Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36028 |
Entity Registrant Name | Ardmore Shipping Corp |
Entity Incorporation, State or Country Code | 1T |
Entity Address, Address Line One | Belvedere Building, 69 Pitts Bay Road, Ground Floor |
Entity Address, City or Town | Pembroke |
Entity Address, Postal Zip Code | HM08 |
Entity Address, Country | BM |
Title of 12(b) Security | Common stock |
Trading Symbol | ASC |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 41,304,649 |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
Auditor Location | New York, New York |
Entity Central Index Key | 0001577437 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Mr. Anthony Gurnee |
Entity Address, Address Line One | Belvedere Building, 69 Pitts Bay Road, Ground Floor |
Entity Address, City or Town | Pembroke |
Entity Address, Postal Zip Code | HM08 |
Entity Address, Country | BM |
City Area Code | 441 |
Local Phone Number | 405-7800 |
Contact Personnel Email Address | info@ardmoreshipping.com |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 46,805 | $ 50,569 |
Receivables, net of allowance for bad debts of $1.6 million (2022: $2.2 million) | 56,234 | 79,843 |
Prepaid expenses and other assets | 4,348 | 4,521 |
Advances and deposits | 6,833 | 2,160 |
Inventories | 12,558 | 15,718 |
Current portion of derivative assets | 4,927 | |
Total current assets | 126,778 | 157,738 |
Non-current assets | ||
Investments and other assets, net | 11,186 | 11,219 |
Vessels and vessel equipment, net | 524,044 | 531,378 |
Deferred drydock expenditures, net | 12,022 | 4,716 |
Advances for ballast water treatment and scrubber systems | 9,587 | 5,530 |
Deferred finance fees, net | 2,835 | 2,717 |
Operating lease, right-of-use asset | 4,499 | 10,561 |
Total non-current assets | 564,173 | 566,121 |
TOTAL ASSETS | 690,951 | 723,859 |
Current liabilities | ||
Accounts payable | 2,016 | 8,814 |
Accrued expenses and other liabilities | 18,265 | 20,890 |
Deferred revenue | 347 | 1,220 |
Accrued interest on debt and finance leases | 939 | 863 |
Current portion of long-term debt | 6,436 | 12,927 |
Current portion of finance lease obligations | 2,029 | 1,857 |
Current portion of operating lease obligations | 3,807 | 6,358 |
Total current liabilities | 33,839 | 52,929 |
Non-current liabilities | ||
Non-current portion of long-term debt | 39,590 | 115,869 |
Non-current portion of finance lease obligations | 41,614 | 43,643 |
Non-current portion of operating lease obligations | 510 | 3,969 |
Other non-current liabilities | 954 | 1,007 |
Total non-current liabilities | 82,668 | 164,488 |
TOTAL LIABILITIES | 116,507 | 217,417 |
Redeemable Preferred Stock | ||
Cumulative Series A 8.5% redeemable preferred stock | 37,043 | 37,043 |
Stockholders' equity | ||
Common stock ($0.01 par value, 225,000,000 shares authorized, 43,324,702 issued and 41,304,649 outstanding as of December 31, 2023 and 42,646,636 issued and 40,626,583 outstanding as of December 31, 2022) | 433 | 426 |
Additional paid in capital | 471,216 | 468,006 |
Accumulated other comprehensive income | 1,468 | |
Treasury stock (2,020,053 shares as of December 31, 2023 and December 31, 2022) | (15,636) | (15,636) |
Retained earnings | 81,388 | 15,135 |
Total stockholders' equity | 537,401 | 469,399 |
Total redeemable preferred stock and stockholders' equity | 574,444 | 506,442 |
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | $ 690,951 | $ 723,859 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 1.6 | $ 2.2 |
Other non-current assets, accumulated depreciation | 2.3 | 2.1 |
Vessels and equipment, accumulated depreciation | 237.5 | 210 |
Deferred drydock expenditure, accumulated amortization | $ 22.3 | $ 18.7 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 225,000,000 | |
Common stock, shares issued (in shares) | 43,324,702 | 42,646,636 |
Common stock, shares outstanding (in shares) | 41,304,649 | 40,626,583 |
Treasury stock repurchased (in shares) | 2,020,053 | |
Cumulative Series A redeemable Preferred Stock | ||
Divided rate | 8.50% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Operations | |||
Revenue, net | $ 395,978 | $ 445,741 | $ 192,484 |
Voyage expenses | (131,904) | (153,729) | (88,578) |
Vessel operating expenses | (59,770) | (60,020) | (60,834) |
Operating expense component | (10,194) | (7,809) | (3,609) |
Vessel lease expense component | (9,380) | (7,185) | (3,321) |
Depreciation | (27,817) | (29,276) | (31,702) |
Amortization of deferred drydock expenditures | (3,542) | (4,161) | (5,169) |
General and administrative expenses | |||
Corporate | (20,565) | (19,936) | (16,071) |
Commercial and chartering | (4,676) | (4,171) | (3,125) |
Loss on vessel held for sale | (6,917) | ||
Unrealized (losses)/gains on derivatives | (262) | 2,961 | 276 |
Interest expense and finance costs | (11,408) | (15,537) | (16,202) |
Loss on extinguishment | (1,576) | (569) | |
Interest income | 1,818 | 471 | 55 |
Net Income before taxes | 118,278 | 138,856 | (36,365) |
Income tax | (435) | (207) | (150) |
(Loss) / profit from equity method investments | (1,035) | (195) | (317) |
Net Income | 116,808 | 138,454 | (36,832) |
Preferred dividend | (3,400) | (3,400) | (1,254) |
Net income attributable to common stockholders | $ 113,408 | $ 135,054 | $ (38,086) |
Earnings per share, basic (in dollars per share) | $ 2.76 | $ 3.63 | $ (1.12) |
Earnings per share, diluted (in dollars per share) | $ 2.71 | $ 3.52 | $ (1.12) |
Weighted average number of shares outstanding, basic (in shares) | 41,130,089 | 37,235,599 | 33,882,932 |
Weighted average number of shares outstanding, diluted (in shares) | 41,821,637 | 38,359,985 | 33,882,932 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income / (Loss) | |||
Net Income | $ 116,808 | $ 138,454 | $ (36,832) |
Other comprehensive income / (loss), net of tax | |||
Net change in unrealized (losses) / gains on cash flow hedges | (1,468) | 424 | 1,773 |
Other comprehensive (loss)/ income, net of tax | (1,468) | 424 | 1,773 |
Comprehensive Income | $ 115,340 | $ 138,878 | $ (35,059) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Redeemable Preferred Stock and Stockholder Equity - USD ($) $ in Thousands | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Treasury stock | Accumulated deficit | Redeemable Preferred Stock | Total |
Balance at Dec. 31, 2020 | $ 352 | $ 418,181 | $ (729) | $ (15,636) | $ (81,833) | $ 320,335 | |
Balance (in shares) at Dec. 31, 2020 | 33,186 | ||||||
Issue of common stock | $ 12 | 5,308 | 5,320 | ||||
Issue of common stock (in shares) | 1,177 | ||||||
Share-based compensation | 2,613 | 2,613 | |||||
Changes in unrealized gain on cash flow hedges | 1,773 | 1,773 | |||||
Preferred stock dividend | (1,254) | (1,254) | |||||
Net Income (Loss) | (36,832) | (36,832) | |||||
Net income attributable to common stockholders | (38,086) | ||||||
Balance at Dec. 31, 2021 | $ 364 | 426,102 | 1,044 | (15,636) | (119,920) | 291,954 | |
Balance (in shares) at Dec. 31, 2021 | 34,363 | ||||||
Redeemable Preferred Stock | |||||||
Issue of redeemable preferred stock, net of issuance costs | $ 37,043 | ||||||
Issue of redeemable preferred stock, net of issuance costs (in shares) | 40 | ||||||
Balance at Dec. 31, 2021 | $ 37,043 | ||||||
Balance (in shares) at Dec. 31, 2021 | 40 | ||||||
Issue of redeemable preferred stock, net of issuance costs | $ 14 | (14) | |||||
Issue of common stock (in shares) | 1,419 | ||||||
Share-based compensation | 3,057 | 3,057 | |||||
Changes in unrealized gain on cash flow hedges | 424 | 424 | |||||
Net proceeds from equity offering (in shares) | 4,844 | ||||||
Net proceeds from equity offering | $ 48 | 38,861 | 38,909 | ||||
Preferred stock dividend | (3,400) | (3,400) | |||||
Net Income (Loss) | 138,454 | 138,454 | |||||
Net income attributable to common stockholders | 135,054 | ||||||
Balance at Dec. 31, 2022 | $ 426 | 468,006 | 1,468 | (15,636) | 15,135 | $ 469,399 | |
Balance (in shares) at Dec. 31, 2022 | 40,626 | 40,626,583 | |||||
Balance at Dec. 31, 2022 | $ 37,043 | $ 37,043 | |||||
Balance (in shares) at Dec. 31, 2022 | 40 | ||||||
Issue of common stock | $ 7 | (7) | |||||
Issue of common stock (in shares) | 678 | ||||||
Share-based compensation | 3,217 | 3,217 | |||||
Changes in unrealized gain on cash flow hedges | $ (1,468) | (1,468) | |||||
Preferred stock dividend | (3,400) | (3,400) | |||||
Common stock dividends | (47,154) | (47,154) | |||||
Net Income (Loss) | 116,808 | 116,808 | |||||
Net income attributable to common stockholders | 113,408 | ||||||
Balance at Dec. 31, 2023 | $ 433 | $ 471,216 | $ (15,636) | $ 81,388 | $ 537,401 | ||
Balance (in shares) at Dec. 31, 2023 | 41,304 | 41,304,649 | |||||
Balance at Dec. 31, 2023 | $ 37,043 | $ 37,043 | |||||
Balance (in shares) at Dec. 31, 2023 | 40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 116,808 | $ 138,454 | $ (36,832) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 27,817 | 29,276 | 31,702 |
Amortization of deferred drydock expenditures | 3,542 | 4,161 | 5,169 |
Share-based compensation | 3,217 | 3,057 | 2,613 |
Loss on vessels sold | 6,917 | ||
Amortization of deferred finance fees | 1,237 | 1,461 | 1,623 |
Loss On Extinguishment | 1,576 | 569 | |
Unrealized losses/ (gains) on derivatives | 262 | (2,961) | (276) |
Foreign exchange | 52 | 2 | (72) |
Loss from equity method investments | 1,035 | 195 | 317 |
Deferred drydock payments | (12,280) | (1,913) | (5,883) |
Changes in operating assets and liabilities: | |||
Receivables | 23,610 | (59,559) | (2,496) |
Prepaid expenses and other assets | 174 | (1,010) | 173 |
Advances and deposits | (4,673) | 1,391 | (1,034) |
Inventories | 3,160 | (4,623) | (821) |
Accounts payable | (4,410) | (1,612) | 1,151 |
Accrued expenses and other liabilities | 855 | 10,033 | (701) |
Deferred revenue | (873) | (850) | 2,070 |
Accrued interest | 76 | 212 | (157) |
Net cash provided by operating activities | 159,609 | 124,207 | (2,885) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of vessels | 39,912 | 9,895 | |
Payments for acquisition of vessels and vessel equipment | (20,562) | (1,335) | (2,475) |
Advances for ballast water treatment and scrubber systems | (4,822) | (2,473) | (158) |
Payments for other non-current assets | (208) | (106) | (94) |
Payments for equity investments | (1,244) | (588) | (5,541) |
Net cash (used in)/ provided by investing activities | (26,836) | 35,410 | 1,627 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 131,884 | ||
Repayments of long-term debt | (84,007) | (148,245) | (66,912) |
Proceeds from finance leases | (166,580) | 49,000 | |
Repayments of finance leases | (1,976) | (13,675) | (19,960) |
Payments for deferred finance fees | (3,505) | (980) | |
Payment of common share dividend | (47,154) | ||
Issuance of common stock, net | 38,909 | ||
Net cash (used in) financing activities | (136,537) | (164,497) | (1,658) |
Issuance of preferred stock, net | 37,986 | ||
Payment of preferred share dividend | (3,400) | (3,285) | (792) |
Net (decrease)/increase in cash and cash equivalents | (3,764) | (4,880) | (2,916) |
Cash and cash equivalents at the beginning of the year | 50,569 | 55,449 | 58,365 |
Cash and cash equivalents at the end of the period | 46,805 | 50,569 | 55,449 |
Cash paid during the year for: | |||
Cash paid during the period for interest in respect of debt | 7,957 | 5,739 | 4,510 |
Cash paid during the period for interest in respect of finance leases | 3,718 | 11,559 | 9,793 |
Cash paid during the period for income taxes | 537 | 51 | 198 |
Non-cash investing activity. Accruals during the period in respect of ballast water treatment systems and scrubber systems | 765 | (887) | (72) |
Non-cash investing activity: Investment in Element 1 by issuing 950,000 shares of common stock | 5,320 | ||
Non-cash financing activity: Accrued preferred dividends | 578 | 578 | 462 |
Time charters [Member] | |||
Cash paid during the year for: | |||
Cash paid during the period for operating lease liabilities (offices) | 13,744 | 5,982 | |
Office Space [Member] | |||
Cash paid during the year for: | |||
Cash paid during the period for operating lease liabilities (offices) | $ 881 | $ 719 | $ 462 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Common stock, shares issued (in shares) | 43,324,702 | 42,646,636 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2023 | |
Overview | |
Overview | 1. Overview 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 December 31, 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 December 31, 2023 was 9.6 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 December 31, 2023, ASC had (a) 78 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 the ASC fleet, (c) a 33.33% interest in the e1 Marine LLC joint venture, which was formed in 2021 to market and sell Element 1 Corp.’s methanol-to-hydrogen technology to the marine sector, and (d) a 10% equity stake, on a fully diluted basis, in Element 1 Corp. During the three months ended June 30, 2021, the Company paid an aggregate of $5.0 million in cash and $5.3 million through the issuance of ASC common shares for the Company’s equity stake in Element 1 Corp. and its equity interest in e1 Marine which is included in Investments and other assets, net in the consolidated balance sheet as of December 31, 2023. Equity investments are disclosed below in Note 4. Ardmore Maritime Services (Asia) Pte. Limited, 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. Vessels As of December 31, 2023, the Company owned and operated a modern fleet of 22 product/chemical vessels, 21 with Marshall Island flags and one with a Singapore flag, and with a combined carrying capacity of 973,181 deadweight tonnes (“dwt”) and an average age of approximately 9.6 years. Vessel Name Type Dwt IMO (1) Built Country Specification Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 S. Korea Eco-Design Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 S. Korea Eco-Design Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 S. Korea Eco-Design Ardmore Sealion Product/Chemical 49,999 2/3 May-15 S. Korea Eco-Design Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 S. Korea Eco-Design Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 S. Korea Eco-Design Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 S. Korea Eco-Design Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 S. Korea Eco-Design Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 S. Korea Eco-Design Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 S. Korea Eco-Design Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 S. Korea Eco-Design Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 S. Korea Eco-Design Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 S. Korea Eco-Design Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 S. Korea Eco-Design Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 S. Korea Eco-Design Ardmore Seafarer Product 49,999 - Jun-10 Japan Eco-Mod Ardmore Defender Product/Chemical 37,791 2 Feb-15 S. Korea Eco-Design Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 S. Korea Eco-Design Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan Eco-Design Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan Eco-Design Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan Eco-Design Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan Eco-Design Total 22 973,181 (1) International Maritime Organization (“IMO”) cargo classification. