Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | true |
Amendment Description | This Annual Report on Form 20-F/A (the "Amendment") amends the Annual Report on Form 20-F for the year ended December 31, 2018 of Ardmore Shipping Corporation ("Ardmore", "Ardmore Shipping", the "Company", "we", "our" or "us"), as filed with the U.S. Securities and Exchange Commission on February 15, 2019 (the "Original Filing"). In July 2019, following discussions with our independent auditors, Ernst & Young, we identified an error in the presented location of the net gains and losses on disposals of vessels in our consolidated statement of operations. While properly stated in every other respect, the net gains and losses on disposals of vessels were improperly presented in our consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016, and for the quarterly period ended March 31, 2019. Pursuant to Accounting Standards Codification 360-10, Property, plant, and equipment, if a subtotal for income from operations is included on a statement of operations, net gains or losses on the sale of long-lived assets that are not discontinued operations should be included in income from operations. While the net losses on disposal of vessels had been properly calculated in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), we had chosen to include a subtotal for income from operations in our consolidated statement of operations (labelled "(loss/profit from operations") but had reflected net gains and losses on disposal of vessels below, rather than above, such subtotal. In this Amendment we are restating our consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016 (the "Financial Statements") to remove the subtotal for (loss)/profit from operations. Such removal does not result in any change in net loss or profit for the years ended December 2018, 2017 or 2016, nor in the other primary financial statements of the Company for any period presented. In determining how to correct for the error in the presentation of net gains and losses from disposal of vessels, management decided to remove the subtotal labelled loss/profit from operations, because it is not a metric that management uses to evaluate the Company's performance and operating results. In this Amendment, we are also amending Items 3.A (Key Information - Selected Financial Data), 3.D (Key Information - Risk Factors), 5.A (Operating and Financial Review and Prospects - Operating Results) and 15 (Controls and Procedures) relating to the restated financial information. As more fully described in Item 15, as a result of the restatement of the Financial Statements, management has revised its assessment of internal controls over financial reporting and concluded that it was not effective at December 31, 2018. The Financial Statements and disclosure in Items 3.A, 3.D, 5.A and 15 of this Amendment are otherwise identical in all respects to the financial statements and disclosure contained in the Original Filing. Other Items in this Amendment are included for the convenience of the reader only and have not been updated from the Original Filing. We are also filing a Form 6-K/A to similarly restate our consolidated statement of operations for the quarter ended March 31, 2019. Except for the changes described above, this Amendment continues to present information as of the date of the Original Filing. Other events occurring after the filing of the Original Filing or other disclosures necessary to reflect subsequent events have been or will be addressed in other reports filed with or furnished to the SEC subsequent to the date of the Original Filing. This Amendment includes currently dated certifications from our Principal Executive Officer and Principal Financial Officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, and amended reports of our independent registered public accounting firm relating to the audit of the Financial Statements and of the effectiveness of internal control over financial reporting. Since this Amendment restates the financial information for the years ended December 2018, 2017 and 2016, we do not intend to amend our previously filed Annual Reports on Form 20-F for periods ended prior to December 31, 2018. As a result, you should rely upon the restated consolidated financial statements, reports of our independent registered public accounting firm and related financial information for 2018, 2017 and 2016 contained in this Amendment. |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Ardmore Shipping Corp |
Entity Central Index Key | 0001577437 |
Trading Symbol | ASC |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Document Shell Company Report | false |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common stock |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 33,097,831 |
Document Annual Report | true |
Document Transition Report | false |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Vessel held for sale | $ 8,083,405 | $ 0 |
Cash and cash equivalents | 56,903,038 | 39,457,407 |
Receivables, trade | 27,460,132 | 27,264,803 |
Working capital advances | 0 | 3,100,000 |
Prepayments | 1,291,399 | 1,412,875 |
Advances and deposits | 2,132,804 | 3,015,807 |
Other receivables | 786,084 | 0 |
Inventories | 12,812,039 | 9,632,246 |
Total current assets | 109,468,901 | 83,883,138 |
Non-current assets | ||
Vessels and equipment, net of accumulated depreciation of $135.2 million (2017: $110.2 million) | 721,492,473 | 751,816,840 |
Ballast water treatment systems, net of accumulated depreciation of $0 (2017: $0) | 528,774 | 0 |
Deferred drydock expenditure, net of accumulated amortization of $11.5 million (2017: $10.8 million) | 7,127,364 | 4,118,168 |
Deposit for vessel acquisition | 0 | 1,635,000 |
Leasehold improvements, net of accumulated depreciation of $0.2 million (2017: $0.1 million) | 423,620 | 446,532 |
Other non-current assets, net of accumulated depreciation of $0.8 million (2017: $0.6 million) | 3,549,511 | 3,640,311 |
Operating lease, right of use asset | 2,169,158 | 0 |
Total non-current assets | 735,290,900 | 761,656,851 |
TOTAL ASSETS | 844,759,801 | 845,539,989 |
Current liabilities | ||
Payables, trade | 24,608,108 | 16,104,399 |
Other payables | 35,900 | 6,265 |
Accrued interest on loans and finance leases | 1,732,859 | 1,537,976 |
Current portion of long-term debt | 22,834,543 | 37,071,548 |
Current portion of finance lease obligations | 25,849,200 | 3,537,466 |
Current portion of operating lease obligations | 477,147 | 0 |
Total current liabilities | 75,537,757 | 58,257,654 |
Non-current liabilities | ||
Non-current portion of long-term debt | 205,519,705 | 367,352,022 |
Non-current portion of finance lease obligations | 215,626,898 | 38,956,553 |
Non-current portion of operating lease obligations | 1,491,507 | 0 |
Total non-current liabilities | 422,638,110 | 406,308,575 |
Equity | ||
Share capital ($0.01 par value, 250,000,000 shares authorised, 35,019,232 issued and 33,097,831 outstanding at December 31, 2018 and 34,061,357 issued and 32,139,956 outstanding at December 31, 2017) | 350,192 | 340,613 |
Additional paid in capital | 414,508,403 | 405,549,985 |
Treasury stock (1,921,401 shares at December 31, 2018 and 1,921,401 shares at December 31, 2017) | (15,348,909) | (15,348,909) |
Accumulated deficit | (52,925,752) | (9,567,929) |
Total equity | 346,583,934 | 380,973,760 |
TOTAL LIABILITIES AND EQUITY | $ 844,759,801 | $ 845,539,989 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Vessels and equipment, accumulated depreciation | $ 135,200,000 | $ 110,200,000 |
Ballast water treatment systems, net of accumulated depreciation | 0 | 0 |
Deferred drydock expenditure, accumulated amortization | 11,500,000 | 10,800,000 |
Accumulated Depreciation Depletion And Amortization Leasehold Improvements | 200,000 | 100,000 |
Other non-current assets, accumulated depreciation | $ 800,000 | $ 600,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 35,019,232 | 34,061,357 |
Common stock, shares outstanding (in shares) | 33,097,831 | 32,139,956 |
Treasury stock, shares issued (in shares) | 1,921,401 | 1,921,401 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 210,179,181 | $ 195,935,392 | $ 164,403,938 |
Commissions and voyage related costs | (98,142,454) | (72,737,902) | (37,121,398) |
Vessel operating expenses | (67,017,632) | (62,890,401) | (56,399,979) |
Depreciation | (35,137,880) | (34,271,091) | (30,091,237) |
Amortization of deferred drydock expenditure | (3,637,276) | (2,924,031) | (2,715,109) |
General and administrative expenses | |||
Corporate | (12,626,373) | (11,979,017) | (12,055,725) |
Commercial and chartering | (3,233,888) | (2,619,748) | (2,021,487) |
Loss on disposal of vessels | 0 | 0 | (2,601,148) |
Loss on vessel held for sale | (6,360,813) | 0 | 0 |
Interest expense and finance costs | (27,405,608) | (21,380,165) | (17,754,118) |
Interest income | 606,665 | 436,195 | 164,629 |
(Loss)/profit before taxes | (42,776,078) | (12,430,768) | 3,808,366 |
Income tax | (162,923) | (59,567) | (60,434) |
Net (loss)/profit | $ (42,939,001) | $ (12,490,335) | $ 3,747,932 |
Net (loss)/earnings per share, basic and diluted (in dollars per share) | $ (1.31) | $ (0.37) | $ 0.12 |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 32,837,866 | 33,441,879 | 30,141,891 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) | Total | Share Capital [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated (deficit)/surplus (Member) |
Balance at Dec. 31, 2015 | $ 347,611,278 | $ 263,297 | $ 338,226,370 | $ (1,278,546) | $ 10,400,157 |
Balance (in shares) at Dec. 31, 2015 | 26,210,311 | ||||
Adoption of accounting standard | $ 0 | ||||
Share based compensation | 1,304,325 | 0 | 1,304,325 | 0 | 0 |
Repurchase of common stock | $ (2,993,931) | 0 | 0 | (2,993,931) | 0 |
Repurchase of common stock (in shares) | (366,347) | ||||
Dividend payments | $ (9,327,219) | 2,316 | 1,896,148 | 0 | (11,225,683) |
Dividend payments (in shares) | 231,646 | ||||
Net proceeds from equity offerings | $ 63,927,414 | 75,000 | 63,852,414 | 0 | 0 |
Net proceeds from equity offerings (in shares) | 7,500,000 | ||||
Income (Loss) for year | $ 3,747,932 | 0 | 0 | 0 | 3,747,932 |
Balance at Dec. 31, 2016 | $ 404,269,799 | 340,613 | 405,279,257 | (4,272,477) | 2,922,406 |
Balance (in shares) at Dec. 31, 2016 | 33,575,610 | ||||
Adoption of accounting standard | $ 0 | ||||
Share based compensation | 457,046 | 0 | 457,046 | 0 | 0 |
Repurchase of common stock | $ (11,262,750) | 0 | (186,318) | (11,076,432) | 0 |
Repurchase of common stock (in shares) | (1,435,654) | ||||
Income (Loss) for year | $ (12,490,335) | 0 | 0 | 0 | (12,490,335) |
Balance at Dec. 31, 2017 | $ 380,973,760 | 340,613 | 405,549,985 | (15,348,909) | (9,567,929) |
Balance (in shares) at Dec. 31, 2017 | 32,139,956 | ||||
Adoption of accounting standard | $ (418,822) | 0 | 0 | 0 | (418,822) |
Share based compensation | 1,636,547 | 0 | 1,636,547 | 0 | 0 |
Net proceeds from equity offerings | $ 7,331,450 | 9,579 | 7,321,871 | 0 | 0 |
Net proceeds from equity offerings (in shares) | 957,875 | ||||
Income (Loss) for year | $ (42,939,001) | 0 | 0 | 0 | (42,939,001) |
Balance at Dec. 31, 2018 | $ 346,583,934 | $ 350,192 | $ 414,508,403 | $ (15,348,909) | $ (52,925,752) |
Balance (in shares) at Dec. 31, 2018 | 33,097,831 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net (loss)/profit | $ (42,939,001) | $ (12,490,335) | $ 3,747,932 |
Non-cash items: | |||
Depreciation | 35,137,880 | 34,271,091 | 30,091,237 |
Amortization of deferred drydock expenditure | 3,637,276 | 2,924,031 | 2,715,109 |
Share based compensation | 1,636,547 | 457,046 | 1,304,325 |
Loss on disposal of vessels | 0 | 0 | 2,601,148 |
Loss on vessel held for sale | 6,360,813 | 0 | 0 |
Amortization of deferred finance fees | 4,668,077 | 3,060,525 | 3,415,452 |
Foreign exchange on operating leases | (200,504) | 0 | 0 |
Adoption of accounting standard | (418,822) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Receivables, trade | (195,329) | (4,116,021) | 3,040,535 |
Working capital advances | 3,100,000 | 200,000 | 175,000 |
Prepayments | 121,476 | (609,872) | 239,356 |
Advances and deposits | 882,968 | 120,555 | 375,510 |
Other receivables | (786,084) | 82,636 | (58,683) |
Inventories | (3,179,793) | (2,292,994) | (3,369,769) |
Payables, trade | 8,507,701 | 1,656,356 | 1,965,503 |
Accruals for capital items | (532,261) | 0 | 0 |
Charter revenue received in advance | 0 | (507,780) | (684,537) |
Other payables | 29,635 | 911 | (139,578) |
Accrued interest on loans and finance leases | 194,883 | (530,015) | 315,765 |
Deferred drydock expenditure | (6,599,085) | (3,809,906) | (3,099,805) |
Net cash provided by operating activities | 9,426,377 | 18,416,228 | 42,634,500 |
INVESTING ACTIVITIES | |||
Payments for acquisition of vessels and equipment | (16,824,102) | (372,504) | (174,012,168) |
Payments for acquisition of ballast water treatment systems | (528,774) | 0 | 0 |
Net proceeds from sale of vessels | 0 | 0 | 52,656,414 |
Transfer to segregated account in respect of agreement to buy new vessels | 0 | (1,635,000) | 0 |
Payments for leasehold improvements | (52,384) | (12,279) | (530,717) |
Payments for other non-current assets | (151,619) | (262,468) | (424,760) |
Net cash used in investing activities | (17,556,879) | (2,282,251) | (122,311,231) |
FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 3,902,122 | 11,092,157 | 110,010,000 |
Repayments of long-term debt | (184,306,269) | (62,691,746) | (42,208,171) |
Proceeds from finance leases | 209,725,500 | 33,120,000 | 9,245,749 |
Repayments of finance leases | (7,336,520) | (2,060,264) | (27,097,348) |
Payments for deferred finance fees | (3,740,150) | (826,840) | (6,036,243) |
Net proceeds from equity offerings | 7,331,450 | 0 | 63,927,416 |
Repurchase of common stock | 0 | (11,262,750) | (2,993,931) |
Payment of dividends | 0 | 0 | (9,327,251) |
Net cash provided by/(used in) financing activities | 25,576,133 | (32,629,443) | 95,520,221 |
Net increase/(decrease) in cash and cash equivalents | 17,445,631 | (16,495,466) | 15,843,491 |
Cash and cash equivalents at the beginning of the year | 39,457,407 | 55,952,873 | 40,109,382 |
Cash and cash equivalents at the end of the year | 56,903,038 | 39,457,407 | 55,952,873 |
Cash paid during the year for: | |||
Interest payments in respect of debt and finance leases | 22,583,976 | 18,808,333 | 13,937,488 |
Taxation | $ 139,849 | $ 58,736 | $ 122,624 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | 1. Overview 1.1. Background Ardmore Shipping Corporation (NYSE: ASC) (“ASC”), together with its subsidiaries (collectively “Ardmore” or “the Company”), provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size product and chemical tankers. As at December 31, 2018 Ardmore had 28 vessels in operation. The average age of Ardmore’s operating fleet at December 31, 2018 was 6.5 years. 1.2. Management and organizational structure ASC was incorporated in the Republic of the Marshall Islands on May 14, 2013. ASC commenced business operations through its predecessor company, Ardmore Shipping LLC, on April 15, 2010. On August 6, 2013, ASC completed its initial public offering (the “IPO”) of 10,000,000 shares of its common stock. Prior to the IPO, GA Holdings LLC, who was then ASC’s sole shareholder, exchanged its 100% interest in Ardmore Shipping LLC (“ASLLC”) for 8,049,500 shares of ASC, and ASLLC became a wholly-owned subsidiary of ASC. Immediately following the IPO, GA Holdings LLC held 44.6% of the outstanding common stock of ASC, with the remaining 55.4% held by public investors. In a series of transactions between March 2014 and November 2017, GA Holdings LLC sold or transferred all of its shares of ASC common stock. As of December 31, 2018, to Ardmore’s knowledge, no shareholder owned more than 10% of ASC’s common stock. As at December 31, 2018, ASC had 50 wholly-owned subsidiaries, the majority of which represent single ship-owning companies for ASC’s fleet, and one 50%-owned joint-venture entity which provides technical management services to the majority of the ASC fleet. Ardmore Shipping (Bermuda) Limited, a wholly-owned subsidiary incorporated in Bermuda, carries out the Company’s management services and associated functions. Ardmore Shipping Services (Ireland) Limited, a wholly-owned subsidiary incorporated in Ireland, provides the Company’s corporate, accounting, fleet administration and operations services. Each of Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC, wholly-owned subsidiaries incorporated in Singapore and Delaware, respectively, performs commercial management and chartering services for the Company. 1.3. Vessels Ardmore’s fleet as at December 31, 2018, comprised the following: Vessel Name Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea MI Eco- Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea MI Eco- Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 Korea MI Eco- Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 Korea MI Eco- Ardmore Sealion Product/Chemical 49,999 2/3 May-15 Korea MI Eco- Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 Korea MI Eco- Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 Korea MI Eco- Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 Korea MI Eco- Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 Korea MI Eco- Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 Korea MI Eco- Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 Korea MI Eco- Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 Korea MI Eco- Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 Korea MI Eco- Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 Korea MI Eco- Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 Korea MI Eco- Ardmore Seafarer Product/Chemical 45,744 3 Aug-04 Japan MI Eco-mod Ardmore Seatrader Product 47,141 — Dec-02 Japan MI Eco-mod Ardmore Seamaster Product/Chemical 45,840 3 Sep-04 Japan MI Eco-mod Ardmore Seamariner Product/Chemical 45,726 3 Oct-06 Japan MI Eco-mod Ardmore Sealeader Product 47,463 — Aug-08 Japan MI Eco-mod Ardmore Sealifter Product 47,472 — Jul-08 Japan MI Eco-mod Ardmore Sealancer Product 47,451 — Jun-08 Japan MI Eco-mod Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 Korea MI Eco- Ardmore Defender Product/Chemical 37,791 2 Feb-15 Korea MI Eco- Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan MI Eco- Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan MI Eco- Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan MI Eco- Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan MI Eco- Total 28 1,250,019 |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies 2.1. Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The consolidated financial statements include the accounts of ASC and its subsidiaries. All subsidiaries are 100% directly or indirectly owned by ASC. One 50% owned joint venture entity is accounted for using the equity method (please refer to note 2.21, Equity accounted investments for more details). All intercompany balances and transactions have been eliminated on consolidation. 2.2. Uses of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for tangible assets, expected future cash flows from long-lived assets to support impairment tests, provisions necessary for accounts receivables, the selection of inputs used in the valuation model for share-based payment awards, provisions for legal disputes and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable. Actual results could differ from those estimates. 2.3. Reporting currency The consolidated financial statements are stated in U.S. Dollars. The functional currency of Ardmore is U.S. Dollars because Ardmore operates in international shipping markets which typically utilize the U.S. Dollar as the functional currency. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than U.S. Dollar are translated to reflect the year end exchange rates. Resulting gains and losses are included in the accompanying consolidated statement of operations. 2.4. Summary of significant accounting policies In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, or ASC 606, a standard that supersedes virtually all of the prior revenue recognition guidance in U.S. GAAP. The main principle of ASC 606 is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The new standard became effective for Ardmore on January 1, 2018. The impact of ASC 606 on the Company’s consolidated financial statements is described below. In February 2016, the FASB issued ASC 842, Leases (“ASC 842”), a standard which replaces previous topics on lease accounting. The revised guidance requires lessees to recognize on their balance sheet a right of use asset and corresponding liability in respect of all material lease contracts. Ardmore previously recognized on its balance sheet those leases classified as capital leases. Those leases that are currently accounted for as operating leases (primarily for office space) are included on Ardmore’s balance sheet as a right of use asset and related lease liability in accordance with the new guidance. ASC 842 and related amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and requires the modified retrospective method of adoption. The Company implemented these two new accounting standards and updated their policies as of January 1, 2018, with ASC 842 being early adopted. Both accounting standards were applied using the modified retrospective method. The Company took the practical expedient to not reassess whether any expired or existing contracts are, or contain, leases. (ASC 842-10-65-1(f)). The implementation of ASC 606 did not have a material impact on the financial statements as the majority of the Company’s spot charters fall under the scope of the new lease standard ASC 842. An adjustment of $418,822 is presented as a cumulative adjustment to opening retained earnings as of January 1, 2018. The corresponding adjustment for 2018 was $454,581 resulting in a cumulative effect to revenue of $35,759. 