ASC

Image source: The Motley Fool. Wednesday, July 29, 2026 at 10:00 a.m. ET Chief Executive Officer - Gernot Ruppelt President - Bart Kelleher Operator: Good morning, ladies and gentlemen, and welcome to Ardmore Shipping's Second Quarter 26 Earnings Conference Call. Today's call is being recorded and an audio webcast and presentation are available in the Investor Relations section of the company's website. www.osmoshipping.com. We will conduct a question-and-answer session after the opening remarks. Instructions will follow at that time. A replay of the conference call will be accessible anytime during the next week by dialing +1 (888) 660-6.34 thousand. Or +1 (646) 517-4.15 thousand. And entering passcode 94.4 thousand. At this time, I will turn the call over to Gernot Ruppelt, chief executive officer of Ardmore Shipping. Gernot Ruppelt: Good morning, and welcome to Ardmore Shipping's second quarter 26 earnings call. First, let me ask our President, Bart Kelleher to discuss forward-looking statements. Bart Kelleher: Thanks, Gernot. Turning to slide 2. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause the actual results to differ materially from those in the forward-looking statements is contained in the second quarter 26 earnings release which is available on our website. And now I will turn the call back to Gernot. Gernot Ruppelt: Thank you, Bart. Let me outline the format of today's call, which you can see here on slide 3. First, I will give you a brief overview of our second quarter highlights, and how we are executing on our capital allocation policy. I will then hand over to Bart, who will cover the market outlook and update you on our financial and operating performance. Thereafter, I will conclude the presentation before opening up the call for questions. Now, turning to Slide 4, covering our earnings highlights. We are pleased to report another strong quarter for Ardmore. Adjusted earnings were 48.3 million or $1.18 per share. Market conditions remained positive throughout the second quarter and into the third. In addition to long-term sectoral trends, the continued disruption in The Middle East is driving higher refining margins and long-haul volumes. Boosting product tanker TCE rates. We are declaring a dividend of €0.79 per share in line with our policy of paying out 2/3 of adjusted earnings. And as announced during the quarter, we exercised options on 2 additional Handysize tanker newbuildings, at the same terms as agreed at the start of the year taking our total order to 4 vessels with deliveries beginning in late 28. Now turning to Slide 5. Where we highlight our TCE performance. Our second quarter TCE reflects favorable market conditions. And rates in the third quarter remain well above seasonal levels. Our MR tankers earned $51.9 thousand per day for the second quarter. So far in the third quarter, with 45% booked, MRs earned $29.6 thousand per day which represents a year-over-year uplift of 20%. Our chemical tankers earned $26.9 thousand per day for the second quarter. So far in the third quarter, with 50% booked, chemical tankers earned $25 thousand per day represents a year-over-year increase of 10%. To put things in perspective, current MR rates are therefore at levels nearly 3x our operating cash breakeven of $10.8 thousand per day. Moving to slide 6, we highlight our capital allocation activity. We continue to return capital to shareholders while investing in the business. As mentioned, we contracted 2 additional Handysize product and chemical tanker newbuildings bringing our total order to 4 vessels with options for an additional 2. These highly flexible assets are capable of carrying the full range of mainstream oil and refined products as well as the majority of advanced chemical cargoes edible oils, and other liquids. All fully consistent with our long-term commercial strategy and organizational capability. We are declaring our 15th consecutive quarterly dividend representing a yield of approximately 20%. Reflecting the doubling of our payout level as introduced earlier this year. And our operating cash breakeven remains at a low $10.8 thousand per day providing us with considerable financial flexibility across all market conditions. With that, I would like to hand over to Bart to cover the market outlook. Bart Kelleher: Thanks, Gernot. Turning first to the market, starting with Slide 8. Product tanker markets were exceptionally strong throughout the second quarter. And have remained very firm into the third. With positive underlying fundamentals amplified by the continued disruption in The Middle East. Refining margins remain elevated and benchmark crack spreads reached nearly $70 per barrel, the highest level on record. As a result, Atlantic refinery utilization is running at multiyear highs. And correspondingly, US Gulf clean product exports are at historical high. As shown in the chart on the upper right. With cargoes continuing to travel much longer distances. The map in the bottom right demonstrates how replacement cargoes now need to be sourced over longer-haul routes. In addition, the Panama Canal Authority is closely monitoring water level. Further cuts to canal throughput could provide an additional tailwind for ton mile demand. Moving to Slide 9. Refined product inventories have declined by nearly 100 million barrels since March. Looking ahead, this creates a need for a meaningful restocking cycle. Adding an additional layer of demand on top of actual consumption. Higher oil volumes are anticipated to boost refinery throughput and support an extended period of elevated trading activity, as inventories are replenished. The IEA projects significant expansion of oil supply in 2027. As non OPEC production continues to grow. And energy security remains a key priority. With inventories likely to get replenished to an even higher level. This would support sustained firm demand for product tankers well beyond current disruption. Moving to slide 10. And the impact of the Russian diesel export ban. As a result of domestic refinery outages, and growing fuel shortages, earlier this month, Russia imposed a full ban on diesel exports. Russian clean product exports continue to decline accordingly. As shown in the bottom left chart. Displaced buyers are sourcing replacement cargoes from elsewhere, boosting demand for the compliant fleet in an already tight market. For example, Brazilian importers are replacing Russian supply. Reducing reliance on sanctioned vessels, and benefiting the mainstream fleet. Turning to slide 11, and long-term demand fundamentals. As we have emphasized, energy security remains a growing priority for governments worldwide. Diversification of import sources and the securing of seaborne supply chains are reinforcing long-term demand for product tankers. The structural shifts in refining capacity continue in parallel. Expansion is concentrated in As and The Middle East, while closures persist in Europe and The United States. This ongoing dislocation between refining hubs and major points of consumption continues to drive ton mile demand. Furthermore, the energy transition is proceeding at a slower pace than previously anticipated. The IEA now forecast oil demand growth through 2050. These structural dynamics underpin a constructive long-term in addition to the supportive near term dynamics we discussed. Moving to slide 12, for the supply picture. As we have pointed out in the past, the MR fleet is the oldest it has been in decades. As the chart on the left illustrates, the average age of the fleet is nearly 14 years old, the highest this century. While the MR order book represents just 16% of the existing fleet. And if we examine the Handysize order book, it stands at just 6% with an even higher average fleet age of 18 years. Moving to the chart on the right, within the next 5 years, half of all MRs will be over 20 years old and approaching the scrapping. This is more than 3x the size of the current order book. And the dynamics in the handy market are even more favorable. As a reminder, even if older vessels are not immediately scrapped in a strong market, their utilization levels decline materially as they age past 20 years. With that, I would like to shift to our financial and operating performance. Turning to Slide 14. Where we highlight our continued focus on financial strength. Hardmore's balance sheet remains robust. Effective leverage is a modest 24% inclusive of our forward newbuilding CapEx. Our low operating cash breakeven of $10.8 thousand per day or $11.7 thousand per day, including pro rata dry dock CapEx gives us significant financial flexibility. We have nearly 300 million of undrawn revolving debt capacity providing ample coverage for our new building commitments with access to a wide range of additional financing options as well. As always, Ardmore remains focused on optimizing TCE performance closely managing costs, and maintaining a strong balance sheet. Turning to Slide 15 for financial highlights. For the second quarter, we are reporting EBITDA of 61.1 million And as mentioned earlier, earnings per share of $1.18. We continue to frame EBITDA as an important comparable valuation metric against our IFRS reporting peers. A full reconciliation is provided in the appendix alongside our third quarter guidance figures. Importantly, our strong operating leverage positions Ardmore to capture market volatility. Every $10 thousand/day increase in TCE rates translates to nearly $2 per share in additional annual Moving to Slide 16 for operational highlights. As a reminder, we have no planned drydockings this year and limited activity through 2027. Existing fleet CapEx for the balance of 2026 is estimated at only 3 million On the innovation front, we are harnessing AI and digitalization across our fleet. Now including real time propulsion automation. With that, I am happy to hand the call back to Gernot and look forward to answering any questions at the end. Gernot Ruppelt: Thank you, Bart. Wrapping up then with slide 18, Bart is performing extremely well. We are capturing TCE rates at multiples of our cash breakeven. The market backdrop remains highly supportive as we discussed driven by long-term fundamentals as well as more immediate market forces. We continue to take a disciplined and deliberate approach to capital allocation distributing 2/3 of earnings while executing on targeted and measured growth. Our decisions are and will be guided by our long-term strategy strong corporate governance, and our commitment to create value across market cycles. And with that, we now welcome your questions. Thank you. Operator: Ladies and gentlemen, we will now begin the question-and-answer session. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press * followed by 2. And if you are using a speakerphone, please lift the handset before pressing any keys. First question comes from Omar Nokta with Clarksons Securities. Please go ahead. Omar Nokta: Thank you. Hi, Gernot and Bart. Thank you for the update. Just a couple of questions from my end, and maybe just first the Handy options. You have the 4 new buildings now on order. After exercising those 2 options. Gearing at the company overall remains, I would say, quite low, and you are back to being in that cash territory. As you kind of look forward, it seems that just the way this market is coming in, as you just said at the end of your comments, Gernot, that you are bringing in revenues at multiple of your breakeven. It looks like you are going to continue to be in this net cash territory or at least you are on pace for that How do you think about fleet expansion from here? You have those 2 options. Again on the Handy what is the thought on exercising those Is there a time when those have to be exercised? And then just in general, how are you thinking about further expansion? Gernot Ruppelt: Yeah. Good morning, Omar. Great question. Thank you. Definitely, we do like the shifts that we have ordered. We like the design. We also see value in the prices we agreed and of course, we do like the optionality also that they provide. Options are options, so we will continue to assess, of course, the economic rationale. They are declarable later this summer. Why do we like them? Well, the fundamental backdrop we believe is quite positive and how these assets in particular fit into this. If you think about what we discussed here, we are tracking long term oil demand growth. Investment in fossil energy has been consistently on the rise since that dip we saw during COVID. And it looks that we also have the oil supply to really match it. Adding to that is the theme around energy security, which creates a whole different set of needs, which is benefiting really the whole energy oil supply chain and tankers included. But it is, of course, not just about fossil when you think about energy security, because all of a sudden diversification of your energy sources becomes very much part of that theme of supply chain resilience, which I think is top of the agenda for enterprise and state actors alike. So these particular assets really provide us maximum optionality, not just in their near term trading performance because they are so versatile and can optimize TCE performance, But they really give you a wide range of strategic direction whether it is mainstream refined oil products, whether it is crude oil and dirty products, certainly a wide range of chemical products, edible oils, and other really interesting liquids as well. And there is liquid markets for all of these. And in itself, the handy market, of course, is also quite liquid. it is a good size. And there is a high degree of overlap with what we are doing on the MRs as well, so a broader trading footprint and our commercial strategy. So that is the strategic rationale. that is the fundamental and market outlook rationale. Then when it comes to capital allocation, very neatly fits into how we continue to balance of course, the continued rationale to reinvest in the business. Continue to embrace opportunities for selective and well measured growth, while at the same time returning capital to shareholders and maintaining responsible debt levels. That, of course, is something we continue to look on a dynamic basis as well. Last year, at around this time, we saw a lot of value and secondhand values that had dropped significantly acted on those very decisively Those would have appreciated by 30, 35% in value since and are happily trading in our fleet. At the same time, we saw now at the start of the year really an opportune time to invest on a more forward looking basis. In the in the start of this of this set of at the moment, 4 new buildings with options that are options that we will continue to assess as we move along. Omar Nokta: Okay. Yeah. Thanks, Gernot, for that detail. And maybe just 1 another question, and then I will turn it back. it is a bit more on the market. And you mentioned in your answer just now a bit of the diversification that we are seeing in sources of oil How are you kind of seeing things develop here? Obviously, it is been a very volatile year. Hormuz closed. It reopened. Now it is back to closed. Potentially. You have the Red Sea as a potential risk. For transit, which had already been there, but maybe a bit more heightened now. Have you seen any sort of immediate response in the product market as to the latest developments there on the geopolitical front? And then also, how do you think about where MR rates can be as we move forward here over the next few months? Gernot Ruppelt: I believe you are touching on a great point here, where markets continue to be very much in motion and probably more than that we can really verbalize in a presentation like this. But the status quo is there is no status quo. And even the events of the last 24 hours and last few days and weeks, of course, always trigger reactions in the underlying commodity pricing. For oil and of course the underlying oil products as well. And with that, relative price point, creates regional arbitrage, creates arbitrage in within the system as well. And we certainly have seen freight react as well. An important point to make is that I think there is a lot going on beyond The Middle East as well. Of course, there are the long term fundamentals that we discussed here, not just on the demand side, but also on the supply side. But US Gulf refineries cranking out product at record levels. Refining margins really high, At the same time, I think we touched on briefly is the situation with the Panama Canal. But I believe it is somewhat overlooked whereby we have already had some initial signals from the Panama Canal Authority that they might actually interrupt some of the transits. No. That has not happened yet. But just speaking with a market participant on this recently, we continue to see really low rainfalls here from August through October. If there is going to be a super El Nino, this will really only play out on a forward basis where if you are entering the traditional dry season in January, with already low water levels, This is really only going to kick in Q2 27. I believe there is really a multitude of factors that really can continue to drive volatility on freight to really a wide range of outcomes. Yeah. No. Certainly a lot of moving parts. Great. Well, thank you, Gernot. I will pass it back. Thanks, Omar. Thank you. Operator: Please press 1 now. We have no further questions. This does conclude your conference call for today. We thank you for participating. And at this time, we ask that you please disconnect your lines. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by exceptionally strong product tanker markets, with MR rates reaching nearly three times the company's operating cash breakeven of $10.8 thousand per day. Management attributes the current market strength to a combination of long-term sectoral trends and immediate disruptions in the Middle East, which have elevated refining margins and increased long-haul volumes. The company is executing a measured growth strategy, exercising options for two additional Handysize newbuildings to capitalize on favorable pricing and strategic asset flexibility. Operational efficiency is supported by a low-leverage balance sheet and a lack of planned drydockings for the remainder of 2026, maximizing fleet availability during periods of high volatility. Strategic positioning focuses on energy security and supply chain resilience, as global governments diversify import sources and secure seaborne supply chains. Management highlighted the structural dislocation between expanding refining capacity in Asia/Middle East and closures in Europe/US as a persistent driver of ton-mile demand. Guidance for the third quarter assumes continued year-over-year rate uplifts, with MR earnings for the third quarter are currently 20% higher year-over-year at $29.6 thousand per day with 45% of the quarter booked. Management anticipates a meaningful restocking cycle as global refined product inventories have declined by nearly 100 million barrels since March. The supply outlook remains constrained by an aging global fleet, with half of all MR tankers expected to exceed 20 years of age within the next five years. Future demand is expected to be bolstered by non-OPEC production growth through 2027 and a slower-than-anticipated energy transition, with oil demand projected to grow through 2050. Potential water level restrictions at the Panama Canal are identified as a significant forward-looking tailwind for ton-mile demand, potentially kicking in during Q2 2027. The Russian diesel export ban is forcing displaced buyers to source replacement cargoes from longer-haul routes, benefiting the compliant mainstream fleet. Geopolitical volatility in the Middle East and the Red Sea remains a primary driver of regional arbitrage and freight rate fluctuations. The company maintains a 20% dividend yield following the doubling of its payout level to two-thirds of adjusted earnings earlier this year. Technological investment is being prioritized through the deployment of AI and real-time propulsion automation to optimize fleet performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized that the Handysize assets provide maximum optionality due to their ability to carry refined products, chemicals, and edible oils. The decision to expand via newbuildings rather than secondhand vessels reflects a shift from last year's strategy when secondhand values were more opportunistic. Options for two additional vessels are declarable later this summer, with management assessing them based on long-term energy security themes. Management warned that while transits haven't been interrupted yet, low rainfall through October could lead to significant disruptions by Q2 2027. This scenario is viewed as a 'somewhat overlooked' factor that could drive substantial volatility and higher freight outcomes in the medium term. Management noted that there is 'no status quo' as events trigger immediate reactions in commodity pricing and regional arbitrage. The US Gulf is currently offsetting some global supply concerns by pumping product at record levels, supported by record-high benchmark crack spreads of nearly $70 per barrel.