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant Accounting Policies 2.1. Basis of preparation The accompanying consolidated financial statements, which include the accounts of ASC and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All subsidiaries are 100% directly or indirectly owned by ASC. AASML and e1 Marine, which are joint ventures in which the Company has 50% and 33.33% interests, respectively, are accounted for using the equity method. The Company’s 10% investment in Element 1 Corp. is also accounted for using the equity method as the Company is able to exercise significant influence. 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 vessels, vessel valuations, residual value of vessels, expected future cash flows from vessels to support vessel impairment tests, provisions necessary for receivables from charterers, 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 the Company is U.S. Dollars because the Company operates in international shipping markets in which most transactions are denominated in the U.S. Dollar. 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. Resulting gains and losses are included in the accompanying consolidated statements of operations. 2.4. Recently issued accounting pronouncements, not yet effective In November 2023 the FASB issued Accounting Standards Update 2023-07, Improvements to Reportable Segment Disclosures On December 14, 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) 2.5. Revenue Revenue is generated from spot charter arrangements and time charter arrangements. Spot charter arrangements The Company’s spot charter arrangements are for single voyages for the service of the transportation of cargo that are generally short in duration (less than two months) and the Company is responsible for all costs incurred during the voyage, which include bunkers and port/canal fees, as well as general vessel operating costs (e.g. crew, repairs and maintenance and insurance costs; and fees paid to technical managers of its vessels). Accordingly, under spot charter arrangements, key operating decisions and the economic benefits associated with a vessel’s use during the charter period reside with the Company. The Company applies revenue recognition guidance in Accounting Standards Codification 606 – Revenue Recognition The consideration that the Company expects to be entitled to receive in exchange for its transportation services is recognized as revenue ratably over the duration of a voyage on a load-to-discharge basis (i.e. from when cargo is loaded at the port to when it is discharged after the completion of the voyage). The consideration that the Company expects to be entitled to receive includes estimates of revenue associated with the loading or discharging time that exceed the originally estimated duration of the voyage, which is referred to as “demurrage revenue”, when it is determined there will be incremental time required to complete the contracted voyage. Demurrage revenue is not considered a separate deliverable in accordance with ASC 606 as it is part of the single performance obligation in a spot charter arrangement, which is to provide cargo transportation services to the completion of a contracted voyage. Time charter arrangements The Company’s time charter arrangements are for a specified period of time and key decisions concerning the use of the vessel during the duration of the time charter period reside with the charterer. In time charter arrangements, the Company is responsible for the crewing, maintenance and insurance of the vessel, and the charterer is generally responsible for voyage specific costs, which typically include bunkers and port/canal costs. As the charterer holds sufficient latitude in its rights to determine how and when the vessel is used on voyages and the charterer is also responsible for costs incurred during the voyage, the charterer derives the economic benefits from the use of the vessel, as control over the use of the vessel is transferred to the charterer during the specified time charter period. Accordingly, time charters are considered operating leases and the Company applies guidance for lessors in FASB Accounting Standards Codification 842 - Leases 2.6. Voyage and vessel operating expenses Voyage expenses Voyage expenses represent costs the Company is responsible to incur in charter arrangements during a voyage that are directly related to a voyage. Voyage expenses include bunkers and port/canal costs, which are expensed as incurred. Voyage expenses also include contract fulfillment costs that are incurred by the Company prior to a voyage. These costs are from the later of when a vessel departed from its prior charter discharge port and when a vessel entered a new charter to the arrival at the loading port for the new charter and are deferred and amortized ratably over the new charter for charters accounted for in accordance with ASC 606. Such costs are typically comprised of bunkers. Vessel operating expenses Vessel operating expenses represent costs the Company incurs to operate its vessels that are not directly related to a voyage. Vessel operating expenses include crew, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. 2.7. Cash and cash equivalents The Company classifies investments with an original maturity date of three months or less as cash and cash equivalents. The Company is required to maintain a minimum cash balance in accordance with its long-term debt facility agreements (see Note 6) and finance lease facility agreements (see Note 7). 2.8. Receivables Receivables include amounts due from charterers for hire and other recoverable expenses due to the Company. As of the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate allowance for bad debt. 2.9. Prepaid expenses and other assets Prepaid expenses and other assets consist of payments made in advance for insurance or other expenses, and insurance claims outstanding and certain assets held by vessel managers. Insurance claims are recorded, net of any deductible amounts, for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim. As of the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. 2.10. Advances and deposits Advances and deposits primarily include amounts advanced to third-party technical managers and AASML for expenses incurred by them in operating the vessels, together with other necessary deposits paid during the course of business. 2.11. 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 net realizable 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. Spares are expensed as incurred. 2.12. Vessel 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 measured at the lower of their carrying amount or fair value less cost to sell and they are tested for impairment. A loss 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. 2.13. Vessels and vessel equipment Vessels and vessel equipment 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 the Company’s vessels is estimated at 25 years from the date of initial delivery from the shipyard. For the year ended December 31, 2023, depreciation is based on cost less the estimated residual scrap value of $400 per lightweight ton (“lwt”). Effective January 1, 2023, the Company increased the estimated scrap value of the vessels from $300 per lwt to $400 per lwt prospectively based on the 15-year average scrap value of steel. The change in the estimated scrap value will result in a decrease in depreciation expense over the remaining life of the vessel assets. During the year ended December 31, 2023, depreciation expense decreased by approximately $1.1 million as a result of the change in estimated scrap value. Vessel equipment comprises the costs of significant replacements, renewals and upgrades to the Company’s vessels. Vessel equipment is depreciated 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. 2.14. Deferred drydock expenditures The Company follows the deferral method of accounting for drydock expenditures whereby actual expenditures incurred are deferred and are amortized on a straight-line basis through to the date of the next scheduled drydocking, generally 30 to 60 months. Expenditures deferred as part of the drydock include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Direct expenditures that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydock expenditures of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydock expenditures are written off as drydock amortization if the vessels are drydocked before the expiration of the applicable amortization period. 2.15. Advances for ballast water treatment systems The Company is in the process of installing ballast water treatment systems on each of its vessels that do not currently have the system installed. This is a requirement of the International Maritime Organization. The Company capitalizes and depreciates the costs of ballast water treatment systems, including installation costs, on each vessel from the date of completion of the system over the remaining useful life of the vessel. 2.16. Vessel impairment Management regularly reviews the carrying amounts of the Company’s vessels that are “held and used” for recoverability. Vessels 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 undiscounted future cash flows For purposes of testing for recoverability, undiscounted future cash flows are determined by applying various assumptions based on historical trends as well as future expectations. In estimating future revenue, 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 five years, where available, and historical average one-year time charter rates for the industry over the last 10 years. Undiscounted future cash flows are determined by applying various assumptions regarding future revenue net of voyage expenses, vessel operating expenses, scheduled drydockings, expected off-hire and scrap values, and taking into account historical market and Company specific revenue data as discussed above, and also considering other external market sources, including analysts’ reports and freight forward agreement curves. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company will evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset as provided by third parties. Management regularly reviews the carrying amount of the vessels in connection with the estimated recoverable amount for each of the Company's vessels. The Company did not recognize a vessel impairment charge for the years ended December 31, 2023, 2022 and 2021. 2 .17. Other non-current assets Other non-current assets relate to office equipment, fixtures and fittings and leasehold improvements. Office equipment and fixtures and fittings are recorded at their cost less accumulated depreciation and are depreciated based on an estimated useful life of five years. Leasehold improvements relate to fit-out costs for work completed on the Company’s offices in Ireland and Singapore. Leasehold improvements are recorded at their cost less accumulated depreciation and are depreciated over the life of the respective leases. 2.18. Operating leases Under ASC 842, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. The standard continues to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. For operating leases, ASC 842 requires recognition in an entity’s income statement of a single lease expense, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. Right-of-use assets represent a right to use an underlying asset for the lease term and the related lease liability represents an obligation to make lease payments pursuant to the contractual terms of the lease agreement. Operating lease right-of-use assets are assessed for any potential impairment on each balance sheet date. At lease commencement, a lessee must develop a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. When determining the discount rate to be used at lease commencement, a lessee must use the rate implicit in the lease unless that rate cannot be readily determined. When the rate implicit in the lease cannot be readily determined, the lessee should use its incremental borrowing rate. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. 2.19. 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 statements of operations using the effective interest method over the life of the lease. 2.20. Accounts payable Accounts payable include all financial obligations to vendors for goods or services that have been received or will be received in the future. 2.21. Accrued expenses and other liabilities Accrued expenses and other liabilities include all accrued liabilities in relation to the operating and running of the vessels, along with amounts accrued for general and administrative expenses. 2.22. Derivatives As required by FASB Accounting Standards Codification 815 - Derivatives and Hedging (“ASC 815”), the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. The Company elected to classify settlement payments as operating activities within the statement of cash flows. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR/SOFR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. 2.23. Equity method investments The Company’s investments in AASML, e1 Marine and Element 1 Corp. are accounted for using the equity method of accounting. Under the equity method of accounting, the Company initially recorded the investments in AASML and e1 Marine at cost and adjusts the carrying amounts of the investments to recognize their respective share of earnings or losses of the investee. As of December 31, 2023, the carrying value of the Company’s total investment in Element 1 Corp. is $9.3 million. This consists of the carrying value of the Company’s investment in the ordinary shares of $9.3 million and warrants exercisable for ordinary shares of $0.0 million, which were initially determined based upon the relative fair values at the date of the investment. The carrying amount of the investment is adjusted to recognize the Company’s share of earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investments. The Company evaluates its equity method investment for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other than temporary decline in value below their carrying values. 