Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document And Entity Information | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2023 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | Ardmore Shipping Corp |
Entity Central Index Key | 0001577437 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2023 |
Amendment Flag | false |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 50,974 | $ 50,569 |
Receivables, net of allowance for bad debts of $2.3 million (2022: $2.2 million) | 63,060 | 79,843 |
Prepaid expenses and other assets | 4,450 | 4,521 |
Advances and deposits | 2,145 | 2,160 |
Inventories | 14,219 | 15,718 |
Current portion of derivative assets | 201 | 4,927 |
Total current assets | 135,049 | 157,738 |
Non-current assets | ||
Investments and other assets, net | 11,484 | 11,219 |
Vessels and vessel equipment, net | 520,751 | 531,378 |
Deferred drydock expenditures, net | 4,650 | 4,716 |
Advances for ballast water treatment and scrubber systems | 13,028 | 5,530 |
Deferred finance fees, net | 3,273 | 2,717 |
Operating lease, right-of-use asset | 7,914 | 10,561 |
Total non-current assets | 561,100 | 566,121 |
TOTAL ASSETS | 696,149 | 723,859 |
Current liabilities | ||
Accounts payable | 6,456 | 8,814 |
Accrued expenses and other liabilities | 15,721 | 20,890 |
Deferred revenue | 0 | 1,220 |
Accrued interest on debt and finance leases | 937 | 863 |
Current portion of long-term debt | 6,579 | 12,927 |
Current portion of finance lease obligations | 1,946 | 1,857 |
Current portion of operating lease obligations | 6,975 | 6,358 |
Total current liabilities | 38,614 | 52,929 |
Non-current liabilities | ||
Non-current portion of long-term debt | 72,348 | 115,869 |
Non-current portion of finance lease obligations | 42,654 | 43,643 |
Non-current portion of operating lease obligations | 710 | 3,969 |
Other non-current liabilities | 1,007 | 1,007 |
Total non-current liabilities | 116,719 | 164,488 |
TOTAL LIABILITIES | 155,333 | 217,417 |
Redeemable Preferred Stock | ||
Cumulative Series A 8.5% redeemable preferred stock | 37,043 | 37,043 |
Stockholders' equity | ||
Common stock | 433 | 426 |
Additional paid in capital | 469,583 | 468,006 |
Accumulated other comprehensive income | 46 | 1,468 |
Treasury stock | (15,636) | (15,636) |
Retained earnings | 49,347 | 15,135 |
Total stockholders' equity | 503,773 | 469,399 |
Total redeemable preferred stock and stockholders' equity | 540,816 | 506,442 |
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | $ 696,149 | $ 723,859 |
Unaudited Interim Condensed C_2
Unaudited Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 2 | $ 2.2 |
Cumulative Series A redeemable Preferred Stock | ||
Divided rate | 8.50% |
Unaudited Interim Condensed C_3
Unaudited Interim Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unaudited Interim Condensed Consolidated Statements of Operations | ||||
Revenue, net | $ 91,927 | $ 107,125 | $ 210,160 | $ 170,493 |
Voyage expenses | (31,532) | (41,178) | (68,095) | (68,253) |
Vessel operating expenses | (15,258) | (15,943) | (30,195) | (32,530) |
Operating expense component | (2,249) | (1,238) | (5,114) | (2,344) |
Vessel lease expense component | (2,070) | (1,140) | (4,706) | (2,156) |
Depreciation | (6,814) | (6,982) | (13,756) | (14,772) |
Amortization of deferred drydock expenditures | (895) | (959) | (1,902) | (2,156) |
General and administrative expenses | ||||
Corporate | (4,760) | (4,291) | (9,820) | (8,759) |
Commercial and chartering | (1,052) | (1,053) | (2,224) | (1,944) |
Loss on vessel held for sale | 0 | (6,917) | ||
Unrealized gains / (losses) on derivatives | 296 | (31) | 900 | |
Interest expense and finance costs | (2,825) | (4,816) | (5,689) | (8,954) |
Loss on extinguishment | (78) | 0 | (78) | |
Interest income | 606 | 20 | 845 | 30 |
Net Income before taxes | 25,078 | 29,763 | 69,473 | 22,560 |
Income tax | (240) | (9) | (297) | (43) |
(Loss) / profit from equity method investments | (331) | (67) | (580) | 169 |
Net Income | 24,507 | 29,687 | 68,596 | 22,686 |
Preferred dividend | (848) | (838) | (1,686) | (1,686) |
Net income attributable to common stockholders | $ 23,659 | $ 28,849 | $ 66,910 | $ 21,000 |
Earnings per share, basic (in dollars per share) | $ 0.57 | $ 0.82 | $ 1.63 | $ 0.60 |
Earnings per share, diluted (in dollars per share) | $ 0.57 | $ 0.81 | $ 1.60 | $ 0.60 |
Weighted average number of shares outstanding, basic (in shares) | 41,192,894,000 | 35,071,435,000 | 40,959,113,000 | 34,752,045,000 |
Weighted average number of shares outstanding, diluted (in shares) | 41,706,251 | 35,574,082 | 41,692,820 | 34,830,153 |
Unaudited Interim Condensed C_4
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unaudited Interim Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||
Net Income | $ 24,507 | $ 29,687 | $ 68,596 | $ 22,686 |
Other comprehensive income / (loss), net of tax | ||||
Net change in unrealized (losses) / gains on cash flow hedges | (698) | 1,205 | (1,421) | 4,209 |
Other comprehensive (loss)/ income, net of tax | (698) | 1,205 | (1,421) | 4,209 |
Comprehensive Income | $ 23,809 | $ 30,892 | $ 67,175 | $ 26,895 |
Unaudited Interim Condensed C_5
Unaudited Interim Condensed Consolidated Statements of Changes in Redeemable Preferred Stock and Stockholder Equity - USD ($) $ in Thousands | Common Stock Redeemable Preferred Stock | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Treasury stock | Accumulated deficit | Redeemable Preferred Stock | Total |
Balance at Dec. 31, 2021 | $ 364 | $ 426,102 | $ 1,044 | $ (15,636) | $ (119,920) | $ 291,954 | ||
Balance (in shares) at Dec. 31, 2021 | 34,364 | |||||||
Issue of common stock | $ 3 | (3) | ||||||
Issue of common stock (in shares) | 306 | |||||||
Share-based compensation | 1,246 | 1,246 | ||||||
Changes in unrealized gain on cash flow hedges | 4,209 | 4,209 | ||||||
Net proceeds from equity offering (in shares) | 2,437 | 2,437 | ||||||
Net proceeds from equity offering | $ 24 | 17,706 | 17,730 | |||||
Preferred dividend | (1,686) | (1,686) | ||||||
Net income/(loss) | 22,686 | 22,686 | ||||||
Net income attributable to common stockholders | 21,000 | |||||||
Balance at Jun. 30, 2022 | $ 391 | 445,051 | 5,253 | (15,636) | (98,920) | 336,139 | ||
Balance (in shares) at Jun. 30, 2022 | 37,107 | 37,107 | ||||||