2.4.1. Lease revenue from voyage charters For the majority of the Company’s spot charters, the Company make its vessels and crew available to operate as determined by the charterer. On this basis, the Company has concluded that these spot charter contracts contain a lease. For spot charters where the customer is not taking control of the vessel and only requires a method of transportation, the Company has concluded that these charters do not contain a lease and are considered service contracts. For those spot charters that contain a lease, the Company has performed a quantitative and qualitative analysis to determine whether the lease component or the non-lease component is the predominant component of the contract. The Company has determined that the appropriate timeframe for the Company’s quantitative analysis, is a period of 10 years. The Company believes that a 10-year period is an appropriate timeframe because this period is expected to include low and high points in the normal shipping cycle. Therefore, the conclusion on this quantitative analysis is expected to be consistent, regardless of when the analysis is done in the determined timeframe. The Company’s conclusion on the quantitative analysis done on this basis is that the lease component is the predominant component. For its qualitative analysis, the Company considered that the predominant benefit for its customers is taking control of the vessel and having the right to direct its use, rather than the benefit derived from the service the Company provides executing their instructions. Based on the Company’s qualitative analyses, the Company has also concluded that the lease component is the predominant component. As the period the Company makes its vessels and crew available is the same period that it provides the service to execute the customer’s orders, the Company has concluded that lease and non-lease component have the same pattern of transfer. As permitted by ASC 842, the Company has taken the practical expedient to not disclose the different lease and non-lease components. Additionally, for those spot charters that the Company determined contain a lease the Company is the lessor and these spot charters have terms that allow the charterer to exercise substantive decision-making rights which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel will be used. Under these charters there are no substantive substitution rights and the vessel is specified in the contract. Voyage expenses will be recognized over the term of the lease. Initial costs, such as broker commissions, are deferred and expensed over the voyage term. Lease revenues from voyage charters on the spot market are recognized ratably on a discharge-to-discharge basis i.e. from when cargo is discharged (unloaded) at the end of one voyage to when it is discharged after the next voyage. On those cases where the charterer directs the use of the vessel from the loading port, lease revenue is recognized ratably on a load to discharge basis. Revenue is recognized in both of these cases, provided an agreed non-cancellable charter between the Company and the charterer is in existence, and collectability is reasonably assured. Lease revenue under voyage charters is not recognized until a charter has been agreed even if the vessel has discharged its previous cargo and is proceeding to an anticipated port of loading. Demurrage revenue represents payments by the charterer to the Company when the loading or discharging time exceeds the stipulated time in the voyage charter. Demurrage is only included in the voyage revenue recognition when the excess time has been incurred. The additional time required to execute the charterer’s orders are not considered distinct but to form part of the single obligation of making the vessel and the crew available and executing the charterer’s orders. Demurrage revenue is recognized ratably on a discharge-to-discharge basis, (i.e. from when cargo is discharged (unloaded) at the end of one voyage to when it is discharged after the next voyage), provided collection is reasonably assured. 2.4.2. Pool revenues Ardmore includes certain of its vessels in commercial pooling arrangements from time to time. The pooling arrangements in which Ardmore participated in 2018, are arrangements in which the earnings from all participants are pooled and shared. In these arrangements, the members seek to benefit from the more efficient employment of their vessels as the manager leverages the size of the fleet commercially and operationally. The manager is responsible for the commercial management on behalf of the members of the pool, and the pool members are responsible for maintaining the operational efficiency of their participating vessels. Pool revenues and expenses for the Company’s pool arrangements have been accounted for in accordance with the guidance for collaborative arrangements. Revenues and voyage expenses of Ardmore’s vessels operating in commercial pooling arrangements are pooled with the revenues and voyage expenses of other pool participants. The resulting net pool revenues are allocated to the pool participants according to an agreed formula. The formulas used to allocate net pool revenues allocate revenue to pool participants on the basis of the number of days a vessel operates in the pool with weighted adjustments made to reflect the vessels’ differing capacities and performance capabilities. Therefore, the determined net revenues represent the pool members’ consideration for their different contribution to the collaborative arrangement. Ardmore accounts for its vessels’ share of net pool revenue on a monthly basis. Net pool revenues due from the pooling arrangements are included in receivables, trade. 2.4.3. Service revenue from voyage charters Voyage charters on the spot market that do not meet the lease definition (as described in Note 2.4.1) are recognized ratably on a load-to-discharge basis, (i.e. from when cargo is loaded at the port to when it is discharged after the next voyage). Demurrage revenue, which is included in voyage revenues, represents payments by the charterer to Ardmore when the loading or discharging time exceeds the stipulated time in the voyage charter, and is also recognized ratably on a load-to-discharge basis. This reflects the consideration to which the Company expects to be entitled to receive in exchange for the promised services. Voyage expenses are recognized over the length of the voyage as the performance obligation is satisfied. Initial costs to reposition a vessel are considered fulfillment costs and are deferred and recognized from load to discharge in the same manner as the voyage expenses. 2.4.4. Expenses Voyage expenses, including commissions and administration fees, are deferred and expensed over the voyage term. Under time charters or pool employment, expenses such as, port fees, cargo loading and unloading expenses, canal tolls and agency fees are paid by the charterers. Under voyage charters, these expenses are borne by Ardmore and are deferred and expensed over the voyage term. Bunker fuel expenses under voyage charters are borne by Ardmore and these are expensed as incurred. Vessel operating expenses are costs that are directly attributable to the operation of the vessels such as costs of crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. 2.4.5. Charterhire costs Charterhire costs relate to amounts paid for chartering in vessels. Charter hire costs are expensed to the statement of operations as incurred. 2.4.6. Operating leases (office rent) Operating leases relate to long-term commitments for the Company’s offices. Ardmore recognizes on the balance sheet the right to use those assets and a corresponding liability in respect of all material lease contracts. The discount rate used for calculating the cost of the operating leases is the incremental cost of borrowing. In relation to the Company’s operating leases, prior periods were not restated to reflect recording of the right of use asset/liability related to these leases. 2.4.7. Finance leases Finance leases relate to financing arrangements for vessels in operation. Interest costs are expensed to interest expense and finance costs in the consolidated statement of operations using the effective interest method over the life of the lease. Following the implementation of ASC 842, Leases, the transactions for the sale and leaseback of vessels, which were previously classified as capital leases under ASC 840, Leases, are now classified as finance leases with no other changes. 2.5. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016 -13: Financial Instruments - Credit Losses (Topic 326) which requires recognition of management’s estimate of current expected credit losses, rather than the current incurred losses model. The new model is generally applicable to all financial instruments that are not accounted for at fair value through net income. The standard will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently assessing the guidance; however, the Company does not expect adoption of this standard to have a material impact on its consolidated financial statements and related disclosures. In July 2018, the FASB issued ASU 2018-11: Leases (Topic 842) Target Improvements which provides lessors with a permitted practical expedient to not separate non-lease components from the associated lease component. The Company has elected to apply the expedient in respect of certain voyage revenue from spot charters. 2.6. Cash and cash equivalents Ardmore classifies investments with an original maturity date of three months or less as cash and cash equivalents. 2.7. Receivables, trade Receivables, trade include amounts due from charterers for hire and other recoverable expenses due to Ardmore. At the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. 2.8. Working capital advances Working capital advances relate to capital advanced directly to ship pools in which Ardmore’s vessels operate. All working capital amounts are classified as current assets where it is expected that the amounts advanced will be realized within one year. 2.9. Prepayments Prepayments consist of payments in advance for insurance or other ad hoc prepaid purchases. 2.10. Advances and deposits Advances and deposits primarily include amounts advanced to third-party technical managers for expenses incurred by them in operating the vessels, together with other necessary deposits paid during the course of business. 2.11. Other receivables Other receivables primarily relate to insurance claims outstanding, and certain assets held by vessel managers. Insurance claims are recorded, net of any deductible amounts, at the time Ardmore realizes insured damages, where recovery is highly likely under the related insurance policies and where Ardmore can make an estimate of the amount to be reimbursed following the insurance claim. At the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. 2.12. Inventories Inventories consist of bunkers, lubricating oils and other consumables on board the Company’s vessels. Inventories are valued at the lower of cost or market value on a first-in first-out basis. Cost is based on the normal levels of cost and comprises the cost of purchase, being the suppliers’ invoice price with the addition of charges such as freight or duty where appropriate. 2.13. Vessels Vessels are recorded at their cost less accumulated depreciation. Vessel cost comprises acquisition costs directly attributable to the vessel and the expenditures made to prepare the vessel for its initial voyage. Vessels are depreciated on a straight-line basis over their estimated useful economic life from the date of initial delivery from the shipyard. The useful life of Ardmore’s vessels is estimated at 25 years from the date of initial delivery from the shipyard. Depreciation is based on cost less estimated residual scrap value. Residual scrap value is estimated as the lightweight tonnage of each vessel multiplied by the estimated scrap value per ton. 2.13.1. Capital upgrades Ardmore capitalizes and depreciates the costs of significant replacements, renewals and upgrades to its vessels over the shorter of the vessel’s remaining useful life or the life of the renewal or upgrade. The amount capitalized is based on management’s judgment as to expenditures that extend a vessel’s useful life or increase the operational efficiency of a vessel. Costs that are not capitalized are recorded as a component of direct vessel operating expenses during the period incurred. Expenses for routine maintenance and repairs are expensed as incurred. 2.13.2. Ballast water treatment systems (BWTS) Ardmore is in the process of installing BWTS on each of its vessels that do not currently have the system installed. This is a requirement of the International Maritime Organization’s Ballast Water Management Convention which comes into force from September 2019. Ardmore capitalizes and depreciates the costs of BWTS on each vessel, from the date of completion of the system, over the remaining useful life of the vessel. As none of these systems were completed nor in use at December 31, 2018 depreciation has not yet commenced. 2.14. Impairment Vessels and equipment that are “held and used” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. When such indicators are present, a vessel to be held and used is tested for recoverability by comparing the estimate of future undiscounted net operating cash flows expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition to its carrying amount together with the carrying value of deferred drydock and special survey costs related to the vessel. Net operating cash flows are determined by applying various assumptions regarding future revenues net of commissions, operating expenses, scheduled drydockings, expected offhire and scrap values, and taking into account historical revenue data and published forecasts on future world economic growth and inflation. In estimating future revenues, the Company considers charter rates for each vessel class over the estimated remaining lives of the vessels using both historical average rates for the Company over the last 5 years, where available, and historical average one-year time charter rates for the industry over the last 10 years in each case adjusted for inflation. Recognizing that rates tend to be cyclical and considering market volatility based on factors beyond the Company’s control, management believes it is reasonable to use estimates based on a combination of more recent inflation-adjusted internally-generated rates and the inflation-adjusted 10-year average historical average industry rates. During the fourth quarter of fiscal year 2018, an impairment assessment of long-lived assets was performed. The Company’s assessment concluded that impairment was not required for any vessel. An impairment charge is recognized if the carrying value is in excess of the estimated future undiscounted net operating cash flows. The impairment loss is measured based on the excess of the carrying amount over the fair market value of the asset. 2.15. Drydock expenditure Vessels are typically drydocked every three to five years. Expenditures incurred in drydocking are deferred and amortized until the next scheduled drydocking. Ardmore only includes in deferred drydocking costs those direct costs that are incurred as part of the drydocking to meet regulatory requirements, expenditures that add economic life to the vessel, and expenditures that increase the vessels earnings capacity or improve the vessels operating efficiency. Expenses for routine maintenance and repairs are expensed as incurred. 2.16. Vessels under construction The carrying value of the vessels under construction represents the accumulated costs to the consolidated balance sheet date which Ardmore has had to pay by way of purchase instalments and other capital expenditures, together with capitalized interest and other pre-delivery costs. The amount of interest expense capitalized in an accounting period is determined by applying an interest rate (“the capitalization rate”) to the average amount of accumulated expenditures for the asset during the period. The capitalization rates used in an accounting period are based on the rates applicable to borrowings outstanding during the period. If Ardmore’s borrowings are directly attributable to the vessels under construction, Ardmore uses the rate on that borrowing as the capitalization rate. If average accumulated expenditures for the asset exceed the amounts of specific borrowings associated with the asset, the capitalization rate applied to such excess is a weighted average of the rates applicable to other borrowings of Ardmore. Ardmore does not capitalize amounts in excess of actual interest expense incurred in the period. No charge for depreciation is made until the vessel is available for use. 2.17. Vessels held for sale Assets are classified as held for sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. Consideration is given to whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When assets are classified as held for sale, they are tested for impairment. An impairment charge is recognized when the carrying value of the asset exceeds the estimated fair value, less transaction costs. Assets classified as held for sale are no longer depreciated. 2.18. Deposit for vessel acquisition Cash paid as deposit for an acquisition of a vessel that is considered restricted cash. 2.19. Leasehold improvements Leasehold improvements relate to fit-out costs for work completed on Ardmore’s offices in Ireland and Singapore. These are recorded at their cost less accumulated depreciation and are depreciated over the life of the respective leases. 2.20. Other non-current assets Other assets relate to office equipment, fixtures and fittings. These are recorded at their cost less accumulated depreciation and are depreciated based on an estimated useful life of five years. 2.21. Equity accounted investments Ardmore’s investment in Anglo Ardmore Ship Management Limited is accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. Ardmore evaluates its equity accounted investment for impairment when events or circumstances indicate that the carrying value of such investment may have experienced and other than temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in Ardmore’s consolidated statements of operations. 2.22. Payables, trade Payables, trade include all accounts payable and accrued liabilities in relation to the operating and running of the vessels, along with amounts due for general and administrative expenses. 2.23. Other payables Other payables primarily consist of amounts due for minor ad hoc payables. 2.24. Contingencies Claims, suits and contingencies arise in the ordinary course of Ardmore’s business. Ardmore provides for these contingencies when (i) it is probable that a liability has been incurred at the date of the financial statements and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for contingencies that do not meet both these conditions if there is a reasonable possibility that a liability may have been incurred at the balance sheet date. Any such matters that should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements, are discussed in Note 22 to the consolidated financial statements. 2.25. Distributions to shareholders Distributions to shareholders are applied first to retained earnings. When retained earnings are not sufficient, distributions are applied to the additional paid in capital account. Ardmore operates a policy of paying out distributions equal to 60% of Earnings from Continuing Operations. 2.26. Equity issuance costs Incremental costs incurred that are directly attributable to a proposed or actual offering of equity securities are deferred and deducted from the related proceeds of the offering, and the net amount is recorded as contributed shareholders’ equity in the period when such shares are issued. Other costs incurred that are not directly attributable, but are related, to a proposed or actual offering are expensed as incurred. 