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 the Company’s consolidated statements of operations. As of December 31, 2023, there are no impairment indicators for the investment in Element 1 Corp. The Company adjusts the fair value of the Element 1 Corp. warrants at each reporting period with changes in the fair value recorded directly in earnings. 2.24. Contingencies Claims, lawsuits and contingencies arise in the ordinary course of the Company’s business. The Company 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 as of the balance sheet date. 2.25. Distributions to shareholders Subject to the Board of Directors’ approval, distributions to common shareholders are applied first to accumulated surplus. When accumulated surplus is not sufficient, distributions are applied to the additional paid in capital account. 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 and finance lease 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 sheets as a direct deduction from the carrying amount of the debt liability or finance lease obligation. These costs are amortized to interest expense and finance costs in the consolidated statements of operations using the effective interest rate method over the life of the related debt or finance lease. 2.28. Share-based compensation The Company may grant share-based payment awards, such as restricted stock units (“RSUs”), stock appreciation rights (“SARs”) as incentive-based compensation to certain employees. The Company measures the cost of such awards, which are equity-settled transactions, 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. Once the fair value has been determined, the associated expense is recognized in the consolidated statements of operations over the requisite service period. The SARs are settled through the delivery of Ardmore shares, not cash. Hence, in accordance with the guidance in the FASB Accounting Standards Codification 718, Compensation — Stock Compensation 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 over the vesting period. The Company’s policy for issuing shares upon the vesting of the RSUs is to register and issue new common shares to the grantee. 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 an increase in additional paid in capital and cumulative losses as an increase to accumulated deficit. 2.30. Financial instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable reported in the consolidated balance sheets 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. 2.31. Income taxes Republic of the Marshall Islands Ardmore Shipping Corporation, Ardmore Shipping LLC, Ardmore Maritime Services LLC, and all vessel owning subsidiaries are incorporated in the Republic of the Marshall Islands with the exception of Lahinch Shipco (Pte.) Limited which is incorporated in Singapore. Ardmore Shipping Corporation 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 Ardmore Shipping Corporation will not be subject to any taxes under the laws of the Republic of the Marshall Islands. Bermuda Ardmore Shipping (Bermuda) Limited is incorporated in Bermuda. Ardmore Shipping Corporation, Ardmore Shipping LLC and Ardmore Shipping (Bermuda) Limited are managed and controlled in Bermuda. Ardmore Shipping Corporation is subject to taxation under the laws of Bermuda and distributions by its subsidiaries to Ardmore Shipping Corporation will be subject to any taxes under the laws of Bermuda. Ireland Ardmore Shipping Services (Ireland) Limited and Ardmore E1 Marine Ventures Limited, which was established to act as the immediate parent company of e1 Marine, the joint venture jointly owned by Ardmore, Element 1 Corp. and Maritime Partners, are incorporated in Ireland. 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, Ardmore Tanker Trading (Asia) Pte. Limited, Ardmore Maritime Services (Asia) Pte. Limited and Lahinch Shipco (Pte.) Limited are incorporated in Singapore. Ardmore Shipping (Asia) Pte. Limited 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 vessels which are owned or chartered in by Ardmore Shipping (Asia) Pte. Limited. Lahinch Shipco (Pte.) Limited is a ship-owning company and therefore exempt from taxes under the law of Singapore. Ardmore Tanker Trading (Asia) Pte. Limited and Ardmore Maritime Services (Asia) Pte. Limited are subject to Singapore tax on their worldwide profits. 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 sheets 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, the Company provides for a valuation allowance. Income taxes have been provided for all items included in the consolidated statements 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, 2023 amounted to $Nil (2022: $Nil , 2021: $Nil). 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, 2023 amounted to $Nil (2022: $Nil, 2021: $Nil). |
Business and segmental reportin
Business and segmental reporting | 12 Months Ended |
Dec. 31, 2023 | |
Business and segmental reporting | |
Business and segmental reporting | 3. Business and Segment Reporting The Company 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. The Company charters its vessels to commercial shippers through a combination of spot, time-charter, and pool arrangements. The 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 the Company 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, the Company has determined that it operates under one reportable segment relating to its operations of its vessels. The following table presents consolidated revenues for charterers that accounted for more than 10% of the Company’s consolidated revenues during the years presented: For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Charterer A * 55,626 23,152 Charterer B * 53,345 * * None over 10% The following table presents the Company’s revenue contributions by nature of vessel employment. For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Spot charters (1) 395,577 437,189 169,632 Time charters (2) — 7,917 22,106 Pooling arrangements (3) — 3 14 Other revenue (4) 401 632 732 395,978 445,741 192,484 (1) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 606. (2) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 842. (3) Represents revenue recognized by the Company associated with pooling arrangements that were accounted for in accordance with the guidance for collaborative arrangements. (4) Represents revenue recognized by the Company associated with the management of four third-party chemical tankers employed under spot charters that were accounted for in accordance with ASC 606. |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2023 | |
Equity Investments | |
Equity Investments | 4. Equity Investments Element 1 Corp. Investments – Equity Method and Joint Ventures Investments – Equity Securities. e1 Marine LLC The Company records its share of earnings and losses in these investments on a quarterly basis, with an aggregate loss of $1.0 million recognized in the year ended December 31, 2023. During the year ended December 31, 2023, the Company made a cash contribution of $1.2 million to e1 Marine LLC. The Company recorded an investment of $10.7 million, inclusive of transaction costs (E1 investment of $9.3 million and e1 Marine LLC investment of $1.4 million), which is included in investments and other assets, net in the consolidated balance sheet as of December 31, 2023. |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued expenses and other liabilities | |
Accrued expenses and other liabilities | 5. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following as of December 31, 2023 and 2022: As of December 31 In thousands of U.S. Dollars 2023 2022 Accrued vessel operating expenses and voyage expenses 12,961 13,159 Other accrued expenses 5,304 7,731 Total accrued expenses 18,265 20,890 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Debt | 6. Debt As of December 31, 2023, the Company had three loan facilities, which it has used primarily to finance vessel acquisitions or vessels under construction, or to refinance such original financings, 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 December 31, 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 in the table below approximate the fair value for the Company’s variable-rate debt, which is considered to be a Level 2 item for fair value purposes as the Company considers the estimate of rates it could obtain for similar debt. The fair value of an asset or liability is based on assumptions that market participants would use in pricing the asset or liability. The hierarchies of inputs used when determining fair value are described below: Level 1: Level 2: Level 3: The outstanding principal balances on each loan facility as of December 31, 2023 and 2022 were as follows: As of December 31 In thousands of U.S. Dollars 2023 2022 Nordea/SEB Revolving Facility — 22,500 ABN/CACIB Joint Bank Facility 45,872 104,927 ABN/CACIB Revolving Facility — — ABN AMRO Revolving Facility 932 3,184 Total debt 46,804 130,611 Deferred finance fees (778) (1,815) Net total debt 46,026 128,796 Current portion of long-term debt 6,713 13,429 Current portion of deferred finance fees (277) (502) Total current portion of long-term debt 6,436 12,927 Non-current portion of long-term debt 39,590 115,869 Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As of December 31 In thousands of U.S. Dollars 2023 2024 6,713 2025 7,645 2026 6,713 2027 25,733 46,804 Nordea / SEB Revolving Facility On August 5, 2022, 12 of ASC’s subsidiaries entered into a $185.5 million sustainability-linked revolving credit facility with Nordea and SEB (the “Nordea / SEB Revolving Facility”), the proceeds of which were used to refinance 12 vessels, including six vessels previously financed under lease arrangements. Interest is calculated at a rate of SOFR plus 2.5% (Adjusted SOFR, equivalent to LIBOR, plus a margin of 2.25%). The revolving credit facility may be drawn down or repaid with five days‘ notice. The revolving credit facility matures in June 2027. As of December 31, 2023, none of the revolving credit facility was drawn down and $161.3 million was available and undrawn. ABN/CACIB Joint Bank 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. ABN/CACIB Revolving Facility On June 15, 2023, the ABN/CACIB Revolving Facility was amended to convert 50% of the outstanding balance under the facility into a revolving credit facility with the remaining 50% of the outstanding balance, or $49.2 million, continuing as a term loan facility. Each of the revolving credit facility and term loan facility matures in August 2027. As of December 31, 2023, none of the revolving credit facility was drawn down and $45.9 million was 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 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. The remaining 40% can include cash and cash equivalents undrawn under the revolving facilities), based on the number of vessels owned and chartered-in and 5% of outstanding debt; the required minimum cash and cash equivalents as of December 31, 2023, was $18.75 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 applicable facility; ● maintain an adjusted 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 December 31, 2023 and 2022. Interest rates The following tables set forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including commitment fees, if applicable. The effective interest rate below does not include the effect of any interest rate swap agreements. The following tables also include the range of interest rates on the debt, excluding the impact of commitment fees, if applicable: For the years ended December 31 2023 2022 2021 Effective interest rate 10.28% 5.07% 2.93% Effective interest rate, excluding commitment fees 7.83% 4.38% 2.90% Range of interest rates (SOFR) 4.50 % to 5.36% 0.10 % to 4.50% 0.01 % to 0.09% The following table presents the weighted average effective interest rate on the Company’s debt obligations, including the impact on interest from interest rate swap agreements designated as hedging instruments and including commitment fees, if applicable, for the years ended December 31, 2023, 2022 and 2021. For the years ended December 31 2023 2022 2021 Effective interest rate 8.26% 2.30% 3.20% Effective interest rate, excluding commitment fees 5.80% 1.61% 3.17% |
Finance Leases
Finance Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 7. Finance lease As of December 31, 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 facilities, which totaled two vessels as of December 31, 2023 (2022: 2 vessels). ASC has provided guarantees in respect of the finance lease facility. These guarantees can be called upon following a payment default. The outstanding principal balances on each finance lease facility as of December 31, 2023 and 2022 were as follows: As of December 31 In thousands of U.S. Dollars 2023 2022 CMBFL / Shandong 54,237 59,930 Finance lease obligations 54,237 59,930 Amounts representing interest and deferred finance fees (10,594) (14,430) Finance lease obligations, net of interest and deferred finance fees 43,643 45,500 Current portion of finance lease obligations 2,151 1,976 Current portion of deferred finance fees (122) (119) Non-current portion of finance lease obligations 42,177 44,328 Non-current portion of deferred finance fees (563) (685) Total finance lease obligations, net of deferred finance fees 43,643 45,500 Maturity analysis of the Company’s finance lease facilities for each year are as follows: As of December 31 In thousands of U.S. Dollars 2023 2024 5,710 2025 5,694 2026 5,486 2027 - 2030 37,347 Finance lease obligations 54,237 Amounts representing interest and deferred finance fees (10,594) Finance lease obligations, net of interest and deferred finance fees 43,643 Assets recorded under finance leases consist of the following: As of December 31 In thousands of U.S. Dollars 2023 2022 Vessels and vessel equipment, net of accumulated depreciation 51,049 53,545 Deferred drydock expenditures, net of accumulated amortization 220 598 51,269 54,143 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 and Ardmore Seahawk with CMBFL / Shandong, resulting in gross proceeds of $49.0 million less fees of $1.0 million. The facility was drawn down in June 2021. Principal repayments on the leases are made on a monthly basis. The finance leases are scheduled to expire in 2026, with options to extend up to 2029. Repurchase options, exercisable by the Company, are also included which begin in June 2024. |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2023 | |