Balance at Dec. 31, 2021 | $ 37,043 | |||||||
Balance (in shares) at Dec. 31, 2021 | 40 | |||||||
Balance at Jun. 30, 2022 | $ 37,043 | |||||||
Balance (in shares) at Jun. 30, 2022 | 40 | |||||||
Balance at Mar. 31, 2022 | $ 366 | 426,671 | 4,048 | (15,636) | (127,770) | 287,679 | ||
Balance (in shares) at Mar. 31, 2022 | 34,574 | |||||||
Issue of common stock | 1 | (1) | ||||||
Issue of common stock (in shares) | 96 | |||||||
Share-based compensation | 675 | 675 | ||||||
Changes in unrealized gain on cash flow hedges | 1,205 | 1,205 | ||||||
Preferred dividend | (838) | (838) | ||||||
Net income/(loss) | 29,687 | 29,687 | ||||||
Net income attributable to common stockholders | 28,849 | |||||||
Balance at Jun. 30, 2022 | $ 391 | 445,051 | 5,253 | (15,636) | (98,920) | 336,139 | ||
Balance (in shares) at Jun. 30, 2022 | 37,107 | 37,107 | ||||||
Balance at Mar. 31, 2022 | $ 37,043 | |||||||
Balance (in shares) at Mar. 31, 2022 | 40 | |||||||
Balance at Jun. 30, 2022 | $ 37,043 | |||||||
Balance (in shares) at Jun. 30, 2022 | 40 | |||||||
Balance at Dec. 31, 2022 | $ 426 | 468,006 | 1,468 | (15,636) | 15,135 | 469,399 | ||
Balance (in shares) at Dec. 31, 2022 | 40,627 | |||||||
Issue of common stock | $ 7 | (7) | ||||||
Issue of common stock (in shares) | 669 | |||||||
Share-based compensation | 1,585 | 1,585 | ||||||
Payment of dividend | (32,700) | (32,700) | ||||||
Changes in unrealized gain on cash flow hedges | (1,421) | (1,421) | ||||||
Preferred dividend | (1,686) | (1,686) | ||||||
Net income/(loss) | 68,596 | 68,596 | ||||||
Net income attributable to common stockholders | 66,910 | |||||||
Balance at Jun. 30, 2023 | $ 433 | 469,583 | 46 | (15,636) | 49,347 | 503,773 | ||
Balance (in shares) at Jun. 30, 2023 | 41,296 | 41,296 | ||||||
Balance at Dec. 31, 2022 | $ 37,043 | 37,043 | ||||||
Balance (in shares) at Dec. 31, 2022 | 41 | |||||||
Balance at Jun. 30, 2023 | $ 37,043 | 37,043 | ||||||
Balance (in shares) at Jun. 30, 2023 | 41 | |||||||
Balance at Mar. 31, 2023 | $ 430 | 468,731 | 745 | (15,636) | 40,101 | 494,370 | ||
Balance (in shares) at Mar. 31, 2023 | 40,999 | |||||||
Issue of common stock | 3 | (3) | ||||||
Issue of common stock (in shares) | 297 | |||||||
Share-based compensation | 856 | 856 | ||||||
Payment of dividend | (14,414) | (14,414) | ||||||
Changes in unrealized gain on cash flow hedges | (698) | (698) | ||||||
Preferred dividend | (848) | (848) | ||||||
Net income/(loss) | 24,507 | 24,507 | ||||||
Net income attributable to common stockholders | 23,659 | |||||||
Balance at Jun. 30, 2023 | $ 433 | $ 469,583 | $ 46 | $ (15,636) | $ 49,347 | 503,773 | ||
Balance (in shares) at Jun. 30, 2023 | 41,296 | 41,296 | ||||||
Balance at Mar. 31, 2023 | $ 37,043 | |||||||
Balance (in shares) at Mar. 31, 2023 | 41 | |||||||
Balance at Jun. 30, 2023 | $ 37,043 | $ 37,043 | ||||||
Balance (in shares) at Jun. 30, 2023 | 41 |
Unaudited Interim Condensed C_6
Unaudited Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 68,596 | $ 22,686 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 13,756 | 14,772 |
Amortization of deferred drydock expenditures | 1,902 | 2,156 |
Share-based compensation | 1,585 | 1,246 |
Loss on vessel held for sale | 0 | 6,917 |
Amortization of deferred finance fees | 589 | 803 |
Unrealized losses/ (gains) on derivatives | 31 | (900) |
Foreign exchange | 5 | (34) |
Loss / (profit) from equity method investments | 580 | (169) |
Deferred drydock payments | (2,711) | (760) |
Changes in operating assets and liabilities: | ||
Receivables | 16,783 | (31,636) |
Prepaid expenses and other assets | 71 | (714) |
Advances and deposits | 15 | 1,256 |
Inventories | 1,500 | (7,542) |
Accounts payable | (267) | (1,893) |
Accrued expenses and other liabilities | (2,390) | 3,122 |
Deferred revenue | (1,220) | (614) |
Accrued interest | 74 | 177 |
Net cash provided by operating activities | 98,899 | 8,873 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of vessels | 0 | 13,759 |
Payments for acquisition of vessels and vessel equipment | (3,259) | (43) |
Advances for ballast water treatment and scrubber systems | (7,987) | (180) |
Payments for other non-current assets | (53) | (46) |
Payments for equity investments | (875) | (238) |
Net cash (used in)/ provided by investing activities | (12,174) | 13,252 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Prepayment of finance lease obligation | 0 | (9,253) |
Proceeds from long-term debt | 215 | 9,811 |
Repayments of long-term debt | (51,170) | (21,871) |
Proceeds from finance leases | 0 | 2,880 |
Repayments of finance leases | (960) | (28,922) |
Payment of common share dividend | (32,700) | 0 |
Issuance of common stock, net | 0 | 16,747 |
Net cash (used in) financing activities | (86,320) | (32,188) |
Payment of preferred share dividend | (1,705) | (1,580) |
Net (decrease)/increase in cash and cash equivalents | 405 | (10,063) |
Cash and cash equivalents at the beginning of the year | 50,569 | 55,449 |
Cash and cash equivalents at the end of the period | 50,974 | 45,386 |
Cash paid during the year for: | ||
Cash paid during the period for interest in respect of debt | 4,694 | 2,004 |
Cash paid during the period for interest in respect of finance leases | 1,864 | 6,309 |
Cash paid during the period for operating lease liabilities | 401 | 339 |
Cash paid during the period for income taxes | 368 | 37 |
Non-cash financing activity. Cash paid during the period in respect of drydock accruals | 631 | 294 |
Non-cash financing activity. Cash paid during the period in respect of ballast water treatment systems accruals | 490 | 72 |
Non-cash financing activity: Accrued preferred dividends | 568 | 568 |
Non-cash financing activity: Receivable for net proceeds on issue of common stock | $ 0 | $ 984 |
General information and signifi
General information and significant accounting policies | 6 Months Ended |
Jun. 30, 2023 | |
General information and significant accounting policies | |