2.27. Debt issuance costs Financing charges which include fees, commissions and legal expenses associated with securing loan facilities and finance lease agreements are presented in the consolidated balance sheet as a direct deduction from the carrying amount of debt liability. These costs are amortized to interest expense and finance costs in the consolidated statement of operations using the effective interest rate method over the life of the related debt. 2.28. Share based compensation Ardmore may grant share-based payment awards, such as restricted stock units, as incentive-based compensation to certain employees. Ardmore measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period, which generally equals the vesting period. If the award contains a market condition, such conditions are included in the determination of the fair value of the stock unit. Once the fair value has been determined, the associated expense is recognized in the consolidated statement of operations over the requisite service period. 2.29. Treasury stock When shares are acquired for a reason other than formal or constructive retirement, the shares are presented separately as a deduction from equity. If the shares are retired or subsequently sold, any gain would be allocated as a reduction in additional paid in capital and any loss as a reduction in retained earnings. 2.30. Dividend Reinvestment Plan In April 2015, Ardmore established a Dividend Reinvestment Plan (“DRIP”) to enable shareholders to reinvest their quarterly dividend in common shares of the Company. The Form F-3D registration statement detailing these shares is available from the SEC website. The DRIP allows for the purchase of additional common shares by either full dividend reinvestment or partial dividend reinvestment. When a shareholder signs up to the plan there are two options available to Ardmore when sourcing the shares for settlement under the DRIP. 1. Open Market (“OM”): Ardmore issues shares already available in the open market or in privately negotiated transactions. 2. Original Issue (“OI”): Ardmore registers and issues additional new shares. The purchase price for shareholders of common shares under the DRIP depends on which option Ardmore chooses. For OM shares the price is the weighted average of the actual price paid for all shares purchased by the Transfer Agent on behalf of the participants of the DRIP. For OI shares the price is the daily high and the daily low average share price for the five business days immediately preceding the dividend payment date. In instances where Ardmore chooses OM settlement, the accounting treatment is the same as when a regular dividend is paid and not reinvested by shareholders, since Ardmore makes a cash payment equal to the amount of the dividend. Where Ardmore chooses OI settlement, the Company records an increase in Share Capital for the par value of the shares and record any excess of market value over par within Additional Paid in Capital. The dividend is distributed first from retained earnings but is applied to additional paid in capital if retained earnings are not sufficient. Where Ardmore utilizes existing treasury shares (which can only occur under an OI transaction), the Company reduces Treasury Shares and increase Share Capital for the par value of the shares to be issued. Any excess of market value over cost is recorded in Additional Paid in Capital. If a gain arises on utilizing Treasury Stock for the dividend reinvestment, the Company recognizes the gain within Additional Paid in Capital. If a loss arises, the Company records the loss within retained earnings 2.31. Financial instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable reported in the consolidated balance sheet are reasonable estimates of their fair values due to their short-term nature. The fair values of long-term debt approximate the recorded values due to the variable interest rates payable. 2.32. Income taxes Republic of the Marshall Islands Ardmore Shipping Corporation (“ASC”), Ardmore Shipping LLC (“ASLLC”), Ardmore Maritime Services LLC, and all vessel owning subsidiaries are incorporated in the Republic of the Marshall Islands. ASC believes that neither it, nor its subsidiaries, are subject to taxation under the laws of the Republic of the Marshall Islands and that distributions by its subsidiaries to ASC will not be subject to any taxes under the laws of the Republic of the Marshall Islands. Bermuda Ardmore Shipping (Bermuda) Limited (“ASBL”) is incorporated in Bermuda. ASC, ASLLC and ASBL are managed and controlled in Bermuda. ASC is subject to taxation under the laws of Bermuda and distributions by its subsidiaries to ASC will be subject to any taxes under the laws of Bermuda. Ireland Ardmore Shipholding Limited (“ASHL”) and Ardmore Shipping Services (Ireland) Limited (“ASSIL”) are incorporated in Ireland. ASHL is dormant and as such is not anticipated to generate trading income subject to corporation tax in Ireland. ASSIL’s trading profits are taxable at the standard corporation tax rate which is currently 12.5% based on generally accepted accounting principles in Ireland. Any non-trading/passive income is taxed at the higher corporation tax rate which is currently 25%. United States of America Ardmore Shipping (Americas) LLC (“ASUSA”) and Ardmore Trading (USA) LLC (“ATUSA”) are incorporated in Delaware and treated as corporations for U.S. tax purposes. ASUSA and ATUSA will be subject to U.S. tax on their worldwide net income. Singapore Ardmore Shipping (Asia) Pte. Limited (“ASA”) and Ardmore Tanker Trading (Asia) Pte. Limited (“ATTA”) are incorporated in Singapore. ASA qualified as an “Approved International Shipping Enterprise” by the Singapore authorities with effect from August 1, 2015. This entitles the company to tax exemption on profits derived from ship operations for any ships which are owned or chartered in by ASA. ATTA will be su |
Restatement of financial statem
Restatement of financial statements | 12 Months Ended |
Dec. 31, 2018 | |
Restatement of financial statements [Abstract] | |
Restatement of financial statements | 3. Restatement of financial statements Pursuant to Accounting Standards Codification 360-10, Property, plant, and equipment, The Company identified an error in the classification of the net gains and losses on disposal of vessels in the Company’s consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016. The Company is restating its consolidated statement of operations for the years ended December 31, 2018, 2017, and 2016 (the “Financial Statements”) to remove the subtotal for (loss)/profit from operations. There was no effect on the Company’s previously reported consolidated balance sheets as at December 31, 2018 and 2017, or consolidated statements of cashflows or changes in equity for the years ended December 31, 2018, 2017, and 2016. |
Business and segmental reportin
Business and segmental reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business and segmental reporting | 4. Business and segmental reporting Ardmore is primarily engaged in the ocean transportation of petroleum and chemical products in international trade through the ownership and operation of a fleet of tankers. Tankers are not bound to specific ports or schedules and therefore can respond to market opportunities by moving between trades and geographical areas. Ardmore charters its vessels to commercial shippers through a combination of time-charter, pool and spot arrangements. The chief operating decision maker (“CODM”) does not use discrete financial information to evaluate the operating results for each such type of charter. Although revenue can be identified for these types of vessel employment, management cannot and does not identify expenses, profitability or other financial information for these charters or other forms of employment. As a result, the CODM reviews operating results solely by revenue per day and operating results of the fleet. Furthermore, when Ardmore charters a vessel to a charterer, the charterer is free to trade the vessel worldwide (subject to certain sanctions-related restrictions) and, as a result, the disclosure of geographic information is impracticable. In this respect, Ardmore has determined that it operates under one reportable segment, relating to its operations of its vessels. The following table presents consolidated revenues for customers that accounted for more than 10% of Ardmore’s consolidated revenues during the years presented: For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Navig8 Group < 10 % < 10 % 19,158,623 Vitol 27,025,590 34,797,654 43,960,560 Trafigura < 10 % < 10 % 17,498,550 The following table present the Company’s revenue contributions by type of vessel employment. As at December 31, 2018, all of the Company’s 28 vessels were employed in the spot market. For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Time charter — 1,418,636 28,294,215 Spot 196,132,999 155,901,280 93,162,634 Pool 14,046,182 38,615,476 42,947,089 210,179,181 195,935,392 164,403,938 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | 5. Cash and cash equivalents For the year ended Dec 31, 2018 Dec 31, 2017 Cash and cash equivalents 56,903,038 39,457,407 Ardmore is required to maintain a minimum cash balance in accordance with its long-term debt facility agreements (see Note 9) and long-term finance lease facility agreements (see Note 10). |
Receivables, trade
Receivables, trade | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Receivables, trade | 6. Receivables, trade There was no provision for doubtful accounts as at December 31, 2018 (2017: $0). The maximum amount of loss due to the credit risk is the full amount of trade receivables. All trade receivables are current. The carrying value of receivables approximates their fair value. |
Working capital advances
Working capital advances | 12 Months Ended |
Dec. 31, 2018 | |
Working Capital Advances [Abstract] | |
Working capital advances | 6. Working capital advances At the balance sheet date, all potentially uncollectible working capital advances are assessed individually for purposes of determining the appropriate provision for doubtful accounts. There was no provision for doubtful advances at December 31, 2018 (2017: $0). |
Non-current assets
Non-current assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Non-current assets | 8. Non-current assets The scrap value of the vessels is estimated at $300 (2017: $300) per lightweight ton. Interest capitalized in relation to vessels under construction during the year ended December 31, 2018 was nil (2017: $0). Vessels, which are owned and operated by Ardmore, have been provided as collateral under certain loan agreements entered into by Ardmore (see Note 9). Sellers credit in relation to the finance leases for the Ardmore Sealeader Ardmore Sealifter |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt As at December 31, 2018, Ardmore had five loan facilities, which it has used primarily to finance vessel acquisitions or vessels under construction and also for working capital. ASC’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for Ardmore’s obligations under the loan facilities, which totaled 15 vessels as at December 31, 2018. ASC and its subsidiary ASLLC have provided guarantees in respect of the loan facilities and ASC has granted a guarantee over its trade receivables in respect of the ABN AMRO Revolving Facility. These guarantees can be called upon following a payment default. The outstanding principal balances on each loan facility as at December 31, 2018 and 2017 were as follows: As at Dec 31, 2018 Dec 31, 2017 NIBC Bank Facility 7,465,000 8,885,000 CACIB Bank Facility 31,300,000 34,100,000 ABN/DVB/NIBC Joint Bank Facility 92,131,594 162,115,591 Nordea/SEB Joint Bank Facility 86,371,847 132,272,938 ABN AMRO Facility — 64,201,180 ABN AMRO Revolving Facility 14,994,279 11,092,158 Total debt 232,262,720 412,666,867 Deferred finance fees (3,908,472 ) (8,243,297 ) Net total debt 228,354,248 404,423,570 Current portion of long-term debt 24,217,892 39,282,538 Current portion of deferred finance fees (1,383,349 ) (2,210,990 ) Total current portion of long-term debt 22,834,543 37,071,548 Non-current portion of long-term debt 205,519,705 367,352,022 Future minimum scheduled repayments under Ardmore’s loan facilities for each year are as follows: As at Dec 31, 2018 2019 24,217,892 2020 39,212,171 2021 26,521,166 2022 142,311,491 232,262,720 NIBC Bank Facility On September 12, 2014, one of ASC’s subsidiaries entered into a $13.5 million long-term loan facility with NIBC Bank N.V. to finance a secondhand vessel acquisition which delivered to Ardmore in 2014. The facility was drawn down in September 2014 and bears interest at a rate of LIBOR plus 2.90%. Principal repayments on the loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The loan facility matures in September 2021. CACIB Bank Facility On May 22, 2014, two of ASC’s subsidiaries entered into a $39.0 million long-term loan facility with Credit Agricole Corporate and Investment Bank to finance two vessels under construction. On March 10, 2016, this facility was refinanced, the lenders provided an additional $25 million commitment for additional financing and an additional tranche of $2.3 million was drawn down. The $25 million of additional financing was drawn and repaid in full during the three-month period ended September 30, 2016. Interest is calculated on each tranche at a rate of LIBOR plus 2.50%. Principal repayments on the loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The full facility matures in 2022. ABN/DVB/NIBC Joint Bank Facility On January 13, 2016, 12 of ASC’s subsidiaries entered into a $213 million long-term loan facility with ABN AMRO Bank N.V. (“ABN AMRO”) and DVB Bank America N.V. to refinance existing facilities. The loan was fully drawn down on January 22, 2016. Interest is calculated at a rate of LIBOR plus 2.55%. Principal repayments on the loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The loan matures in 2022. In May 2017, $20.1 million was repaid as part of the refinancing of the Ardmore Sealeader Ardmore Sealifter Ardmore Engineer. On August 4, 2016, an incremental term loan of $36.6 million was made under the amended facility in order to fund two vessel acquisitions, and NIBC Bank N.V. joined as an additional lender under the facility. The incremental term loan consisted of two tranches, and interest is calculated at a rate of LIBOR plus 2.75%. On December 6, 2018, the two additional tranches were repaid as part of the refinancing of the Ardmore Seavanguard Ardmore Exporter. Nordea/SEB Joint Bank Facility On January 13, 2016, seven of ASC’s subsidiaries entered into a $151 million long-term loan facility with Nordea Bank AB (publ) and Skandinaviska Enskilda Banken AB (publ) to refinance existing facilities. The loan was fully drawn down on January 22, 2016. Interest is calculated at a rate of LIBOR plus 2.50%. On October 29, 2018, two of the tranches were repaid as part of the refinancing of the Ardmore Dauntless Ardmore Defender ABN AMRO Facility On July 29, 2016, four of ASC’s subsidiaries entered into a $71.3 million long-term loan facility with ABN AMRO for vessel acquisitions. Three of the four tranches under the facility were drawn down during the third quarter of 2016. The fourth tranche was drawn down in the fourth quarter of 2016. On June 26, 2018, two of the tranches were repaid as part of the refinancing of the Ardmore Endurance Ardmore Enterprise Ardmore Encounter Ardmore Explorer. ABN AMRO Revolving Facility On October 24, 2017, Ardmore entered into a $15 million revolving credit facility with ABN AMRO to fund working capital. Interest is calculated at a rate of LIBOR plus 3.5%. Interest payments are payable on a quarterly basis. The facility matures in October 2020 with an option to extend for a further year. Long-term debt financial covenants Ardmore’s existing long-term debt facilities described above include certain covenants. The financial covenants require that ASC: • maintain minimum solvency of not less than 30%; • maintain minimum cash and cash equivalents based on the number of vessels owned and chartered-in and 5% of outstanding debt; the required minimum cash balance as of December 31, 2018, was $23.5 million; • ensure that the aggregate fair market value of the applicable vessels plus any additional collateral is, depending on the facility, no less than 130% of the debt outstanding for the facility; • maintain a corporate net worth of not less than $150 million; and • maintain positive working capital, excluding balloon maturities. The Company was in full compliance with all of its loan covenants as of December 31, 2018 and 2017. |
Finance leases
Finance leases | 12 Months Ended |
Dec. 31, 2018 | |
Finance Leases [Abstract] | |
Finance leases | 10. Finance leases As at December 31, 2018 Ardmore was a party, as the lessee, to seven finance lease facilities, which it has used primarily to finance vessel acquisitions and for working capital. ASC’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for Ardmore’s obligations under the finance lease facilities, which totaled 13 vessels as at December 31, 2018 (2017: three vessels) . ASC has provided guarantees in respect of the finance lease facilities. These guarantees can be called upon following a payment default. The outstanding principal balances on each finance lease facility as at December 31, 2018 and 2017 were as follows: As at Dec 31, 2018 Dec 31, 2017 River Hudson LLC 10,380,600 11,767,600 Japanese Leases No.1 and 2 36,253,400 41,094,600 Japanese Lease No.3 17,870,500 — CMBFL Leases No.1 to 4 87,496,402 — Ocean Yield ASA 66,563,040 — Japanese Lease No.4 26,061,943 — China Huarong Leases 51,555,997 — Total minimum finance lease payments 296,181,882 52,862,200 Amounts representing interest and deferred finance fees (54,705,784 ) (10,368,181 ) Net minimum finance lease payments 241,476,098 42,494,019 Amount receivable in respect of finance leases (2,880,000 ) (2,880,000 ) Adjusted net minimum finance lease payments 238,596,098 39,614,019 Current portion of finance lease obligations 26,589,017 3,783,044 Current portion of deferred finance fees (739,817 ) (245,578 ) Non-current portion of finance lease obligations 218,985,447 39,402,440 Non-current portion of deferred finance fees (3,358,549 ) (445,887 ) Total finance lease obligations 241,476,098 42,494,019 Amount receivable in respect of finance leases (2,880,000 ) (2,880,000 ) Net finance lease obligations 238,596,098 39,614,019 Future minimum scheduled payments under Ardmore’s finance lease facilities for each year are as follows: As at 2019 37,532,945 2020 26,868,097 2021 26,523,339 2022 26,470,805 2023 38,028,900 2024 – 2030 140,757,796 Total minimum finance lease payments 296,181,882 Amounts representing interest and deferred finance fees (54,705,784 ) Net minimum finance lease payments (1) 241,476,098 Amount receivable in respect of finance leases (2,880,000 ) Adjusted net minimum finance lease payments 238,596,098 (1) Includes $8.3 million related to vessel held for sale repayable on January 2, 2019. Assets recorded under finance leases consist of the following: As at Dec 31, 2018 Dec 31, 2017 Vessels, equipment and deferred drydock expenditure 360,675,433 75,712,769 Accumulated depreciation (46,540,825 ) (19,721,568 ) Vessel held for sale 8,083,405 — 322,218,013 55,991,201 River Hudson LLC On December 22, 2016, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Seatrader Japanese Leases No. 1 and 2 On May 30, 2017, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealeader Ardmore Sealifter Japanese Lease No. 3 On January 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealancer CMBFL Leases No. 1 to 4 On June 26, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Endurance and Ardmore Enterprise, On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Encounter Ardmore Explorer Ocean Yield ASA On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Dauntless Ardmore Defender Japanese Lease No. 4 On November 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), with Rich Ocean Shipping of the Ardmore Engineer China Huarong Leases On November 30, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Seavanguard Ardmore Exporter The facility was drawn down in December 2018. Interest is calculated at a rate of plus 3.50%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for to repurchase the vessels, as well as purchase options exercisable by , which could elect to exercise at an earlier date. Finance leases financial covenants Some of Ardmore’s existing finance lease facilities (as described above) include financial covenants which are consistent with, or no more onerous than, ASC’s long-term debt financial covenants described in Note 9. The Company was in full compliance with all of its finance lease covenants as of December 31, 2018 and 2017. |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Operating leases | 11. Operating leases 11.1. Operating leases — spot charter For those spot charters that the Company has determined are operating leases, the term of the lease is always less than one year. The lease payments to be received for ongoing charters at December 31, 2018 relate to outstanding freight and demurrage revenue expected to be received in the coming months. Therefore, the disclosure of the maturity analysis of lease payments required by ASC 842, Leases, is limited to one year. For those ongoing charters at December 31, 2018, the outstanding lease payments to be received by the Company as at December 31, 2018 amounted to $20.7 million. 11.2. Operating leases — office rent Ardmore has chosen to early adopt, as of January 1, 2018 ASC 842 Leases which requires lessees to recognize on their balance sheet a right of use asset and a corresponding liability in respect of all material lease contracts. The discount rate used is the incremental cost of borrowing. The weighted average remaining term of the office leases as of December 31, 2018 was 6.5 years. The liabilities described below are for the Company’s offices in Cork, Ireland, Singapore, Bermuda and Houston, Texas and are denominated in various currencies. Under ASC 842, the right of use asset is a nonmonetary asset and is remeasured into the Company’s reporting currency of the US Dollar using the exchange rate for the applicable currency as at the adoption date of ASC 842. The operating lease liability is a monetary liability and is remeasured quarterly using the current forward exchange rates. The difference in measurement between the right of use asset and lease liability is included in general and administrative expenses in the consolidated statement of operations. As at Dec 31, 2018 Jan 1, 2018 Operating lease, right of use asset 2,169,158 2,440,288 Total operating lease, right of use asset 2,169,158 2,440,288 Current portion of operating lease obligations 477,147 442,957 Non-current portion of operating lease obligations 1,491,507 1,997,331 Total operating lease obligations 1,968,654 2,440,288 Twelve months ended Dec 31, 2018 Dec 31, 2017 Foreign exchange gain on operating leases (200,504 ) — Total foreign exchange gain on operating leases (200,504 ) — As of December 31, 2018, the Company had the following undiscounted operating lease commitments: 2019 2020 2021 2022 2023 2024 – 2026 Office space 525,715 339,772 296,499 303,198 309,341 689,727 |