Interested in Ardmore Shipping Corporation? Here are five stocks we like better. Strong quarterly performance: Ardmore Shipping reported $48.3 million in adjusted earnings, or $1.18 per share, and declared a $0.79 quarterly dividend. MR tankers earned $51,900 per day in Q2, while third-quarter rates remained well above year-ago levels. Favorable tanker-market fundamentals: Management cited Middle East disruptions, strong refining margins, record U.S. Gulf exports, declining inventories and longer shipping distances as demand drivers. An aging fleet and limited orderbook could further support rates as older vessels approach scrapping age. Measured fleet expansion and solid finances: Ardmore exercised options for two additional Handysize newbuildings, bringing its orderbook to four vessels, while retaining options for two more. The company reported 24% effective leverage and nearly $300 million in undrawn revolving capacity, supporting continued dividends and selective growth. Ardmore Shipping (NYSE:ASC) reported second-quarter adjusted earnings of $48.3 million, or $1.18 per share, as product tanker market conditions remained strong. The company declared a quarterly dividend of $0.79 per share, consistent with its policy of distributing two-thirds of adjusted earnings. Chief Executive Officer Gernot Ruppelt said Ardmore’s tanker fleet benefited from favorable market conditions during the quarter and that rates remained above seasonal levels into the third quarter. The company also exercised options for two additional Handysize tanker newbuildings, bringing its total order to four vessels, with deliveries expected to begin in late 2028. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Ardmore’s medium-range, or MR, tankers earned time charter equivalent, or TCE, rates of $51,900 per day in the second quarter. Chemical tankers earned $26,900 per day. For the third quarter to date, with 45% of MR days booked, the vessels earned $29,600 per day, a 20% year-over-year increase, according to the company. Chemical tankers, with 50% booked, earned $25,000 per day, up 10% from a year earlier. Ruppelt said current MR rates were nearly three times Ardmore’s operating cash breakeven level of $10,800 per day. The company’s operating cash breakeven, including pro rata dry-dock capital expenditures, was $11,700 per day. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? President Bart Kelleher said product tanker markets were “exceptionally strong” in the second quarter and remained firm into the third quarter. He attributed the market environment to positive underlying supply-and-demand conditions as well as continued Middle East disruption, which he said had supported refining margins, long-haul volumes and tanker TCE rates. Kelleher said benchmark crack spreads approached $70 per barrel during the period, which he described as a record level. Atlantic refinery utilization was running at multi-year highs, while U.S. Gulf clean-product exports were at historical highs and cargoes were moving over longer distances. → Innovative ETF Strategies That Are Paying Off This Summer Refined-product inventories have declined by nearly 100 million barrels since March, Kelleher said, creating the potential for a restocking cycle that could add demand beyond end-user consumption. He added that the International Energy Agency projects significant oil-supply expansion in 2027 as non-OPEC production grows. Russia’s diesel export ban, imposed earlier in the month following domestic refinery outages and fuel shortages, has also reduced Russian clean-product exports, according to Kelleher. He said displaced buyers have been sourcing replacement cargoes elsewhere, supporting demand for compliant tankers. Brazilian importers, for example, have been replacing Russian supply and reducing reliance on sanctioned vessels, he said. On longer-term trends, Kelleher pointed to energy-security priorities, diversification of import sources and the geographic shift in refining capacity. Refinery expansion has been concentrated in Asia and the Middle East, while closures have continued in Europe and the United States, increasing the distance between refining centers and consumption markets, he said. Ardmore also highlighted an aging tanker fleet and a limited orderbook. The average age of the MR fleet is nearly 14 years, the highest level this century, while the MR orderbook equals 16% of the existing fleet, Kelleher said. The Handysize orderbook stands at 6% of the existing fleet, with an average fleet age of 18 years. Within five years, half of MR vessels will be more than 20 years old and approaching the typical scrapping window, he added. The four Handysize product and chemical tanker newbuildings ordered by Ardmore are designed to carry mainstream oil and refined products, advanced chemical cargoes, edible oils and other liquid cargoes. The company retains options for two additional vessels. During the question-and-answer session, Ruppelt said the company would continue assessing the economic rationale for exercising those options, which are declarable later in the summer. He said Ardmore sees value in the vessel design, agreed pricing and commercial versatility of the assets, while emphasizing that options remain subject to review. Ruppelt said the investment fits Ardmore’s approach of balancing selective growth, shareholder distributions and responsible debt levels. He also noted that vessels purchased in the secondhand market around the same time last year had appreciated by approximately 30% to 35% in value and were operating in the fleet. Ardmore reported second-quarter EBITDAR of $61.1 million. Its effective leverage was 24%, including forward capital expenditures for its newbuildings, and it had nearly $300 million of undrawn revolving debt capacity. The company expects only $3 million of capital expenditures for its existing fleet during the remainder of 2026 and said it has no planned dry dockings this year, with limited activity expected through 2027. Ruppelt said the company intends to continue returning capital under its dividend policy while pursuing “targeted and measured growth.” Ardmore’s latest dividend marks its 15th consecutive quarterly payment, and the company said the payout reflects the higher distribution level introduced earlier this year. Ardmore Shipping Corporation is a Bermuda-based provider of seaborne transportation services for refined petroleum products. The company owns and operates a modern fleet of product tankers, including medium-range (MR), long-range 2 (LR2) and Aframax vessels. Ardmore Shipping focuses on the ocean carriage of clean and dirty petroleum products under time charters, bareboat charters and spot voyages, serving a diverse customer base that includes major oil companies and trading houses. Since its founding in 2005, Ardmore Shipping has grown its fleet through newbuilding contracts, second-hand acquisitions and fleet renewals, aiming to maintain a high quality, fuel-efficient profile. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ardmore Shipping Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

HAMILTON, Bermuda, July 29, 2026 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore", the "Company" or "we") today announced results for the three and six months ended June 30, 2026. Highlights and Recent Activity Reported net income attributable to common stockholders of $60.5 million for the three months ended June 30, 2026, or $1.48 earnings per basic and diluted share, compared to net income attributable to common stockholders of $9.0 million, or $0.22 earnings per basic and diluted share for the three months ended June 30, 2025. We reported Adjusted earnings of $48.3 million for the three months ended June 30, 2026, or $1.18 Adjusted earnings per basic and diluted share, compared to Adjusted earnings of $9.0 million for the three months ended June 30, 2025, or $0.22 Adjusted earnings per basic and diluted share. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section with the main driver of the variance being the gain on the sale of the Ardmore Engineer of $12.2 million). Reported net income attributable to common stockholders of $84.1 million for the six months ended June 30, 2026, or $2.06 earnings per basic share and $2.05 earnings per diluted share, compared to net income attributable to common stockholders of $14.6 million, or $0.36 earnings per basic and diluted share for the six months ended June 30, 2025. We reported Adjusted earnings of $71.9 million for the six months ended June 30, 2026 or $1.76 Adjusted earnings per basic and diluted share, compared to Adjusted earnings of $14.6 million, or $0.36 Adjusted earnings per basic and diluted share for the six months ended June 30, 2025. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section with the main driver of the variance being the gain on the sale of the Ardmore Engineer of $12.2 million). MR tankers earned an average spot TCE rate of $51,870 per day for the three months ended June 30, 2026. Chemical tankers earned an average spot TCE rate of $26,887 per day for the three months ended June 30, 2026. Based on approximately 45% of total revenue days currently fixed for the third quarter of 2026, the average spot TCE rate is approximately $29,600 per day for MR tankers; based on approximately 50% of revenue days fixed for the third quarter of 2026, the average spot TCE rate for chemical tankers is approximately $25,000 per day. As previously announced, the Company exercised its options for two additional 40,500 dwt Handysize product/chemical tankers to be built at Wuhu Shipyard, thereby expanding the original order placed in April 2026 to four vessels in total on the same terms. The deliveries of these four vessels are scheduled from late 2028 and onwards. In addition, the Company has also secured two additional options at similar terms. Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to two-thirds of Adjusted earnings, the Board of Directors declared a cash dividend on July 29, 2026, of $0.79 per common share for the quarter ended June 30, 2026. The dividend will be paid on September 15, 2026, to all shareholders of record on August 28, 2026. The Company completed the previously announced sale of the 2014-built Ardmore Engineer for $35.5 million. The vessel was delivered to the buyer in June 2026. Gernot Ruppelt, the Company's Chief Executive Officer, commented: "Ardmore delivered strong second quarter performance, and current TCE bookings remain well above seasonal norms. Market conditions remain positive, driven by long-term fundamentals and amplified by more immediate market forces. Strong refining margins, trade displacement, and a heightened emphasis on energy security have continued to provide a favorable backdrop for tanker freight. Ardmore continues to return capital to shareholders while executing on targeted and measured growth. Accordingly, we are declaring a dividend of $0.79 per share, and have exercised our option for two additional Handysize product/chemical tankers, bringing our total newbuilding order to four vessels. With our global platform, strong balance sheet and low cash breakeven, Ardmore is well-positioned to continue capitalizing on market opportunities while delivering on our long-term strategy." Second Quarter 2026 Highlights and Recent Developments Fleet Fleet Operations and Employment As of June 30, 2026, the Company had 25 vessels in operation (including one chartered-in vessel), consisting of 19 MR tankers (18 owned Eco-Design and one chartered-in Eco-Mod) ranging in size from 45,000 deadweight tons ("dwt") to 50,200 dwt and six owned Eco-Design IMO 2 product/chemical tankers ranging in size from 25,000 dwt to 37,800 