.

Results for the year ended December 31, 2022 and 2021

The Company reported net income of $135.1 million for the year ended December 31, 2022 or $3.63 earnings per basic share and $3.52 earnings per diluted share, as compared to a net loss of $38.1 million, or $1.12 loss per basic and diluted share, for the year ended December 31, 2021.

Management's Discussion and Analysis of Financial Results for the three months ended December 31, 2022 and 2021

Revenue. Revenue for the three months ended December 31, 2022 was $132.8 million, an increase of $80.3 million from $52.5 million for the three months ended December 31, 2021.

The Company's average number of operating vessels was 27.0 for the three months ended December 31, 2022, consistent with 27.0 for the three months ended December 31, 2021. 

The Company had no product tankers employed under time charter as of December 31, 2022, as compared to four as of December 31, 2021. Revenue days derived from time charters were 47 for the three months ended December 31, 2022, as compared to 364 for the three months ended December 31, 2021. The decrease in revenue days for time-chartered vessels resulted in a decrease in revenue of $4.3 million.

The Company had 2,399 spot revenue days for the three months ended December 31, 2022, as compared to 2,112 for the three months ended December 31, 2021. The Company had 27 and 23 vessels employed directly in the spot market as of the years ended December 31, 2022 and 2021, respectively. The increase in spot revenue days resulted in an increase in revenue of $6.3 million, while changes in spot rates resulted in an increase in revenue of $78.3 million for the three months ended December 31, 2022, as compared to the three months ended December 31, 2021.

Voyage Expenses. Voyage expenses were $39.5 million for the three months ended December 31, 2022, an increase of $14.9 million from $24.6 million for the three months ended December 31, 2021. An increase in bunker prices resulted in an increase of $10.4 million and an increase in spot revenue days resulted in an increase in port and agency expenses plus commission costs of $4.5 million for the three months ended December 31, 2022, as compared with the three months ended December 31, 2021.

TCE Rate. The average TCE rate for the Company's fleet was $38,861 per day for the three months ended December 31, 2022, an increase of $27,471 per day from $11,390 per day for the three months ended December 31, 2021. The increase in average TCE rate was primarily the result of higher spot rates for the three months ended December 31, 2022, as compared to the three months ended December 31, 2021, which was partially offset by an increase in bunker prices. TCE rates represent net revenues (or revenue less voyage expenses) divided by revenue days. Net revenue utilized to calculate TCE is determined on a discharge-to-discharge basis, which is different from how we record revenue under U.S. GAAP.

Vessel Operating Expenses. Vessel operating expenses were $14.2 million for the three months ended December 31, 2022, a decrease of $1.6 million from $15.8 million for the three months ended December 31, 2021. This decrease is primarily attributable to the completion of the sales of the Ardmore Sealeader, Ardmore Sealifter and Ardmore Sealancer earlier in 2022. In addition, the decrease also reflects the timing of vessel operating expenses between quarters. Vessel operating expenses, by their nature, are prone to fluctuations between periods.

Charter Hire Costs. Total charter hire expense was $6.0 million for the three months ended December 31, 2022, an increase of $3.9 million from $2.1 million for the three months ended December 31, 2021. This increase is the result of the Company having five vessels chartered-in as of December 31, 2022, compared to two vessel chartered-in as of December 31, 2021. Total charter hire expense for the three months ended December 31, 2022 was comprised of an operating expense component of $3.1 million and a vessel lease expense component of $2.9 million.

Depreciation. Depreciation expense for the three months ended December 31, 2022 was $7.3 million, a decrease of $0.7 million from $8.0 million for the three months ended December 31, 2021. This decrease is a result of the sale of one vessel in June 2022, and two additional vessels in July 2022. All three vessels were classified as held for sale up to their respective delivery dates. We ceased depreciating these three vessels, when they were classified as held for sale, during the first quarter of 2022.

Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended December 31, 2022 was $1.0 million, a decrease of $0.3 million from $1.3 million for the three months ended December 31, 2021. 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, 2022 were $5.3 million, an increase of $2.0 million from $3.3 million for the three months ended December 31, 2021. The increase in costs was primarily due to an increase in variable-based compensation, in line with strong results, during the three months ended December 31, 2022, compared to the three months ended December 31, 2021.

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, 2022 were $1.3 million, an increase of $0.4 million from $0.9 million for the three months ended December 31, 2021. The increase in costs was primarily due to an increase in variable-based compensation, in line with strong results, during the three months ended December 31, 2022, compared to the three months ended December 31, 2021.

Unrealized (Loss) / Gain on Derivatives: Unrealized loss on derivatives was $1.3 million for the three months ended December 31, 2022, a negative change of $1.5 million from an unrealized gain of $0.2 million for the three months ended December 31, 2021. The change is primarily due to realized gains of $2.2 million on interest rate swaps recognized during the three months ended December 31, 2022, which resulted in a decrease in the year-to-date unrealized gains to $3.0 million as of December 31, 2022 from $4.3 million as of September 30, 2022.

Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended December 31, 2022 were $2.0 million, a decrease of $2.3 million from $4.3 million for the three months ended December 31, 2021. The decrease in costs primarily reflects the low outstanding balance on the Company's revolving facility, with only $22.5 million drawn as of December 31, 2022, as well as the refinancing of nine vessels into senior loan facilities, during the third and fourth quarters of 2022, which were previously financed under lease arrangements. Amortization of deferred finance fees for the three months ended December 31, 2022 was $0.3 million, generally consistent with $0.4 million for the three months ended December 31, 2021.

Loss on Extinguishment. Loss on extinguishment for the three months ended December 31, 2022 was $0.9 million, an increase of $0.9 million from $0 for the three months ended December 31, 2021. As a result of deferred finance fees of $0.9 million being written off following the prepayment of the debt related to the exercises of the vessel purchase options, the loss on extinguishment increased by $0.9 million for the three months ended December 31, 2022. The Company incurred no corresponding loss or gain for three months ended December 31, 2021.

Liquidity

As of December 31, 2022, the Company had $220.6 million in liquidity available, with cash and cash equivalents of $50.6 million (December 31, 2021: $55.4 million) and amounts available and undrawn under its revolving credit facilities of $170.0 million (December 31, 2021: $11.6 million). The following debt and lease liabilities (net of deferred finance fees) were outstanding as of the dates indicated:

Conference Call

The Company plans to host a conference call on February 14, 2023, at 12:00 p.m. Eastern Time to discuss its results for the quarter ended December 31, 2022. 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 21, 2023 at 877–344–7529 or 412–317–0088. Enter the passcode 1945737 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, through its modern, fuel-efficient fleet of mid-size tankers, seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.

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 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 ETP and completed its first projects under the plan in June 2021.

CO₂ Emissions Reporting⁽¹⁾

In April 2018, the International Maritime Organization's ("IMO") Marine Environment Protection Committee ("MEPC") adopted an initial strategy for the reduction of greenhouse gas ("GHG") emissions from ships, setting out a vision to reduce GHG emissions from international shipping and phase them out as soon as possible. Ardmore is committed to transparency and contributing to the reduction of CO₂ emissions in the Company's industry. Ardmore's reporting methodology is in line with the framework set out within the IMO's Data Collection System ("DCS") initiated in 2019.

On January 1, 2023 the BIMCO CII Operations Clause for Time Charter Parties came into force. This clause outlines that the charterer should take responsibility for a ship's emissions. On this basis, Ardmore's GHG emissions analysis has been updated to exclude the impact of ships time-chartered out and to include the impact of ships time-chartered in. Previously all vessels were included in Ardmore's analysis from the fleet except for vessels commercially managed by Ardmore.

Ardmore Performance

It should be noted that results vary quarter to quarter depending on ship activity, ballast / laden ratio, cargo carried, weather, waiting time, time in port and vessel speed. However, analysis is also presented on a trailing 12-month basis to provide a more accurate assessment of Ardmore's progress over a longer period and to mitigate seasonality. From a weather perspective rougher weather (based on Beaufort Scale wind force rating being greater than 4 BF) will generally have a mitigating impact on the ability to optimize fuel consumption while idle time will impact ships metrics as they will still require power to run but will not be moving. Overall Ardmore Shipping's carbon emissions for the full year 2022 have increased 0.2% to 404,068 metric tonnes of CO2, in comparison to the full year 2021, primarily as a result of increased vessel speeds, as a result of strong charter rates. Fleet EEOI for the period increased 4.6% to 12.59 g / ctm, from 12.04 g / ctm, while AER increased by 5.1% to 6.13 g / tm, from 5.83 g / tm.

Ardmore seeks to achieve continued improvements through a combination of technological advancements and operational optimization.

Non-GAAP Measures

EBITDA + vessel lease expense component (i.e. EBITDAR)

EBITDAR is defined as EBITDA (i.e. earnings before interest, unrealized gains (losses) on interest rate derivatives, taxes, depreciation and amortization) plus the vessel lease expense component of total charter hire expense for chartered-in vessels. Adjusted EBITDAR is defined as EBITDAR before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels.

For the three months ended December 31, 2022, we recognized total charterhire expense of $6.0 million in respect of time charter-in vessels under operating leases. The total expense includes (i) $2.9 million in respect of the right to use the leased assets (i.e. vessel lease expense component), and (ii) $3.1 million in respect of the costs of operating the vessels (i.e. operating expense component). Under US GAAP, the expense related to the right to use the leased assets (i.e. capital component) is treated as an operating item on our consolidated statement of operations, and is not added back in our calculation of EBITDA. The treatment of operating lease expenses differs under US GAAP as compared to international financial reporting standards (IFRS). Under IFRS, the expense of an operating lease is presented in depreciation and interest expense. 