Sale of vessels
Sale of vessels | 12 Months Ended |
Dec. 31, 2018 | |
Assets Held-for-sale, Not Part of Disposal Group [Abstract] | |
Sale of vessels | 12. Sale of vessels In October 2015, Ardmore agreed to terms for the sale of the Ardmore Calypso Ardmore Capella In September 2016, Ardmore agreed to terms for the sale of the Ardmore Centurion The net loss on disposal of the vessels for the year ended December 31, 2016 is calculated as follows: Centurion Calypso Capella Total Sales proceeds 15,700,000 19,150,000 19,350,000 54,200,000 Net book value of vessels (18,222,109 ) (18,783,238 ) (18,253,669 ) (55,259,016 ) Sales related costs (531,001 ) (273,458 ) (228,210 ) (1,032,669 ) Lease termination costs and related finance fees — (254,731 ) (254,732 ) (509,463 ) Net (loss)/gain (3,053,110 ) (161,427 ) 613,389 (2,601,148 ) In 2017, there were no disposals of vessels. In November 2018, Ardmore agreed to terms for the sale of the Ardmore Seatrader The net loss on the vessel held for sale for the year ended December 31, 2018 is calculated as follows: Seatrader Sales proceeds 8,250,000 Net book value of vessel (14,444,217 ) Sales related costs (165,000 ) Lease termination costs and related finance fees (1,596 ) Net loss on vessel held for sale (6,360,813 ) |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Risk management | 13. Risk management 13.1. Operational risk Ardmore is exposed to operating costs arising from various vessel operations. Key areas of operating risk include drydock, repair costs, insurance, piracy and fuel prices. Ardmore’s risk management includes various strategies for technical management of drydock and repairs coordinated with a focus on measuring cost and quality. Ardmore’s relatively young fleet helps to minimize the risk. Given the potential for accidents and other incidents that may occur in vessel operations, the fleet is insured against various types of risk. Ardmore has established a set of countermeasures in order to minimize the risk of piracy attacks during voyages, particularly through regions which the Joint War Committee or the Company’s insurers consider high risk, or which they recommend monitoring, to make the navigation safer for sea staff and to protect Ardmore’s assets The price and supply of fuel is unpredictable and can fluctuate from time to time. Ardmore periodically considers and monitors the need for fuel hedging to manage this risk. 13.2. Foreign exchange risk The majority of Ardmore’s transactions, assets and liabilities are denominated in U.S. Dollars, the functional currency of Ardmore. Ardmore incurs certain general and operating expenses in other currencies (primarily the Euro, Singapore Dollar and Pound Sterling) and as a result there is a transactional risk to Ardmore that currency fluctuations will have a negative effect on the value of Ardmore’s cash flows. Such risk may have an adverse effect on Ardmore’s financial condition and results of operations. Ardmore believes these adverse effects to be immaterial and has not entered into any derivative contracts for either transaction or translation risk during the year. 13.3. Interest rate risk The Company is exposed to the impact of interest rate changes primarily through borrowings that require the Company to make interest payments based on LIBOR. Significant increases in interest rates could adversely affect the Company’s results of operations and its ability to repay debt. The Company monitors interest rate exposure and may enter into swap arrangements to hedge exposure where it is considered economically advantageous to do so. The disclosure in the immediately following paragraph about the potential effects of changes in interest rates are based on a sensitivity analysis, which models the effects of hypothetical interest rate shifts. A sensitivity analysis is constrained by several factors, including the necessity to conduct the analysis based on a single point in time and by the inability to include the extraordinarily complex market reactions that normally would arise from the market shifts. Although the following results of a sensitivity analysis for changes in interest rates may have some limited use as a benchmark, they should not be viewed as a forecast. This forward-looking disclosure also is selective in nature and addresses only the potential impacts on the Company’s borrowings. Assuming the Company does not hedge its exposure to interest rate fluctuations, a hypothetical 100 basis-point increase or decrease in the Company’s variable interest rates would have increased or decreased the Company’s interest expense for the year ended December 31, 2018 by $4.0 million (2017: $4.6 million) using the average long-term debt and finance lease balance and actual interest incurred in each period. 13 .4. Credit risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that substantially all of the amounts are held in short-term funds (with a credit risk rating of at least AA) managed by Blackrock and State Street Global Advisors. While Ardmore believes this risk of loss is low, it will keep this under review and will revise its policy for managing cash and cash equivalents if considered advantageous and prudent to do so. Ardmore limits its credit risk with trade accounts receivable by performing ongoing credit evaluations of its customers’ financial condition. It generally does not require collateral for its trade accounts receivable. Ardmore may have a credit risk in relation to vessel employment and at times may have multiple vessels employed by one charterer. Ardmore considers and evaluates concentration of credit risk regularly and performs on-going evaluations of these charterers for credit risk and credit concentration risk. As at December 31, 2018 Ardmore’s 28 vessels in operation were employed with 24 different charterers. 13.5. Income taxes Ardmore’s principal objective in relation to liquidity is to ensure that it has access, at minimum cost, to sufficient liquidity to enable it to meet its obligations as they fall due and to provide adequately for contingencies. Ardmore’s policy is to manage its liquidity by strict forecasting of cash flows arising from or expense relating to time charter revenue, pool revenue, vessel operating expenses, general and administrative overhead and servicing of debt. |
General and administrative expe
General and administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
General and Administrative Expense [Abstract] | |
General and administrative expenses | 14. General and administrative expenses 14.1. Corporate For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Staff salaries 5,419,944 6,851,692 5,709,919 Share based compensation (non-cash) 1,636,548 457,046 1,304,325 Office administration 2,658,087 2,538,973 2,565,838 Bank charges and foreign exchange 47,142 219,910 140,942 Auditors’ remuneration 676,600 558,600 513,429 Other professional fees 2,009,200 1,280,163 1,810,089 Other administration costs 178,852 72,633 11,183 12,626,373 11,979,017 12,055,725 14.2. Commercial and chartering Comm ercial and chartering expenses are the expenses attributable to the Company’s chartering and commercial operations departments in connection with the Company’s spot trading activities. For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Staff salaries 2,414,574 1,934,923 1,039,169 Office administration 419,773 341,219 201,685 Other professional fees — — 426,213 Other administration costs 399,541 343,606 354,420 3,233,888 2,619,748 2,021,487 |
Interest expense and finance co
Interest expense and finance costs | 12 Months Ended |
Dec. 31, 2018 | |
Interest Expense And Finance Costs [Abstract] | |
Interest And Finance Cost | 15. Interest expense and finance costs For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Interest incurred – debt 17,070,112 16,430,031 13,794,298 Interest incurred – finance leases 5,667,420 1,889,609 544,368 Amortization of deferred finance fees 2,400,621 2,536,402 3,415,452 Write-off of deferred finance fees in relation to refinancing 2,267,455 524,123 — 27,405,608 21,380,165 17,754,118 |
Interest income
Interest income | 12 Months Ended |
Dec. 31, 2018 | |
Interest Income [Abstract] | |
Interest income | 16. Interest income Interest income relates to bank interest received on Ardmore’s cash and cash equivalents balances. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 17. Income taxes (Loss)/profit before taxes was derived from the following sources: For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Domestic (42,776,078 ) (12,430,768 ) 3,808,366 (42,776,078 ) (12,430,768 ) 3,808,366 The components of the provision for income taxes are as follows: For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Domestic Current tax expenses (162,923 ) (59,567 ) (60,434 ) Income tax expense for year (162,923 ) (59,567 ) (60,434 ) All domestic tax for the years ended December 31, 2018 , 2017 and 2016 arose under the Irish tax jurisdiction for Ardmore Shipping Services (Ireland) Ltd and the U.S. tax jurisdiction for Ardmore Shipping (Americas) LLC. The tax years 2014 to 2018 remain open to examination by some of the major jurisdictions to which the Company is subject to tax. |
Net (loss)_earnings per share
Net (loss)/earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net earnings per share | 18. Net (loss)/earnings per share Basic and diluted (loss)/earnings per share is calculated by dividing the net (loss)/earnings available to common shareholders by the average number of common shares outstanding during the periods. Diluted earnings per share is calculated by adjusting the net (loss)/earnings available to common shareholders and the weighted average number of common shares used for calculating basic (loss)/earnings per share for the effects of all potentially dilutive shares. Such dilutive common shares are excluded when the effect would be to increase earnings per share or reduce a loss per share. For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Numerator: Net (loss)/profit (42,939,001 ) (12,490,335 ) 3,747,932 Denominator: Weighted average number of shares outstanding 32,837,866 33,441,879 30,141,891 Net (loss)/earnings per share, basic and diluted (1.31 ) (0.37 ) 0.12 For the |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | 19. Related party transactions There were no related party transactions during the year ended December 31, 2018. For the year ended There were no related party transactions for the year ended December 31, 2016. |
Share based compensation
Share based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share based compensation | 20. Share based compensation As at December 31, 2018, ASC had granted 1,990,762 SARs (inclusive of 5,779 forfeited SARs) to certain of its officers and directors under its 2013 Equity Incentive Plan. Under a SAR award, the grantee is entitled to receive the appreciation of a share of ASC’s common stock following the grant of the award. Each SAR provides for a payment of an amount equal to the excess, if any, of the fair market value of a share of ASC’s common stock at the time of exercise of the SAR over the per share exercise price of the SAR, multiplied by the number of shares for which the SAR is then exercised. Payment under the SAR will be made in the form of shares of ASC’s common stock, based on the fair market value of a share of ASC’s common stock at the time of exercise of the SAR. On April 4, 2018 ASC cancelled the 1,078,125 SARs awarded on August 1, 2013 (the “IPO SARs”), which had a per share exercise price significantly in excess of the current fair market value of a share of ASC’s common stock and replaced the IPO SARs with new awards of 1,719,733 SARs (the “New SARs”) that will vest in three equal annual tranches. The New SARs have a contractual term of 7 years and provide for certain dividend equivalent rights pursuant to which the holder will be entitled upon vesting of the SARs to payment in the form of additional shares equal to the value of any cash dividends declared and payable during the applicable vesting period with respect to the shares underlying the portion of the SARs that vest. The New SARs do not have a market condition and were valued using the Black-Scholes model. The SAR awards granted prior to the 2018 award contain a market condition whereby, in no event will the appreciation per share for any portion of the SAR award be deemed to exceed four times (i.e. 400%) the per share exercise price of the SAR. The market condition does not apply after July 31, 2016. The SAR awards with a market condition, were valued by applying a model based on the Monte Carlo simulation. The model inputs were the grant price, dividend yield based on the initial intended dividend set out by the Company, a risk-free rate of return equal to the zero-coupon U.S. Treasury bill commensurate with the contractual terms of the units and expected volatility based on the average of the most recent historical volatilities in the Company’s peer group. Both the Monte-Carlo simulation and Black-Scholes model rely on the same underlying financial theory. A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Grant Date SARs Exercise Vesting Grant Dividend Risk-free Expected Weighted Average Expected Valuation 12-Mar-14 22,118 $ 13.66 3 yrs $ 13.66 2.93 % 2.06 % 56.31 % $ 4.17 4.6 – 5.0 yrs Monte Carlo 01-Sept-14 5,595 $ 13.91 3 yrs $ 13.91 2.88 % 2.20 % 53.60 % $ 4.20 4.5 – 5.0 yrs Monte Carlo 06-Mar-15 37,797 $ 10.25 3 yrs $ 10.25 3.90 % 1.90 % 61.38 % $ 2.98 4.2 – 5.0 yrs Monte Carlo 15-Jan-16 205,519 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04-Apr-18 1,719,733 $ 7.40 3 yrs $ 7.40 0 % 2.51 % 40.59 % $ 2.67 4.25 yrs Black Scholes The cost of each tranche of SARs is being recognized by the Company on a straight-line basis. The recognition of share-based compensation costs related to the tranches that vested before July 31, 2016 would have been accelerated if the market condition had been met and the requisite service period had been completed. The Company’s policy for issuing shares upon the exercise, if any, of the SARs is to register and issue new common shares to the beneficiary. Changes in the SARs for the year ended December 31, 2018 are set forth below: No. of Weighted Balance as at January 1, 2018 1,343,375 $ 13.16 SARs granted during the twelve months ended December 31, 2018 1,719,733 $ 7.40 SARs exercised/converted/replaced during the twelve months ended December 31, 2018 (1,078,125 ) ($14.00 ) SARs forfeited during the twelve months ending December 31, 2018 — — Balance as at December 31, 2018 (none of which are exercisable or convertible) 1,984,983 $ 7.72 The total cost related to non-vested awards expected to be recognized through 2020 is set forth below: Period No. of Shares TOTAL 2019 573,244 1,185,060 2020 573,245 888,795 1,146,489 2,073,855 |
Repurchase of common stock
Repurchase of common stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Repurchase of common stock | 21. Repurchase of common stock On During During |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 22. Commitments and contingencies Debt commitments are disclosed above in Note 9. Finance lease commitments are disclosed above in Note 10. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | 23. Subsequent events In November 2018, Ardmore agreed to terms for the sale of the Ardmore Seatrader. Ardmore exercised its purchase option for the vessel under the finance lease on January 2, 2019 and repaid all amounts outstanding under the finance lease. The price for the subsequent sale of the vessel by Ardmore was $8.3 million, which was paid upon delivery of the vessel to the buyer on January 9, 2019. On January 2, 2019, ASC granted 176,659 Restricted Stock Units (RSUs) to certain of its officers and directors. Under an RSU award, the grantee is entitled to receive a share of ASC’s common stock for each RSU at the end of the vesting period. Payment under the RSU will be made in the form of shares of ASC’s common stock. The cost of RSUs will be recognized by the Company on a straight-line basis. The Company’s policy for issuing shares upon the exercise, if any, of the RSUs is to register and issue new common shares to the beneficiary. On February 1, 2019, Ardmore agreed to terms for the sale of the Ardmore Seamaster at a price of $9.7 million. The vessel is expected to deliver to the buyer in February, 2019. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Subsidiaries [Abstract] | |
Subsidiaries | 24. Subsidiaries The following is a list of ASC’s direct and indirect wholly owned subsidiaries as of December 31, 2018: Name of Company Country of Incorporation Principal Activities Ownership (%) Ardmore Shipping LLC Marshall Islands Holding company 100 % Ardmore Shipholding Limited Ireland Holding company 100 % Ardmore Maritime Services LLC Marshall Islands Holding company 100 % Ardmore Shipping (UK) Limited United Kingdom Chartering services 100 % Ardmore Shipping (Bermuda) Limited Bermuda Executive offices and fleet 100 % Ardmore Shipping (Asia) Pte Limited Singapore Chartering services 100 % Ardmore Shipping (Americas) LLC United States Chartering services 100 % Ardmore Chartering LLC Marshall Islands Chartering services 100 % Ardmore Shipping Services (Ireland) Limited 100 % Ardmore Pool Holdings LLC Marshall Islands Holding company 100 % Ardmore MR Pool LLC Marshall Islands Commercial management and chartering services 100 % Ardmore Tanker Trading (Asia) Pte Ltd Singapore Chartering services 100 % Ardmore Trading (USA) LLC United States Chartering services 100 % Hebrides Shipco LLC Marshall Islands Dormant 100 % Sole Shipco LLC Marshall Islands Ship ownership and operations 100 % Biscay Shipco LLC Marshall Islands Dormant 100 % Blasket Shipco LLC Marshall Islands Ship ownership and operations 100 % Brandon Shipco LLC Marshall Islands Dormant 100 % Dover Shipco LLC Marshall Islands Ship ownership and operations 100 % Humber Shipco LLC Marshall Islands Ship ownership and operations 100 % Kilkee Shipco LLC Marshall Islands Dormant 100 % Killary Shipco LLC Marshall Islands Ship ownership and operations 100 % Kilmore Shipco LLC Marshall Islands Ship ownership and operations 100 % Magee Shipco LLC Marshall Islands Dormant 100 % Saltee Shipco LLC Marshall Islands Ship ownership and operations 100 % Skellig Shipco LLC Marshall Islands Dormant 100 % Tramore Shipco LLC Marshall Islands Ship ownership and operations 100 % Ballycotton Shipco LLC Marshall Islands Ship ownership and operations 100 % Wight Shipco LLC Marshall Islands Ship ownership and operations 100 % Lundy Shipco LLC Marshall Islands Ship ownership and operations 100 % Thames Shipco LLC Marshall Islands Ship ownership and operations 100 % Valentia Shipco LLC Marshall Islands Dormant 100 % Fair Isle Shipco LLC Marshall Islands Ship ownership and operations 100 % Malin Shipco LLC Marshall Islands Ship ownership and operations 100 % Tyne Shipco LLC Marshall Islands Dormant 100 % Forties Shipco LLC Marshall Islands Dormant 100 % Fitzroy Shipco LLC Marshall Islands Ship ownership and operations 100 % Bailey Shipco LLC Marshall Islands Ship ownership and operations 100 % Forth Shipco LLC Marshall Islands Ship ownership and operations 100 % Viking Shipco LLC Marshall Islands Ship ownership and operations 100 % Cromarty Shipco LLC Marshall Islands Ship ownership and operations 100 % Shannon Shipco LLC Marshall Islands Ship ownership and operations 100 % Rockall Shipco LLC Marshall Islands Dormant 100 % Faroe Shipco LLC Marshall Islands Ship ownership and operations 100 % Dogger Shipco LLC Marshall Islands Ship ownership and operations 100 % Fisher Shipco LLC Marshall Islands Ship ownership and operations 100 % Plymouth Shipco LLC Marshall Islands Ship ownership and operations 100 % Portland Shipco LLC Marshall Islands Ship ownership and operations 100 % Trafalgar Shipco LLC Marshall Islands Ship ownership and operations 100 % Fastnet Shipco LLC Marshall Islands Ship ownership and operations 100 % |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Basis of preparation | 2.1. Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The consolidated financial statements include the accounts of ASC and its subsidiaries. All subsidiaries are 100% directly or indirectly owned by ASC. One 50% owned joint venture entity is accounted for using the equity method (please refer to note 2.21, Equity accounted investments for more details). All intercompany balances and transactions have been eliminated on consolidation. |
