Owner and operator of mid-size product and chemical tankers Ardmore Shipping Corporation has seen its full year net profit plunge to USD 3.7 million from a net profit of USD 32 million seen in 2015.
Although the company’s net profit was down, the revenues for 2016 increased to USD 164.4 million from USD 157.8 million reported a year earlier.
Spot and pool MR tankers earning were at an average of USD 14,627 per day and eco-design chemical tankers earning stood at an average of USD 15,395 per day.
“The charter market performance for the year reflected a strong first half that was partially offset by weakness in the second half, driven by high inventory levels and low oil trading activity, coupled with the high pace of MR newbuilding deliveries in 2016,” Anthony Gurnee, the company’s Chief Executive Officer, said.
For the three months ended December 31, 2016, Ardmore Shipping’s net loss stood at USD 3.7 million, compared to a profit of USD 5.4 million for the three-month period in the previous year.
In 2016, the company completed a refinancing of all its debt on improved terms and pricing, concluded a follow-on offering in June to finance the accretive acquisition of six eco-design MR product tankers “at a highly attractive price,” and sold three chemical tankers, which partially funded the six-ship acquisition and refocused the fleet more toward MRs with greater earnings upside.
The company also finalized a refinancing of the 47,000 dwt eco-mod product and chemical tanker Ardmore Seatrader, under a sale and leaseback arrangement, releasing gross proceeds of USD 9.3 million.
Gurnee added that the “underlying demand growth fundamentals will prevail again starting later this year and, coupled with the very low orderbook and a significantly reduced pace of deliveries, will set the stage for a strong and sustained charter market recovery.”