dwt. MR Tankers (IMO 2/3: 45,000 – 50,200 dwt) Below is a summary of the average daily MR Tanker spot TCE rates earned during the second quarter of 2026 and rates thus far in the third quarter of 2026, together with the corresponding percentage of currently fixed total revenue days for the third quarter: Product / Chemical Tankers (IMO 2: 25,000 – 37,800 dwt) Below is a summary of the average daily Chemical Tanker spot TCE rates earned during the second quarter of 2026 and rates thus far in the third quarter of 2026, together with the corresponding percentage of currently fixed total revenue days for the third quarter: Drydocking The Company does not currently have any scheduled statutory drydocking days in the third quarter of 2026. Newbuildings As previously announced, in June 2026, the Company exercised its options for two additional 40,500 dwt Handysize product/chemical tankers to be built at Wuhu Shipyard, thereby expanding the original order placed in April 2026 to four vessels in total on the same terms. The deliveries of these four vessels are scheduled from late 2028 and onwards. In addition, the Company has also secured two additional options at similar terms. In the third quarter 2026, the Company paid $18.4 million as installments for two of the newbuildings. The table below summarizes the estimated remaining installment payments for the four vessels under construction as of July 29, 2026(1). (1) The installment payments are estimates only and are subject to change as construction progresses. Dividend on Common Shares Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to two-thirds of Adjusted earnings, as calculated for dividends (see "Adjusted earnings (for purposes of dividend calculations)" in the Non-GAAP Measures section), the Board of Directors declared a cash dividend on July 29, 2026 of $0.79 per common share for the quarter ended June 30, 2026. The dividend will be paid on September 15, 2026, to all shareholders of record on August 28, 2026. Vessel Sale We completed the previously announced sale of the 2014-built Ardmore Engineer for $35.5 million. The vessel was delivered to the buyer in June 2026. Geopolitical Conflicts Geopolitical tensions cause volatility in the market. The ongoing conflict in the Middle East has significantly disrupted shipping transits via the Strait of Hormuz, a major oil and gas trade route. This increases security concerns and uncertainty. Ardmore has not had any vessels in the Strait of Hormuz since the commencement of hostilities, and management is continuing to monitor developments. In addition, the conflict in Ukraine has significantly increased tanker demand and rates by reordering global oil trading patterns. Changes in or resolution of these conflicts may lead to a reversal of these trading patterns or other effects that could significantly decrease tanker demand and rates. Since mid-December 2023, Houthi rebels in Yemen have carried out numerous attacks on vessels in the Red Sea. As a result of these attacks, many shipping companies have routed their vessels away from transiting the Red Sea, which has affected trading patterns, rates, and expenses. Although these vessel attacks have decreased since early 2025, Houthi activity levels are elevated. The U.S. military operation in Venezuela, including the U.S.' seizures of certain sanctioned oil tankers calling on Venezuelan ports in late 2025 and early 2026, has similarly added uncertainty in that region. Further escalation or expansion of international hostilities could continue to affect the price of crude oil and the oil industry, the tanker industry, demand for our services, and our business, results of operations, financial condition, and cash flows. Geopolitical and Economic Uncertainty Governments continue to take actions to implement new or increased tariffs on foreign imports and port fees. These activities have resulted in tariffs being levied on various goods and commodities, which may trigger an escalation of trade wars. These actions have been disruptive to global markets, resulting in significant volatility in stock and commodity prices and an increase in general global economic uncertainty, including the risk of economic recessions. As a result of the rapidly changing and unpredictable geopolitical climate, the shipping industry is experiencing uncertainty as to future vessel demand, trade routes, rates and operating costs. Results for the Three Months Ended June 30, 2026 and 2025 The Company reported net income attributable to common stockholders of $60.5 million for the three months ended June 30, 2026, or $1.48 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $9.0 million, or $0.22 earnings per basic and diluted share for the three months ended June 30, 2025. Results for the Six Months Ended June 30, 2026 and 2025 The Company reported net income attributable to common stockholders of $84.1 million for the six months ended June 30, 2026, or $2.06 earnings per basic share and $2.05 per diluted share, as compared to net income attributable to common stockholders of $14.6 million, or $0.36 earnings per basic and diluted share for the six months ended June 30, 2025. Management's Discussion and Analysis of Financial Results for the Three Months Ended June 30, 2026 and 2025 Revenue. Revenue for the three months ended June 30, 2026 was $116.2 million, an increase of $44.2 million from $72.0 million for the three months ended June 30, 2025. The Company's average number of operating vessels was 25.9 for the three months ended June 30, 2026, compared to 26.0 for the three months ended June 30, 2025. The Company had 1,696 spot revenue days for the three months ended June 30, 2026, compared to 1,975 for the three months ended June 30, 2025. The Company had 19 vessels employed directly in the spot market as of June 30, 2026, as compared to 23 vessels as of June 30, 2025. In addition, the Company had five product tankers and one chemical tanker employed under time charters as of June 30, 2026, compared to three product tankers and no chemical tankers as of June 30, 2025. Revenue days derived from time charters increased to 592 for the three months ended June 30, 2026, from 218 for the three months ended June 30, 2025. The increase in revenue was primarily driven by higher spot charter rates, which increased revenue by $45.1 million. This was partially offset by a reduction in spot revenue days, which decreased revenue by $9.5 million. Increased employment of vessels under time charters resulted in a further $8.6 million increase in revenue. Together, these factors resulted in a net increase in revenue of $44.2 million for the three months ended June 30, 2026. Voyage Expenses. Voyage expenses were $29.8 million for the three months ended June 30, 2026, an increase of $4.6 million from $25.2 million for the three months ended June 30, 2025. The increase was primarily driven by higher bunker prices. TCE Rate. The average TCE rate for the Company's fleet was $38,073 per day for the three months ended June 30, 2026, an increase of $15,605 per day from $22,468 per day for the three months ended June 30, 2025. TCE rates represent net revenues (a non-GAAP measure representing revenue less voyage expenses) divided by revenue days. Net revenue utilized to calculate TCE is determined on a discharge-to-discharge basis, which is different from how the Company records revenue under U.S. GAAP. Vessel Operating Expenses. Vessel operating expenses were $19.0 million for the three months ended June 30, 2026, an increase of $3.6 million from $15.4 million for the three months ended June 30, 2025. The increase is due to the addition of three vessels to the Ardmore fleet during the third quarter of 2025 and the timing of vessel operating expenses between quarters. Vessel operating expenses can be prone to fluctuations between periods. Charter Hire Costs. Total charter hire expenses were $1.0 million for the three months ended June 30, 2026, a decrease of $4.7 million from $5.7 million for the three months ended June 30, 2025. This reduction is a result of the Company having one chartered-in vessel during the three months ended June 30, 2026, compared to four during the three months ended June 30, 2025. Total charter hire expenses in the second quarter of 2026 were comprised of an operating expense component of $0.5 million and a vessel lease expense component of $0.5 million (June 30, 2025: $3.0 million and $2.7 million, respectively). Depreciation. Depreciation expense for the three months ended June 30, 2026 was $9.1 million, an increase of $1.2 million from $7.9 million for the three months ended June 30, 2025. This increase is primarily attributable to the addition of three vessels to the Ardmore fleet during the third quarter of 2025, partially offset by the sale of the Ardmore Engineer, which was classified as held for sale in March 2026 and sold in June 2026. Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended June 30, 2026 was $1.7 million, a rise of $0.4 million from $1.3 million for the three months ended June 30, 2025 due to increased drydocking related costs compared to the three months ended June 30, 2025. The deferred costs of drydockings for a given vessel are amortized on a straight-line basis to the next scheduled drydocking of the vessel. General and Administrative Expenses: Corporate general and administrative expenses for the three months ended June 30, 2026 were $4.6 million, generally consistent with $4.8 million for the three months ended June 30, 2025. General and Administrative Expenses: Commercial and Chartering expenses are the expenses attributable to Ardmore's chartering and commercial operations departments in connection with its spot trading activities. Commercial and chartering expenses for the three months ended June 30, 2026 were $1.1 million, generally consistent with $1.3 million for the three months ended June 30, 2025. Gain on vessel sold. Gain on vessel sold for the three months ended June 30, 2026, was $12.2 million, compared to $0.0 million for the three months ended June 30, 2025. This relates to the sale of the Ardmore Engineer in June 2026. Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended June 30, 2026 were $1.7 million, an increase of $0.7 million from $1.0 million for the three months ended June 30, 2025. The increase was primarily due to drawdowns on the Company's revolving credit facilities to finance the purchase of three MR tankers during the third quarter of 2025. In addition, amortization of deferred finance fees for the three months ended June 30, 2026 was $0.2 million, generally consistent with $0.3 million for the three months ended June 30, 2025. Liquidity As of June 30, 2026, the Company had $342.1 million in liquidity available, with cash and cash equivalents of $48.1 million (December 31, 2025: $46.8 million) and amounts available and undrawn under its revolving credit facilities of $294.0 million (December 31, 2025: $225.4 million). Conference Call The Company plans to host a conference call on July 29, 2026, at 10:00 a.m. Eastern Time to discuss its financial results for the quarter ended June 30, 2026. All interested parties are invited to listen to the live conference call and review the related slide presentation by choosing from the following options: By dialing 800-836-8184 (U.S.) or +1-646-357-8785 (International) and referencing "Ardmore Shipping." By accessing the live webcast at Ardmore's website at www.ardmoreshipping.com. Participants should dial into the call 10 minutes before the scheduled time. If you are unable to participate at this time, an audio replay of the call will be available through August 5, 2026 at 888-660-6345 or 646-517-4150. Enter the passcode 94353 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company takes no responsibility for providing updated information. About Ardmore Shipping Corporation Ardmore delivers energy, mobility, and essential commodities, supporting global trade through the transportation of refined products, chemicals and other liquid goods. Operating as a fully integrated shipping company, all core commercial, technical, operational, and corporate functions are conducted within the Ardmore public company structure. Through its global platform, Ardmore maintains direct control over asset management, operations, and commercial execution, promoting consistent standards, efficiency, and accountability across the fleet. Ardmore's core strategy is centered on the continued development and operation of a modern, high‑quality fleet of product and chemical tankers, while continually evolving and innovating across the business to position the Company optimally for the future, leveraging its fully integrated model to build long‑term customer relationships and maintain a sharp focus on cost, safety, and performance optimization. Ardmore provides its services through voyage and time charter arrangements, delivering reliable and efficient transportation services to its first-class customer base — all guided and coordinated by our team members at sea and ashore. Non-GAAP Measures EBITDA + vessel lease expense component (i.e., EBITDAR) and Adjusted EBITDAR EBITDAR is defined as EBITDA (i.e., earnings before interest, unrealized gains/(losses) on interest rate derivatives, taxes, depreciation and amortization) plus the vessel lease expense component of total charter hire expense for chartered-in vessels. Adjusted EBITDAR is defined as EBITDAR before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels. For the three months ended June 30, 2026, the Company recognized total charter hire expense of $1.0 million in respect of time charter-in vessels under operating leases. The total expense includes (i) $0.5 million in respect of the right to use the leased assets (i.e., vessel lease expense component), and (ii) $0.5 million in respect of the costs of operating the vessels (i.e., operating expense component). Under U.S. GAAP, the expense related to the right to use the leased assets (i.e., capital component) is treated as an operating item on the Company's consolidated statement of operations, and is not added back in its calculation of EBITDA. The treatment of operating lease expenses differs under U.S. GAAP as compared to international financial reporting standards ("IFRS"). Under IFRS, the expense of an operating lease is presented in depreciation and interest expense. Many companies in Ardmore's industry report under IFRS; the Company therefore uses EBITDAR and Adjusted EBITDAR as tools to compare its valuation with the valuation of these other companies in its industry. The Company does not use EBITDAR and Adjusted EBITDAR as measures of performance or liquidity. The Company presents below reconciliations of net income / (loss) attributable to common stockholders to EBITDAR (which includes an adjustment for vessel lease operating expenses) and Adjusted EBITDAR. EBITDAR and Adjusted EBITDAR, as presented, may not be directly comparable to similarly titled measures presented by other companies. In addition, EBITDAR and Adjusted EBITDAR should not be viewed as measures of overall performance since they exclude vessel rent, which is a normal, recurring cash operating expense related to the Company's in-chartering of vessels that is necessary to operate its business. Accordingly, you are cautioned not to place undue reliance on this information. EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings (for purposes of dividend calculations) EBITDA, Adjusted EBITDA and Adjusted earnings are not measures prepared in accordance with U.S. GAAP and are defined and reconciled below. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before certain items that Ardmore believes are not representative of its operating performance, including gain or loss on sale of vessels, gain on extinguishment, unrealized gains/(losses) on derivatives and profit/(loss) on equity method investments. Adjusted earnings excludes certain items from net income attributable to common stockholders, including gain or loss on sale of vessels and write-off of deferred finance fees (i.e., loss on extinguishment) because they are considered to not be representative of the Company's operating performance. EBITDA, Adjusted EBITDA and Adjusted earnings are presented in this press release as the Company believes that they provide investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. EBITDA and Adjusted EBITDA increase the comparability of the Company's fundamental performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects between periods of interest expense, taxes, depreciation or amortization, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Company believes that including EBITDA, Adjusted EBITDA and Adjusted earnings as financial and operating measures assists investors in making investment decisions regarding the Company and its common stock. For purposes solely of the quarterly common dividend calculation, Adjusted earnings represents the Company's Adjusted earnings for the quarter ended June 30, 2026, but excluding the impact of unrealized gains / (losses) and certain non-recurring items. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to, financial measures prepared in accordance with U.S. GAAP. In addition, these non-GAAP measures may not have a standardized meaning and therefore may not be comparable to similar measures presented by other companies. Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, expectations, projections, strategies, beliefs about future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe", "anticipate", "intend", "estimate", "forecast", "project", "plan", "potential", "should", "may", "will", "expect" and similar expressions are among those that identify forward-looking statements. Forward-looking statements in this press release include, among others, statements regarding: future operating or financial results, including future earnings and financial position; the Company's future strategic priorities; fleet expansion and vessel and business acquisitions and divestitures, and the timing and pricing thereof; global and regional economic and political conditions and trends; shipping market trends and market fundamentals, including tanker demand and supply and future spot and charter rates; the potential effects of tariffs, and other foreign policy activities, including sanctions, embargoes, and import and export restrictions on global markets, the shipping industry and the Company's operations; the potential effect of geopolitical conflicts, including the Russia-Ukraine conflict, the ongoing conflict in the Middle East, attacks against vessels in the Red Sea area, disruptions in the Strait of Hormuz and U.S. military activity in Venezuela on the shipping industry and the Company; expected drydocking days, and the timing and payment of quarterly dividends by the Company. The forward-looking statements in this press release are based upon various assumptions, including, among others, the Company's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. The Company cautions readers of this release not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements. These forward-looking statements are not guarantees of the Company's future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: the strength of world economies and currencies; general market conditions, including fluctuations in spot and charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the projections of spot and time charter or pool trading of the Company's vessels; geopolitical conflicts and developments, including, among others, future developments relating to the Russia-Ukraine conflict (including related sanctions and import bans), the conflict in the Middle East and U.S. military activity in Venezuela; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; general domestic and international political and trade conditions; potential disruption of shipping routes due to accidents, piracy or other events; fluctuations in oil prices; the market for the Company's vessels; competition in the tanker industry; availability and completion of financing and refinancing; the Company's operating results and capital requirements; the declaration of any future dividends by the Company's board of directors; charter counterparty performance; any unanticipated delays or complications with scheduled drydockings; ability to comply with covenants in the Company's financing arrangements; changes in governmental rules and regulations or actions taken by regulatory authorities; the Company's ability to charter vessels for remaining revenue days during the third quarter of 2026 in the spot market; vessel breakdowns and instances of off-hire; and other factors. Please see the Company's filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F for the year ended December 31, 2025, for a more complete discussion of these and other risks and uncertainties. View original content:https://www.prnewswire.com/news-releases/ardmore-shipping-corporation-announces-financial-results-for-the-three-and-six-months-ended-june-30-2026-302837710.html

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ardmore Shipping Corp (NYSE:ASC) reported strong adjusted earnings of $48.3 million or $1.18 per share for the second quarter. The company declared a dividend of $0.79 per share, maintaining its policy of paying out two-thirds of adjusted earnings. ASC exercised options on two additional handy-sized tankers, expanding their order to four vessels, with deliveries starting in late 2028. The company's TCE rates for MR tankers were significantly above the operating cash breakeven, indicating strong market conditions. ASC maintains a low operating cash breakeven of $10,800 per day, providing financial flexibility across market conditions. The ongoing disruption in the Middle East poses a risk to market stability and could impact future earnings. The Panama Canal's water level issues could affect canal throughput, potentially impacting shipping routes and costs. The Russian diesel export ban has led to a decline in Russian clean product exports, affecting market dynamics. The average age of the MR fleet is nearly 14 years, indicating potential future challenges with fleet modernization. The energy transition is proceeding slower than anticipated, which could impact long-term demand for product tankers. Warning! GuruFocus has detected 3 Warning Sign with ASC. Is ASC fairly valued? Test your thesis with our free DCF calculator. Q: With Ardmore Shipping's gearing remaining low and the company back in net cash territory, how do you view fleet expansion, particularly regarding the two additional handy-sized tankers? A: Gurnad Rupel, CEO: We are pleased with the ships ordered and the design, seeing value in the agreed prices and optionality they provide. The options are declarable later this summer, and we will assess their economic rationale. The fundamental backdrop is positive, with long-term oil demand growth and increased investment in fossil energy. These assets offer maximum optionality, fitting into our strategy and providing flexibility in trading performance and strategic direction. Q: How do you see the market developing given the geopolitical risks, such as the Hormuz closure and potential Red Sea transit risks? A: Gurnad Rupel, CEO: The market is dynamic, with no status quo. Recent events affect commodity pricing and create regional arbitrage. Beyond the Middle East, U.S. Gulf refineries are producing at record levels, and refining margins are high. The Panama Canal situation is also noteworthy, with potential transit interruptions affecting future market dynamics. Q: What impact do you anticipate from the Russian diesel export ban on the product tanker market? A: Bart Kelleher, President: The ban has led to a decline in Russian clean product exports, with displaced buyers sourcing replacement cargoes elsewhere. This boosts demand for the compliant fleet in a tight market, benefiting mainstream fleets as Brazilian importers reduce reliance on sanctioned vessels. Q: Can you elaborate on the long-term demand fundamentals for product tankers? A: Bart Kelleher, President: Energy security is a growing priority, with diversification of import sources reinforcing long-term demand for product tankers. Structural shifts in refining capacity, with expansions in Asia and the Middle East and closures in Europe and the U.S., drive ton-mile demand. The energy transition is slower than anticipated, with oil demand growth forecasted through 2050. Q: How does Ardmore Shipping plan to maintain financial strength and flexibility? A: Bart Kelleher, President: Ardmore's balance sheet is robust, with effective leverage at 24% and nearly $300 million in undrawn revolving debt capacity. Our low operating cash breakeven provides financial flexibility. We focus on optimizing TCE performance, managing costs, and maintaining a strong balance sheet. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HAMILTON, Bermuda, July 22, 2026 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company") today announced that the Company plans to announce its second quarter earnings before the market opens on Wednesday, July 29, 2026 and will host a conference call later in the day at 10:00 a.m. Eastern Time. The conference call and slide presentation will also be broadcast live over the Internet. Conference Call and Webcast Details: Wednesday, July 29, 2026, at 10:00 a.m. Eastern Time Live webcast and presentation available at www.ardmoreshipping.com Alternatively, connect by phone at 800-836-8184 (US toll free) or +1-646-357-8785 (international) and reference "Ardmore Shipping" If you are unable to participate at this time, an audio replay of the call will be available through August 5 at 888-660-6345 or 646-517-4150. Enter the passcode 94353 to access the audio replay. The webcast will also be archived on the Company's website: www.ardmoreshipping.com. About Ardmore Shipping Corporation: Ardmore delivers energy, mobility, and essential commodities, supporting global trade through the transportation of refined products, chemicals and other liquid goods. Operating as a fully integrated shipping company, all core commercial, technical, operational, and corporate functions are conducted within the Ardmore public company structure. Through its global platform, Ardmore maintains direct control over asset management, operations, and commercial execution, promoting consistent standards, efficiency, and accountability across the fleet. Ardmore's core strategy is centered on the continued development and operation of a modern, high‑quality fleet of product and chemical tankers, while continually evolving and innovating across the business to position the Company optimally for the future, leveraging its fully integrated model to build long‑term customer relationships and maintain a sharp focus on cost, safety, and performance optimization. Ardmore provides its services through voyage and time charter arrangements, delivering reliable and efficient transportation services to its first-class customer base — all guided and coordinated by our team members at sea and ashore. Investor Relations Enquiries: Mr. Leon BermanIGB Group32 Broadway, Suite 1314New York, NY 10004Tel: 212-477-8438Fax: 212-477-8636Email: [email protected] Or Mr. Bryan DegnanIGB GroupTel: 646-673-9701Email: [email protected] View original content:https://www.prnewswire.com/news-releases/ardmore-shipping-announces-second-quarter-2026-conference-call-and-webcast-302832445.html

Image source: The Motley Fool. Thursday, May 7, 2026 at 10:00 a.m. ET Chief Executive Officer — Gernot Ruppelt Chief Financial Officer — Bart Kelleher Need a quote from a Motley Fool analyst? Email [email protected] Gernot Ruppelt: Thank you, Bart. Let me outline the format of today's call, which you can see here on Slide 3. First, I'll give you a brief overview of our first quarter highlights and cover key strategic and capital allocation actions we have taken since our last call. I will then hand over to Bart, who will cover the market outlook and update you on our financial and operating performance. Thereafter, I will conclude the presentation before opening up the call for questions. But before we discuss our earnings, I'd like to take a moment to acknowledge the major disruption in the Middle East and the significant impact this has had on the maritime industry, in particular, on seafarers and their families. While Ardmore has not had any ships in the region since the beginning of the conflict, we express our solidarity with those currently living through this period of hardship and distress. And we continue to engage with and actively support industry organizations, such as The Mission to Seafarers, INTERTANKO and other industry partners who have been playing a vital role in working with the people directly affected by these recent events. Now turning to Slide 4 for earnings highlights. In addition to last week's activity update and TCE guidance, we report today adjusted earnings of $23.6 million or $0.58 per share. We are declaring a dividend of $0.39 per share, in line with our recently updated dividend policy of paying out 2/3 of adjusted earnings effective Q1. Disruption in the Middle East is adding further tightness to an already firm market. Our Q1 TCE performance reflects these market conditions and momentum is accelerating into the second quarter. Our MR tankers earned $33,700 per day for the first quarter and $52,100 per day so far in the second quarter with 55% booked. Our chemical tankers earned $22,300 per day for the first quarter and $32,500 per day so far in the second quarter with 65% booked. MR spot rates are, therefore, at levels nearly 5x our operating cash breakeven of $10,800 per day. And as we'll discuss in the next slide, we are executing on a clear and deliberate long-term strategy, targeted fleet investment, while simultaneously increasing the return of capital to shareholders in a meaningful manner. Moving to Slide 5. Here, we highlight 3 significant updates since our last call. First, we have ordered 2 highly efficient and versatile Handysize tankers at Wuhu Shipyard at a price of $44.9 million per vessel. This price includes a $3 million upgrade package to make the vessels fully IMO2 capable, as well as advanced MarineLine tank coatings. In addition, we are commissioning further performance and safety upgrades. Deliveries are scheduled from late 2028, and we have the option to acquire 2 additional vessels on the same terms. Second, we are doubling our quarterly dividend payout ratio to 2/3 of adjusted earnings. 2025 was a heavy CapEx year, which entailed an extensive dry docking program and significant vessel efficiency and commercial upgrades. This is now behind us. Importantly, we also invested over $100 million in 3 vessel acquisitions that have substantially increased in value since, arguably by about 30% to 35% on a like-for-like basis. And as always, dynamic in our approach to capital allocation, we increased our percentage dividend payout effective this quarter. We have also agreed the opportunistic sale of a 2014-built MR tanker for $35.5 million. At the time of agreement, the delivery window was about 3 months forward, allowing us to continue participating in the strong market with delivery to the buyer expected in June 2026. We believe this is an attractive transaction, not least in conjunction with the previous newbuilding announcement and in context of the aforementioned acquisitions. Overall, these decisions reflect our disciplined through-the-cycle approach to value creation, growing the business in a thoughtful way, investing in high-quality assets that match our strategy and unique organizational capabilities, all while enabling meaningful distribution of capital to shareholders. Moving to Slide 6 for a bit more detail on the newbuildings just mentioned. The vessels will be handysize product and chemical tankers built to full IMO2 specifications with MarineLine coatings. These upgrades will enable us to trade across a wide cargo slate from mainstream oil products to edible oils, renewable fuels and complex commodity chemicals. As a reminder, we upgraded our existing chemical fleet last year with MarineLine coatings, and we are capturing significant benefits through access to premium cargo options and shortened cleaning times. We have undertaken an extensive review of shipyards in China, Korea and Japan, and we believe Wuhu offers a compelling combination of high construction quality and value. In terms of funding, we have ample capacity under our existing revolving credit facilities and access to a wide range of alternative sources. With that, I'd like to hand it over to Bart. Bart Kelleher: Thanks, Gernot. Turning to the market, starting with Slide 8 and some significant shifts in trade flows. This slide illustrates the rerouting of refined product cargoes as a result of the conflict in the Middle East. Shortages in the East are being filled long haul from the Atlantic Basin. Flows from the U.S., Europe and West Africa are replacing lost Middle East volumes with voyage lengths roughly doubling. As Gernot mentioned, unfortunately, there are approximately 130 product tankers currently trapped in the Middle East Gulf. This is having an impact on the available vessel supply. In addition, the recent Jones Act waiver is further supporting U.S. bicoastal trade flows. Moving to Slide 9 for more detail on current market drivers. The effective closure of the Strait of Hormuz is disrupting approximately 15% of the global oil product flows and 30% of crude flows. As a result, refining margins in the Atlantic have reached their highest level since the pandemic recovery, creating notable arbitrage. Asian refineries have needed to reduce throughput with replacement products sourced via long-haul imports from the Atlantic, boosting U.S. exports. Vessels bouncing back to the Atlantic Basin had a further layer of fleet inefficiency, tightening effective supply. This run-up in the Atlantic market has resulted in a lack of vessels in the East, accelerating rates in the Pacific in recent weeks. Product inventories have been significantly drawn down. Looking ahead, a substantial post-conflict restocking requirement should support elevated trading activity for an extended period, all while damaged refining capacity may take several years to restore with replacement volumes continuing to move on long-haul voyages. Turning to Slide 10. Looking beyond the immediate disruption and focusing on the longer-term fundamentals. Energy security is front and center, supporting long-term demand forecast. Meanwhile, refining capacity continues to shift east with closures in Europe and the U.S. adding to ton-mile demand. While the markets understandably pay attention to the situation in the Middle East, these fundamentals are driving the market over the long term. Moving to Slide 11 for the supply side. The chart on the left depicts how the MR fleet has continued to age during this century, while the current order book represents just 15% of the fleet. The Handysize segment is a connected market. But if