Uses of estimates | 2.2. Uses of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for tangible assets, expected future cash flows from long-lived assets to support impairment tests, provisions necessary for accounts receivables, the selection of inputs used in the valuation model for share-based payment awards, provisions for legal disputes and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable. Actual results could differ from those estimates. |
Reporting currency | 2.3. Reporting currency The consolidated financial statements are stated in U.S. Dollars. The functional currency of Ardmore is U.S. Dollars because Ardmore operates in international shipping markets which typically utilize the U.S. Dollar as the functional currency. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than U.S. Dollar are translated to reflect the year end exchange rates. Resulting gains and losses are included in the accompanying consolidated statement of operations. |
Summary of significant accounting policies | 2.4. Summary of significant accounting policies In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, or ASC 606, a standard that supersedes virtually all of the prior revenue recognition guidance in U.S. GAAP. The main principle of ASC 606 is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The new standard became effective for Ardmore on January 1, 2018. The impact of ASC 606 on the Company’s consolidated financial statements is described below. In February 2016, the FASB issued ASC 842, Leases (“ASC 842”), a standard which replaces previous topics on lease accounting. The revised guidance requires lessees to recognize on their balance sheet a right of use asset and corresponding liability in respect of all material lease contracts. Ardmore previously recognized on its balance sheet those leases classified as capital leases. Those leases that are currently accounted for as operating leases (primarily for office space) are included on Ardmore’s balance sheet as a right of use asset and related lease liability in accordance with the new guidance. ASC 842 and related amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and requires the modified retrospective method of adoption. The Company implemented these two new accounting standards and updated their policies as of January 1, 2018, with ASC 842 being early adopted. Both accounting standards were applied using the modified retrospective method. The Company took the practical expedient to not reassess whether any expired or existing contracts are, or contain, leases. (ASC 842-10-65-1(f)). The implementation of ASC 606 did not have a material impact on the financial statements as the majority of the Company’s spot charters fall under the scope of the new lease standard ASC 842. An adjustment of $418,822 is presented as a cumulative adjustment to opening retained earnings as of January 1, 2018. The corresponding adjustment for 2018 was $454,581 resulting in a cumulative effect to revenue of $35,759. |
Lease revenue from voyage charters | 2.4.1. Lease revenue from voyage charters For the majority of the Company’s spot charters, the Company make its vessels and crew available to operate as determined by the charterer. On this basis, the Company has concluded that these spot charter contracts contain a lease. For spot charters where the customer is not taking control of the vessel and only requires a method of transportation, the Company has concluded that these charters do not contain a lease and are considered service contracts. For those spot charters that contain a lease, the Company has performed a quantitative and qualitative analysis to determine whether the lease component or the non-lease component is the predominant component of the contract. The Company has determined that the appropriate timeframe for the Company’s quantitative analysis, is a period of 10 years. The Company believes that a 10-year period is an appropriate timeframe because this period is expected to include low and high points in the normal shipping cycle. Therefore, the conclusion on this quantitative analysis is expected to be consistent, regardless of when the analysis is done in the determined timeframe. The Company’s conclusion on the quantitative analysis done on this basis is that the lease component is the predominant component. For its qualitative analysis, the Company considered that the predominant benefit for its customers is taking control of the vessel and having the right to direct its use, rather than the benefit derived from the service the Company provides executing their instructions. Based on the Company’s qualitative analyses, the Company has also concluded that the lease component is the predominant component. As the period the Company makes its vessels and crew available is the same period that it provides the service to execute the customer’s orders, the Company has concluded that lease and non-lease component have the same pattern of transfer. As permitted by ASC 842, the Company has taken the practical expedient to not disclose the different lease and non-lease components. Additionally, for those spot charters that the Company determined contain a lease the Company is the lessor and these spot charters have terms that allow the charterer to exercise substantive decision-making rights which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel will be used. Under these charters there are no substantive substitution rights and the vessel is specified in the contract. Voyage expenses will be recognized over the term of the lease. Initial costs, such as broker commissions, are deferred and expensed over the voyage term. Lease revenues from voyage charters on the spot market are recognized ratably on a discharge-to-discharge basis i.e. from when cargo is discharged (unloaded) at the end of one voyage to when it is discharged after the next voyage. On those cases where the charterer directs the use of the vessel from the loading port, lease revenue is recognized ratably on a load to discharge basis. Revenue is recognized in both of these cases, provided an agreed non-cancellable charter between the Company and the charterer is in existence, and collectability is reasonably assured. Lease revenue under voyage charters is not recognized until a charter has been agreed even if the vessel has discharged its previous cargo and is proceeding to an anticipated port of loading. Demurrage revenue represents payments by the charterer to the Company when the loading or discharging time exceeds the stipulated time in the voyage charter. Demurrage is only included in the voyage revenue recognition when the excess time has been incurred. The additional time required to execute the charterer’s orders are not considered distinct but to form part of the single obligation of making the vessel and the crew available and executing the charterer’s orders. Demurrage revenue is recognized ratably on a discharge-to-discharge basis, (i.e. from when cargo is discharged (unloaded) at the end of one voyage to when it is discharged after the next voyage), provided collection is reasonably assured. |
Pool revenues | 2.4.2. Pool revenues Ardmore includes certain of its vessels in commercial pooling arrangements from time to time. The pooling arrangements in which Ardmore participated in 2018, are arrangements in which the earnings from all participants are pooled and shared. In these arrangements, the members seek to benefit from the more efficient employment of their vessels as the manager leverages the size of the fleet commercially and operationally. The manager is responsible for the commercial management on behalf of the members of the pool, and the pool members are responsible for maintaining the operational efficiency of their participating vessels. Pool revenues and expenses for the Company’s pool arrangements have been accounted for in accordance with the guidance for collaborative arrangements. Revenues and voyage expenses of Ardmore’s vessels operating in commercial pooling arrangements are pooled with the revenues and voyage expenses of other pool participants. The resulting net pool revenues are allocated to the pool participants according to an agreed formula. The formulas used to allocate net pool revenues allocate revenue to pool participants on the basis of the number of days a vessel operates in the pool with weighted adjustments made to reflect the vessels’ differing capacities and performance capabilities. Therefore, the determined net revenues represent the pool members’ consideration for their different contribution to the collaborative arrangement. Ardmore accounts for its vessels’ share of net pool revenue on a monthly basis. Net pool revenues due from the pooling arrangements are included in receivables, trade. |
Service revenue from voyage charters | 2.4.3. Service revenue from voyage charters Voyage charters on the spot market that do not meet the lease definition (as described in Note 2.4.1) are recognized ratably on a load-to-discharge basis, (i.e. from when cargo is loaded at the port to when it is discharged after the next voyage). Demurrage revenue, which is included in voyage revenues, represents payments by the charterer to Ardmore when the loading or discharging time exceeds the stipulated time in the voyage charter, and is also recognized ratably on a load-to-discharge basis. This reflects the consideration to which the Company expects to be entitled to receive in exchange for the promised services. Voyage expenses are recognized over the length of the voyage as the performance obligation is satisfied. Initial costs to reposition a vessel are considered fulfillment costs and are deferred and recognized from load to discharge in the same manner as the voyage expenses. |
Operating leases | 2.4.4. Expenses Voyage expenses, including commissions and administration fees, are deferred and expensed over the voyage term. Under time charters or pool employment, expenses such as, port fees, cargo loading and unloading expenses, canal tolls and agency fees are paid by the charterers. Under voyage charters, these expenses are borne by Ardmore and are deferred and expensed over the voyage term. Bunker fuel expenses under voyage charters are borne by Ardmore and these are expensed as incurred. Vessel operating expenses are costs that are directly attributable to the operation of the vessels such as costs of crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. 2.4.5. Charterhire costs Charterhire costs relate to amounts paid for chartering in vessels. Charter hire costs are expensed to the statement of operations as incurred. 2.4.6. Operating leases (office rent) Operating leases relate to long-term commitments for the Company’s offices. Ardmore recognizes on the balance sheet the right to use those assets and a corresponding liability in respect of all material lease contracts. The discount rate used for calculating the cost of the operating leases is the incremental cost of borrowing. In relation to the Company’s operating leases, prior periods were not restated to reflect recording of the right of use asset/liability related to these leases. |
Finance leases | 2.4.7. Finance leases Finance leases relate to financing arrangements for vessels in operation. Interest costs are expensed to interest expense and finance costs in the consolidated statement of operations using the effective interest method over the life of the lease. Following the implementation of ASC 842, Leases, the transactions for the sale and leaseback of vessels, which were previously classified as capital leases under ASC 840, Leases, are now classified as finance leases with no other changes. |
Recent accounting pronouncements | 2.5. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016 -13: Financial Instruments - Credit Losses (Topic 326) which requires recognition of management’s estimate of current expected credit losses, rather than the current incurred losses model. The new model is generally applicable to all financial instruments that are not accounted for at fair value through net income. The standard will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently assessing the guidance; however, the Company does not expect adoption of this standard to have a material impact on its consolidated financial statements and related disclosures. In July 2018, the FASB issued ASU 2018-11: Leases (Topic 842) Target Improvements which provides lessors with a permitted practical expedient to not separate non-lease components from the associated lease component. The Company has elected to apply the expedient in respect of certain voyage revenue from spot charters. |
Cash and cash equivalents | 2.6. Cash and cash equivalents Ardmore classifies investments with an original maturity date of three months or less as cash and cash equivalents. |
Receivables, trade | 2.7. Receivables, trade Receivables, trade include amounts due from charterers for hire and other recoverable expenses due to Ardmore. At the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. |
Working capital advances | 2.8. Working capital advances Working capital advances relate to capital advanced directly to ship pools in which Ardmore’s vessels operate. All working capital amounts are classified as current assets where it is expected that the amounts advanced will be realized within one year. |
Prepayments | 2.9. Prepayments Prepayments consist of payments in advance for insurance or other ad hoc prepaid purchases. |
Advances and deposits | 2.10. Advances and deposits Advances and deposits primarily include amounts advanced to third-party technical managers for expenses incurred by them in operating the vessels, together with other necessary deposits paid during the course of business. |
Other receivables | 2.11. Other receivables Other receivables primarily relate to insurance claims outstanding, and certain assets held by vessel managers. Insurance claims are recorded, net of any deductible amounts, at the time Ardmore realizes insured damages, where recovery is highly likely under the related insurance policies and where Ardmore can make an estimate of the amount to be reimbursed following the insurance claim. At the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. |
Inventories | 2.12. Inventories Inventories consist of bunkers, lubricating oils and other consumables on board the Company’s vessels. Inventories are valued at the lower of cost or market value on a first-in first-out basis. Cost is based on the normal levels of cost and comprises the cost of purchase, being the suppliers’ invoice price with the addition of charges such as freight or duty where appropriate. |
Vessels | 2.13. Vessels Vessels are recorded at their cost less accumulated depreciation. Vessel cost comprises acquisition costs directly attributable to the vessel and the expenditures made to prepare the vessel for its initial voyage. Vessels are depreciated on a straight-line basis over their estimated useful economic life from the date of initial delivery from the shipyard. The useful life of Ardmore’s vessels is estimated at 25 years from the date of initial delivery from the shipyard. Depreciation is based on cost less estimated residual scrap value. Residual scrap value is estimated as the lightweight tonnage of each vessel multiplied by the estimated scrap value per ton. |
Capital upgrades | 2.13.1. Capital upgrades Ardmore capitalizes and depreciates the costs of significant replacements, renewals and upgrades to its vessels over the shorter of the vessel’s remaining useful life or the life of the renewal or upgrade. The amount capitalized is based on management’s judgment as to expenditures that extend a vessel’s useful life or increase the operational efficiency of a vessel. Costs that are not capitalized are recorded as a component of direct vessel operating expenses during the period incurred. Expenses for routine maintenance and repairs are expensed as incurred. |
Ballast water treatment systems (BWTS) | 2.13.2. Ballast water treatment systems (BWTS) Ardmore is in the process of installing BWTS on each of its vessels that do not currently have the system installed. This is a requirement of the International Maritime Organization’s Ballast Water Management Convention which comes into force from September 2019. Ardmore capitalizes and depreciates the costs of BWTS on each vessel, from the date of completion of the system, over the remaining useful life of the vessel. As none of these systems were completed nor in use at December 31, 2018 depreciation has not yet commenced. |
Impairment | 2.14. Impairment Vessels and equipment that are “held and used” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. When such indicators are present, a vessel to be held and used is tested for recoverability by comparing the estimate of future undiscounted net operating cash flows expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition to its carrying amount together with the carrying value of deferred drydock and special survey costs related to the vessel. Net operating cash flows are determined by applying various assumptions regarding future revenues net of commissions, operating expenses, scheduled drydockings, expected offhire and scrap values, and taking into account historical revenue data and published forecasts on future world economic growth and inflation. In estimating future revenues, the Company considers charter rates for each vessel class over the estimated remaining lives of the vessels using both historical average rates for the Company over the last 5 years, where available, and historical average one-year time charter rates for the industry over the last 10 years in each case adjusted for inflation. Recognizing that rates tend to be cyclical and considering market volatility based on factors beyond the Company’s control, management believes it is reasonable to use estimates based on a combination of more recent inflation-adjusted internally-generated rates and the inflation-adjusted 10-year average historical average industry rates. During the fourth quarter of fiscal year 2018, an impairment assessment of long-lived assets was performed. The Company’s assessment concluded that impairment was not required for any vessel. An impairment charge is recognized if the carrying value is in excess of the estimated future undiscounted net operating cash flows. The impairment loss is measured based on the excess of the carrying amount over the fair market value of the asset. |
Drydock expenditure | 2.15. Drydock expenditure Vessels are typically drydocked every three to five years. Expenditures incurred in drydocking are deferred and amortized until the next scheduled drydocking. Ardmore only includes in deferred drydocking costs those direct costs that are incurred as part of the drydocking to meet regulatory requirements, expenditures that add economic life to the vessel, and expenditures that increase the vessels earnings capacity or improve the vessels operating efficiency. Expenses for routine maintenance and repairs are expensed as incurred. |
Vessels under construction | 2.16. Vessels under construction The carrying value of the vessels under construction represents the accumulated costs to the consolidated balance sheet date which Ardmore has had to pay by way of purchase instalments and other capital expenditures, together with capitalized interest and other pre-delivery costs. The amount of interest expense capitalized in an accounting period is determined by applying an interest rate (“the capitalization rate”) to the average amount of accumulated expenditures for the asset during the period. The capitalization rates used in an accounting period are based on the rates applicable to borrowings outstanding during the period. If Ardmore’s borrowings are directly attributable to the vessels under construction, Ardmore uses the rate on that borrowing as the capitalization rate. If average accumulated expenditures for the asset exceed the amounts of specific borrowings associated with the asset, the capitalization rate applied to such excess is a weighted average of the rates applicable to other borrowings of Ardmore. Ardmore does not capitalize amounts in excess of actual interest expense incurred in the period. No charge for depreciation is made until the vessel is available for use. |