Many companies in our industry report under IFRS; we, therefore use EBITDAR and Adjusted EBITDAR as tools to compare our valuation with the valuation of these other companies in our industry. We do not use EBITDAR and Adjusted EBITDAR as measures of performance or liquidity. We present below reconciliations of net income / (loss) attributable to common stockholders to EBITDAR (which includes an adjustment for vessel lease operating expenses) and Adjusted EBITDAR.

EBITDAR and Adjusted EBITDAR, as presented, may not be directly comparable to similarly titled measures presented by other companies. In addition, EBITDAR and Adjusted EBITDAR should not be viewed as measures of overall performance since they exclude vessel rent, which is a normal, recurring cash operating expense related to our in-chartering of vessels that is necessary to operate our business. Accordingly, you are cautioned not to place undue reliance on this information.

EBITDA, Adjusted EBITDA, Adjusted earnings / (loss) and Adjusted Earnings (for purposes of dividend calculations)

EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) are not measures prepared in accordance with U.S. GAAP and are defined and reconciled below. EBITDA is defined as earnings before interest, unrealized gains/(losses) on interest rate derivatives, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels. Adjusted earnings / (loss) excludes certain items from net income / (loss) attributable to common stockholders, including gain or loss on sale of vessels and write-off of deferred finance fees (i.e., loss on extinguishment) because they are considered to be not representative of the Company's operating performance.

EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) are presented in this press release as the Company believes that they provide investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. EBITDA and Adjusted EBITDA increase the comparability of the Company's fundamental performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects between periods of interest expense, taxes, depreciation or amortization, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Company believes that including EBITDA, Adjusted EBITDA and Adjusted earnings / (loss) as financial and operating measures assists investors in making investment decisions regarding the Company and its common stock.

For purposes solely of the quarterly dividend calculation, Adjusted Earnings represents the Company's Adjusted earnings for the quarter ended December 31, 2022, but excluding the impact of unrealized gains / (losses) and certain non-recurring items.

These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to, financial measures prepared in accordance with U.S. GAAP. In addition, these non-GAAP measures may not have a standardized meaning and therefore may not be comparable to similar measures presented by other companies.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. In some cases, you can identify the forward-looking statements by the use of words such as "believe", "anticipate", "intends", "estimate", "forecast", "plan", "potential", "may", "expect", and similar expressions.

Forward looking statements in this press release include, among others, statements regarding: future operating or financial results, including future earnings; global and regional economic conditions and trends; shipping market trends and market fundamentals, including tanker demand and supply and future spot and charter rates; the effect of the COVID-19 pandemic and Russia's invasion of the Ukraine (including from related sanctions and import bans) on the tanker market, energy supply chains and the Company's business, financial condition and the results of operation; expected employment of the Company's vessels during the first quarter of 2023; expected drydocking and repositioning days in the first quarter of 2023; the Company's ability to pursue and implement strategic objectives, its capital allocation policy and deliver additional shareholder value due to the strength of the Company's balance sheet, operating performance and results; management's estimates of the Depreciated Replacement Value (DRV) of its vessels and of the value of the Company's commercial management and pooling business; trends in the Company's performance as measured by energy efficiency and emission-reduction metrics; the impact of energy transition on the Company and the markets in which the Company operates; expected continuation of refinement by the Company of performance measures for emissions and efficiency and the timing and payment of quarterly dividends by the Company. The forward-looking statements in this press release are based upon various assumptions, including, without limitation, Ardmore management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. The Company cautions readers of this release not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements. These forward-looking statements are not guarantees of the Company's future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: the strength of world economies and currencies; general market conditions, including fluctuations in spot and charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the projections of spot and time charter or pool trading of the Company's vessels; the effect of the COVID-19 pandemic and Russia's invasion of the Ukraine (including the related EU ban on Russian refined products) on, among others, oil demand, the Company's business, financial condition and results of operation, including its liquidity; fluctuations in oil prices or demand; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; general domestic and international political conditions; potential disruption of shipping routes due to accidents, piracy or political events; the market for the Company's vessels; competition in the tanker industry; availability of financing and refinancing; changes in governmental rules and regulations or actions taken by regulatory authorities; the Company's ability to charter vessels for all remaining revenue days during the first quarter of 2023 in the spot market; vessel breakdowns and instances of off-hire; the Company's operating results and capital requirements, and the declaration of any future dividends by the Company's board of directors; and other factors. Please see the Company's filings with the U.S. Securities and Exchange Commission, including the Company's Form 20–F for the year ended December 31, 2021, for a more complete discussion of these and other risks and uncertainties. 

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SOURCE Ardmore Shipping Corporation

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