Business

Ardmore Shipping Corp (NYSE: ASC) Reported an $8.1 Million Net Loss in Q2 F21

Ardmore Shipping Corp (NYSE: ASCrecently announced results for Q1 and Q2 F21. The company reported an $8.1 million net loss in Q1 F21, a loss of $0.24 per diluted and basic share. This included unrealized losses on derivatives as well as the writing off of deferred finance fees. The reported net loss in Q2 F21 was $16.6 million, a loss of $0.50 per diluted and basic share. This included unrealized gains on derivatives and written-off deferred finance fees. In addition, it reported a $9.9 million EBITDA for Q2 F21, which was much lower as compared to the $48.9 million they recorded in the same quarter of the previous year.

Ardmore recently completed its strategic investment in the methanol-to-hydrogen tech by Element 1 Corporation via its e1 Marine joint venture, which consists of affiliates of Maritime Partners LLC and Element 1 Corp. In addition, a Maritime Partner affiliate took part in a related transaction where it made a $25 million investment in the newly formed Series A 8.5% shares. Also, Admore recently completed the refinance process of the ‘Admore Seahawk’ and ‘Admore Seawolf.’

What senior management says 

Ardmore’s Chief Executive Officer, Anthony Gurnee, said that the improved tanker charter rates in Q2 F21 were because of the heightened worldwide economic activity that helps drive oil demand’s ongoing recovery. While the oil demand remains well below what it was before the pandemic, it’s currently recovering quickly. He further stated that they’re in the slow season of the charter market right now; however, they expect the rates to improve through both the winter and autumn months significantly.

The acceleration of increasing refinery dislocation because of Covid-19 is helping boost product tanker tonne-mile demand. Mr. Gurnee said they believe positive impacts will be a lot clearer as aggregate demand for oil returns to the pre-pandemic times. However, the CEO confirmed that financial strength and operating performance will remain the company’s top priorities.

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