Vessels held for sale | 2.17. Vessels held for sale Assets are classified as held for sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. Consideration is given to whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When assets are classified as held for sale, they are tested for impairment. An impairment charge is recognized when the carrying value of the asset exceeds the estimated fair value, less transaction costs. Assets classified as held for sale are no longer depreciated. |
Deposit for vessel acquisition | 2.18. Deposit for vessel acquisition Cash paid as deposit for an acquisition of a vessel that is considered restricted cash. |
Leasehold improvements | 2.19. Leasehold improvements Leasehold improvements relate to fit-out costs for work completed on Ardmore’s offices in Ireland and Singapore. These are recorded at their cost less accumulated depreciation and are depreciated over the life of the respective leases. |
Other non-current assets | 2.20. Other non-current assets Other assets relate to office equipment, fixtures and fittings. These are recorded at their cost less accumulated depreciation and are depreciated based on an estimated useful life of five years. |
Equity accounted investments | 2.21. Equity accounted investments Ardmore’s investment in Anglo Ardmore Ship Management Limited is accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. Ardmore evaluates its equity accounted investment for impairment when events or circumstances indicate that the carrying value of such investment may have experienced and other than temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in Ardmore’s consolidated statements of operations. |
Payables, trade | 2.22. Payables, trade Payables, trade include all accounts payable and accrued liabilities in relation to the operating and running of the vessels, along with amounts due for general and administrative expenses. |
Other payables | 2.23. Other payables Other payables primarily consist of amounts due for minor ad hoc payables. |
Contingencies | 2.24. Contingencies Claims, suits and contingencies arise in the ordinary course of Ardmore’s business. Ardmore provides for these contingencies when (i) it is probable that a liability has been incurred at the date of the financial statements and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for contingencies that do not meet both these conditions if there is a reasonable possibility that a liability may have been incurred at the balance sheet date. Any such matters that should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements, are discussed in Note 22 to the consolidated financial statements. |
Distributions to shareholders | 2.25. Distributions to shareholders Distributions to shareholders are applied first to retained earnings. When retained earnings are not sufficient, distributions are applied to the additional paid in capital account. Ardmore operates a policy of paying out distributions equal to 60% of Earnings from Continuing Operations. |
Equity issuance costs | 2.26. Equity issuance costs Incremental costs incurred that are directly attributable to a proposed or actual offering of equity securities are deferred and deducted from the related proceeds of the offering, and the net amount is recorded as contributed shareholders’ equity in the period when such shares are issued. Other costs incurred that are not directly attributable, but are related, to a proposed or actual offering are expensed as incurred. |
Debt issuance costs | 2.27. Debt issuance costs Financing charges which include fees, commissions and legal expenses associated with securing loan facilities and finance lease agreements are presented in the consolidated balance sheet as a direct deduction from the carrying amount of debt liability. These costs are amortized to interest expense and finance costs in the consolidated statement of operations using the effective interest rate method over the life of the related debt. |
Share based compensation | 2.28. Share based compensation Ardmore may grant share-based payment awards, such as restricted stock units, as incentive-based compensation to certain employees. Ardmore measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period, which generally equals the vesting period. If the award contains a market condition, such conditions are included in the determination of the fair value of the stock unit. Once the fair value has been determined, the associated expense is recognized in the consolidated statement of operations over the requisite service period. |
Treasury stock | 2.29. Treasury stock When shares are acquired for a reason other than formal or constructive retirement, the shares are presented separately as a deduction from equity. If the shares are retired or subsequently sold, any gain would be allocated as a reduction in additional paid in capital and any loss as a reduction in retained earnings. |
Dividend Reinvestment Plan | 2.30. Dividend Reinvestment Plan In April 2015, Ardmore established a Dividend Reinvestment Plan (“DRIP”) to enable shareholders to reinvest their quarterly dividend in common shares of the Company. The Form F-3D registration statement detailing these shares is available from the SEC website. The DRIP allows for the purchase of additional common shares by either full dividend reinvestment or partial dividend reinvestment. When a shareholder signs up to the plan there are two options available to Ardmore when sourcing the shares for settlement under the DRIP. 1. Open Market (“OM”): Ardmore issues shares already available in the open market or in privately negotiated transactions. 2. Original Issue (“OI”): Ardmore registers and issues additional new shares. The purchase price for shareholders of common shares under the DRIP depends on which option Ardmore chooses. For OM shares the price is the weighted average of the actual price paid for all shares purchased by the Transfer Agent on behalf of the participants of the DRIP. For OI shares the price is the daily high and the daily low average share price for the five business days immediately preceding the dividend payment date. In instances where Ardmore chooses OM settlement, the accounting treatment is the same as when a regular dividend is paid and not reinvested by shareholders, since Ardmore makes a cash payment equal to the amount of the dividend. Where Ardmore chooses OI settlement, the Company records an increase in Share Capital for the par value of the shares and record any excess of market value over par within Additional Paid in Capital. The dividend is distributed first from retained earnings but is applied to additional paid in capital if retained earnings are not sufficient. Where Ardmore utilizes existing treasury shares (which can only occur under an OI transaction), the Company reduces Treasury Shares and increase Share Capital for the par value of the shares to be issued. Any excess of market value over cost is recorded in Additional Paid in Capital. If a gain arises on utilizing Treasury Stock for the dividend reinvestment, the Company recognizes the gain within Additional Paid in Capital. If a loss arises, the Company records the loss within retained earnings |
Financial instruments | 2.31. Financial instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable reported in the consolidated balance sheet are reasonable estimates of their fair values due to their short-term nature. The fair values of long-term debt approximate the recorded values due to the variable interest rates payable. |
Revenues and expenses | 2.32. Revenues and expenses 2.32.1. Pool and voyage revenues For pool and voyage revenues please refer to Note 2.4 above. 2.32.2. Expenses Voyage expenses, including commissions and administration fees, are deferred and expensed over the voyage term. Under time charters or pool employment, expenses such as, port fees, cargo loading and unloading expenses, canal tolls and agency fees are paid by the charterers. Under voyage charters, these expenses are borne by Ardmore and are deferred and expensed over the voyage term. Bunker fuel expenses under voyage charters are borne by Ardmore and these are expensed as incurred. Vessel operating expenses are costs that are directly attributable to the operation of the vessels such as costs of crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. 2.32.3. Charter hire costs Charter hire costs relate to amounts paid for chartering in vessels. Charter hire costs are expensed to the statement of operations as incurred. |
Income taxes | 2.32. Income taxes Republic of the Marshall Islands Ardmore Shipping Corporation (“ASC”), Ardmore Shipping LLC (“ASLLC”), Ardmore Maritime Services LLC, and all vessel owning subsidiaries are incorporated in the Republic of the Marshall Islands. ASC believes that neither it, nor its subsidiaries, are subject to taxation under the laws of the Republic of the Marshall Islands and that distributions by its subsidiaries to ASC will not be subject to any taxes under the laws of the Republic of the Marshall Islands. Bermuda Ardmore Shipping (Bermuda) Limited (“ASBL”) is incorporated in Bermuda. ASC, ASLLC and ASBL are managed and controlled in Bermuda. ASC is subject to taxation under the laws of Bermuda and distributions by its subsidiaries to ASC will be subject to any taxes under the laws of Bermuda. Ireland Ardmore Shipholding Limited (“ASHL”) and Ardmore Shipping Services (Ireland) Limited (“ASSIL”) are incorporated in Ireland. ASHL is dormant and as such is not anticipated to generate trading income subject to corporation tax in Ireland. ASSIL’s trading profits are taxable at the standard corporation tax rate which is currently 12.5% based on generally accepted accounting principles in Ireland. Any non-trading/passive income is taxed at the higher corporation tax rate which is currently 25%. United States of America Ardmore Shipping (Americas) LLC (“ASUSA”) and Ardmore Trading (USA) LLC (“ATUSA”) are incorporated in Delaware and treated as corporations for U.S. tax purposes. ASUSA and ATUSA will be subject to U.S. tax on their worldwide net income. Singapore Ardmore Shipping (Asia) Pte. Limited (“ASA”) and Ardmore Tanker Trading (Asia) Pte. Limited (“ATTA”) are incorporated in Singapore. ASA qualified as an “Approved International Shipping Enterprise” by the Singapore authorities with effect from August 1, 2015. This entitles the company to tax exemption on profits derived from ship operations for any ships which are owned or chartered in by ASA. ATTA will be subject to Singapore tax on its worldwide profits. However, the company had not commenced business as at December 31, 2018 and therefore the Company does not expect it to be taxed for 2018. Deferred taxation Deferred income tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statements and tax basis of existing assets and liabilities using enacted rates applicable to the periods in which the differences are expected to affect taxable income. Deferred income tax balances included on the consolidated balance sheet reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. The recoverability of these future tax deductions is evaluated by assessing the adequacy of future taxable income, including the reversal of temporary differences and forecasted operating earnings. If it is deemed more likely than not that the deferred tax assets will not be realized Ardmore provides for a valuation allowance. Income taxes have been provided for all items included in the consolidated statement of operations regardless of when such items were reported for tax purposes or when the taxes were actually paid or refunded. Deferred tax for the year ended December 31, 2018 amounted to $0 (2017: $0). Uncertainties related to income taxes Companies are to determine whether it is more-likely-than-not that the tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not threshold it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Uncertainties related to income taxes recognized for the year ended December 31, 2018 amounted to $0 (2017: $0). |
Overview (Tables)
Overview (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Components Of Fleet | Ardmore’s fleet as at December 31, 2018, comprised the following: Vessel Name Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea MI Eco- Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea MI Eco- Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 Korea MI Eco- Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 Korea MI Eco- Ardmore Sealion Product/Chemical 49,999 2/3 May-15 Korea MI Eco- Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 Korea MI Eco- Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 Korea MI Eco- Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 Korea MI Eco- Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 Korea MI Eco- Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 Korea MI Eco- Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 Korea MI Eco- Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 Korea MI Eco- Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 Korea MI Eco- Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 Korea MI Eco- Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 Korea MI Eco- Ardmore Seafarer Product/Chemical 45,744 3 Aug-04 Japan MI Eco-mod Ardmore Seatrader Product 47,141 — Dec-02 Japan MI Eco-mod Ardmore Seamaster Product/Chemical 45,840 3 Sep-04 Japan MI Eco-mod Ardmore Seamariner Product/Chemical 45,726 3 Oct-06 Japan MI Eco-mod Ardmore Sealeader Product 47,463 — Aug-08 Japan MI Eco-mod Ardmore Sealifter Product 47,472 — Jul-08 Japan MI Eco-mod Ardmore Sealancer Product 47,451 — Jun-08 Japan MI Eco-mod Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 Korea MI Eco- Ardmore Defender Product/Chemical 37,791 2 Feb-15 Korea MI Eco- Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan MI Eco- Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan MI Eco- Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan MI Eco- Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan MI Eco- Total 28 1,250,019 |
Business and segmental report_2
Business and segmental reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues of Major Customers | The following table presents consolidated revenues for customers that accounted for more than 10% of Ardmore’s consolidated revenues during the years presented: For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Navig8 Group < 10 % < 10 % 19,158,623 Vitol 27,025,590 34,797,654 43,960,560 Trafigura < 10 % < 10 % 17,498,550 |
Revenue Contributions | The following table present the Company’s revenue contributions by type of vessel employment. As at December 31, 2018, all of the Company’s 28 vessels were employed in the spot market. For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Time charter — 1,418,636 28,294,215 Spot 196,132,999 155,901,280 93,162,634 Pool 14,046,182 38,615,476 42,947,089 210,179,181 195,935,392 164,403,938 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | For the year ended Dec 31, 2018 Dec 31, 2017 Cash and cash equivalents 56,903,038 39,457,407 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Principal Balance Outstanding | These guarantees can be called upon following a payment default. The outstanding principal balances on each loan facility as at December 31, 2018 and 2017 were as follows: As at Dec 31, 2018 Dec 31, 2017 NIBC Bank Facility 7,465,000 8,885,000 CACIB Bank Facility 31,300,000 34,100,000 ABN/DVB/NIBC Joint Bank Facility 92,131,594 162,115,591 Nordea/SEB Joint Bank Facility 86,371,847 132,272,938 ABN AMRO Facility — 64,201,180 ABN AMRO Revolving Facility 14,994,279 11,092,158 Total debt 232,262,720 412,666,867 Deferred finance fees (3,908,472 ) (8,243,297 ) Net total debt 228,354,248 404,423,570 Current portion of long-term debt 24,217,892 39,282,538 Current portion of deferred finance fees (1,383,349 ) (2,210,990 ) Total current portion of long-term debt 22,834,543 37,071,548 Non-current portion of long-term debt 205,519,705 367,352,022 |
Schedule of minimum Repayments under Loan Facilities | Future minimum scheduled repayments under Ardmore’s loan facilities for each year are as follows: As at Dec 31, 2018 2019 24,217,892 2020 39,212,171 2021 26,521,166 2022 142,311,491 232,262,720 |
Finance leases (Tables)
Finance leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Finance Leases [Abstract] | |
Schedule Of Principal Balance Outstanding | The outstanding principal balances on each finance lease facility as at December 31, 2018 and 2017 were as follows: As at Dec 31, 2018 Dec 31, 2017 River Hudson LLC 10,380,600 11,767,600 Japanese Leases No.1 and 2 36,253,400 41,094,600 Japanese Lease No.3 17,870,500 — CMBFL Leases No.1 to 4 87,496,402 — Ocean Yield ASA 66,563,040 — Japanese Lease No.4 26,061,943 — China Huarong Leases 51,555,997 — Total minimum finance lease payments 296,181,882 52,862,200 Amounts representing interest and deferred finance fees (54,705,784 ) (10,368,181 ) Net minimum finance lease payments 241,476,098 42,494,019 Amount receivable in respect of finance leases (2,880,000 ) (2,880,000 ) Adjusted net minimum finance lease payments 238,596,098 39,614,019 Current portion of finance lease obligations 26,589,017 3,783,044 Current portion of deferred finance fees (739,817 ) (245,578 ) Non-current portion of finance lease obligations 218,985,447 39,402,440 Non-current portion of deferred finance fees (3,358,549 ) (445,887 ) Total finance lease obligations 241,476,098 42,494,019 Amount receivable in respect of finance leases (2,880,000 ) (2,880,000 ) Net finance lease obligations 238,596,098 39,614,019 |
Schedule Of Future Minimum Lease Payments for Capital Leases | Future minimum scheduled payments under Ardmore’s finance lease facilities for each year are as follows: As at 2019 37,532,945 2020 26,868,097 2021 26,523,339 2022 26,470,805 2023 38,028,900 2024 – 2030 140,757,796 Total minimum finance lease payments 296,181,882 Amounts representing interest and deferred finance fees (54,705,784 ) Net minimum finance lease payments (1) 241,476,098 Amount receivable in respect of finance leases (2,880,000 ) Adjusted net minimum finance lease payments 238,596,098 (1) Includes $8.3 million related to vessel held for sale repayable on January 2, 2019. |
Schedule of Capital Leased Assets | Assets recorded under finance leases consist of the following: As at Dec 31, 2018 Dec 31, 2017 Vessels, equipment and deferred drydock expenditure 360,675,433 75,712,769 Accumulated depreciation (46,540,825 ) (19,721,568 ) Vessel held for sale 8,083,405 — 322,218,013 55,991,201 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Operating leases | The difference in measurement between the right of use asset and lease liability is included in general and administrative expenses in the consolidated statement of operations. As at Dec 31, 2018 Jan 1, 2018 Operating lease, right of use asset 2,169,158 2,440,288 Total operating lease, right of use asset 2,169,158 2,440,288 Current portion of operating lease obligations 477,147 442,957 Non-current portion of operating lease obligations 1,491,507 1,997,331 Total operating lease obligations 1,968,654 2,440,288 Twelve months ended Dec 31, 2018 Dec 31, 2017 Foreign exchange gain on operating leases (200,504 ) — Total foreign exchange gain on operating leases (200,504 ) — |
Schedule of Operating Lease, Liability, Maturity | As of December 31, 2018, the Company had the following undiscounted operating lease commitments: 2019 2020 2021 2022 2023 2024 – 2026 Office space 525,715 339,772 296,499 303,198 309,341 689,727 |
Sale of vessels (Tables)
Sale of vessels (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Capital Leased Assets | The net loss on disposal of the vessels for the year ended December 31, 2016 is calculated as follows: Centurion Calypso Capella Total Sales proceeds 15,700,000 19,150,000 19,350,000 54,200,000 Net book value of vessels (18,222,109 ) (18,783,238 ) (18,253,669 ) (55,259,016 ) Sales related costs (531,001 ) (273,458 ) (228,210 ) (1,032,669 ) Lease termination costs and related finance fees — (254,731 ) (254,732 ) (509,463 ) Net (loss)/gain (3,053,110 ) (161,427 ) 613,389 (2,601,148 ) |
Sea trader [Member] | |
Schedule of Capital Leased Assets | The net loss on the vessel held for sale for the year ended December 31, 2018 is calculated as follows: Seatrader Sales proceeds 8,250,000 Net book value of vessel (14,444,217 ) Sales related costs (165,000 ) Lease termination costs and related finance fees (1,596 ) Net loss on vessel held for sale (6,360,813 ) |
General and administrative ex_2
General and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
General and Administrative Expense [Abstract] | |
General and administration expenses | 14.1. Corporate For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Staff salaries 5,419,944 6,851,692 5,709,919 Share based compensation (non-cash) 1,636,548 457,046 1,304,325 Office administration 2,658,087 2,538,973 2,565,838 Bank charges and foreign exchange 47,142 219,910 140,942 Auditors’ remuneration 676,600 558,600 513,429 Other professional fees 2,009,200 1,280,163 1,810,089 Other administration costs 178,852 72,633 11,183 12,626,373 11,979,017 12,055,725 14.2. Commercial and chartering Comm ercial and chartering expenses are the expenses attributable to the Company’s chartering and commercial operations departments in connection with the Company’s spot trading activities. For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Staff salaries 2,414,574 1,934,923 1,039,169 Office administration 419,773 341,219 201,685 Other professional fees — — 426,213 Other administration costs 399,541 343,606 354,420 3,233,888 2,619,748 2,021,487 |
