Irish tanker owner Ardmore Shipping Corporation reported a net profit of USD 117,000 for the three months ended September 30, 2014 as compared to a net loss of USD 920,000, for the same period in 2013.
According to Ardmore, the quarter results reflect strong relative chartering performance combined with efficient operations in an otherwise challenging market environment.
Average daily time charter rates for the third quarter were USD 15,237 for Eco-design MR product tankers and USD 13,919 day for Eco-mod MR product tankers.
“The charter market has improved significantly going into the fourth quarter, with daily MR spot rates for the TC2-14 Atlantic triangulation estimated to be USD 20,504 and for the TC4-11 Pacific triangulation estimated to be USD 17,889 as of November 3, 2014. Reflecting this improvement, Ardmore’s three spot-trading vessels are earning average daily rates of approximately USD 18,500 for voyages in progress, ” the company said.
The company said that it has completed bank financing for the entire fleet, including loan agreements in place for vessels under construction.
Ardmore’s fleet has been expanded with the delivery of two vessels (Ardmore Sealeader and Ardmore Sealifter) in the third quarter, and the company said it would continue to seek compelling single-ship, block or fleet acquisition opportunities.
The ship-owner also announced a USD 20 million share repurchase plan, which will remain effective for up to three years, in order to repurchase shares opportunistically in the open market or in privately negotiated transactions.
Anthony Gurnee, the company’s Chief Executive Officer said that a profitable third quarter builds on the net profit reported in the second quarter of 2014.
“As we move into the fourth quarter and towards a winter market, we are encouraged by signs of significant charter market strengthening, with daily spot rates above USD 19,000 on average for key Atlantic and Pacific MR triangulations.
We believe that Ardmore is well positioned to benefit from a strengthening market, through vessels engaged in the spot market, anticipated time charter renewals, and ten ships delivering throughout 2015 which are presently open or committed to a spot trading commercial arrangement with a major oil trader.”