General information and significant accounting policies | 1. General information and significant accounting policies 1.1. Background Ardmore Shipping Corporation (NYSE: ASC) (“ASC”), together with its subsidiaries (collectively, 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 and the Company operates its business in one operating segment, the transportation of refined petroleum products and chemicals. As of June 30, 2023, the Company had 22 owned vessels and four chartered-in vessels in operation. The average age of the Company’s owned fleet as of June 30, 2023 was 9 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. As of June 30, 2023, ASC had (a) 79 wholly owned subsidiaries, the majority of which represent single ship-owning companies for ASC’s fleet, (b) one 50%-owned joint venture, Anglo Ardmore Ship Management Limited ("AASML"), which provides technical management services to a majority of the ASC fleet, (c) one 33.33%-owned joint venture, e1 Marine LLC, which markets and sells Element 1 Corp.’s (“E1”) methanol-to-hydrogen technology to the marine sector, and (d) a 10% equity stake, on a fully diluted basis, in E1. Ardmore Maritime Services (Asia) Pte, a wholly owned subsidiary incorporated in Singapore, 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. Basis of preparation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that apply to interim condensed financial statements. Accordingly, they do not include all of the information and footnotes normally included in consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2022 Annual Report on Form 20-F, filed with the SEC on March 24, 2023. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the footnotes required by U.S. GAAP for complete financial statements. The accompanying interim condensed consolidated financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed consolidated financial position and results of operations for the interim periods presented. All intercompany balances and transactions have been eliminated on consolidation. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year. 1.4. Significant accounting policies During the first quarter of 2023, the Company increased the estimated scrap value of the vessels from $300 per lightweight ton (lwt) to $400 per lwt. This increase is applied prospectively and based on the average of the 15-year |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2023 | |
Equity Investments | |
Equity Investments | 2. Equity Investments Element 1 Corp. - e1 Marine LLC - The Company records its share of earnings and losses in these investments on a quarterly basis. The Company recorded an investment of $11.2 million, inclusive of transaction costs (E1 investment of $9.6 million and e1 Marine LLC investment of $1.6 million), which is included in investments and other assets, net in the condensed consolidated balance sheet as of June 30, 2023. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt | |
Debt | 3. Debt As of June 30, 2023, the Company had three loan facilities, which it has used primarily to finance vessel acquisitions or vessels under construction and also for working capital. The Company’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the loan facilities, which totaled 19 vessels as of June 30, 2023. ASC and its subsidiary Ardmore Shipping LLC 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 of June 30, 2023 and December 31, 2022 were as follows: As of In thousands of U.S. Dollars June 30, 2023 December 31, 2022 Nordea/SEB Revolving Facility — 22,500 ABN/CACIB Joint Bank Facility 49,229 104,927 ABN/CACIB Revolving Facility 27,229 — ABN AMRO Revolving Facility 3,399 3,184 Total debt 79,857 130,611 Deferred finance fees (930) (1,815) Net total debt 78,927 128,796 Current portion of long-term debt 6,713 13,429 Current portion of deferred finance fees (134) (502) Total current portion of long-term debt 6,579 12,927 Non-current portion of long-term debt 72,348 115,869 Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As of In thousands of U.S. Dollars June 30, 2023 2023 (1) 3,357 2024 6,713 2025 10,112 2026 6,713 2027 52,962 79,857 (1) Six-month period ending December 31, 2023 3. Debt (continued) Nordea / SEB Revolving Facility On August 5, 2022, 12 of ASC’s subsidiaries entered into a $185 million sustainability-linked revolving credit facility with Nordea Bank AB (publ) (“Nordea”) and Skandinaviska Enskilda Banken AB (publ) (“SEB”) (the “Nordea / SEB Revolving Facility”), the proceeds of which were used to refinance 12 vessels, including six vessels financed under lease arrangements. Interest is calculated at a rate of SOFR plus 2.5%. The revolving facility may be drawn down or repaid with five days' ABN/CACIB Joint Bank Term Loan and Revolving Credit Facility On August 5, 2022, seven of ASC’s subsidiaries entered into a $108 million sustainability-linked long-term loan facility with ABN AMRO Bank N.V (“ABN AMRO”) and Credit Agricole Corporate and Investment Bank (“CACIB”) (the “ABN/CACIB Joint Bank Facility”), the proceeds of which were used to finance seven vessels, including three vessels financed under lease arrangements. Interest is calculated at SOFR plus 2.5%. Principal repayments on the term loans are made on a quarterly basis, with a balloon payment payable with the final installment. On June 15, 2023 the agreement was amended which converted 50% of the outstanding balance under the facility into a revolving credit facility with the remaining 50% of the outstanding balance continuing as a term loan facility. Each of the revolving credit facility and term loan facility matures in August 2027. As of June 30, 2023, $27.2 million of the revolving credit facility was drawn down with a further $22.0 million undrawn. ABN AMRO Revolving Facility On August 9, 2022, the Company entered into a new sustainability-linked $15 million revolving credit facility with ABN AMRO (the “ABN AMRO Revolving Facility”) to fund working capital. Interest under this facility is calculated at a rate of SOFR plus 3.9%. Interest payments are payable on a quarterly basis. The facility matures in August 2025 with further options for extension. Long-term debt financial covenants The Company’s existing long-term debt facilities described above include certain covenants. The financial covenants require that the Company: ● maintain minimum solvency of not less than 30% ; ● maintain minimum cash and cash equivalents (of which at least 60% of such minimum amount is held in cash and which includes the undrawn portion of the Nordea/SEB Revolving Facility), based on the number of vessels owned and chartered-in and 5% of outstanding debt; the required minimum cash and cash equivalents as of June 30, 2023 was $18.8 million; ● ensure that the aggregate fair market value of the applicable vessels plus any additional collateral is not less than 130% of the debt outstanding for the applicable facility; ● maintain a corporate net worth of not less than $200 million; and ● maintain positive working capital, excluding current portion of debt and leases, balloon repayments and amounts outstanding under the ABN AMRO Revolving Facility, provided that the facility has a remaining maturity of more than three months. The Company was in full compliance with all of its long-term debt financial covenants as of June 30, 2023 and December 31, 2022. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | 4. Leases As of June 30, 2023, the Company was a party, as the lessee, to one finance lease facility. The Company’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the finance lease facility, which totaled two vessels as of June 30, 2023. ASC has provided a guarantee in respect of the finance lease facility, which guarantee may be called upon following a payment default. The outstanding principal balances on the finance lease facility as of June 30, 2023 and December 31, 2022 were as follows: As of In thousands of U.S. Dollars June 30, 2023 December 31, 2022 CMBFL / Shandong 57,107 59,930 Finance lease obligations 57,107 59,930 Amounts representing interest and deferred finance fees (12,509) (14,430) Finance lease obligations, net of interest and deferred finance fees 44,598 45,500 Current portion of finance lease obligations 2,064 1,976 Current portion of deferred finance fees (118) (119) Non-current portion of finance lease obligations 43,281 44,328 Non-current portion of deferred finance fees (627) (685) Total finance lease obligations, net of deferred finance fees 44,600 45,500 Maturity analysis of the Company’s finance lease facility for each year are as follows: As of In thousands of U.S. Dollars June 30, 2023 2023 (1) 2,870 2024 5,710 2025 5,694 2026 5,486 2027 - 2030 37,347 Finance lease obligations 57,107 Amounts representing interest and deferred finance fees (12,509) Finance lease obligations, net of interest and deferred finance fees 44,598 (1) Six-month period ending December 31, 2023 CMBFL / Shandong On June 25, 2021, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Seawolf Ardmore Seahawk 4. Leases (continued) Finance Leases Financial Covenants The Company’s existing finance lease facility (as described above) includes financial covenants which are the same, or no more onerous than, the Company’s long-term debt financial covenants described in Note 3. The Company was in full compliance with all of its finance lease-related financial covenants as of June 30, 2023 and December 31, 2022. Long Term Operating Leases The Company sold the Ardmore Sealeader Ardmore Sealifter Ardmore Sealancer Operating leases are included in operating lease, right-of-use (“ROU”) asset, current portion of operating lease obligations, and non-current portion of operating lease obligations in the Company’s consolidated balance sheets. The ROU asset represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate used by the Company of 4.5% is obtained independently and is comparable with what the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company makes significant judgments and assumptions to separate the lease component from the non-lease component of its time chartered-in vessels. The Company uses readily determinable and observable data for the purposes of determining the standalone cost of the vessel lease and operating service components of the Company’s time charters. The Company proportionately allocates the consideration of the contract to lease and non-lease components based on their relative standalone prices. Short Term Leases The Company entered into two short term lease agreements with one agreement effective July 30, 2021 to charter-in a 2010-built vessel for a period of 12 months which was extended for a further 12 months. The other agreement, effective March 1, 2022, was to charter-in a 2009-built vessel for a period of six months, which was extended for a further six months, and ended on March 3, 2023. |
Interest Rate Swaps
Interest Rate Swaps | 6 Months Ended |
Jun. 30, 2023 | |
Interest Rate Swaps | |
Interest Rate Swaps | 5. Interest Rate Swaps The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the second quarter of 2020, the Company entered into floating-to-fixed interest rate swap agreements, associated with existing variable-rate debt and financing facilities, over a three-year term with multiple counterparties. The swap agreements expired in July 2023. In accordance with these transactions, the Company paid an average fixed-rate interest amount of 0.32% and received floating rate interest amounts based on LIBOR. These interest rate swaps had a total notional amount of $220.5 million of which $68.4 million was designated as cash flow hedges as of June 30, 2023. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company records the fair value of the interest rate swap as an asset or liability on its balance sheet. The following table shows the interest rate swap assets designated as hedging instruments as of June 30, 2023 and December 31, 2022: Derivatives designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location June 30, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ 46 1,468 Interest rate swap Non - current portion of derivative assets $ — — The following table shows the interest rate swap assets not designated as hedging instruments as of June 30, 2023 and December 31, 2022: Derivatives not designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location June 30, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ 154 3,459 Interest rate swap Non - current portion of derivative assets $ — — |
Share-based compensation
Share-based compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-based compensation. | |
