Ardmore Shipping reported continuing strong market conditions from war and weather-related upheavals for its product and chemical tankers despite profits halving in the final quarter of 2023.

The New York-listed clean tanker specialist reported net profits of $26.1m, compared with $53.1m a year earlier, when tanker rates peaked following Russia’s invasion of Ukraine. Net profit for the year was down from $135.1m in 2022 to $113.4 million last year.

Out with the old as Ardmore profits from sale of MR tanker
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Chief executive Anthony Gurnee said continued changes to tanker trade routes meant strong rates were expected to continue in 2024.

He cited geopolitical issues including continuing Houthi attacks on shipping in the Red Sea and weather-related issues that had reduced traffic through the Panama Canal.

“The simultaneous restrictions in the Panama Canal and Suez Canal are currently driving substantial incremental tonne-mile demand,” he said.

“While the ultimate duration of these canal restrictions remains to be seen, this is having a pronounced impact during the seasonally stronger winter season.”

The company has 26 product and chemical tankers in operation.

The Cork, Ireland-based company reported that it had booked 60% of total revenue days for its MR tankers for the first quarter of 2024 for an average time charter equivalent rate of $35,400 — a 9% increase from the previous quarter.

It has booked 70% of its chemical tankers for $26,700 per day, up $600 from the last quarter of 2023.

On Thursday, the company also confirmed the sale of the 50,000-dwt Ardmore Seafarer (built 2010) for $27.1m, as reported on Tuesday by TradeWinds.

The deal followed the company’s move to buy the 50,000-dwt St Pauli (built 2017) from Meiji Shipping in Japan for $42m. Both deals are expected to conclude in this quarter.

It also said it received a $2.7m boost from chartering out one of its chartered-in MR tankers for the rest of the period.

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