Interest expense and finance _2
Interest expense and finance costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest Expense And Finance Costs [Abstract] | |
Interest And Finance Costs | For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Interest incurred – debt 17,070,112 16,430,031 13,794,298 Interest incurred – finance leases 5,667,420 1,889,609 544,368 Amortization of deferred finance fees 2,400,621 2,536,402 3,415,452 Write-off of deferred finance fees in relation to refinancing 2,267,455 524,123 — 27,405,608 21,380,165 17,754,118 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Profit / (Loss) Before Taxes | (Loss)/profit before taxes was derived from the following sources: For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Domestic (42,776,078 ) (12,430,768 ) 3,808,366 (42,776,078 ) (12,430,768 ) 3,808,366 |
Components of the Provision for Income Taxes | The components of the provision for income taxes are as follows: For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Domestic Current tax expenses (162,923 ) (59,567 ) (60,434 ) Income tax expense for year (162,923 ) (59,567 ) (60,434 ) |
Net (loss)_earnings per share (
Net (loss)/earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings / (loss) per share | Basic and diluted (loss)/earnings per share is calculated by dividing the net (loss)/earnings available to common shareholders by the average number of common shares outstanding during the periods. Diluted earnings per share is calculated by adjusting the net (loss)/earnings available to common shareholders and the weighted average number of common shares used for calculating basic (loss)/earnings per share for the effects of all potentially dilutive shares. Such dilutive common shares are excluded when the effect would be to increase earnings per share or reduce a loss per share. For the year ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Numerator: Net (loss)/profit (42,939,001 ) (12,490,335 ) 3,747,932 Denominator: Weighted average number of shares outstanding 32,837,866 33,441,879 30,141,891 Net (loss)/earnings per share, basic and diluted (1.31 ) (0.37 ) 0.12 |
Share based compensation (Table
Share based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Awards, Simulation Inputs and Outputs | A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Grant Date SARs Exercise Vesting Grant Dividend Risk-free Expected Weighted Average Expected Valuation 12-Mar-14 22,118 $ 13.66 3 yrs $ 13.66 2.93 % 2.06 % 56.31 % $ 4.17 4.6 – 5.0 yrs Monte Carlo 01-Sept-14 5,595 $ 13.91 3 yrs $ 13.91 2.88 % 2.20 % 53.60 % $ 4.20 4.5 – 5.0 yrs Monte Carlo 06-Mar-15 37,797 $ 10.25 3 yrs $ 10.25 3.90 % 1.90 % 61.38 % $ 2.98 4.2 – 5.0 yrs Monte Carlo 15-Jan-16 205,519 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04-Apr-18 1,719,733 $ 7.40 3 yrs $ 7.40 0 % 2.51 % 40.59 % $ 2.67 4.25 yrs Black Scholes |
Movement of shares | Changes in the SARs for the year ended December 31, 2018 are set forth below: No. of Weighted Balance as at January 1, 2018 1,343,375 $ 13.16 SARs granted during the twelve months ended December 31, 2018 1,719,733 $ 7.40 SARs exercised/converted/replaced during the twelve months ended December 31, 2018 (1,078,125 ) ($14.00 ) SARs forfeited during the twelve months ending December 31, 2018 — — Balance as at December 31, 2018 (none of which are exercisable or convertible) 1,984,983 $ 7.72 |
Schedule of Cost Related to Non-vested Awards Expected to be recognized | The total cost related to non-vested awards expected to be recognized through 2020 is set forth below: Period No. of Shares TOTAL 2019 573,244 1,185,060 2020 573,245 888,795 1,146,489 2,073,855 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subsidiaries [Abstract] | |
Subsidiaries | The following is a list of ASC’s direct and indirect wholly owned subsidiaries as of December 31, 2018: Name of Company Country of Incorporation Principal Activities Ownership (%) Ardmore Shipping LLC Marshall Islands Holding company 100 % Ardmore Shipholding Limited Ireland Holding company 100 % Ardmore Maritime Services LLC Marshall Islands Holding company 100 % Ardmore Shipping (UK) Limited United Kingdom Chartering services 100 % Ardmore Shipping (Bermuda) Limited Bermuda Executive offices and fleet 100 % Ardmore Shipping (Asia) Pte Limited Singapore Chartering services 100 % Ardmore Shipping (Americas) LLC United States Chartering services 100 % Ardmore Chartering LLC Marshall Islands Chartering services 100 % Ardmore Shipping Services (Ireland) Limited 100 % Ardmore Pool Holdings LLC Marshall Islands Holding company 100 % Ardmore MR Pool LLC Marshall Islands Commercial management and chartering services 100 % Ardmore Tanker Trading (Asia) Pte Ltd Singapore Chartering services 100 % Ardmore Trading (USA) LLC United States Chartering services 100 % Hebrides Shipco LLC Marshall Islands Dormant 100 % Sole Shipco LLC Marshall Islands Ship ownership and operations 100 % Biscay Shipco LLC Marshall Islands Dormant 100 % Blasket Shipco LLC Marshall Islands Ship ownership and operations 100 % Brandon Shipco LLC Marshall Islands Dormant 100 % Dover Shipco LLC Marshall Islands Ship ownership and operations 100 % Humber Shipco LLC Marshall Islands Ship ownership and operations 100 % Kilkee Shipco LLC Marshall Islands Dormant 100 % Killary Shipco LLC Marshall Islands Ship ownership and operations 100 % Kilmore Shipco LLC Marshall Islands Ship ownership and operations 100 % Magee Shipco LLC Marshall Islands Dormant 100 % Saltee Shipco LLC Marshall Islands Ship ownership and operations 100 % Skellig Shipco LLC Marshall Islands Dormant 100 % Tramore Shipco LLC Marshall Islands Ship ownership and operations 100 % Ballycotton Shipco LLC Marshall Islands Ship ownership and operations 100 % Wight Shipco LLC Marshall Islands Ship ownership and operations 100 % Lundy Shipco LLC Marshall Islands Ship ownership and operations 100 % Thames Shipco LLC Marshall Islands Ship ownership and operations 100 % Valentia Shipco LLC Marshall Islands Dormant 100 % Fair Isle Shipco LLC Marshall Islands Ship ownership and operations 100 % Malin Shipco LLC Marshall Islands Ship ownership and operations 100 % Tyne Shipco LLC Marshall Islands Dormant 100 % Forties Shipco LLC Marshall Islands Dormant 100 % Fitzroy Shipco LLC Marshall Islands Ship ownership and operations 100 % Bailey Shipco LLC Marshall Islands Ship ownership and operations 100 % Forth Shipco LLC Marshall Islands Ship ownership and operations 100 % Viking Shipco LLC Marshall Islands Ship ownership and operations 100 % Cromarty Shipco LLC Marshall Islands Ship ownership and operations 100 % Shannon Shipco LLC Marshall Islands Ship ownership and operations 100 % Rockall Shipco LLC Marshall Islands Dormant 100 % Faroe Shipco LLC Marshall Islands Ship ownership and operations 100 % Dogger Shipco LLC Marshall Islands Ship ownership and operations 100 % Fisher Shipco LLC Marshall Islands Ship ownership and operations 100 % Plymouth Shipco LLC Marshall Islands Ship ownership and operations 100 % Portland Shipco LLC Marshall Islands Ship ownership and operations 100 % Trafalgar Shipco LLC Marshall Islands Ship ownership and operations 100 % Fastnet Shipco LLC Marshall Islands Ship ownership and operations 100 % |
Overview (Details)
Overview (Details) | 12 Months Ended |
Dec. 31, 2018FleetNumbert | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 1,250,019 |
TOTAL | Fleet | 28 |
Ardmore Seavaliant [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,998 |
Built date | Feb-13 |
Ardmore Seavaliant [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seavaliant [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seavaliant [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Feb-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seaventure [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,998 |
Built date | Jun-13 |
Ardmore Seaventure [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seaventure [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seaventure [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jun-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seavantage [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,997 |
Ardmore Seavantage [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seavantage [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seavantage [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seavanguard [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,998 |
Ardmore Seavanguard [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seavanguard [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seavanguard [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Feb-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Sealion [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,999 |
Ardmore Sealion [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Sealion [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Sealion [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | May-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seafox [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,999 |
Ardmore Seafox [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seafox [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seafox [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jun-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seawolf [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,999 |
Ardmore Seawolf [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seawolf [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seawolf [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Aug-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seahawk [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,999 |
Ardmore Seahawk [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Seahawk [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Seahawk [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Nov-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Endeavour [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,997 |
Ardmore Endeavour [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Endeavour [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Endeavour [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jul-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seafarer [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 45,744 |
IMO | 3 |
Ardmore Seafarer [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Aug-04 |
Type | Product/Chemical |
Specification | Eco-mod |
Ardmore Seatrader [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 47,141 |
IMO | 0 |
Ardmore Seatrader [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Dec-02 |
Type | Product |
Specification | Eco-mod |
Ardmore Seamaster [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 45,840 |
IMO | 3 |
Ardmore Seamaster [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Sep-04 |
Type | Product/Chemical |
Specification | Eco-mod |
Ardmore Seamariner [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 45,726 |
IMO | 3 |
Ardmore Seamariner [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Oct-06 |
Type | Product/Chemical |
Specification | Eco-mod |
Ardmore Sealeader [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 47,463 |
IMO | 0 |
Ardmore Sealeader [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Aug-08 |
Type | Product |
Specification | Eco-mod |
Ardmore Sealifter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 47,472 |
IMO | 0 |
Ardmore Sealifter [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jul-08 |
Type | Product |
Specification | Eco-mod |
Ardmore Dauntless [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 37,764 |
IMO | 2 |
Ardmore Dauntless [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Feb-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Defender [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 37,791 |
IMO | 2 |
Ardmore Defender [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Feb-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Cherokee [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 25,215 |
IMO | 2 |
Ardmore Cherokee [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jan-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Cheyenne [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 25,217 |
IMO | 2 |
Ardmore Cheyenne [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Mar-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Chinook [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 25,217 |
IMO | 2 |
Ardmore Chinook [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jul-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Chippewa [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 25,217 |
IMO | 2 |
Ardmore Chippewa [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Nov-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Enterprise [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,453 |
Ardmore Enterprise [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Enterprise [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Enterprise [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Sep-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Endurance [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,466 |
Ardmore Endurance [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Endurance [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Endurance [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Dec-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Encounter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,478 |
Ardmore Encounter [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Encounter [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Encounter [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Explorer [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,494 |
Ardmore Explorer [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Explorer [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Explorer [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Exporter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,466 |
Ardmore Exporter [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Exporter [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Exporter [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Feb-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Engineer [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 49,420 |
Ardmore Engineer [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 3 |
Ardmore Engineer [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
IMO | 2 |
Ardmore Engineer [Member] | Korea | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Mar-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Sealancer [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Deadweight | t | 47,451 |
IMO | 0 |
Ardmore Sealancer [Member] | Japan | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Built date | Jun-08 |
Type | Product |
Specification | Eco-mod |
Overview (Details Textual)
Overview (Details Textual) | Aug. 06, 2013shares | Dec. 31, 2018shares | Dec. 31, 2016shares | Dec. 31, 2018Fleet |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number Of Vessels In Operation | 28 | 28 | ||
Average Age Of Vessels | 6 years 6 months | |||
Stock Issued During Period, Shares, New Issues | 957,875 | 7,500,000 | ||
Equity Method Investment, Ownership Percentage | 100.00% | 50.00% | ||
Ardmore's Knowledge [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 10.00% | |||
Investor [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Sale of Stock, Percentage of Ownership after Transaction | 55.40% | |||
GA Holdings LLC [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 44.60% | |||
Number Of Shares Exchanged For Reorganization | 8,049,500 | |||
IPO [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 10,000,000 |
Significant accounting polici_3
Significant accounting policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Aug. 06, 2013 | |
Significant Accounting Policies [Line Items] | ||||
Direct And Indirect Ownership In All Subsidiary | 100.00% | |||
Standard Corporation Tax Rate | 12.50% | |||
Higher Corporation Tax Rate | 25.00% | |||
Deferred Income Tax Expense (Benefit) | $ 0 | $ 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 | ||
Equity Method Investment, Ownership Percentage | 50.00% | 100.00% | ||
Lessor, Operating Lease, Term of Contract | 10 years | |||
Cumulative Effect on Retained Earnings, Net of Tax | $ 35,759 | |||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ 454,581 | $ 418,822 | ||
Vessels [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 25 years |
Business and segmental report_3
Business and segmental reporting (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Revenues | $ 210,179,181 | $ 195,935,392 | $ 164,403,938 |
Navig8 Group [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 19,158,623 | ||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Vitol Group [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 27,025,590 | $ 34,797,654 | 43,960,560 |
Trafigura Pte Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 17,498,550 | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Business and segmental report_4
Business and segmental reporting (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Revenues | $ 210,179,181 | $ 195,935,392 | $ 164,403,938 |
Time charter [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 0 | 1,418,636 | 28,294,215 |
Spot [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 196,132,999 | 155,901,280 | 93,162,634 |
Pool [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 14,046,182 | $ 38,615,476 | $ 42,947,089 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 56,903,038 | $ 39,457,407 | $ 55,952,873 | $ 40,109,382 |
Receivables, trade (Details Tex
Receivables, trade (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Provision for Doubtful Accounts | $ 0 | $ 0 |
Working capital advances (Detai
Working capital advances (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Provision For Doubtful Advances | $ 0 | $ 0 |
Non-current assets (Details Tex
Non-current assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest capitalized, Vessels under Construction | $ 0 | $ 0 |
Vessels Scrap Value Per Lightweight Ton | 300 | $ 300 |
Sellers Credit Note | $ 2,900,000 |
Debt (Details)
Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total debt | $ 232,262,720 | |
Total current portion of long-term debt | 22,834,543 | $ 37,071,548 |
Non-current portion of long-term debt | 205,519,705 | 367,352,022 |
Loans Payable [Member] | ||
Total debt | 232,262,720 | 412,666,867 |
Deferred Finance Fees | (3,908,472) | (8,243,297) |
Net Total Debt | 228,354,248 | 404,423,570 |
Current portion of long-term debt | 24,217,892 | 39,282,538 |
Current portion of deferred finance fees | (1,383,349) | (2,210,990) |
Total current portion of long-term debt | 22,834,543 | 37,071,548 |
Non-current portion of long-term debt | 205,519,705 | 367,352,022 |
First ABN AMRO Facility [Member] | Loans Payable [Member] | ||
Total debt | 0 | 64,201,180 |
NIBC Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 7,465,000 | 8,885,000 |
CACIB Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 31,300,000 | 34,100,000 |
ABN/DVB/NIBC Joint Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 92,131,594 | 162,115,591 |
Nordea/SEB Joint Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 86,371,847 | 132,272,938 |
ABN AMRO Revolving Facility [Member] | Loans Payable [Member] | ||
Total debt | $ 14,994,279 | $ 11,092,158 |
Debt (Details 1)
Debt (Details 1) | Dec. 31, 2018USD ($) |
2019 | $ 24,217,892 |
2020 | 39,212,171 |
2021 | 26,521,166 |
2022 | 142,311,491 |
Total long-term debt | $ 232,262,720 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Millions | Mar. 10, 2016 | Jan. 13, 2016 | Sep. 12, 2014 | Oct. 25, 2018 | Oct. 24, 2017 | May 30, 2017 | Aug. 04, 2016 | Jan. 22, 2016 | Sep. 30, 2014 | Dec. 31, 2018 | Jul. 29, 2016 | May 22, 2014 |
Required Minimum Solvency Covenant | 30.00% | |||||||||||
Required Minimum Cash Balance | $ 23.5 | |||||||||||
Minimum Net Worth Required | $ 150 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 4.50% | |||||||||||
Minimum [Member] | ||||||||||||
Cash and Cash Equivalent Percentage | 5.00% | |||||||||||
Fair market Value Percentage | 130.00% | |||||||||||
NIBC Bank Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 13.5 | $ 39 | ||||||||||
Debt Instrument Maturity Period | 2021 | |||||||||||
NIBC Bank Facility [Member] | Tranche I [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||||
Long-term Line of Credit | $ 2.3 | |||||||||||
Proceeds from Lines of Credit | 25 | |||||||||||
