Ardmore Shipping Q3 Earnings Rise as Q4 Tanker Rates Strengthen

Ardmore Shipping Corporation reported higher third-quarter adjusted earnings and sharply stronger tanker rates booked to date for the fourth quarter, as geopolitical disruption and longer trade routes supported demand for product tankers.

The product and chemical tanker owner generated adjusted earnings of $16.3 million in the three months ended September 30, 2026, up from $12.6 million a year earlier. Adjusted diluted earnings per share increased to $0.40 from $0.31, while adjusted EBITDAR, a non-GAAP measure, rose to $28.8 million from $27.6 million.

The company’s MR tankers earned an average spot time charter equivalent rate of $27,000 per day during the third quarter, compared with $24,700 a year earlier. Chemical tanker spot TCE rates were $23,300 per day. Ardmore also maintained 99% on-hire utilization during the quarter.

Fourth-quarter bookings indicate substantially higher rates. MR spot TCE rates averaged $57,600 per day to date, with 45% of available days fixed, while chemical tanker rates averaged $30,100 with 60% fixed. Ardmore expects 2,100 revenue days for the quarter and said 83% of its fourth-quarter employment remains exposed to the spot market.

Management’s fourth-quarter assumptions also include $18.0 million of vessel operating expenses, $10.5 million of depreciation and amortization, $6.3 million of commercial and corporate overhead, and $1.0 million of interest expense and finance costs. The guidance assumes 99% average fleet utilization and spot rates consistent with fourth-quarter averages to date.

Costs, balance sheet and shareholder returns

Ardmore’s third-quarter vessel operating expenses increased to $18.5 million from $16.4 million a year earlier. Depreciation and amortization rose to $10.9 million from $10.4 million, while overhead declined to $5.8 million from $6.4 million. Net interest expense fell to $0.9 million from $2.3 million.

The company reported an operating cash breakeven rate of $10,800 per day, excluding capital expenditure, and $11,700 including capex. At September 30, Ardmore held $47.5 million in cash and had $61.2 million of debt facilities on its balance sheet. Including $257.8 million of committed newbuilding capex and related financing, pro forma debt was $319.0 million and effective leverage was 32%.

Ardmore declared a quarterly cash dividend of $0.27 per share, representing two-thirds of adjusted earnings under its variable payout policy. The $11.03 million distribution is scheduled for December 15, 2026, for shareholders of record on November 27. It marks the company’s 16th consecutive cash dividend.

Fleet renewal and market conditions

Ardmore said it agreed to sell the 2013-built Ardmore Endeavour for $34.3 million and exercised options for two Handysize tanker newbuildings, bringing its total order to six vessels. Its current owned fleet comprises 23 ships, while the six newbuildings are scheduled for delivery between 2028 and 2030. Including those orders, the fleet would total 29 vessels with an average age of 9.1 years.

Full-year 2026 spending is expected to include $10 million of fleet capex and $55 million of newbuilding capex. For 2027, the company forecasts $13 million of fleet capex and $10 million for newbuildings. No drydockings are scheduled for the fourth quarter, while four are planned for 2027.

Management attributed supportive tanker conditions to disrupted trade patterns, vessel rerouting and the growing separation between refining capacity and end-market consumption. Ardmore said global oil-product inventories were about 190 million barrels lower, an amount it equated to more than 600 MR tanker voyages. It expects inventory rebuilding, increased refinery runs and continued trade inefficiencies to support ton-mile demand, although those expectations remain subject to market and geopolitical developments.

The presentation also highlighted the tanker fleet’s aging profile. The MR orderbook equals about 18% of the existing fleet, but roughly half of current vessels are expected to be at least 20 years old within five years. For Handysize tankers, the orderbook is 6%, while about 75% of the fleet is expected to reach that age threshold over the same period.

Ardmore cautioned that actual fourth-quarter results could differ from its current assumptions because of changes in charter rates, vessel employment, fleet size, operating costs, inflation and interest rates. Other identified risks include disruptions linked to conflicts in Ukraine and the Middle East, Red Sea attacks, transit conditions through the Strait of Hormuz, regulatory and tariff changes, vessel breakdowns, off-hire time and fluctuations in tanker supply and demand.