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Ardmore Shipping sails into $20m profit based on its strong chartering

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Cork-based firm Ardmore Shipping’s craft, the Sea Vanguard

Cork-based firm Ardmore Shipping’s craft, the Sea Vanguard

Cork-based firm Ardmore Shipping’s craft, the Sea Vanguard

Ardmore Shipping, a Cork-based shipping company listed on the New York Stock Exchange, has posted net income of $20.1m (€17m) for the six months ending June this year, following its strong chartering performance.

The company, founded and led by Anthony Gurnee, had posted a loss of $19.1m over the same period last year. Reported net income for its second quarter was $13.6m.

On the results, Gurnee, who is also listed as a director of Irish renewable energy firm Simply Blue Energy, said he had been pleased with what had proved to be a successful trading period.

"We are pleased to report a very profitable second quarter with 41c in earnings per share, reflecting solid Ardmore chartering performance on the back of strong trading conditions driven by volatility and market disruption," he said.

"We have taken advantage of these conditions to build cash and strengthen our balance sheet: our leverage on a net debt basis is down to 48.5pc and cash and undrawn lines as of now is $82m. Therefore our capital allocation policy and priorities are working as intended."

Gurnee also confirmed Ardmore had completed its first sustainability-linked finance facility with Dutch bank ABN AMRO. The new $15m receivables facility contains a pricing adjustment feature linked to the company's performance on carbon reduction.

The facility's performance targets for carbon emission reduction align with the International Maritime Organisation's objectives for greenhouse gas emissions reduction.

Last month, Hafnia, the world's second-largest owner of product tanker tonnage, approached Ardmore with an unsolicited acquisition offer. Hafnia planned to offer 2.4 shares of Hafnia for one share of Ardmore, translating into an implied price of $3.87 per share, according to Ardmore, which rejected the acquisition proposal, claiming it undervalued the company.

Sunday Indo Business