Operating leases | |
Operating leases | 8. Operating leases The following are the types of contracts the Company has, which are accounted for under lease guidance, ASC 842: Time charter-in contracts: 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 our right to use an underlying asset for the lease term and lease liabilities represent our 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 our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at 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 had to borrow at the time of the transactions to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The weighted average remaining lease term for the chartered-in vessels is 0.52 years. 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. Time charter-in contracts: Short term operating leases The Company entered into a short term lease agreement in September 2023 to charter-in a vessel for a period of 12 months with the option to extend for a further six months. The Company elected the practical expedient of FASB Accounting Standards Codification 842- Leases Office leases The Company’s consolidated balance sheets include a right-of-use asset and a corresponding liability for operating lease contracts for the Company’s offices in Cork, Ireland, Singapore and Houston, Texas. For office operating leases, the Company has elected to combine lease and non-lease components on the consolidated balance sheets. The discount rate used to measure the lease liability is the incremental cost of borrowing since the rate implicit in the lease cannot be determined. The Company has used a weighted average discount rate of 4% as a basis for determining the lease liability. The liabilities described below are denominated in various currencies. The weighted average remaining term of the office leases as of December 31, 2023 was 3.3 years. Under ASC 842, the right-of-use asset is a nonmonetary asset and is remeasured into the Company’s reporting currency of the U.S. Dollar using the exchange rate for the applicable currency as of the adoption date of ASC 842. The operating lease liability is a monetary liability and is remeasured quarterly using the current exchange rates, with changes recognized in a manner consistent with other foreign-currency-denominated liabilities in general and administrative expenses in the consolidated statements of operations. As of December 31 In thousands of U.S. Dollars 2023 2022 Non-Current Assets Operating lease, right-of-use asset - Time Charter in Vessels 3,492 9,568 Operating lease, right-of-use asset - Offices 1,007 993 4,499 10,561 Lease liabilities - Current portion Current portion of lease liabilities - Time Charter in Vessels 3,492 6,076 Current portion of lease liabilities - Offices 315 282 3,807 6,358 Lease liabilities - Non-current portion Non-current portion of lease liabilities - Time Charter in Vessels — 3,492 Non-current portion of lease liabilities - Offices 510 477 510 3,969 Total operating lease, right of use assets 4,499 10,561 Total lease liabilities 4,317 10,327 As of December 31, 2023, the Company had the following maturity of operating lease obligations: As of December 31 In thousands of U.S. Dollars 2023 2024 3,868 2025 310 2026 81 2027 36 2028 - 2030 113 Total lease payments 4,408 Less imputed interest (91) Present value of lease liabilities 4,317 |
Interest Rate Swaps
Interest Rate Swaps | 12 Months Ended |
Dec. 31, 2023 | |
Interest Rate Swaps | |
Interest Rate Swaps | 9. 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. 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 / (Loss) 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 swaps as an asset or liability on its balance sheet. Interest rate swaps are considered to be a Level 2 item. The following table shows the interest rate swap assets as of December 31, 2023 and December 31, 2022: Derivatives designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location December 31, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ — 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 December 31, 2023 and December 31, 2022: Derivatives not designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location December 31, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ — 3,459 Interest rate swap Non - current portion of derivative assets $ — — |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Preferred Stock | |
Preferred Stock | 10. 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 Preferred Stock to Maritime Partners, the Company agreed that Maritime Partners shall have the right to a profits interest of 20% of all cash or in-kind distributions and proceeds received in respect of the E1 investment which can only be distributed after the Company receives its return of its initial investment of $9.3 million. As the agreement includes a mandatory redemption date, for the profits interest that is the 10th anniversary of the date of the agreement, it renders the profits interest as a liability which will need to be marked to fair value each period with changes in the fair value recorded directly in earnings. The Company recorded a liability of $1.0 million, which is included in non-current liabilities in the consolidated balance sheet as of December 31, 2023 (December 31, 2022 $1.0 million). The Company paid $3.4 million and $3.3 |
Interest expense and finance co
Interest expense and finance costs | 12 Months Ended |
Dec. 31, 2023 | |
Interest expense and finance costs | |
Interest expense and finance costs | 12. Interest expense and finance costs For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Interest incurred – debt 8,033 6,245 4,405 Interest incurred – finance leases 3,718 11,239 9,767 Amortization of deferred finance fees 1,237 1,461 1,623 Interest rate swaps (1,580) (3,408) 407 11,408 15,537 16,202 For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Loss on extinguishment — 1,576 569 — 1,576 569 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Income taxes | 13. Income taxes The components of income tax are as follows: For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Current tax expenses (435) (207) (150) Income tax expense for year (435) (207) (150) The differences between income taxes expected at the Marshall Islands statutory income tax rate for non-resident companies of zero percent and the reported income tax expense are summarized as follows. For the years ended December 31 2023 2022 2021 Marshall Islands statutory income tax rate 0.00 % 0.00 % 0.00 % Income subject to tax in other jurisdictions 0.37 % 0.15 % 0.41 % Effective tax rate 0.37 % 0.15 % 0.41 % |
Net loss per share and common d
Net loss per share and common dividends | 12 Months Ended |
Dec. 31, 2023 | |
Net loss per share and common dividends | |
Net loss per share and common dividends | 14. Net income / (loss) per share and common dividends Basic and diluted net income / (loss) per share is calculated by dividing the net income / (loss) available to common shareholders by the average number of common shares outstanding during the periods. Diluted net income / (loss) per share is calculated by adjusting the net income / (loss) available to common shareholders and the weighted average number of common shares used for calculating basic income / (loss) 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 years ended December 31 In thousands of U.S. Dollars and shares, except per share amount 2023 2022 2021 Net income / (loss) attributable to common stockholders $ 113,408 $ 135,054 $ (38,086) Weighted average shares - Basic 41,130 37,236 33,883 Weighted average shares - Diluted 41,822 38,360 33,883 Basic net income / (loss) per share $ 2.76 $ 3.63 $ (1.12) Diluted net income / (loss) per share $ 2.71 $ 3.52 $ (1.12) For the year ended December 31, 2023, SARs granting the right to acquire 176,360 shares (2022: 532,642, 2021: 3,704,694) and 716,452 RSUs (2022: 908,209, 2021: 546,935) were outstanding. For the year ended December 31, 2023, there were no anti-dilutive SARs and RSUs. 131,895 SARs at an exercise price of $9.20 and 89,042 RSUs were not included in the computation of the net income per share for the year ended December 31, 2022 as their impact is anti-dilutive. The SARs and RSUs have been excluded from the computation of diluted loss per share, for the year ended December 31, 2021 as they are anti-dilutive as a result of the net loss for that period. Subsequent to year end, the Company declared a cash dividend of $0.21 per share of common stock for the quarter ended December 31, 2023. The cash dividend of $8.7 million was paid on March 15, 2024 to all shareholders of record on February 29, 2024. During the year ended December 31, 2023, the Company paid common share dividends aggregating $47.2 million. The Company did not make any dividend payments on its common stock for the years ended December 31, 2022 or 2021. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 15. Related party transactions Anglo Ardmore Ship Management Limited ("AASML") AASML is a joint venture entity owned 50% each by the third-party technical manager Anglo-Eastern and Ardmore Shipping (Bermuda) Limited. AASML is accounted for under the equity method of accounting. The carrying value of the investment as of December 31, 2023 and 2022 was not significant. AASML was incorporated in June 2017 and began providing technical management services exclusively to the Ardmore fleet on January 1, 2018. The Company has entered into standard Baltic and International Maritime Council (“BIMCO”) ship management agreements with AASML for the provision of technical management services to 22 vessels of the Company’s fleet as of December 31, 2023 (2022: 14 vessels). AASML provides the vessels with a wide range of shipping services such as repairs and maintenance, provisioning and crewing. Total management fees paid to AASML for the year ended December 31, 2023 were $3.2 million (2022: $2.7 million and 2021: $3.0 million), which are included in vessel operating expenses in the consolidated statements of operations. Amounts due from/(to) AASML in respect of management fees were $Nil as of December 31, 2023 (2022: $Nil). Advances to AASML for technical management services as of December 31, 2023 were $5.2 million (2022: $1.5 million) and are included in Advances and deposits in the consolidated balance sheets. Amounts payable to AASML for technical management services as of December 31, 2023 were $0.0 million (2022: $0.7 million), with $Nil (2022: $0.1 million) included in Accounts payable and $0.0 million (2022: $0.6 million) included in Accrued expenses and other liabilities in the consolidated balance sheets. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation. | |
Share-based compensation | 16. Share-based compensation Stock appreciation rights As of December 31, 2023, the Company had granted 3,710,473 SARs (inclusive of 5,779 forfeited SARs) to certain of its officers and directors under its 2013 Equity Incentive Plan. Changes in the SARs for the year ended December 31, 2023 are set forth below: Weighted average No. of SARs exercise price Balance as of January 1, 2023 528,844 $ 4.74 SARs granted during the year ended December 31, 2023 — — SARs exercised during the year ended December 31, 2023 (352,484) $ (4.88) Balance as of December 31, 2023 (none of which are exercisable or convertible) 176,360 $ 4.28 The total cost related to non-vested awards expected to be recognized through 2025 is set forth below: In thousands of U.S. Dollars Period TOTAL 2024 57 57 Restricted stock units As of December 31, 2023, the Company had granted 1,921,741 RSUs to certain of its officers and directors under its 2013 Equity Incentive Plan. Changes in the RSUs for the year ended December 31, 2023 is 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 year ended December 31, 2023 210,747 $ 16.64 RSUs vested during the year ended December 31, 2023 (402,504) $ (5.30) RSUs forfeited during the year ended December 31, 2023 — — Balance as of December 31, 2023 (none of which are vested) 716,452 $ 8.65 The total cost related to non-vested awards expected to be recognized through 2026 is set forth below: In thousands of U.S. Dollars Period TOTAL 2024 2,349 2025 1,353 2026 150 3,852 |
Repurchase of common stock
Repurchase of common stock | 12 Months Ended |
Dec. 31, 2023 | |
Repurchase of common stock | |
Repurchase of common stock | 17. Repurchase of common stock In September 2023, the Company's Board of Directors authorized a new share repurchase plan, expanding and replacing the Company's earlier plan. Pursuant to the new share repurchase plan, the Company may purchase up to $50 million of its common shares at times and at prices that are considered to be appropriate by the Company. The Company may repurchase these shares in the open market or in privately negotiated transactions, but is not obligated under the terms of the plan to repurchase any shares, and at any time, the Company may suspend, delay or discontinue the plan. During the years ended December 31, 2023, 2022 and 2021, no shares were repurchased. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. Commitments and Contingencies From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of its business. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any such legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events. | |
Subsequent events | 19. Subsequent Events On February 15, 2024, Ardmore announced that its Board of Directors declared a cash dividend of $0.21 per share for the quarter ended December 31, 2023. The cash dividend of $8.7 million was paid on March 15, 2024, to all shareholders of record on February 29, 2024. In February 2024, the Company has agreed to acquire a 2017 Japanese-built MR product tanker for $42.0 million, and in a separate transaction has agreed to sell the 2010-built Ardmore Seafarer for $27.1 million. Both transactions are expected to conclude in April 2024. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Basis of preparation | 2.1. Basis of preparation The accompanying consolidated financial statements, which include the accounts of ASC and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All subsidiaries are 100% directly or indirectly owned by ASC. AASML and e1 Marine, which are joint ventures in which the Company has 50% and 33.33% interests, respectively, are accounted for using the equity method. The Company’s 10% investment in Element 1 Corp. is also accounted for using the equity method as the Company is able to exercise significant influence. 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 vessels, vessel valuations, residual value of vessels, expected future cash flows from vessels to support vessel impairment tests, provisions necessary for receivables from charterers, 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 the Company is U.S. Dollars because the Company operates in international shipping markets in which most transactions are denominated in the U.S. Dollar. 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. Resulting gains and losses are included in the accompanying consolidated statements of operations. |
