Ardmore Shipping Corporation has announced a net loss of 2.2 mill. $ for the three months ended March 31, 2017. The company maintains a positive outlook as net fleet growth is expected to stay well below projected demand growth.
Ardmore reported a net loss of 2.2 mill. $ for the [ds_preview]three months ended March 31, 2017, as compared to a net income of 6.7 mill. $ for the first quarter of 2016. The Company reported EBITDA of 11.7 mill. $ for the three months ended March 31, 2017, as compared to $18.8 million for the same period in 2016.
Chartering performance for the quarter was satisfactory, the company said, with spot and pool MR tankers earning an average of 13,131 $ per day and Eco-Design chemical tankers earning an average of 12,907 $ per day.
Chief Executive Officer Anthony Gurnee commented: »We are satisfied with our performance in the first quarter, as our fleet continued to perform well under soft charter market conditions. Following delivery of the last of the recently acquired Eco-Design MRs in November 2016, this was the first quarter with all six vessels in operation; these vessels made a very positive contribution to our financial performance in the quarter, as their high specifications and low breakeven costs resulted in significant accretion to operating income in a challenging market.«
Positive beyond the near-term spot market
Looking beyond the near-term spot market, Ardmore remains confident that the underlying fundamentals and outlook for the MR tanker sector are »very positive«.
»Demand growth is set to continue in the 4-5% range, driven by increased consumption and export-oriented refinery activity, while supply growth for MRs is slowing; the orderbook is at historical lows, scrapping continues to take place, and the pace of deliveries will decline further over the course of 2017,« Gunree stated.
Taken together, these trends should result in net fleet growth well below projected demand growth. With our strong balance sheet, modern fleet, and low cost structure, the CEO thinks. With revenue days set to increase by 13% in 2017, he sees Ardmore »well positioned to take advantage of the anticipated charter market recovery.«
The Company has 27 vessels currently in operation, comprising 21 Eco MR tankers ranging from 45,000 Dwt to 49,999 Dwt (15 Eco-Design and six Eco-Mod) and six Eco-Design IMO 2 product / chemical tankers ranging from 25,000 Dwt to 38,000 Dwt.