NIBC Bank Facility [Member] | Additional Financing [Member] | ||||||||||||
Short-term Debt, Refinanced, Amount | $ 25 | |||||||||||
NIBC Bank Facility [Member] | LIBOR [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.90% | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.90% | |||||||||||
ABN/DVB/NIBC Joint Bank Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 213 | |||||||||||
Line Of Credit Facility Maximum Borrowing Capacity Increase Amount | $ 36.6 | |||||||||||
Short-term Debt, Refinanced, Amount | $ 20.1 | |||||||||||
ABN/DVB/NIBC Joint Bank Facility [Member] | LIBOR [Member] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.55% | |||||||||||
Debt Instrument Maturity Period | 2022 | |||||||||||
ABN/DVB/NIBC Joint Bank Facility [Member] | LIBOR [Member] | Tranche II [Member] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.75% | |||||||||||
Nordea/SEB Joint Bank Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 151 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.50% | |||||||||||
Debt Instrument Maturity Period | 2022 | |||||||||||
Third ABN AMRO Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 71.3 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.5% | |||||||||||
Debt Instrument Maturity Period | 2020 | |||||||||||
ABN Revolving Facility [Member] | ||||||||||||
Short-term Debt | $ 15 | |||||||||||
CACIB Bank Facility [Member] | LIBOR [Member] | ||||||||||||
Debt Instrument Maturity Period | 2022 |
Finance leases (Details)
Finance leases (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Leased Assets [Line Items] | |||
Amount receivable in respect of finance leases | $ (2,900,000) | ||
Finance Liability [Member] | |||
Capital Leased Assets [Line Items] | |||
Amount receivable in respect of finance leases | (2,880,000) | $ (2,880,000) | |
Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 296,181,882 | 52,862,200 | |
Amounts representing interest and deferred finance fees | (54,705,784) | (10,368,181) | |
Net minimum finance lease payments | 241,476,098 | [1] | 42,494,019 |
Amount receivable in respect of finance leases | (2,880,000) | (2,880,000) | |
Adjusted net minimum finance lease payments | 238,596,098 | 39,614,019 | |
Current portion of finance lease obligations | 26,589,017 | 3,783,044 | |
Current portion of deferred finance fees | (739,817) | (245,578) | |
Non-current portion of finance lease obligations | 218,985,447 | 39,402,440 | |
Non-current portion of deferred finance fees | (3,358,549) | (445,887) | |
Total finance lease obligations | 241,476,098 | 42,494,019 | |
Net finance lease obligations | 238,596,098 | 39,614,019 | |
River Hudson LLC [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 10,380,600 | 11,767,600 | |
Japanese Leases No.1 and 2 [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 36,253,400 | 41,094,600 | |
Japanese Lease No.3 [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 17,870,500 | 0 | |
CMBFL Leases No.1 to 4 [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 87,496,402 | 0 | |
Ocean Yield ASA [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 66,563,040 | 0 | |
Japanese Lease No.4 [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | 26,061,943 | 0 | |
China Huarong Leases [Member] | Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital Leases, Future Minimum Payments Due | $ 51,555,997 | $ 0 | |
[1] | Includes $8.3 million related to vessel held for sale repayable on January 2, 2019. |
Finance leases (Details 1)
Finance leases (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Leased Assets [Line Items] | |||
Amount receivable in respect of finance leases | $ (2,900,000) | ||
Capital Lease Obligations [Member] | |||
Capital Leased Assets [Line Items] | |||
2019 | 37,532,945 | ||
2020 | 26,868,097 | ||
2021 | 26,523,339 | ||
2022 | 26,470,805 | ||
2023 | 38,028,900 | ||
2024 – 2030 | 140,757,796 | ||
Total minimum finance lease payments | 296,181,882 | $ 52,862,200 | |
Amounts representing interest and deferred finance fees | (54,705,784) | (10,368,181) | |
Net minimum finance lease payments | 241,476,098 | [1] | 42,494,019 |
Amount receivable in respect of finance leases | (2,880,000) | (2,880,000) | |
Adjusted net minimum finance lease payments | $ 238,596,098 | $ 39,614,019 | |
[1] | Includes $8.3 million related to vessel held for sale repayable on January 2, 2019. |
Finance leases (Details 2)
Finance leases (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leased Assets [Line Items] | ||
Vessels, equipment and deferred drydock expenditure | $ 360,675,433 | $ 75,712,769 |
Accumulated depreciation | (46,540,825) | (19,721,568) |
Vessel held for sale | 8,083,405 | 0 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | $ 322,218,013 | $ 55,991,201 |
Finance leases (Details Textual
Finance leases (Details Textual) | 1 Months Ended | |||||||
Nov. 30, 2018 | Oct. 25, 2018 | Jun. 26, 2018 | Jan. 02, 2019USD ($) | Dec. 31, 2018USD ($)Fleet | Jan. 30, 2018USD ($) | Dec. 31, 2017USD ($) | May 30, 2017USD ($) | |
Number of fInance Lease Facility | Fleet | 7 | |||||||
Number of vessel in operation | 13 | |||||||
Sellers Credit Note | $ 2,900,000 | |||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 4.50% | |||||||
Subsequent Event [Member] | ||||||||
Capital Leases Future Minimum Payments Due on Vessels Held for Sale | $ 8,300,000 | |||||||
Finance Liability [Member] | ||||||||
Sellers Credit Note | $ 2,880,000 | $ 2,880,000 | ||||||
Other Noncurrent Assets [Member] | ||||||||
Sellers Credit Note | $ 2,900,000 | |||||||
Vessels [Member] | Other Noncurrent Assets [Member] | ||||||||
Sellers Credit Note | $ 2,900,000 | |||||||
Ardmore Seavanguard and Ardmore Exporter [Member] | ||||||||
Sellers Credit Note | $ 1,400,000 | |||||||
Ardmore Seavanguard and Ardmore Exporter [Member] | Finance Liability [Member] | ||||||||
Sellers Credit Note | $ 1,400,000 | |||||||
Sea Leasing Co Leases [Member] | ||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.00% | LIBOR plus 3.10% | ||||||
Ocean Yield ASA [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||||
Lessee Finance Lease Expiration Year | 2030 | |||||||
Rich Ocean Shipping [Member] | ||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.20% | |||||||
Loyal Able Joy Champion Leases [Member] | Ardmore Seavanguard and Ardmore Exporter [Member] | ||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.50% | |||||||
CMBFL Leases No.1 to 4 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | 3.10% | ||||||
Lessee Finance Lease Expiration Year | 2025 | |||||||
China Huarong Leases [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||
Lessee Finance Lease Expiration Year | 2025 | |||||||
Japanese Lease No.4 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.20% | |||||||
Lessee Finance Lease Expiration Year | 2029 |
Operating leases (Details)
Operating leases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Total operating lease, right of use asset | $ 2,169,158 | $ 0 | $ 2,440,288 | |
Current portion of operating lease obligations | 477,147 | 0 | 442,957 | |
Non-current portion of operating lease obligations | 1,491,507 | 0 | 1,997,331 | |
Total operating lease obligations | 1,968,654 | 2,440,288 | ||
Total foreign exchange gain on operating leases | (200,504) | 0 | $ 0 | |
Operating Lease [Member] | ||||
Total operating lease, right of use asset | 2,169,158 | $ 2,440,288 | ||
Total foreign exchange gain on operating leases | $ (200,504) | $ 0 |
Operating leases (Details 1)
Operating leases (Details 1) - Office Space [Member] | Dec. 31, 2018USD ($) |
2019 | $ 525,715 |
2020 | 339,772 |
2021 | 296,499 |
2022 | 303,198 |
2023 | 309,341 |
2024 – 2026 | $ 689,727 |
Operating leases (Details Textu
Operating leases (Details Textual) $ in Millions | Dec. 31, 2018USD ($) |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 6 months |
Spot Charters [Member] | |
Operating Leases, Future Minimum Payments Receivable | $ 20.7 |
Sale of vessels (Details)
Sale of vessels (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Sales proceeds | $ 54,200,000 | ||||
Net book value of vessels | (55,259,016) | ||||
Sales related costs | (1,032,669) | ||||
Lease termination costs and related finance fees | (509,463) | ||||
Net (loss)/gain | $ 500,000 | $ 0 | $ 0 | (2,601,148) | |
Ardmore Calypso [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Sales proceeds | 19,150,000 | ||||
Net book value of vessels | (18,783,238) | ||||
Sales related costs | (273,458) | ||||
Lease termination costs and related finance fees | (254,731) | ||||
Net (loss)/gain | (161,427) | ||||
Ardmore Capella [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Sales proceeds | 19,350,000 | ||||
Net book value of vessels | (18,253,669) | ||||
Sales related costs | (228,210) | ||||
Lease termination costs and related finance fees | (254,732) | ||||
Net (loss)/gain | 613,389 | ||||
Ardmore Centurion [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Sales proceeds | 15,700,000 | ||||
Net book value of vessels | (18,222,109) | ||||
Sales related costs | (531,001) | ||||
Lease termination costs and related finance fees | 0 | ||||
Net (loss)/gain | $ 6,400,000 | $ (3,053,110) |
Sale of vessels (Details 1)
Sale of vessels (Details 1) - USD ($) | 2 Months Ended | 12 Months Ended | ||
May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Sales proceeds | $ 54,200,000 | |||
Net book value of vessel | (55,259,016) | |||
Sales related costs | (1,032,669) | |||
Lease termination costs and related finance fees | (509,463) | |||
Net loss on vessel held for sale | $ 500,000 | $ 0 | $ 0 | $ (2,601,148) |
Sea trader [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Sales proceeds | 8,250,000 | |||
Net book value of vessel | (14,444,217) | |||
Sales related costs | (165,000) | |||
Lease termination costs and related finance fees | (1,596) | |||
Net loss on vessel held for sale | $ (6,360,813) |
Sale of vessels (Details Textua
Sale of vessels (Details Textual) - USD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Leased Assets [Line Items] | |||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 500,000 | $ 0 | $ 0 | $ (2,601,148) | |
En Bloc Sale Price For Two Vessels | 38,500,000 | ||||
Ardmore Centurion [Member] | |||||
Capital Leased Assets [Line Items] | |||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 6,400,000 | $ (3,053,110) | |||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 8,300,000 | ||||
Ardmore Centurion [Member] | Vessels [Member] | |||||
Capital Leased Assets [Line Items] | |||||
Gain (Loss) on Disposition of Property Plant Equipment | 3,100,000 | ||||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 15,700,000 |
Risk management (Details Textua
Risk management (Details Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018Fleet | |
Concentration Risk [Line Items] | |||
Number Of Vessels In Operation | 28 | 28 | |
Number Of Charterers Employing Vessels | Fleet | 24 | ||
Risk Management, Variable Interest Rate, Effect of Hundred Basis Point Increase on Interest Cost | $ | $ 4 | $ 4.6 |
General and administrative ex_3
General and administrative expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
General And Administrative Expense [Line Items] | |||
Share based compensation (non-cash) | $ 1,636,547 | $ 457,046 | $ 1,304,325 |
Other administration costs | 12,626,373 | 11,979,017 | 12,055,725 |
General and Administrative Expense | |||
Commercial and chartering expenses [Member] | |||
General And Administrative Expense [Line Items] | |||
Staff salaries | 2,414,574 | 1,934,923 | 1,039,169 |
Office administration | 419,773 | 341,219 | 201,685 |
Other professional fees | 0 | 0 | 426,213 |
Other administration costs | 399,541 | 343,606 | 354,420 |
General and Administrative Expense | 3,233,888 | 2,619,748 | 2,021,487 |
Corporate [Member] | |||
General And Administrative Expense [Line Items] | |||
Staff salaries | 5,419,944 | 6,851,692 | 5,709,919 |
Share based compensation (non-cash) | 1,636,548 | 457,046 | 1,304,325 |
Office administration | 2,658,087 | 2,538,973 | 2,565,838 |
Bank charges and foreign exchange | 47,142 | 219,910 | 140,942 |
Auditors' remuneration | 676,600 | 558,600 | 513,429 |
Other professional fees | 2,009,200 | 1,280,163 | 1,810,089 |
Other administration costs | 178,852 | 72,633 | 11,183 |
General and Administrative Expense | $ 12,626,373 | $ 11,979,017 | $ 12,055,725 |
Interest expense and finance _3
Interest expense and finance costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Expense And Finance Costs [Line Items] | |||
Interest incurred – debt | $ 17,070,112 | $ 16,430,031 | $ 13,794,298 |
Interest incurred – finance leases | 5,667,420 | 1,889,609 | 544,368 |
Amortization of deferred finance charges | 2,400,621 | 2,536,402 | 3,415,452 |
Write-off of deferred finance fees in relation to refinancing | 2,267,455 | 524,123 | 0 |
Interest expense and finance costs | $ 27,405,608 | $ 21,380,165 | $ 17,754,118 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic | $ (42,776,078) | $ (12,430,768) | $ 3,808,366 |
(Loss)/profit before taxes | $ (42,776,078) | $ (12,430,768) | $ 3,808,366 |
Income taxes (Details 1)
Income taxes (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic | |||
Current tax expenses | $ (162,923) | $ (59,567) | $ (60,434) |
Income tax expense for year | $ (162,923) | $ (59,567) | $ (60,434) |
Net (loss)_earnings per share_2
Net (loss)/earnings per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net (loss)/profit | $ (42,939,001) | $ (12,490,335) | $ 3,747,932 |
Denominator: | |||
Weighted average number of shares outstanding (in shares) | 32,837,866 | 33,441,879 | 30,141,891 |
Net (Loss)/Earnings per share, basic and diluted (in dollars per share) | $ (1.31) | $ (0.37) | $ 0.12 |
Net (loss)_earnings per share_3
Net (loss)/earnings per share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,984,983 | 1,343,375 | 1,343,375 |
Related party transactions (Det
Related party transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Stock Repurchased During Period, Shares | 1,435,654 | 366,347 |
Stock Repurchased During Period, Value | $ 11,262,750 | $ 2,993,931 |
GA Holdings LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Stock Repurchased During Period, Shares | 1,435,654 | |
Stock Repurchased During Period, Value | $ 11,100,000 |
Share based compensation (Detai
Share based compensation (Details) - $ / shares | Apr. 04, 2018 | Jan. 15, 2016 | Mar. 06, 2015 | Sep. 01, 2014 | Mar. 12, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Average expected exercise life | 4 years 3 months | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Average expected exercise life | 5 years | 5 years | 5 years | 5 years | |
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Average expected exercise life | 4 years | 4 years 2 months 12 days | 4 years 6 months | 4 years 7 months 6 days | |
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
SAR Awarded (in shares) | 1,719,733 | 205,519 | 37,797 | 5,595 | 22,118 |
Exercise price (in dollars per share) | $ 7.40 | $ 9.20 | $ 10.25 | $ 13.91 | $ 13.66 |
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years |
Grant price (in dollars per share) | $ 7.40 | $ 9.20 | $ 10.25 | $ 13.91 | $ 13.66 |
Dividend yield (in hundredths) | 0.00% | 6.63% | 3.90% | 2.88% | 2.93% |
Risk-free rate of return (in hundredths) | 2.51% | 1.79% | 1.90% | 2.20% | 2.06% |
Expected volatility (in hundredths) | 40.59% | 58.09% | 61.38% | 53.60% | 56.31% |
Weighted average fair value (in dollars per share) | $ 2.67 | $ 2.20 | $ 2.98 | $ 4.20 | $ 4.17 |
Share based compensation (Det_2
Share based compensation (Details 1) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Balance, No. of Units (Beginning) | shares | 1,343,375 |
SARs granted during the year | shares | 1,719,733 |
SARs exercised/converted/replaced during the year | shares | (1,078,125) |
SARs forfeited during the year | shares | 0 |
Balance, No. of Units (Ending) | shares | 1,984,983 |
Balance, Weighted average exercise price | $ / shares | $ 13.16 |
SARs granted during the year | $ / shares | 7.40 |
SARs exercised/converted/replaced during the year | $ / shares | (14) |
SARs forfeited during the year | $ / shares | 0 |
Balance, Weighted average exercise price | $ / shares | $ 7.72 |
Share based compensation (Det_3
Share based compensation (Details 2) | Dec. 31, 2018USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2019 | shares | 573,244 |
2020 | shares | 573,245 |
Total | shares | 1,146,489 |
2019 | $ | $ 1,185,060 |
2020 | $ | 888,795 |
Total | $ | $ 2,073,855 |
Share based compensation (Det_4
Share based compensation (Details Textual) - shares | Apr. 04, 2018 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage Of Exercise Price Per Share Appreciation Limit Under Condition One | 400.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,078,125 | |
New Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 7 years | |
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,990,762 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 5,779 |
Repurchase of common stock (Det
Repurchase of common stock (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Aug. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Shares | 1,921,401 | 1,921,401 | |
Treasury Stock, Value | $ 15,348,909 | $ 15,348,909 | |
Stock Repurchase Program, Authorized Amount | $ 25,000,000 | ||
Repurchase Plan [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock Acquired, Average Cost Per Share | $ 7.72 | ||
Treasury Stock, Value | $ 11,100,000 | ||
Board of Directors [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Shares | 1,435,654 |
Subsequent events (Details Text
Subsequent events (Details Textual) - Subsequent Event [Member] - USD ($) $ in Millions | Jan. 09, 2019 | Jan. 02, 2019 | Feb. 01, 2019 |
Restricted Stock Units (RSUs) [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 176,659 | ||
Ardmore Seatrader [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 8.3 | ||
Ardmore Seamaster [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 9.7 |
Subsidiaries (Details)
Subsidiaries (Details) | Dec. 31, 2018 |
Ardmore Shipping LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Shipholding Limited [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Maritime Services LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Shipping (UK) Limited [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Shipping (Bermuda) Limited [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Shipping (Asia) Pte Limited [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Shipping (Americas) LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Chartering LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Shipping Services (Ireland) Limited [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Pool Holdings LLC | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore MR Pool LLC | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Tanker Trading (Asia) Pte Ltd | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ardmore Trading (USA) LLC | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Hebrides Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Sole Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Biscay Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Blasket Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Brandon Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Dover Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Humber Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Kilkee Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Killary Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Kilmore Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Magee Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Saltee Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Skellig Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Tramore Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Ballycotton Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Wight Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Lundy Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Thames Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Valentia Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Fair Isle Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Malin Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Tyne Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Forties Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Fitzroy Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Bailey Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Forth Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Viking Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Cromarty Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Shannon Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Rockall Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Faroe Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Dogger Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Fisher Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Plymouth Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Portland Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Trafalgar Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |
Fastnet Shipco LLC [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership (%) (in hundredths) | 100.00% |