we look at the Handy order book in isolation, it stands at just 5% against an average fleet age of 18 years. The chart on the right highlights the same story from a different angle. Within the next 5 years, half of the global MR fleet will be over 20 years old and approaching the scrapping window. As a reminder, even if these vessels are not initially scrapped as a result of strong market conditions, their utilization levels notably decline. Turning to Slide 13 and our capital allocation summary. As outlined in our late April press release and commentary today, we have been active across all pillars of our capital allocation policy. And this slide further highlights the numerous actions taken in recent quarters. We're dynamically investing in the business while returning capital to shareholders, including the doubling of our dividend payout ratio to 2/3 of adjusted earnings. Moving to Slide 14, where we detail our financial position. As always, Ardmore remains focused on optimizing TCE performance, closely managing costs and preserving a strong balance sheet. Our low cash breakeven level of $11,700 per day or $10,800 per day, excluding dry dock CapEx, gives us financial flexibility. Considering forward new build CapEx, which we can fund through our existing credit facilities or other alternatives, overall pro forma leverage remains at a modest level. Turning to Slide 15 for financial highlights. Ardmore is well positioned with strong operating leverage. Every $10,000 per day increase in TCE rates translates to an additional nearly $2 per share in annual earnings. For the first quarter, we are reporting adjusted EBITDAR of $37.3 million and as noted earlier, earnings per share of $0.58. We continue to frame EBITDAR as an important comparable valuation metric against our IFRS reporting peers. A full reconciliation is in the appendix alongside our second quarter guidance figures. Moving to Slide 16 for fleet operations. As a reminder, we have limited dry docking activity through 2027. Existing fleet capital expenditure is expected to decline significantly to approximately $8 million this year versus $30 million last year. We have our refreshed fleet on the water capturing the current market. With that, I'm happy to hand the call back to Gernot and look forward to answering any questions at the end. Gernot Ruppelt: Great. Thank you, Bart. Moving to Slide 18. Allow me to summarize. On top of compelling long-term fundamentals, product markets continue to experience significant near-term disruption driving ton-mile demand as is reflected in our TCE performance on this slide. Commodity dislocation and product supply gaps, urgent inventory restocking needs as well as continued structural demand growth point to sustained strength. Ardmore continues to progress through a disciplined, deliberate and dynamic approach to capital allocation. We have made targeted investments in the fleet over the past years through value-focused newbuilding and secondhand acquisitions as well as upgrades to the existing fleet, all while increasing shareholder returns and maintaining responsible debt levels. As always, our investment decisions are guided by the company's strategy, strong corporate governance and a long-term value approach. We now welcome your questions. Operator: [Operator Instructions] Your first question comes from Jon Chappell with Evercore. Jonathan Chappell: I'll start with the dividend policy. I know you've spoken about it a little bit in the prepared remarks, but just trying to understand the timing and the thought process behind it. Again, I understand you've sold the vessel, you have far less capital commitments as it relates to fleet maintenance this year. But is this kind of a sign that investing in this part of the cycle where asset values where they are, just doesn't offer the same type of returns that you think a doubling of the capital return policy to the investors provides? Gernot Ruppelt: Yes. Great question, Jon. I think we really want to look at dividend policy as a subset of returning capital to shareholders as part of our capital allocation policy, which we've been quite consistent with. If you go back to end of 2024, of course, we saw some opportunity in our stock price, and we did some buybacks, continue to pay dividends all throughout. But last year, we also saw some really interesting opportunities to reinvest in the fleet through the acquisitions we've mentioned, some really interesting retrofits, paid down the pref on top of the interesting refi, and we're able to also pay back some debt. So I think for us, this is really a way to reshift and rebalance, acknowledging, of course, that half of debt prices have moved up, but also not in any way, I think, taking away from this kind of rebalanced approach to capital allocation that you really need to see across quarters and across the whole game, which will continue to balance thoughtful and measured reinvestment in the fleet with returning capital to shareholders while maintaining healthy debt levels. Jonathan Chappell: Okay. That makes sense. And then as it relates to fleet strategy, I know you have a couple of time charter outs right now. It feels like in the larger crude asset classes, time charter rates have spiked to all-time record highs, and there seems to be a pretty decent amount of liquidity, especially in the [ VEs ]. Is there a similar thing transpiring in the MR and chem market? And if there is, what's your appetite to kind of lock in at some of these really elevated rates with guaranteed cash flows versus maintaining that optionality in the spot market that you speak to? Gernot Ruppelt: So time charter rates have definitely reacted and moved up significantly. We have not executed on those time charters in the past quarter because we don't quite feel that the value proposition is maybe as pronounced as you would see in crude tankers. And sometimes these things take some time to build just to the nature of the timing and the rhythm of the time charter markets. But we'll continue to monitor that. We, of course, do take note that a lot of the time charter interest right now is coming from oil majors, refiners and major traders, including some long-term interest, and we think that's really encouraging. And we have in the past, opportunistically engaged in time charters out and time charters in. But for now, we've been monitoring, and we're looking at it with great interest, of course. Operator: [Operator Instructions] Your next question comes from Omar Nokta with Clarksons Securities. Omar Nokta: Clearly, nice quarter, and it looks like definitely more to come. I just want to ask, you've got the MRs, which are historically and continue to be your biggest footprint. You've also got the chemical tankers or the handy chemical tankers. Can you just talk a little bit about those segments and how they performed in this market given the Hormuz disruption just in terms of the 37 and the 25 deadweight that you have? Are those capturing similar earnings together? Or would you say there's a detachment where the 37s are closer to the MRs and the 25s are separate? Any color you can give on how those are traded? Gernot Ruppelt: Yes. I think this is actually a great question and maybe something we didn't highlight enough. For us, the order we committed to, these are handysize tankers that cover the full range of liquid products, which includes chemicals, but this is really all about creating trading options for these ships and for the company. It's not some fundamental philosophical leaning deeper into chemicals. For us, it's always been enabling the full range of oil products, which, of course, includes jet fuel and naphtha and all the other road fuels that are in extremely high demand. And equally then alternative cargoes, emerging cargoes because we think this offers really interesting long-term strategic perspectives for the business. And in the near term, it already offers substantial triangulation opportunities. So these ships that we have ordered and the way we're approaching our existing chemical tankers too, these ships are fully conversant in both markets. And we will basically continue to follow the money and just benefit from this added optionality. So right now, even our 25,000 toners that you mentioned, which make up the majority of our existing chemical fleet, half the size of an MR, and typically, under sort of normalized market conditions, they would probably trade 90% in non-CPP cargoes, but we have been redirecting those ships where they now trade almost exclusively CPP because that's where the money is. So really, for us, about trading options, not trading obligations, and continuing to be very versatile players across the full spectrum of products and nonproduct cargoes. Omar Nokta: Okay. That's quite detailed and helpful. And I guess then just as you place those orders and you look to be something that you're looking to be a bit more opportunistic on as you see an opportunity there, as we kind of think about then your footprint going forward, not necessarily saying you're going to potentially deemphasize MRs because clearly, that's your main market, but should we kind of think about you potentially pivoting into maybe expanding more within that business or maybe bringing them both together in size over the long term? Gernot Ruppelt: Yes. I think very important, the way we treat these ships already is in a very integrated fashion where we don't have a separated sort of product or separated chemical part of the business, very much the relationships, cargo flows, market insights are used in a very integrated fashion. So for us, it's really just continued progress along this product and chemical space. For us, we felt like these ships really are terrific strategic fit given our current and our forward strategy. We will continue to follow all sources of deal flow, of course, as we have in the past. It felt that last year, there was a much stronger value in secondhand MRs where we saw values drop by arguably 20%, 25% on the back of concerns on tariffs and what that could mean for the global economy, liberation day and the likes. And we then acted very decisively on MRs. And of course, that was money well spent, given the fact that they are under money by 30%, 35%. And we now saw the value proposition much clearer on these very forward-looking, very versatile fuel-efficient assets. If you compare the price between the 12-year-old MR we just sold to the newbuildings, we're committing to the delta on a like-for-like basis is less than $10 million. So again, it is a combination of strategic fit on one hand, which is products, products with full versatility and flexibility to trade into more complex cargoes, but of course, there's a strategic fit and then there's opportunity and just relative value and being opportunistic at times when we have that -- when the market gives us that chance. Operator: Ladies and gentlemen, there are no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Ardmore Shipping, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ardmore Shipping wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ardmore (ASC) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Ardmore Shipping Corporation? Here are five stocks we like better. Ardmore Shipping reported first-quarter adjusted earnings of $23.6 million, or $0.58 per share, and raised its dividend policy to pay out two-thirds of adjusted earnings, resulting in a $0.39 per share dividend. Management said disruptions in the Middle East are tightening an already firm product tanker market, with higher spot rates, longer voyage lengths and about 130 tankers trapped in the region helping support stronger second-quarter momentum. The company ordered two new handysize tankers for $44.9 million each, while also noting that capital spending is expected to fall sharply this year, giving Ardmore more flexibility to increase shareholder returns. Ardmore Shipping (NYSE:ASC) reported higher first-quarter adjusted earnings and raised its dividend payout ratio, while management said disruption in the Middle East is tightening an already firm product tanker market and accelerating momentum into the second quarter. Chief Executive Officer Gernot Ruppelt said the company reported adjusted earnings of $23.6 million, or $0.58 per share, for the first quarter of 2026. Ardmore declared a dividend of $0.39 per share, reflecting its updated policy of paying out two-thirds of adjusted earnings beginning with the quarter. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Ruppelt said the company has not had ships in the Middle East region since the start of the conflict, but acknowledged the disruption’s impact on the maritime industry and seafarers. He said Ardmore continues to support organizations including The Mission to Seafarers and INTERTANKO. Ardmore’s first-quarter time charter equivalent, or TCE, performance reflected stronger market conditions, with further gains in bookings so far in the second quarter. Ruppelt said the company’s MR tankers earned $33,700 per day in the first quarter and $52,100 per day so far in the second quarter, with 55% booked. Chemical tankers earned $22,300 per day in the first quarter and $32,500 per day so far in the second quarter, with 65% booked. → Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking Ruppelt said MR spot rates are nearly five times Ardmore’s operating cash breakeven of $10,800 per day. President Bart Kelleher later said the company’s cash breakeven is $11,700 per day, or $10,800 per day excluding drydock capital expenditures. Kelleher said the effective closure of the Strait of Hormuz is disrupting approximately 15% of global oil product flows and 30% of crude flows. He said shortages in the East are being supplied from the Atlantic Basin, with cargoes from the U.S., Europe and West Africa replacing lost Middle East volumes and voyage lengths “roughly doubling.” → Wells Fargo’s Comeback Is Real—But Not Risk-Free Management said about 130 product tankers are currently trapped in the Middle East Gulf, limiting available vessel supply. Kelleher also noted that a recent Jones Act waiver is supporting U.S. bi-coastal trade flows. Kelleher said Atlantic refining margins have reached their highest level since the pandemic recovery, creating arbitrage opportunities, while Asian refineries have reduced throughput and sourced replacement products through long-haul imports. He said vessels ballasting back to the Atlantic Basin are adding fleet inefficiency, further tightening supply. Ruppelt said Ardmore ordered two handysize product and chemical tankers from Wuhu Shipyard at $44.9 million per vessel. The price includes a $3 million upgrade package to make the ships fully IMO2 capable, along with advanced MarineLine tank coatings. Deliveries are scheduled from late 2028, and Ardmore has options to acquire two additional vessels on the same terms. The new vessels will be designed to trade across a broad range of cargoes, including mainstream oil products, edible oils, renewable fuels and complex commodity chemicals. Ruppelt said Ardmore upgraded its existing chemical fleet last year with MarineLine coatings and is seeing benefits from access to premium cargoes and shorter cleaning times. Ruppelt said the company reviewed shipyards in China, Korea and Japan and concluded that Wuhu offered “a compelling combination of high construction quality and value.” He said Ardmore has capacity under existing revolving credit facilities and access to alternative funding sources for the newbuild program. Ruppelt framed the dividend increase as part of a broader capital allocation strategy. He said 2025 was a heavy capital expenditure year because of extensive drydock work and vessel efficiency and commercial upgrades, but that work is now behind the company. He said Ardmore also invested more than $100 million in three vessel acquisitions that management believes have since increased in value by about 30% to 35% on a like-for-like basis. Ardmore has also agreed to sell a 2014-built MR tanker for $35.5 million, with delivery to the buyer expected in June 2026. During the question-and-answer session, Evercore analyst Jon Chappell asked whether the dividend increase reflected a view that investing at current asset values offers less attractive returns than returning capital to shareholders. Ruppelt said the dividend policy should be viewed as part of the company’s broader capital allocation approach, which includes dividends, buybacks, reinvestment in the fleet and debt management. Ruppelt said the company is “reshifting and rebalancing” while continuing to combine measured fleet reinvestment with capital returns and healthy debt levels. Kelleher said long-term fundamentals remain favorable as energy security supports demand forecasts and refining capacity continues to shift eastward, with closures in Europe and the U.S. adding to ton-mile demand. On the supply side, he said the MR fleet has continued to age, while the current orderbook equals about 15% of the fleet. He said the handysize orderbook is about 5% of that fleet, against an average fleet age of 18 years. Within five years, Kelleher said, half of the global MR fleet will be more than 20 years old and approaching the scrapping window, with utilization likely to decline even if ships remain in service. For the first quarter, Ardmore reported adjusted EBITDA of $37.3 million. Kelleher said the company has strong operating leverage, with every $10,000 per day increase in TCE rates translating to nearly $2 per share in additional annual earnings. He also said existing fleet capital expenditures are expected to fall to about $8 million this year from $30 million last year, with limited drydock activity through 2027. In response to a question from Clarksons Securities analyst Omar Nokta about Ardmore’s MR and chemical tanker segments, Ruppelt said the company views its handysize tankers as assets that provide trading flexibility rather than a shift deeper into chemicals. He said the ships can carry oil products such as jet fuel and naphtha, as well as alternative and emerging cargoes. Ruppelt said Ardmore’s 25,000-deadweight-ton chemical tankers would typically trade mostly in non-clean petroleum product cargoes under normalized conditions, but are now trading “almost exclusively” in clean petroleum products because that is where returns are strongest. He said Ardmore manages its product and chemical operations in an integrated way, using relationships, cargo flows and market insight across both areas. Ruppelt said the company will continue to follow opportunities in both secondhand and newbuild markets, noting that last year’s secondhand MR acquisitions were made after values fell and have since appreciated. Ruppelt concluded that Ardmore’s current strategy is focused on disciplined capital allocation, targeted fleet investment, increased shareholder returns and responsible debt levels while taking advantage of strong tanker market conditions. Ardmore Shipping Corporation is a Bermuda-based provider of seaborne transportation services for refined petroleum products. The company owns and operates a modern fleet of product tankers, including medium-range (MR), long-range 2 (LR2) and Aframax vessels. Ardmore Shipping focuses on the ocean carriage of clean and dirty petroleum products under time charters, bareboat charters and spot voyages, serving a diverse customer base that includes major oil companies and trading houses. Since its founding in 2005, Ardmore Shipping has grown its fleet through newbuilding contracts, second-hand acquisitions and fleet renewals, aiming to maintain a high quality, fuel-efficient profile. The article "Ardmore Shipping Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Performance was driven by significant market tightness following Middle East disruptions, which doubled voyage lengths as Atlantic Basin flows replaced lost regional volumes. Management attributes the accelerating Q2 momentum to a 'run-up' in the Atlantic market that drained vessel supply in the East, creating a global supply-demand imbalance. The company is executing a 'through-the-cycle' value creation strategy, balancing fleet growth with increased capital returns now that heavy 2025 CapEx requirements are complete. Strategic positioning focuses on 'trading options over obligations,' utilizing IMO2-capable vessels to switch between oil products and chemicals based on the highest available returns. The opportunistic sale of a 2014-built MR tanker for $35.5 million captures high asset values while maintaining market participation through a delayed June 2026 delivery. Operational efficiency has been enhanced by recent MarineLine tank coating upgrades, which have shortened cleaning times and provided access to premium cargo options. Management expects sustained market strength driven by urgent post-conflict inventory restocking and long-term structural shifts in refining capacity toward the East. The newbuilding program for two Handysize tankers, scheduled for late 2028 delivery, is designed to address an aging global fleet where 50% of MRs will exceed 20 years old within five years. Future earnings sensitivity is high, with management noting that every $10,000 per day increase in TCE rates adds approximately $2 per share in annual earnings. The company maintains an option for two additional newbuildings on the same terms, providing a hedge against rising asset prices and limited shipyard capacity. Guidance for the remainder of 2026 assumes significantly lower existing fleet capital expenditure of approximately $8 million, compared to $30 million in the previous year. The quarterly dividend payout ratio was doubled to 2/3 of adjusted earnings, reflecting a shift in priority toward shareholder returns following a period of heavy reinvestment. Management highlighted the effective closure of the Strait of Hormuz as a critical risk factor currently disrupting 15% of global oil product flows and 30% of crude flows. The company reported that three vessel acquisitions made last year have already appreciated in value by approximately 30% to 35% on a like-for-like basis. Pro forma leverage remains modest as the company plans to fund its $44.9 million per vessel newbuilding commitments through existing revolving credit facilities. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management explained the move as a rebalancing of capital allocation now that the 2025 heavy CapEx cycle and debt repayments are largely finished. The decision acknowledges that while asset prices have risen, the company still seeks a balanced approach between 'thoughtful reinvestment' and meaningful distributions. Management is monitoring the market with interest but has not yet locked in long-term charters, as they feel the current value proposition in MRs is not yet as pronounced as in crude tankers. They noted that interest is coming from oil majors and traders, but for now, they prefer the optionality of the spot market. The company operates an integrated fleet where vessels are directed to whichever market offers higher returns; currently, chemical-capable ships are trading almost exclusively in oil products. The new Handysize orders are intended to maximize 'triangulation opportunities' across the full spectrum of liquid products, including renewable fuels and complex chemicals. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.