Share-based compensation | 6. Share-based Compensation Stock appreciation rights (“SARs”) A summary of awards of SARs, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Weighted Risk-free Average Fair SARs SARs Exercise Vesting Grant Dividend rate of Expected Value Average Expected Valuation Grant Date Awarded Remaining Price Period Price Yield Return Volatility grant date Exercise Life Method 15‑Jan‑16 205,519 16,849 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04‑Mar‑20 549,020 — $ 5.25 3 yrs $ 5.25 0 % 0.73 % 46.42 % $ 2.04 4.5 yrs Black-Scholes 04‑Mar‑21 610,691 176,360 $ 4.28 3 yrs $ 4.28 0 % 0.66 % 55.39 % $ 1.93 4.5 yrs Black-Scholes Changes in the SARs for the six months ended June 30, 2023 are set forth below in full numbers: Weighted average No. of SARs exercise price Balance as of January 1, 2023 528,844 $ 4.74 SARs exercised during the six months ended June 30, 2023 (335,635) $ (5.18) Balance as of June 30, 2023 (none of which are exercisable or convertible) 193,209 $ 4.71 The total cost related to non-vested SAR awards expected to be recognized through 2024 is set forth below in thousands of U.S. Dollars: Period TOTAL 2023 (1) $ 170 2024 57 $ 227 (1) Six-month period ending December 31, 2023 6. Share-based Compensation (continued) Restricted stock units (“RSUs”) A summary of awards of RSUs is as follows: Grant Date RSUs Awarded Service Period Grant Price 04-Mar-20 94,105 3 years $ 5.25 04-Mar-21 302,923 3 years $ 4.28 30-Mar-22 593,671 3 years $ 4.54 07-Jun-22 60,415 1 year $ 8.07 01-Sep-22 106,724 3 years $ 9.35 14-Sep-22 13,070 3 years $ 10.00 02-Mar-23 130,843 3 years $ 20.57 14-Jun-23 38,240 1 year $ 12.16 Changes in the RSUs for the six months ended June 30, 2023 are set forth below: Weighted average fair value at grant No. of RSUs date Balance as of January 1, 2023 908,209 $ 5.31 RSUs granted during the six months ended June 30, 2023 182,153 $ 18.05 RSUs vested during the six months ended June 30, 2023 (402,323) $ (5.76) Balance as of June 30, 2023 (none of which are vested) 688,039 $ 8.42 The total cost related to non-vested RSU awards expected to be recognized through 2026 is set forth below in thousands of U.S. Dollars: Period TOTAL 2023 (1) $ 1,463 2024 2,349 2025 1,353 2026 150 $ 5,315 (1) Six-month period ending December 31, 2023 |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2023 | |
Preferred Stock | |
Preferred Stock | 7. Preferred Stock On June 17, 2021 and on December 3, 2021, ASC issued 25,000 shares and 15,000 shares respectively of Series A Cumulative Redeemable Perpetual Preferred Shares (“Series A Preferred Stock”) to an affiliate of Maritime Partners LLC. The liquidation preference of the Series A Preferred Stock is $1,000.00 per share. The shares of Series A Preferred Stock accrue cumulative dividends, whether or not declared, at an initial annual rate of 8.5% per $1,000.00 of liquidation preference per share, which rate may change based on certain matters. Dividends are payable on January 30, April 30, July 30 and October 30 of each year, commencing July 30, 2021. So long as any share of the Series A Preferred Stock remains outstanding, no cash dividend may be declared or paid on ASC’s common stock unless, among other things, all accrued and unpaid dividends have been paid on the Series A Preferred Stock. The Company may redeem, in whole or in part, the shares of Series A Preferred Stock outstanding, at a cash redemption price equal to (a) 103% of the liquidation preference per share plus any accumulated and unpaid dividends on or after the third anniversary of the original issuance date of the Series A Preferred Stock and prior to the fourth anniversary, (b) 102% of the liquidation preference per share plus any accumulated and unpaid dividends after such fourth anniversary and prior to the fifth anniversary and (c) 100% of the liquidated preference per share plus any accumulated and unpaid dividends after such fifth anniversary. The Series A Preferred Stock is redeemable, in whole or in part, upon the election of the Company or the holder of shares of Series A Preferred Stock, upon the occurrence of certain change of control events, including if a person or group becomes the beneficial owner of a majority of ASC’s total voting power. As it is possible, regardless of the probability of such occurrence, that a person or group could acquire beneficial ownership of a majority of the voting power of ASC’s outstanding common stock without Company approval and thereby trigger a “change of control,” the Series A Preferred Stock is classified as temporary equity for accounting purposes. The Company’s obligations to the holder of shares of Series A Preferred Stock are secured by a pledge of the Company’s stake in E1. The Series A Preferred Stock is presented in the Company’s financial statements net of the related stock issuance costs. As part of the issuance of the Series A Preferred Stock to Maritime Partners, the Company granted to Maritime Partners a profits interest of 20% of all cash or in-kind distributions and proceeds received in respect of the E1 investment which profits interest distributions can only be made after the Company receives a return of its initial investment of $9.3 million. As the agreement includes a mandatory redemption date for the profits interest that is the 10 th |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent events. | |
Subsequent events | 8. Subsequent Events Consistent with the Company’s variable dividend policy, the Board of Directors declared a cash dividend on August 1, 2023, of $0.19 per common share for the quarter ended June 30, 2023. The cash dividend of approximately $7.9 million will be paid on September 15, 2023, to all shareholders of record on August 31, 2023. |
Significant accounting policies
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Significant accounting policies | |
Basis of preparation | 1.3. Basis of preparation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that apply to interim condensed financial statements. Accordingly, they do not include all of the information and footnotes normally included in consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2022 Annual Report on Form 20-F, filed with the SEC on March 24, 2023. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the footnotes required by U.S. GAAP for complete financial statements. The accompanying interim condensed consolidated financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed consolidated financial position and results of operations for the interim periods presented. All intercompany balances and transactions have been eliminated on consolidation. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year. |