Recent accounting pronouncements | 2.4. Recently issued accounting pronouncements, not yet effective In November 2023 the FASB issued Accounting Standards Update 2023-07, Improvements to Reportable Segment Disclosures On December 14, 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) |
Revenue | 2.5. Revenue Revenue is generated from spot charter arrangements and time charter arrangements. Spot charter arrangements The Company’s spot charter arrangements are for single voyages for the service of the transportation of cargo that are generally short in duration (less than two months) and the Company is responsible for all costs incurred during the voyage, which include bunkers and port/canal fees, as well as general vessel operating costs (e.g. crew, repairs and maintenance and insurance costs; and fees paid to technical managers of its vessels). Accordingly, under spot charter arrangements, key operating decisions and the economic benefits associated with a vessel’s use during the charter period reside with the Company. The Company applies revenue recognition guidance in Accounting Standards Codification 606 – Revenue Recognition The consideration that the Company expects to be entitled to receive in exchange for its transportation services is recognized as revenue ratably over the duration of a voyage on a load-to-discharge basis (i.e. from when cargo is loaded at the port to when it is discharged after the completion of the voyage). The consideration that the Company expects to be entitled to receive includes estimates of revenue associated with the loading or discharging time that exceed the originally estimated duration of the voyage, which is referred to as “demurrage revenue”, when it is determined there will be incremental time required to complete the contracted voyage. Demurrage revenue is not considered a separate deliverable in accordance with ASC 606 as it is part of the single performance obligation in a spot charter arrangement, which is to provide cargo transportation services to the completion of a contracted voyage. Time charter arrangements The Company’s time charter arrangements are for a specified period of time and key decisions concerning the use of the vessel during the duration of the time charter period reside with the charterer. In time charter arrangements, the Company is responsible for the crewing, maintenance and insurance of the vessel, and the charterer is generally responsible for voyage specific costs, which typically include bunkers and port/canal costs. As the charterer holds sufficient latitude in its rights to determine how and when the vessel is used on voyages and the charterer is also responsible for costs incurred during the voyage, the charterer derives the economic benefits from the use of the vessel, as control over the use of the vessel is transferred to the charterer during the specified time charter period. Accordingly, time charters are considered operating leases and the Company applies guidance for lessors in FASB Accounting Standards Codification 842 - Leases |
Voyage and vessel operating expenses | 2.6. Voyage and vessel operating expenses Voyage expenses Voyage expenses represent costs the Company is responsible to incur in charter arrangements during a voyage that are directly related to a voyage. Voyage expenses include bunkers and port/canal costs, which are expensed as incurred. Voyage expenses also include contract fulfillment costs that are incurred by the Company prior to a voyage. These costs are from the later of when a vessel departed from its prior charter discharge port and when a vessel entered a new charter to the arrival at the loading port for the new charter and are deferred and amortized ratably over the new charter for charters accounted for in accordance with ASC 606. Such costs are typically comprised of bunkers. Vessel operating expenses Vessel operating expenses represent costs the Company incurs to operate its vessels that are not directly related to a voyage. Vessel operating expenses include crew, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. |
Cash and cash equivalents | 2.7. Cash and cash equivalents The Company classifies investments with an original maturity date of three months or less as cash and cash equivalents. The Company is required to maintain a minimum cash balance in accordance with its long-term debt facility agreements (see Note 6) and finance lease facility agreements (see Note 7). |
Receivables | 2.8. Receivables Receivables include amounts due from charterers for hire and other recoverable expenses due to the Company. As of the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate allowance for bad debt. |
Prepaid expenses and other assets | 2.9. Prepaid expenses and other assets Prepaid expenses and other assets consist of payments made in advance for insurance or other expenses, and insurance claims outstanding and certain assets held by vessel managers. Insurance claims are recorded, net of any deductible amounts, for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim. As of the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. |
Advances and deposits | 2.10. Advances and deposits Advances and deposits primarily include amounts advanced to third-party technical managers and AASML for expenses incurred by them in operating the vessels, together with other necessary deposits paid during the course of business. |
Inventories | 2.11. 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 net realizable 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. Spares are expensed as incurred. |
Vessels held for sale | 2.12. Vessel 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 measured at the lower of their carrying amount or fair value less cost to sell and they are tested for impairment. A loss 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. |
Vessels and vessel equipment | 2.13. Vessels and vessel equipment Vessels and vessel equipment 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 the Company’s vessels is estimated at 25 years from the date of initial delivery from the shipyard. For the year ended December 31, 2023, depreciation is based on cost less the estimated residual scrap value of $400 per lightweight ton (“lwt”). Effective January 1, 2023, the Company increased the estimated scrap value of the vessels from $300 per lwt to $400 per lwt prospectively based on the 15-year average scrap value of steel. The change in the estimated scrap value will result in a decrease in depreciation expense over the remaining life of the vessel assets. During the year ended December 31, 2023, depreciation expense decreased by approximately $1.1 million as a result of the change in estimated scrap value. Vessel equipment comprises the costs of significant replacements, renewals and upgrades to the Company’s vessels. Vessel equipment is depreciated 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. |
Deferred drydock expenditures | 2.14. Deferred drydock expenditures The Company follows the deferral method of accounting for drydock expenditures whereby actual expenditures incurred are deferred and are amortized on a straight-line basis through to the date of the next scheduled drydocking, generally 30 to 60 months. Expenditures deferred as part of the drydock include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Direct expenditures that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydock expenditures of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydock expenditures are written off as drydock amortization if the vessels are drydocked before the expiration of the applicable amortization period. |
Advances for ballast water treatment systems | 2.15. Advances for ballast water treatment systems The Company is in the process of installing ballast water treatment systems on each of its vessels that do not currently have the system installed. This is a requirement of the International Maritime Organization. The Company capitalizes and depreciates the costs of ballast water treatment systems, including installation costs, on each vessel from the date of completion of the system over the remaining useful life of the vessel. |
Vessel impairment | 2.16. Vessel impairment Management regularly reviews the carrying amounts of the Company’s vessels that are “held and used” for recoverability. Vessels 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 undiscounted future cash flows For purposes of testing for recoverability, undiscounted future cash flows are determined by applying various assumptions based on historical trends as well as future expectations. In estimating future revenue, 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 five years, where available, and historical average one-year time charter rates for the industry over the last 10 years. Undiscounted future cash flows are determined by applying various assumptions regarding future revenue net of voyage expenses, vessel operating expenses, scheduled drydockings, expected off-hire and scrap values, and taking into account historical market and Company specific revenue data as discussed above, and also considering other external market sources, including analysts’ reports and freight forward agreement curves. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company will evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset as provided by third parties. Management regularly reviews the carrying amount of the vessels in connection with the estimated recoverable amount for each of the Company's vessels. The Company did not recognize a vessel impairment charge for the years ended December 31, 2023, 2022 and 2021. |
Other non-current assets | 2 .17. Other non-current assets Other non-current assets relate to office equipment, fixtures and fittings and leasehold improvements. Office equipment and fixtures and fittings are recorded at their cost less accumulated depreciation and are depreciated based on an estimated useful life of five years. Leasehold improvements relate to fit-out costs for work completed on the Company’s offices in Ireland and Singapore. Leasehold improvements are recorded at their cost less accumulated depreciation and are depreciated over the life of the respective leases. |
Operating leases | 2.18. Operating leases Under ASC 842, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. The standard continues to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. For operating leases, ASC 842 requires recognition in an entity’s income statement of a single lease expense, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. Right-of-use assets represent a right to use an underlying asset for the lease term and the related lease liability represents an obligation to make lease payments pursuant to the contractual terms of the lease agreement. Operating lease right-of-use assets are assessed for any potential impairment on each balance sheet date. At lease commencement, a lessee must develop a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. When determining the discount rate to be used at lease commencement, a lessee must use the rate implicit in the lease unless that rate cannot be readily determined. When the rate implicit in the lease cannot be readily determined, the lessee should use its incremental borrowing rate. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. |
Finance leases | 2.19. 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 statements of operations using the effective interest method over the life of the lease. |
Accounts payable | 2.20. Accounts payable Accounts payable include all financial obligations to vendors for goods or services that have been received or will be received in the future. |
Accrued expenses and other liabilities | 2.21. Accrued expenses and other liabilities Accrued expenses and other liabilities include all accrued liabilities in relation to the operating and running of the vessels, along with amounts accrued for general and administrative expenses. |
Derivatives | 2.22. Derivatives As required by FASB Accounting Standards Codification 815 - Derivatives and Hedging (“ASC 815”), the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. The Company elected to classify settlement payments as operating activities within the statement of cash flows. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR/SOFR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Equity method investments | 2.23. Equity method investments The Company’s investments in AASML, e1 Marine and Element 1 Corp. are accounted for using the equity method of accounting. Under the equity method of accounting, the Company initially recorded the investments in AASML and e1 Marine at cost and adjusts the carrying amounts of the investments to recognize their respective share of earnings or losses of the investee. As of December 31, 2023, the carrying value of the Company’s total investment in Element 1 Corp. is $9.3 million. This consists of the carrying value of the Company’s investment in the ordinary shares of $9.3 million and warrants exercisable for ordinary shares of $0.0 million, which were initially determined based upon the relative fair values at the date of the investment. The carrying amount of the investment is adjusted to recognize the Company’s share of earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investments. The Company evaluates its equity method investment for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other than temporary decline in value below their carrying values. 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 the Company’s consolidated statements of operations. As of December 31, 2023, there are no impairment indicators for the investment in Element 1 Corp. The Company adjusts the fair value of the Element 1 Corp. warrants at each reporting period with changes in the fair value recorded directly in earnings. |
Contingencies | |
Distributions to shareholders | 2.25. Distributions to shareholders Subject to the Board of Directors’ approval, distributions to common shareholders are applied first to accumulated surplus. When accumulated surplus is not sufficient, distributions are applied to the additional paid in capital account. |
