The company recorded an EBITDA of $18.8 mill for 1Q16, compared to $12.2 mill in the same period of 2015.
ASC claimed to have delivered a strong chartering performance during the quarter, with spot and pool MRs earning around $18,975 per day with an average of 24 ships in operation.
During 1Q16, the company completed a refinancing of almost all of the outstanding debt, reducing interest expense by around $2.2 mill and improving surplus cash flow by about $6.7 mill in 2016.
Anthony Gurnee, ASC’s CEO, commented: “We are pleased with our financial performance for the first quarter of 2016, during which we have continued to capitalise on a firm charter market for our fully delivered fleet of modern, fuel-efficient MRs and chemical tankers.
“The spot market performed well through 1Q16, despite some temporary weakness associated with refinery maintenance and outages in February. We expect average charter rates for the second quarter to remain positive, with long-term growth in product tanker demand continuing to support the market and ongoing oil price volatility and supply chain congestion boosting already-strong fundamental demand.
“Meanwhile, we believe that the growth rate of product tanker supply is peaking, with deliveries expected to slow down substantially in the near future and a global MR orderbook currently standing at less than 9% of the existing fleet, the lowest level since 2001. Given the increasing disparity between solid fundamental demand growth and a diminishing orderbook, we remain positive for the medium term.
“During the quarter, we successfully completed a refinancing of all of our debt on improved terms, including lower pricing and an extension of final maturities to 2022, thereby further strengthening both our financial position and earnings on an ongoing basis.
“We also repurchased approximately $3 mill of shares during the quarter at an average price of $8.20, which, together with the refinancing, has created measurable incremental value for shareholders. With our revenue days set to increase by 16% in 2016 and our constant payout ratio policy producing substantial year-over-year dividend growth, Ardmore is well positioned to continue generating strong returns for our shareholders.