Summary of significant accounting policies | 1.4. Significant accounting policies During the first quarter of 2023, the Company increased the estimated scrap value of the vessels from $300 per lightweight ton (lwt) to $400 per lwt. This increase is applied prospectively and based on the average of the 15-year |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt | |
Schedule outstanding principal balances on each loan facility | As of In thousands of U.S. Dollars June 30, 2023 December 31, 2022 Nordea/SEB Revolving Facility — 22,500 ABN/CACIB Joint Bank Facility 49,229 104,927 ABN/CACIB Revolving Facility 27,229 — ABN AMRO Revolving Facility 3,399 3,184 Total debt 79,857 130,611 Deferred finance fees (930) (1,815) Net total debt 78,927 128,796 Current portion of long-term debt 6,713 13,429 Current portion of deferred finance fees (134) (502) Total current portion of long-term debt 6,579 12,927 Non-current portion of long-term debt 72,348 115,869 |
Schedule of future minimum repayments under the loan facilities | Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As of In thousands of U.S. Dollars June 30, 2023 2023 (1) 3,357 2024 6,713 2025 10,112 2026 6,713 2027 52,962 79,857 (1) Six-month period ending December 31, 2023 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of outstanding principal balances on finance lease facility | As of In thousands of U.S. Dollars June 30, 2023 December 31, 2022 CMBFL / Shandong 57,107 59,930 Finance lease obligations 57,107 59,930 Amounts representing interest and deferred finance fees (12,509) (14,430) Finance lease obligations, net of interest and deferred finance fees 44,598 45,500 Current portion of finance lease obligations 2,064 1,976 Current portion of deferred finance fees (118) (119) Non-current portion of finance lease obligations 43,281 44,328 Non-current portion of deferred finance fees (627) (685) Total finance lease obligations, net of deferred finance fees 44,600 45,500 |
Schedule of future minimum lease payments required under the finance lease facilities | Maturity analysis of the Company’s finance lease facility for each year are as follows: As of In thousands of U.S. Dollars June 30, 2023 2023 (1) 2,870 2024 5,710 2025 5,694 2026 5,486 2027 - 2030 37,347 Finance lease obligations 57,107 Amounts representing interest and deferred finance fees (12,509) Finance lease obligations, net of interest and deferred finance fees 44,598 (1) Six-month period ending December 31, 2023 |
Interest Rate Swaps (Tables)
Interest Rate Swaps (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Designated as hedging instrument | |
Interest Rate Swaps | |
Schedule of interest rate swap liabilities | Derivatives designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location June 30, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ 46 1,468 Interest rate swap Non - current portion of derivative assets $ — — |
Not designated as hedging instrument | |
Interest Rate Swaps | |
Schedule of interest rate swap liabilities | Derivatives not designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location June 30, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ 154 3,459 Interest rate swap Non - current portion of derivative assets $ — — |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stock appreciation rights | |
Share-based compensation | |
Schedule of awards, simulation inputs and outputs | A summary of awards of SARs, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Weighted Risk-free Average Fair SARs SARs Exercise Vesting Grant Dividend rate of Expected Value Average Expected Valuation Grant Date Awarded Remaining Price Period Price Yield Return Volatility grant date Exercise Life Method 15‑Jan‑16 205,519 16,849 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04‑Mar‑20 549,020 — $ 5.25 3 yrs $ 5.25 0 % 0.73 % 46.42 % $ 2.04 4.5 yrs Black-Scholes 04‑Mar‑21 610,691 176,360 $ 4.28 3 yrs $ 4.28 0 % 0.66 % 55.39 % $ 1.93 4.5 yrs Black-Scholes |
Schedule of changes in the Stocks | Changes in the SARs for the six months ended June 30, 2023 are set forth below in full numbers: Weighted average No. of SARs exercise price Balance as of January 1, 2023 528,844 $ 4.74 SARs exercised during the six months ended June 30, 2023 (335,635) $ (5.18) Balance as of June 30, 2023 (none of which are exercisable or convertible) 193,209 $ 4.71 |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested SAR awards expected to be recognized through 2024 is set forth below in thousands of U.S. Dollars: Period TOTAL 2023 (1) $ 170 2024 57 $ 227 (1) Six-month period ending December 31, 2023 |
Restricted stock units | |
Share-based compensation | |
Schedule of awards, simulation inputs and outputs | A summary of awards of RSUs is as follows: Grant Date RSUs Awarded Service Period Grant Price 04-Mar-20 94,105 3 years $ 5.25 04-Mar-21 302,923 3 years $ 4.28 30-Mar-22 593,671 3 years $ 4.54 07-Jun-22 60,415 1 year $ 8.07 01-Sep-22 106,724 3 years $ 9.35 14-Sep-22 13,070 3 years $ 10.00 02-Mar-23 130,843 3 years $ 20.57 14-Jun-23 38,240 1 year $ 12.16 |
Schedule of changes in the Stocks | Changes in the RSUs for the six months ended June 30, 2023 are set forth below: Weighted average fair value at grant No. of RSUs date Balance as of January 1, 2023 908,209 $ 5.31 RSUs granted during the six months ended June 30, 2023 182,153 $ 18.05 RSUs vested during the six months ended June 30, 2023 (402,323) $ (5.76) Balance as of June 30, 2023 (none of which are vested) 688,039 $ 8.42 |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested RSU awards expected to be recognized through 2026 is set forth below in thousands of U.S. Dollars: Period TOTAL 2023 (1) $ 1,463 2024 2,349 2025 1,353 2026 150 $ 5,315 (1) Six-month period ending December 31, 2023 |
General information and signi_2
General information and significant accounting policies (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) item subsidiary segment | Dec. 31, 2022 USD ($) | Jun. 17, 2017 | |
Overview | |||
Number of operating segments | segment | 1 | ||
Numbered of owned vessels in operation | 22 | ||
Number of chartered vessels in operations | 4 | ||
Average Age Of Vessels | 9 years | ||
