The company also reported adjusted EBITDA of $9.6 mill for 3Q19, compared to $3.9 mill for 3Q18.
In addition, Ardmore reported a net loss from continuing operations of $11.6 mill for the first nine months of 2019, compared to a net loss of $25.6 mill, for the sdame period of the previous year.
The GAAP net loss for the first nine months of this year was $24.8 mill, compared to a GAAP net loss of $26 mill, for the nine months ended 30th September, 2018.
This included the loss on the sales of the ‘Ardmore Seamaster’ and ‘Ardmore Seafarer’.
Adjusted EBITDA was $35.4 mill for the first nine months of this year, compared to $21.3 mill for the first nine months of 2018.
MR tankers earned an average TCE rate of $13,784 per day for 3Q19, and $14,601 per day for the nine month period, while chemical tankers earned an average TCE rate of $11,013 per day for 3Q19, and an average of $11,784 per day for the nine month period.
Charter rates have rebounded in recent weeks with rates for MRs fixed since 5th October, 2019 averaging around $20,085 per day.
Taking account of voyages in progress from 3Q19, as of 5th November, 2019, Ardmore had fixed about 45% of its total MR spot revenue days for the fourth quarter of 2019 at an average TCE rate of around $17,000 per day.
During the period, the company agreed terms for two credit facilities for $201.5 mill in total, including a $40 mill revolving component to refinance 12 ships on improved terms and extending maturities until the end of 2024.
CEO Anthony Gurnee, commented: “After three difficult years for the tanker sector, we are very encouraged by the recent sharp upturn in the tanker market and the drivers behind. We believe that this is likely to be the beginning of a sustained upcycle, characterised by repetitive spikes with settling periods in between, but at levels well above the recent past.
“We think that conditions are now in place for a strong rate environment in particular for product tankers. We believe that IMO2020 is now having a significant impact on product tanker demand and rates; in particular, demand for gasoil is expected to surge as shipping companies transition to compliant fuels and concerns about VLSFO quality and compatibility issues prevail, resulting in elevated trading activity.
“At the same time, we expect that geopolitical tensions in the Middle East and an anticipated winter seasonal demand boost will further contribute to a strong rate environment in the near-term.
“Looking beyond the near-term, the underlying fundamentals of product tanker supply and demand are solid and should get even better: oil consumption growth is expected to increase to 1.2 mill barrels per day in 2020 and ongoing refinery expansion in export-oriented location should further amplify fundamental demand growth.
“Meanwhile, a record low orderbook, combined with ongoing scrapping should keep vessel supply growth well below demand growth for the foreseeable future. We also believe that regulatory uncertainty around the global maritime industry’s targets for greenhouse gas (GHG) emissions reductions will put a damper on newbuilding activity until rules and regulations become clear and new technologies emerge, which could take years.
“We are pleased to present our CO2 emissions again this quarter. While the industry is continuing to refine reporting methodology for carbon emissions, we believe that a commitment to increased transparency by companies such as Ardmore will play an important role in encouraging positive and sensible legislative change toward GHG emissions reductions from the shipping industry.
“In the midst of these positive developments, we remain resolutely focused on operating performance and effective capital allocation to maximise returns. With a modern, fuel efficient fleet of MR product & chemical tankers and cost-efficient structure, we believe we are poised to take advantage of improved market conditions, to recommence dividend payments as per our policy, and to generate strong returns for our shareholders,” he concluded.