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 and finance lease issuance costs | 2.27. Debt and finance lease 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 sheets as a direct deduction from the carrying amount of the debt liability or finance lease obligation. These costs are amortized to interest expense and finance costs in the consolidated statements of operations using the effective interest rate method over the life of the related debt or finance lease. |
Share based compensation | 2.28. Share-based compensation The Company may grant share-based payment awards, such as restricted stock units (“RSUs”), stock appreciation rights (“SARs”) as incentive-based compensation to certain employees. The Company measures the cost of such awards, which are equity-settled transactions, 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. Once the fair value has been determined, the associated expense is recognized in the consolidated statements of operations over the requisite service period. The SARs are settled through the delivery of Ardmore shares, not cash. Hence, in accordance with the guidance in the FASB Accounting Standards Codification 718, Compensation — Stock Compensation 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 over the vesting period. The Company’s policy for issuing shares upon the vesting of the RSUs is to register and issue new common shares to the grantee. |
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 an increase in additional paid in capital and cumulative losses as an increase to accumulated deficit. |
Financial instruments | 2.30. Financial instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable reported in the consolidated balance sheets 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. |
Income taxes | 2.31. Income taxes Republic of the Marshall Islands Ardmore Shipping Corporation, Ardmore Shipping LLC, Ardmore Maritime Services LLC, and all vessel owning subsidiaries are incorporated in the Republic of the Marshall Islands with the exception of Lahinch Shipco (Pte.) Limited which is incorporated in Singapore. Ardmore Shipping Corporation 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 Ardmore Shipping Corporation will not be subject to any taxes under the laws of the Republic of the Marshall Islands. Bermuda Ardmore Shipping (Bermuda) Limited is incorporated in Bermuda. Ardmore Shipping Corporation, Ardmore Shipping LLC and Ardmore Shipping (Bermuda) Limited are managed and controlled in Bermuda. Ardmore Shipping Corporation is subject to taxation under the laws of Bermuda and distributions by its subsidiaries to Ardmore Shipping Corporation will be subject to any taxes under the laws of Bermuda. Ireland Ardmore Shipping Services (Ireland) Limited and Ardmore E1 Marine Ventures Limited, which was established to act as the immediate parent company of e1 Marine, the joint venture jointly owned by Ardmore, Element 1 Corp. and Maritime Partners, are incorporated in Ireland. 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, Ardmore Tanker Trading (Asia) Pte. Limited, Ardmore Maritime Services (Asia) Pte. Limited and Lahinch Shipco (Pte.) Limited are incorporated in Singapore. Ardmore Shipping (Asia) Pte. Limited 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 vessels which are owned or chartered in by Ardmore Shipping (Asia) Pte. Limited. Lahinch Shipco (Pte.) Limited is a ship-owning company and therefore exempt from taxes under the law of Singapore. Ardmore Tanker Trading (Asia) Pte. Limited and Ardmore Maritime Services (Asia) Pte. Limited are subject to Singapore tax on their worldwide profits. 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 sheets 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, the Company provides for a valuation allowance. Income taxes have been provided for all items included in the consolidated statements 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, 2023 amounted to $Nil (2022: $Nil , 2021: $Nil). 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, 2023 amounted to $Nil (2022: $Nil, 2021: $Nil). |
Overview (Tables)
Overview (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Overview | |
Schedule of components of fleet | Vessel Name Type Dwt IMO (1) Built Country Specification Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 S. Korea Eco-Design Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 S. Korea Eco-Design Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 S. Korea Eco-Design Ardmore Sealion Product/Chemical 49,999 2/3 May-15 S. Korea Eco-Design Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 S. Korea Eco-Design Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 S. Korea Eco-Design Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 S. Korea Eco-Design Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 S. Korea Eco-Design Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 S. Korea Eco-Design Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 S. Korea Eco-Design Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 S. Korea Eco-Design Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 S. Korea Eco-Design Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 S. Korea Eco-Design Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 S. Korea Eco-Design Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 S. Korea Eco-Design Ardmore Seafarer Product 49,999 - Jun-10 Japan Eco-Mod Ardmore Defender Product/Chemical 37,791 2 Feb-15 S. Korea Eco-Design Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 S. Korea Eco-Design Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan Eco-Design Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan Eco-Design Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan Eco-Design Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan Eco-Design Total 22 973,181 |
Business and segmental report_2
Business and segmental reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business and segmental reporting | |
Schedule of revenues of major customers | The following table presents consolidated revenues for charterers that accounted for more than 10% of the Company’s consolidated revenues during the years presented: For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Charterer A * 55,626 23,152 Charterer B * 53,345 * * None over 10% |
Schedule of revenues contributions | The following table presents the Company’s revenue contributions by nature of vessel employment. For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Spot charters (1) 395,577 437,189 169,632 Time charters (2) — 7,917 22,106 Pooling arrangements (3) — 3 14 Other revenue (4) 401 632 732 395,978 445,741 192,484 (1) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 606. (2) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 842. (3) Represents revenue recognized by the Company associated with pooling arrangements that were accounted for in accordance with the guidance for collaborative arrangements. (4) Represents revenue recognized by the Company associated with the management of four third-party chemical tankers employed under spot charters that were accounted for in accordance with ASC 606. |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued expenses and other liabilities | |
Schedule of components of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following as of December 31, 2023 and 2022: As of December 31 In thousands of U.S. Dollars 2023 2022 Accrued vessel operating expenses and voyage expenses 12,961 13,159 Other accrued expenses 5,304 7,731 Total accrued expenses 18,265 20,890 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Schedule outstanding principal balances on each loan facility | The outstanding principal balances on each loan facility as of December 31, 2023 and 2022 were as follows: As of December 31 In thousands of U.S. Dollars 2023 2022 Nordea/SEB Revolving Facility — 22,500 ABN/CACIB Joint Bank Facility 45,872 104,927 ABN/CACIB Revolving Facility — — ABN AMRO Revolving Facility 932 3,184 Total debt 46,804 130,611 Deferred finance fees (778) (1,815) Net total debt 46,026 128,796 Current portion of long-term debt 6,713 13,429 Current portion of deferred finance fees (277) (502) Total current portion of long-term debt 6,436 12,927 Non-current portion of long-term debt 39,590 115,869 |
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 December 31 In thousands of U.S. Dollars 2023 2024 6,713 2025 7,645 2026 6,713 2027 25,733 46,804 |
Table of effective interest rate associated with the interest expense for the Company's debt | For the years ended December 31 2023 2022 2021 Effective interest rate 10.28% 5.07% 2.93% Effective interest rate, excluding commitment fees 7.83% 4.38% 2.90% Range of interest rates (SOFR) 4.50 % to 5.36% 0.10 % to 4.50% 0.01 % to 0.09% |
Table of weighted average effective interest rate on the Company's debt obligations. | For the years ended December 31 2023 2022 2021 Effective interest rate 8.26% 2.30% 3.20% Effective interest rate, excluding commitment fees 5.80% 1.61% 3.17% |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of outstanding principal balances on finance lease facility | As of December 31 In thousands of U.S. Dollars 2023 2022 CMBFL / Shandong 54,237 59,930 Finance lease obligations 54,237 59,930 Amounts representing interest and deferred finance fees (10,594) (14,430) Finance lease obligations, net of interest and deferred finance fees 43,643 45,500 Current portion of finance lease obligations 2,151 1,976 Current portion of deferred finance fees (122) (119) Non-current portion of finance lease obligations 42,177 44,328 Non-current portion of deferred finance fees (563) (685) Total finance lease obligations, net of deferred finance fees 43,643 45,500 |
Schedule of future minimum lease payments required under the finance lease facilities | Maturity analysis of the Company’s finance lease facilities for each year are as follows: As of December 31 In thousands of U.S. Dollars 2023 2024 5,710 2025 5,694 2026 5,486 2027 - 2030 37,347 Finance lease obligations 54,237 Amounts representing interest and deferred finance fees (10,594) Finance lease obligations, net of interest and deferred finance fees 43,643 |
Schedule of Assets under Finance Leases | Assets recorded under finance leases consist of the following: As of December 31 In thousands of U.S. Dollars 2023 2022 Vessels and vessel equipment, net of accumulated depreciation 51,049 53,545 Deferred drydock expenditures, net of accumulated amortization 220 598 51,269 54,143 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating leases | |
Schedule of right of use asset and lease liability | As of December 31 In thousands of U.S. Dollars 2023 2022 Non-Current Assets Operating lease, right-of-use asset - Time Charter in Vessels 3,492 9,568 Operating lease, right-of-use asset - Offices 1,007 993 4,499 10,561 Lease liabilities - Current portion Current portion of lease liabilities - Time Charter in Vessels 3,492 6,076 Current portion of lease liabilities - Offices 315 282 3,807 6,358 Lease liabilities - Non-current portion Non-current portion of lease liabilities - Time Charter in Vessels — 3,492 Non-current portion of lease liabilities - Offices 510 477 510 3,969 Total operating lease, right of use assets 4,499 10,561 Total lease liabilities 4,317 10,327 |
Schedule of maturity of operating lease liabilities | As of December 31, 2023, the Company had the following maturity of operating lease obligations: As of December 31 In thousands of U.S. Dollars 2023 2024 3,868 2025 310 2026 81 2027 36 2028 - 2030 113 Total lease payments 4,408 Less imputed interest (91) Present value of lease liabilities 4,317 |
Interest Rate Swaps (Tables)
Interest Rate Swaps (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest Rate Swaps | |
Schedule of interest rate swap liabilities | Derivatives designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location December 31, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ — 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 December 31, 2023 and December 31, 2022: Derivatives not designated as hedging instruments (in thousands of U.S. Dollars) Balance Sheet location December 31, 2023 December 31, 2022 Interest rate swap Current portion of derivative assets $ — 3,459 Interest rate swap Non - current portion of derivative assets $ — — |
Loss on sale of vessels (Tables
Loss on sale of vessels (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loss on sale of vessels | |
Schedule of Capital Leased Assets | The loss on the sale of vessels for the year ended December 31, 2022 is calculated as follows: In thousands of U.S. Dollars Sealeader Sealifter Sealancer Total Sales proceeds 13,239 13,239 14,249 40,727 Net book value of vessels (16,251) (15,886) (14,692) (46,829) Sales related costs (265) (265) (285) (815) Loss on sale of vessels (3,277) (2,912) (728) (6,917) |
Interest expense and finance _2
Interest expense and finance costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest expense and finance costs | |
Schedule of Interest expense and finance costs | For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Interest incurred – debt 8,033 6,245 4,405 Interest incurred – finance leases 3,718 11,239 9,767 Amortization of deferred finance fees 1,237 1,461 1,623 Interest rate swaps (1,580) (3,408) 407 11,408 15,537 16,202 For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Loss on extinguishment — 1,576 569 — 1,576 569 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Schedule of Components of Income Tax | The components of income tax are as follows: For the years ended December 31 In thousands of U.S. Dollars 2023 2022 2021 Current tax expenses (435) (207) (150) Income tax expense for year (435) (207) (150) |
Schedule of differences between income taxes expected at the Bermuda statutory income tax rate of zero percent and the reported income tax expense | The differences between income taxes expected at the Marshall Islands statutory income tax rate for non-resident companies of zero percent and the reported income tax expense are summarized as follows. For the years ended December 31 2023 2022 2021 Marshall Islands statutory income tax rate 0.00 % 0.00 % 0.00 % Income subject to tax in other jurisdictions 0.37 % 0.15 % 0.41 % Effective tax rate 0.37 % 0.15 % 0.41 % |
Loss per share and common divid
Loss per share and common dividends (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net loss per share and common dividends | |