Number of wholly owned subsidiaries | subsidiary | 79 | ||
Estimated scrap value (per lwt) | $ | $ 400 | $ 300 | |
Average life of scrap value of steel | 15 years | ||
Decrease in depreciation expense due to increase in scrap value | $ | $ 400,000 | ||
Anglo Ardmore Ship Management Limited | |||
Overview | |||
Number of joint ventures | 1 | ||
Percentage of ownership interest (as a percent) | 50% | ||
e1 Marine LLC | |||
Overview | |||
Number of joint ventures | 1 | ||
Percentage of ownership interest (as a percent) | 33.33% | 33.33% | |
Element 1 Corp. | |||
Overview | |||
Percentage of ownership interest (as a percent) | 10% | 10% |
Equity Investments (Details)
Equity Investments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 17, 2017 USD ($) shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 17, 2021 USD ($) item | |
Equity Investment | |||||||
Payments for equity investments | $ 875 | $ 238 | |||||
Common stock | $ 433 | 433 | $ 426 | ||||
Income (loss) in equity investments | $ (331) | $ (67) | $ (580) | $ 169 | |||
Element 1 Corp. | |||||||
Equity Investment | |||||||
Percentage of ownership interest (as a percent) | 10% | 10% | 10% | ||||
Payments for equity investments | $ 4,000 | ||||||
Common stock | $ 5,300 | ||||||
Number of common shares | shares | 581,795 | ||||||
Warrants to purchase common shares | shares | 286,582 | ||||||
Total investment | $ 9,200 | $ 9,300 | $ 9,300 | ||||
Percentage of voting right | 20% | ||||||
Equity Investment | $ 9,600 | $ 9,600 | |||||
Number of board seats currently held | item | 1 | ||||||
Total number of board seats | item | 5 | ||||||
e1 Marine LLC | |||||||
Equity Investment | |||||||
Percentage of ownership interest (as a percent) | 33.33% | 33.33% | 33.33% | ||||
Equity Investment | $ 1,600 | $ 1,600 | |||||
Element 1 Corp And Maritime Partners LLC | |||||||
Equity Investment | |||||||
Equity Investment | $ 11,200 |
Debt - Outstanding Principal Ba
Debt - Outstanding Principal Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Total debt | $ 79,857 | $ 130,611 |
Deferred finance fees | (930) | (1,815) |
Net total debt | 78,927 | 128,796 |
Current portion of long-term debt | 6,713 | 13,429 |
Current portion of deferred finance fees | (134) | (502) |
Total current portion of long-term debt | 6,579 | 12,927 |
Non-current portion of long-term debt | 72,348 | 115,869 |
Nordea SEB Revolving Facility | ||
Total debt | 0 | 22,500 |
ABN CACIB Joint Bank Facility | ||
Total debt | 49,229 | 104,927 |
ABN CACIB Revolving Bank Facility | ||
Total debt | 27,229 | |
ABN AMRO Revolving Facility | ||
Total debt | $ 3,399 | $ 3,184 |
Debt - Future minimum repayment
Debt - Future minimum repayments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt | ||
2023 | $ 3,357 | |
2024 | 6,713 | |
2025 | 10,112 | |
2026 | 6,713 | |
2027 | 52,962 | |
Total long-term debt | $ 79,857 | $ 130,611 |
Debt - Additional information (
Debt - Additional information (Details) $ in Millions | 6 Months Ended | |||||
Aug. 09, 2022 USD ($) | Aug. 05, 2022 USD ($) subsidiary item | Jun. 30, 2023 facility item | Jun. 30, 2023 item | Jun. 30, 2023 USD ($) | Jun. 30, 2023 | |
Number of loan facilities | 3 | 1 | ||||
Number of vessels with loans | item | 19 | |||||
Required minimum cash and cash equivalents | $ 18.8 | |||||
Minimum Net Worth Required | 200 | |||||
Minimum [Member] | ||||||
Required Minimum Solvency Covenant | 30% | |||||
Cash and Cash Equivalent Percentage | 5% | |||||
Fair market Value Percentage | 130% | |||||
Nordea SEB Revolving Facility | ||||||
Number of vessels with loans | item | 6 | |||||
Number of vessels previously financed under lease arrangments | item | 12 | |||||
Number of subsidiaries | subsidiary | 12 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 185 | |||||
Number of days to provide notice for draw down or repayment of debt | 5 days | |||||
Revolving credit facility drawn down | 0 | |||||
Revolving credit facility undrawn | 171 | |||||
Cash and Cash Equivalent Percentage | 60% | |||||
Nordea SEB Revolving Facility | SOFR | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||
ABN CACIB Joint Bank Facility | ||||||
Number of vessels with loans | item | 7 | |||||
Number of vessels previously financed under lease arrangments | item | 3 | |||||
Number of subsidiaries | subsidiary | 7 | |||||
Revolving credit facility drawn down | $ 108 | 27.2 | ||||
Revolving credit facility undrawn | $ 22 | |||||
ABN CACIB Joint Bank Facility | SOFR | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||
ABN AMRO Revolving Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15 | |||||
ABN AMRO Revolving Facility | SOFR | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.90% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 57,107 | $ 59,930 |
Amounts representing interest and deferred finance fees | (12,509) | (14,430) |
Finance lease obligations, net of interest and deferred finance fees | 44,598 | 45,500 |
Current portion of finance lease obligations | 2,064 | 1,976 |
Current portion of deferred finance fees | (118) | (119) |
Non-current portion of finance lease obligations | 43,281 | 44,328 |
Non-current portion of deferred finance fees | (627) | (685) |
Total finance lease obligations, net of deferred finance fees | 44,600 | 45,500 |
CMBFL Shandong | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 57,107 | $ 59,930 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases | ||
2023 | $ 2,870 | |
2024 | 5,710 | |
2025 | 5,694 | |
2026 | 5,486 | |
2027 - 2030 | 37,347 | |
Finance lease obligations | 57,107 | $ 59,930 |
Amounts representing interest and deferred finance fees | (12,509) | (14,430) |
Finance lease obligations, net of interest and deferred finance fees | $ 44,598 | $ 45,500 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 6 Months Ended | |||||||
Jun. 25, 2021 USD ($) item agreement | Jun. 30, 2023 | Jun. 30, 2023 USD ($) | Jun. 30, 2023 facility | Jun. 30, 2023 item | Dec. 31, 2022 USD ($) | Mar. 01, 2022 | Jul. 30, 2021 agreement | |
Number Of Finance Lease Facility | 3 | 1 | ||||||
Number of vessel in operation | item | 2 | |||||||
Incremental borrowing rate | 4.50% | |||||||
Advance payment | $ 2,145 | $ 2,160 | ||||||
Number of short term lease agreements | agreement | 2 | |||||||
Number of long term lease agreements | agreement | 1 | |||||||
