Tanker owner and operator Ardmore Shipping Corporation has reached a refinancing agreement related to two of its 2013-built Eco-design MR product tankers.
The company said it agreed terms for the refinancing of the tanker duo under a sale and leaseback arrangement “with a top-tier Asian financier” on April 25, 2018.
“The transaction is on attractive pricing and terms and is expected to be completed in May 2018 with net proceeds, after repayment of existing debt, of approximately USD 8.5 million,” according to Ardmore Shipping.
The company unveiled the refinancing deal in its financial report for the three months ended March 31, 2018.
Ardmore Shipping delivered a net loss of USD 5.2 million for the first quarter of 2018, as compared to a net loss of USD 2.2 million reported in the same period a year earlier.
Revenue for the three-month period was USD 50.5 million, increasing from USD 49.7 million seen in the three months ended March 31, 2017.
The average TCE rate for the company’s fleet was USD 12,897 per day, slightly lower than USD 12,919 per day earned in the same quarter a year earlier. The decrease in average TCE rate was the result of lower spot rates witnessed in the first quarter of 2018.
“Ardmore continues to execute on its strategy in the face of soft charter market conditions. We remain focused on operating performance, cost efficiency and effective capital allocation to build value for shareholders through improvements to ROIC,” Anthony Gurnee, the Company’s Chief Executive Officer, said.
“Following a subdued start to the year that was impacted by various short-term factors, we believe that the positive underlying fundamentals are set to take hold in 2018. Global economic growth is at its firmest level since 2010, driving oil demand growth and pushing oil inventories back below their five-year average.”