Schedule of Basic and diluted loss per share | For the years ended December 31 In thousands of U.S. Dollars and shares, except per share amount 2023 2022 2021 Net income / (loss) attributable to common stockholders $ 113,408 $ 135,054 $ (38,086) Weighted average shares - Basic 41,130 37,236 33,883 Weighted average shares - Diluted 41,822 38,360 33,883 Basic net income / (loss) per share $ 2.76 $ 3.63 $ (1.12) Diluted net income / (loss) per share $ 2.71 $ 3.52 $ (1.12) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Appreciation Rights (SARs) [Member] | |
Share-based compensation | |
Schedule of changes in the Stocks | Changes in the SARs for the year ended December 31, 2023 are set forth below: Weighted average No. of SARs exercise price Balance as of January 1, 2023 528,844 $ 4.74 SARs granted during the year ended December 31, 2023 — — SARs exercised during the year ended December 31, 2023 (352,484) $ (4.88) Balance as of December 31, 2023 (none of which are exercisable or convertible) 176,360 $ 4.28 |
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 2025 is set forth below: In thousands of U.S. Dollars Period TOTAL 2024 57 57 |
Restricted stock units | |
Share-based compensation | |
Schedule of changes in the Stocks | Changes in the RSUs for the year ended December 31, 2023 is 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 year ended December 31, 2023 210,747 $ 16.64 RSUs vested during the year ended December 31, 2023 (402,504) $ (5.30) RSUs forfeited during the year ended December 31, 2023 — — Balance as of December 31, 2023 (none of which are vested) 716,452 $ 8.65 |
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 2026 is set forth below: In thousands of U.S. Dollars Period TOTAL 2024 2,349 2025 1,353 2026 150 3,852 |
Overview - Management and organ
Overview - Management and organizational structure (Details) | 12 Months Ended | |
Dec. 31, 2023 item subsidiary segment | Jun. 17, 2021 | |
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 7 months 6 days | |
Number of wholly owned subsidiaries | subsidiary | 78 | |
Number of joint ventures | 1 | |
Ardmore Shipping Corporation | ||
Overview | ||
Percentage of ownership interest (as a percent) | 100% | |
Anglo Ardmore Ship Management Limited | ||
Overview | ||
Percentage of ownership interest (as a percent) | 50% | |
Anglo Ardmore Ship Management Limited | Corporate Joint Venture [Member] | ||
Overview | ||
Percentage of ownership interest (as a percent) | 50% | |
e1 Marine LLC | Corporate Joint Venture [Member] | ||
Overview | ||
Percentage of ownership interest (as a percent) | 33.33% | 33.33% |
Element 1 Corp. | ||
Overview | ||
Percentage of ownership interest (as a percent) | 10% | 10% |
Overview (Details)
Overview (Details) | 12 Months Ended |
Dec. 31, 2023 item t | |
Overview | |
TOTAL | item | 22 |
Number Of Fleet With Marshall Island flag | item | 21 |
Number Of Fleet With Singapore flag | item | 1 |
Deadweight | 973,181 |
Average Age Of Vessels | 9 years 7 months 6 days |
Ardmore Seavaliant [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seavaliant [Member] | Korea | |
Overview | |
Built date | Nov-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seaventure [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seaventure [Member] | Korea | |
Overview | |
Built date | Aug-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seavantage [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seavantage [Member] | Korea | |
Overview | |
Built date | Jun-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seavanguard [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seavanguard [Member] | Korea | |
Overview | |
Built date | May-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Sealion [Member] | |
Overview | |
Deadweight | 49,420 |
Ardmore Sealion [Member] | Korea | |
Overview | |
Built date | Mar-14 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seafox [Member] | |
Overview | |
Deadweight | 49,998 |
Ardmore Seafox [Member] | Korea | |
Overview | |
Built date | Feb-14 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seawolf [Member] | |
Overview | |
Deadweight | 49,466 |
Ardmore Seawolf [Member] | Korea | |
Overview | |
Built date | Feb-14 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seahawk [Member] | |
Overview | |
Deadweight | 49,997 |
Ardmore Seahawk [Member] | Korea | |
Overview | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Endeavour [Member] | |
Overview | |
Deadweight | 49,478 |
Ardmore Endeavour [Member] | Korea | |
Overview | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Enterprise [Member] | |
Overview | |
Deadweight | 49,494 |
Ardmore Enterprise [Member] | Korea | |
Overview | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Endurance [Member] | |
Overview | |
Deadweight | 49,466 |
Ardmore Endurance [Member] | Korea | |
Overview | |
Built date | Dec-13 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Encounter [Member] | |
Overview | |
Deadweight | 49,453 |
Ardmore Encounter [Member] | Korea | |
Overview | |
Built date | Sep-13 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Explorer [Member] | |
Overview | |
Deadweight | 49,997 |
Ardmore Explorer [Member] | Korea | |
Overview | |
Built date | Jul-13 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Exporter [Member] | |
Overview | |
Deadweight | 49,998 |
Ardmore Exporter [Member] | Korea | |
Overview | |
Built date | Jun-13 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Engineer [Member] | |
Overview | |
Deadweight | 49,998 |
Ardmore Engineer [Member] | Korea | |
Overview | |
Built date | Feb-13 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Seafarer [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seafarer [Member] | Japan | |
Overview | |
Built date | Jun-10 |
Type | Product |
Specification | Eco-Mod |
Ardmore Dauntless [Member] | |
Overview | |
Deadweight | 37,791 |
IMO | item | 2 |
Ardmore Dauntless [Member] | Japan | |
Overview | |
Built date | Feb-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Defender [Member] | |
Overview | |
Deadweight | 37,764 |
IMO | item | 2 |
Ardmore Defender [Member] | Japan | |
Overview | |
Built date | Feb-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Cherokee [Member] | |
Overview | |
Deadweight | 25,217 |
IMO | item | 2 |
Ardmore Cherokee [Member] | Japan | |
Overview | |
Built date | Nov-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Cheyenne [Member] | |
Overview | |
Deadweight | 25,217 |
IMO | item | 2 |
Ardmore Cheyenne [Member] | Japan | |
Overview | |
Built date | Jul-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Chinook [Member] | |
Overview | |
Deadweight | 25,217 |
IMO | item | 2 |
Ardmore Chinook [Member] | Japan | |
Overview | |
Built date | Mar-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Ardmore Chippewa [Member] | |
Overview | |
Deadweight | 25,215 |
IMO | item | 2 |
Ardmore Chippewa [Member] | Japan | |
Overview | |
Built date | Jan-15 |
Type | Product/Chemical |
Specification | Eco-Design |
Significant accounting polici_3
Significant accounting policies - Basis of preparation (Details) | Dec. 31, 2023 | Jun. 17, 2021 |
Ardmore Shipping Corporation | ||
Significant accounting policies | ||
Equity Method Investment, Ownership Percentage | 100% | |
Anglo Ardmore Ship Management Limited | ||
Significant accounting policies | ||
Equity Method Investment, Ownership Percentage | 50% | |
Anglo Ardmore Ship Management Limited | Corporate Joint Venture [Member] | ||
Significant accounting policies | ||
Equity Method Investment, Ownership Percentage | 50% | |
e1 Marine LLC | Corporate Joint Venture [Member] | ||
Significant accounting policies | ||
Equity Method Investment, Ownership Percentage | 33.33% | 33.33% |
Element 1 Corp. | ||
Significant accounting policies | ||
Equity Method Investment, Ownership Percentage | 10% | 10% |
Significant accounting polici_4
Significant accounting policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 17, 2021 | |
Significant accounting policies | |||||
Standard Corporation Tax Rate | 12.50% | ||||
Higher Corporation Tax Rate | 25% | ||||
Deferred Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | $ 0 | ||
Equity Method Investment, Aggregate Cost | 9,300 | ||||
Common Stock, Value, Issued | $ 433 | $ 426 | |||
Vessels [Member] | |||||
Significant accounting policies | |||||
Property, Plant and Equipment, Useful Life | 25 years | ||||
Office Equipment and Fixtures and Fittings [Member] | |||||
Significant accounting policies | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Minimum [Member] | |||||
Significant accounting policies | |||||
Scheduled drydocking period of vessels | 30 months | ||||
Maximum [Member] | |||||
Significant accounting policies | |||||
Scheduled drydocking period of vessels | 60 months | ||||
Ardmore Shipping Corporation | |||||
Significant accounting policies | |||||
Equity Method Investment, Ownership Percentage | 100% | ||||
Anglo Ardmore Ship Management Limited | |||||
Significant accounting policies | |||||
Equity Method Investment, Ownership Percentage | 50% | ||||
Element 1 Corp. | |||||
Significant accounting policies | |||||
Equity Method Investment, Ownership Percentage | 10% | 10% | |||
Equity Method Investment, Aggregate Cost | $ 9,300 | $ 9,300 | |||
Common Stock, Value, Issued | 9,300 | $ 5,300 | $ 5,300 | ||
Warrants and Rights Outstanding | $ 0 |
Business and segmental report_3
Business and segmental reporting - Companys revenue contribution (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business and segmental reporting | |||
Revenues | $ 395,978 | $ 445,741 | $ 192,484 |
Number of reportable segments | segment | 1 | ||
Voyage Charters [Member] | |||
Business and segmental reporting | |||
Revenues | $ 395,577 | 437,189 | 169,632 |
Time charters [Member] | |||
Business and segmental reporting | |||
Revenues | 0 | 7,917 | 22,106 |
Pooling Arrangements [Member] | |||
Business and segmental reporting | |||
Revenues | 0 | 3 | 14 |
Chemical Tankers [Member] | |||
Business and segmental reporting | |||
Revenues | $ 401 | 632 | 732 |
Charterer A [Member] | |||
Business and segmental reporting | |||
Revenues | 55,626 | $ 23,152 | |
Charterer B [Member] | |||
Business and segmental reporting | |||
Revenues | $ 53,345 |
Business and segmental report_4
Business and segmental reporting - Additional information (Details) | 12 Months Ended |
Dec. 31, 2023 item | |
Concentration Risk [Line Items] | |
Number Of Vessels Employed | 19 |
Chemical Tankers [Member] | |
Concentration Risk [Line Items] | |
Number Of Vessels Employed | 4 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 17, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Equity Investment | |||||
Payments for equity investments | $ 1,244 | $ 588 | $ 5,541 | ||
Common stock | $ 433 | $ 426 | |||
Common stock, shares issued (in shares) | 43,324,702 | 42,646,636 | |||
Total investment | $ 9,300 | ||||
Income (loss) in equity investments | $ (1,035) | $ (195) | $ (317) | ||
Ardmore Shipping Corporation | |||||
Equity Investment | |||||
Percentage of ownership interest (as a percent) | 100% | ||||
Element 1 Corp. | |||||
Equity Investment | |||||
Percentage of ownership interest (as a percent) | 10% | 10% | |||
Payments for equity investments | $ 4,000 | $ 5,000 | |||
Common stock | $ 5,300 | 9,300 | $ 5,300 | ||
Number of common shares | 581,795 | ||||
Warrants to purchase common shares | 286,582 | ||||
Warrants and Rights Outstanding | 0 | ||||
Total investment | $ 9,300 | 9,300 | |||
Percentage of voting right | 20% | ||||
Equity Investment | 9,300 | ||||
e1 Marine LLC | |||||
Equity Investment | |||||
Payments for equity investments | 1,200 | ||||
Income (loss) in equity investments | (1,000) | ||||
Equity Investment | $ 1,400 | ||||
e1 Marine LLC | Corporate Joint Venture [Member] | |||||
Equity Investment | |||||
Percentage of ownership interest (as a percent) | 33.33% | 33.33% | |||
Element 1 Corp And Maritime Partners LLC | |||||
Equity Investment | |||||
Equity Investment | $ 10,700 |
Accrued expenses and other li_3
Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued expenses and other liabilities | ||
Accrued vessel operating expenses and voyage expenses | $ 12,961 | $ 13,159 |
Other accrued expenses | 5,304 | 7,731 |
Total accrued expenses | $ 18,265 | $ 20,890 |
Debt - Outstanding Principal Ba
Debt - Outstanding Principal Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total debt | $ 46,804 | |
Total current portion of long-term debt | 6,436 | $ 12,927 |
Non-current portion of long-term debt | 39,590 | 115,869 |
Loans Payable | ||
Total debt | 46,804 | 130,611 |
Deferred finance fees | (778) | (1,815) |
Net total debt | 46,026 | 128,796 |
Current portion of long-term debt | 6,713 | 13,429 |
Current portion of deferred finance fees | (277) | (502) |
Total current portion of long-term debt | 6,436 | 12,927 |
Non-current portion of long-term debt | 39,590 | 115,869 |
Nordea SEB Revolving Facility | Loans Payable | ||
Total debt | 22,500 | |
ABN CACIB Joint Bank Facility | Loans Payable | ||
Total debt | 45,872 | 104,927 |
ABN AMRO Revolving Facility | Loans Payable | ||
Total debt | $ 932 | $ 3,184 |
Debt - Future minimum repayment
Debt - Future minimum repayments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt | |
2023 | $ 6,713 |
2024 | 7,645 |
2025 | 6,713 |
2027 | 25,733 |
Total long-term debt | $ 46,804 |
Debt - Additional information (
Debt - Additional information (Details) $ in Thousands | 12 Months Ended | |||||||||||
Jun. 15, 2023 USD ($) | Aug. 09, 2022 USD ($) | Aug. 05, 2022 USD ($) | Aug. 05, 2022 USD ($) item | Aug. 05, 2022 USD ($) subsidiary | Aug. 05, 2022 USD ($) | Dec. 31, 2023 item | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 facility | Dec. 31, 2023 USD ($) | Dec. 31, 2023 | |
Number of loan facilities | 1 | 3 | ||||||||||
Number of vessels with loans | item | 19 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | SOFR plus 3.9% | SOFR plus 2.5% | ||||||||||
Revolving credit facility undrawn | $ 161,300 | |||||||||||
Fair market Value Percentage | 40% | |||||||||||
Minimum [Member] | ||||||||||||
Required Minimum Solvency Covenant | 30% | |||||||||||
Required minimum cash and cash equivalents | 18,750 | |||||||||||
Cash and Cash Equivalent Percentage | 5% | |||||||||||
Fair market Value Percentage | 130% | |||||||||||
Minimum Net Worth Required | 200,000 | |||||||||||
SOFR | Minimum [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | 0.10% | 0.01% | |||||||||
LIBOR | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||||
Nordea SEB Joint Bank Facility | Minimum [Member] | ||||||||||||
Cash and Cash Equivalent Percentage | 60% | |||||||||||
Nordea SEB Revolving Facility | ||||||||||||
Number of vessels previously financed under lease arrangments | item | 6 | |||||||||||