Lease agreement period | 24 months | 6 months | 12 months | |||||
Lease, Practical Expedients, Package [true false] | true | |||||||
CMBFL Shandong | ||||||||
Number of subsidiaries | item | 2 | |||||||
Gross proceeds | $ 49,000 | |||||||
Transaction fees | $ 1,000 |
Interest Rate Swaps (Details)
Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
Interest Rate Swaps | |||
Term of the interest rate swap agreements | 3 years | ||
Average fixed-rate interest (as a percent) | 0.32% | ||
Notional amount | $ 220,500 | ||
Not designated as hedging instrument | |||
Interest Rate Swaps | |||
Current portion of derivative liabilities | 154 | $ 3,459 | |
Cash flow hedge | Designated as hedging instrument | |||
Interest Rate Swaps | |||
Notional amount | 68,400 | ||
Current portion of derivative liabilities | $ 46 | $ 1,468 |
Share-based compensation - Stoc
Share-based compensation - Stock appreciation rights - Awards, simulation inputs, outputs (Details) - $ / shares | Mar. 04, 2021 | Mar. 04, 2020 | Jan. 15, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Valuation Method | Black-Scholes | Black-Scholes | Monte Carlo |
Stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
SARs Awarded (in shares) | 610,691 | 549,020 | 205,519 |
SARs Remaining | 176,360 | 16,849 | |
Exercise Price (in dollars per share) | $ 4.28 | $ 5.25 | $ 9.20 |
Vesting Period (in years) | 3 years | 3 years | 3 years |
Grant Price (in dollars per share) | $ 4.28 | $ 5.25 | $ 9.20 |
Dividend Yield (in hundredths) | 0% | 0% | 6.63% |
Risk-free rate of Return (in hundredths) | 0.66% | 0.73% | 1.79% |
Expected Volatility (in hundredths) | 55.39% | 46.42% | 58.09% |
Weighted Average Fair Value at grant date (in dollars per share) | $ 1.93 | $ 2.04 | $ 2.20 |
Average Expected Exercise Life | 4 years 6 months | 4 years 6 months |
Share-based compensation - St_2
Share-based compensation - Stock appreciation rights - Changes in SARs (Details) - Stock appreciation rights | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Balance, No. of Units (Beginning) | shares | 528,844 |
Balance, Weighted average exercise price (Beginning) | $ / shares | $ 4.74 |
SARs exercised during the three months | shares | (335,635) |
Weighted average exercise price forfeited during the three months | $ / shares | $ 5.18 |
Balance, No. of Units (Ending) (none of which are exercisable or convertible) | shares | 193,209 |
Balance, Weighted average exercise price (Ending) | $ / shares | $ 4.71 |
Share-based compensation - St_3
Share-based compensation - Stock appreciation rights - Cost related to non-vested awards (Details) - Stock appreciation rights $ in Thousands | Jun. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
2023 | $ 170 | [1] |
2024 | 57 | |
Total | $ 227 | |
[1] (1) Six-month period ending December 31, 2023 |
Share-based compensation - Rest
Share-based compensation - Restricted stock units - Summary of awards (Details) - Restricted stock units - $ / shares | 6 Months Ended | ||||||||
Jun. 14, 2023 | Mar. 02, 2023 | Sep. 14, 2022 | Sep. 01, 2022 | Jun. 07, 2022 | Mar. 30, 2022 | Mar. 04, 2021 | Mar. 04, 2020 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
SARs Awarded (in shares) | 182,153 | ||||||||
Service Period One Year | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
SARs Awarded (in shares) | 38,240 | 60,415 | |||||||
Service Period | 1 year | 1 year | |||||||
Grant Price (in dollars per share) | $ 12.16 | $ 8.07 | |||||||
Service Period Three Years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
SARs Awarded (in shares) | 130,843 | 13,070 | 106,724 | 593,671 | 302,923 | 94,105 | |||
Service Period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | |||
Grant Price (in dollars per share) | $ 20.57 | $ 10 | $ 9.35 | $ 4.54 | $ 4.28 | $ 5.25 |
Share-based compensation - Re_2
Share-based compensation - Restricted stock units - Changes in RSUs (Details) - Restricted stock units | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance as at the beginning | shares | 908,209 |
Balance as at the beginning, Weighted average fair value at grant date | $ / shares | $ 5.31 |
RSU granted (in shares) | shares | 182,153 |
Granted during the period, Weighted average fair value at grant date | $ / shares | $ 18.05 |
RSUs vested (in shares) | shares | (402,323) |
RSUs vested during the period, Weighted average fair value at grant date | $ / shares | $ (5.76) |
Balance as at the end (none of which are vested) | shares | 688,039 |
Balance as at the end (none of which are vested), Weighted average fair value at grant date | $ / shares | $ 8.42 |
Share-based compensation - Re_3
Share-based compensation - Restricted stock units - Cost related to non-vested awards (Details) - Restricted stock units $ in Thousands | Jun. 30, 2023 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2023 | $ 1,463 |
2024 | 2,349 |
2025 | 1,353 |
2026 | 150 |
Total | $ 5,315 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||
Dec. 03, 2021 | Jun. 17, 2017 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 17, 2021 | |
Preferred Stock | |||||
Payment of preferred dividends | $ 1,705 | $ 1,580 | |||
Element 1 Corp. | |||||
Preferred Stock | |||||
Profit interests on distributions | 20% | ||||
Total investment | $ 9,200 | $ 9,300 | |||
Cumulative Series A redeemable Preferred Stock | |||||
Preferred Stock | |||||
Preferred stock issued | 15,000 | 25,000 | |||
Liquidation preference per share | $ 1,000 | $ 1,000 | $ 1,000 | ||
Divided rate | 8.50% | ||||
Cumulative Series A redeemable Preferred Stock | Other noncurrent liabilities | |||||
Preferred Stock | |||||
Profit interests distribution liability | $ 1,000 | ||||
Cumulative Series A redeemable Preferred Stock | Third anniversary | |||||
Preferred Stock | |||||
Redemption price (as a percent) | 103% | ||||
Cumulative Series A redeemable Preferred Stock | Fourth anniversary | |||||
Preferred Stock | |||||
Redemption price (as a percent) | 102% | ||||
Cumulative Series A redeemable Preferred Stock | Fifth anniversary | |||||
Preferred Stock | |||||
Redemption price (as a percent) | 100% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 15, 2023 | Jun. 30, 2023 |
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.19 | |
Subsequent events | ||
Subsequent Event [Line Items] | ||
Cash dividends | $ 7.9 |