Number of subsidiaries | 12 | 12 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 185,500 | $ 185,500 | $ 185,500 | $ 185,500 | ||||||||
Debt Instrument, Description of Variable Rate Basis | SOFR plus 2.5% | |||||||||||
Number of days to provide notice for draw down or repayment of debt | 5 days | |||||||||||
ABN CACIB Joint Bank Facility | ||||||||||||
Number of vessels with loans | item | 7 | |||||||||||
Number of vessels previously financed under lease arrangments | item | 3 | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 108,000 | $ 108,000 | $ 108,000 | $ 108,000 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||||
ABN AMRO Revolving Facility | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.90% | |||||||||||
Revolving credit facility drawn down | $ 15,000 | |||||||||||
ABN CACIB Revolving Bank Facility | ||||||||||||
Percentage of outstanding balance converted into a revolving credit facility | 50% | |||||||||||
Percentage continuing as a term loan facility | 50% | |||||||||||
Revolving credit facility drawn down | 0 | |||||||||||
Revolving credit facility undrawn | $ 45,900 | |||||||||||
Outstanding balance | $ 49,200 |
Debt - Interest rates (Details)
Debt - Interest rates (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective interest rate | 10.28% | 5.07% | 2.93% |
Effective interest rate, excluding commitment fees | 7.83% | 4.38% | 2.90% |
Effective interest rate, weighted average | 8.26% | 2.30% | 3.20% |
Effective interest rate weighted average, excluding commitment fees | 5.80% | 1.61% | 3.17% |
Minimum [Member] | SOFR | |||
Interest rates (SOFR) | 4.50% | 0.10% | 0.01% |
Maximum [Member] | SOFR | |||
Interest rates (SOFR) | 5.36% | 4.50% | 0.09% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 54,237 | $ 59,930 |
Amounts representing interest and deferred finance fees | (10,594) | (14,430) |
Finance lease obligations, net of interest and deferred finance fees | 43,643 | 45,500 |
Current portion of finance lease obligations | 2,151 | 1,976 |
Current portion of deferred finance fees | (122) | (119) |
Non-current portion of finance lease obligations | 42,177 | 44,328 |
Non-current portion of deferred finance fees | (563) | (685) |
Total finance lease obligations, net of deferred finance fees | 43,643 | 45,500 |
CMBFL Shandong | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 54,237 | $ 59,930 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
2022 | $ 5,710 | |
2023 | 5,694 | |
2024 | 5,486 | |
2026 | 37,347 | |
Finance lease obligations | 54,237 | $ 59,930 |
Amounts representing interest and deferred finance fees | (10,594) | (14,430) |
Finance lease obligations, net of interest and deferred finance fees | $ 43,643 | $ 45,500 |
Leases - Assets recorded under
Leases - Assets recorded under finance leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Vessels and vessel equipment, net of accumulated depreciation | $ 51,049 | $ 53,545 |
Deferred drydock expenditures, net of accumulated amortization | 220 | 598 |
Total finance lease asset | $ 51,269 | $ 54,143 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||||
Aug. 09, 2022 | Aug. 05, 2022 | Jun. 21, 2021 USD ($) subsidiary | Dec. 31, 2023 USD ($) | Dec. 31, 2023 facility | Dec. 31, 2023 item | Dec. 31, 2022 USD ($) item | |
Number Of Finance Lease Facility | 3 | 1 | |||||
Number of vessel in operation | item | 2 | 2 | |||||
Incremental borrowing rate | 4.50% | ||||||
Advance payment | $ 6,833 | $ 2,160 | |||||
Debt Instrument, Description of Variable Rate Basis | SOFR plus 3.9% | SOFR plus 2.5% | |||||
Lease, Practical Expedients, Package [true false] | true | ||||||
CMBFL Shandong | |||||||
Number of subsidiaries | subsidiary | 2 | ||||||
Gross proceeds | $ 49,000 | ||||||
Transaction fees | $ 1,000 |
Operating leases (Details)
Operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total operating lease, right of use asset | $ 4,499 | $ 10,561 | |
Current portion of operating lease obligations | 3,807 | 6,358 | |
Non-current portion of operating lease obligations | 510 | 3,969 | |
Present value of lease liabilities | 4,317 | 10,327 | |
Total foreign exchange gain / (loss) on operating leases | (52) | (2) | $ 72 |
Time charters [Member] | |||
Total operating lease, right of use asset | 3,492 | 9,568 | |
Current portion of operating lease obligations | 3,492 | 6,076 | |
Non-current portion of operating lease obligations | 3,492 | ||
Sublease Income | 43,600 | 31,000 | |
Office Space [Member] | |||
Total operating lease, right of use asset | 1,007 | 993 | |
Current portion of operating lease obligations | 315 | 282 | |
Non-current portion of operating lease obligations | $ 510 | $ 477 |
Operating leases - Maturity of
Operating leases - Maturity of operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating leases | ||
2024 | $ 3,868 | |
2025 | 310 | |
2026 | 81 | |
2027 | 36 | |
2028 - 2030 | 113 | |
Total lease payments | 4,408 | |
Less imputed interest | (91) | |
Present value of lease liabilities | $ 4,317 | $ 10,327 |
Operating leases - Additional I
Operating leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 3 months 18 days |
Incremental borrowing rate | 4.50% |
Lease, Practical Expedients, Package [true false] | true |
Time charters [Member] | |
Operating Lease, Weighted Average Remaining Lease Term | 6 months 7 days |
Lessor, Operating Lease, Term of Contract | 12 months |
Operating Lease, Option to Extend | 6 months |
Office Space [Member] | |
Operating Lease, Weighted Average Discount Rate, Percent | 4% |
Interest Rate Swaps (Details)
Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest Rate Swaps | ||
Current portion of derivative assets | $ 4,927 | |
Interest Rate Swap | ||
Interest Rate Swaps | ||
Term of the interest rate swap agreements | 3 years | |
Interest Rate Swap | Designated as hedging instrument | ||
Interest Rate Swaps | ||
Current portion of derivative assets | 1,468 | |
Interest Rate Swap | Not designated as hedging instrument | ||
Interest Rate Swaps | ||
Current portion of derivative liabilities | $ 3,459 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 03, 2021 | Jun. 17, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Preferred Stock | |||||
Payment of preferred dividends | $ 3,400 | $ 3,285 | $ 792 | ||
Preferred stock dividend accrued | 600 | 600 | |||
Total investment | 9,300 | ||||
Element 1 Corp. | |||||
Preferred Stock | |||||
Total investment | $ 9,300 | $ 9,300 | |||
Cumulative Series A redeemable Preferred Stock | |||||
Preferred Stock | |||||
Preferred stock issued | 15,000 | 25,000 | |||
Liquidation preference per share | $ 1,000 | ||||
Divided rate | 8.50% | ||||
Dividends | $ 0 | ||||
Profit interests on distributions | 20% | ||||
Cumulative Series A redeemable Preferred Stock | Other noncurrent liabilities | |||||
Preferred Stock | |||||
Profit interests distribution liability | $ 1,000 | $ 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% |
Loss on sale of vessel - Additi
Loss on sale of vessel - Additional information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Loss on vessels sold | $ 6,917 | $ 6,917 | |
Ardmore Sealancer [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Loss on vessels sold | $ 728 | ||
Ardmore Sealeader & Ardmore Sealifter | |||
Lessee, Lease, Description [Line Items] | |||
Vessel sales price | $ 40,700 | ||
Loss on vessels sold | $ 6,900 |
Loss on sale of vessels (Detail
Loss on sale of vessels (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss on sale of vessels | ||
Sales proceeds | $ 40,727 | |
Net book value of vessel | (46,829) | |
Sales related costs | (815) | |
Loss on sale of vessels | (6,917) | $ (6,917) |
Loss on vessels sold | $ 6,917 | |
Ardmore Sealeader [Member] | ||
Loss on sale of vessels | ||
Sales proceeds | 13,239 | |
Net book value of vessel | (16,251) | |
Sales related costs | (265) | |
Loss on sale of vessels | (3,277) | |
Ardmore Sealifter [Member] | ||
Loss on sale of vessels | ||
Sales proceeds | 13,239 | |
Net book value of vessel | (15,886) | |
Sales related costs | (265) | |
Loss on sale of vessels | (2,912) | |
Ardmore Sealancer [Member] | ||
Loss on sale of vessels | ||
Sales proceeds | 14,249 | |
Net book value of vessel | (14,692) | |
Sales related costs | (285) | |
Loss on sale of vessels | $ (728) |
Interest expense and finance _3
Interest expense and finance costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest expense and finance costs | |||
Interest incurred - debt | $ 8,033 | $ 6,245 | $ 4,405 |
Interest incurred - finance leases | 3,718 | 11,239 | 9,767 |
Amortization of deferred finance fees | 1,237 | 1,461 | 1,623 |
Interest rate swaps | (1,580) | (3,408) | 407 |
Interest expense and finance costs | $ 11,408 | 15,537 | 16,202 |
Loss on extinguishment | $ 1,576 | $ 569 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Domestic | |||
Current tax expenses | $ (435) | $ (207) | $ (150) |
Income tax expense for year | $ (435) | $ (207) | $ (150) |
Income taxes - Differences betw
Income taxes - Differences between income taxes (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income taxes | |||
Bermuda statutory income tax rate | 0% | 0% | 0% |
Income subject to tax in other jurisdictions | 0.37% | 0.15% | 0.41% |
Effective tax rate | 0.37% | 0.15% | 0.41% |
Net loss per share and dividend
Net loss per share and dividends per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss attributable to common stockholders | $ 113,408 | $ 135,054 | $ (38,086) |
Denominator: | |||
Weighted average number of shares outstanding, basic (in shares) | 41,130,089 | 37,235,599 | 33,882,932 |
Weighted average number of shares outstanding, diluted (in shares) | 41,821,637 | 38,359,985 | 33,882,932 |
Earnings per share, basic (in dollars per share) | $ 2.76 | $ 3.63 | $ (1.12) |
Earnings per share, diluted (in dollars per share) | $ 2.71 | $ 3.52 | $ (1.12) |
Net loss per share and divide_2
Net loss per share and dividends per share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Mar. 15, 2024 | Feb. 14, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 176,360 | 532,642 | 3,704,694 | ||
Dividends Payable, Amount Per Share | $ 0.21 | $ 0.21 | |||
Payment of preferred dividends | $ 3,400 | $ 3,285 | $ 792 | ||
Preferred stock dividend accrued | $ 600 | $ 600 | |||
Restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 716,452 | 908,209 | 546,935 | ||
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Cash dividends | $ 8,700 | $ 8,700 | $ 47,200 | $ 0 | $ 0 |
Related party transactions (Det
Related party transactions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Anglo Ardmore Ship Management Limited | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest (as a percent) | 50% | ||
Corporate Joint Venture [Member] | Anglo Ardmore Ship Management Limited | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest (as a percent) | 50% | ||
Anglo Ardmore Ship Management Limited | |||
Related Party Transaction [Line Items] | |||
Number of vessels for which technical management services is provided | item | 22 | 14 | |
Total management fees paid | $ 3.2 | $ 2.7 | $ 3 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts payable to related party | 0 | 0.7 | |
Amounts Due from (to) related party, Management Fees | 0 | 0 | |
Advances made | 5.2 | 1.5 | |
Related Party [Member] | Accounts Payable [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts payable to related party | 0.1 | ||
Related Party [Member] | Accrued Expenses and Other Liabilities [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts payable to related party | $ 0 | $ 0.6 |
Share-based compensation - Stoc
Share-based compensation - Stock appreciation rights - Changes in SARs (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
SARs exercised during the three months | shares | (352,484) |
Weighted average exercise price exercised during the three months | $ / shares | $ (4.88) |
Stock Appreciation Rights (SARs) [Member] | |
Balance, No. of Units (Beginning) | shares | 528,844 |
Balance, Weighted average exercise price (Beginning) | $ / shares | $ 4.74 |
Balance, No. of Units (Ending) (none of which are exercisable or convertible) | shares | 176,360 |
Balance, Weighted average exercise price (Ending) | $ / shares | $ 4.28 |
Share-based compensation - St_2
Share-based compensation - Stock appreciation rights - Cost related to non-vested awards (Details) - Stock Appreciation Rights (SARs) [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2023 | $ 57 |
Total | $ 57 |
Share-based compensation - Rest
Share-based compensation - Restricted stock units - Summary of awards (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SARs Awarded (in shares) | 210,747 |
Share-based compensation - Re_2
Share-based compensation - Restricted stock units - Changes in RSUs (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 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 | 210,747 |
Granted during the period, Weighted average fair value at grant date | $ / shares | $ 16.64 |
RSUs vested (in shares) | shares | (402,504) |
RSUs vested during the period, Weighted average fair value at grant date | $ / shares | $ (5.30) |
Balance as at the end (none of which are vested) | shares | 716,452 |
Balance as at the end (none of which are vested), Weighted average fair value at grant date | $ / shares | $ 8.65 |
Share-based compensation - Re_3
Share-based compensation - Restricted stock units - Cost related to non-vested awards (Details) - Restricted stock units $ in Thousands | Dec. 31, 2023 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2023 | $ 2,349 |
2024 | 1,353 |
2025 | 150 |
Total | $ 3,852 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Stock Appreciation Rights (SARs) [Member] | Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU granted (in shares) | 3,710,473 |
RSUs forfeited (in shares) | 5,779 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU granted (in shares) | 210,747 |
RSU's vested (in shares) | 402,504 |
Restricted stock units | Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU granted (in shares) | 1,921,741 |
Repurchase of common stock (Det
Repurchase of common stock (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase plan | $ 50,000 | |||
Treasury stock repurchased (in shares) | 2,020,053 | |||
Treasury stock, value | $ 15,636 | $ 15,636 | ||
Board of Directors [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock repurchased (in shares) | 0 | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Subsequent events. | |
Cash dividend | $ 47,154 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 116,808 | $ 138,454 | $ (36,832) |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |