EBITDA was $10.1 mill for the period, compared to $7.2 mill for 3Q16.
During the third quarter of this year, Ardmore agreed to acquire a 47,500 dwt 2008 Japanese-built product tanker. The acquisition is subject to completion of financing under a lease arrangement on terms acceptable to Ardmore and if successful, the vessel is expected to be delivered in December, 2017 or January, 2018.
The company also completed a $15 mill revolving credit facility in October, further enhancing its financial flexibility.
Spot and pool MRs earned an average of $12,970 per day and Eco-Design chemical tankers earned an average of $10,768 per day during 3Q17.
Anthony Gurnee, Ardmore’s CEO, commented: “Short-term oil market dynamics continue to dominate the product tanker market; while this has been a significant negative for some time, we believe this is shifting to the positive with the impact of Hurricane ‘Harvey’ abating and global oil inventories heading toward normal levels after an extended period of de-stocking. As a consequence, we believe the product tanker market is poised for a seasonal rebound this winter.
“Beyond these near-term factors, underlying fundamentals are positive: global oil demand growth is strong and export-oriented refinery capacity is increasing to meet this demand. On the back of this, MR tonne/mile demand growth is set to continue at about 5%, while supply growth is estimated to be 1.8% for 2017 and only 1.1% for 2018, which should rapidly tighten the MR supply/demand balance. In addition, shipyards and shipowners continue to be capital constrained and, as a consequence, we don’t anticipate any major ordering activity until a recovery is well underway.
“Meanwhile, our focus continues to be on operating performance and cost efficiency. We are pleased to announce the acquisition of a high-quality Japanese MR built 2008; while this is just a single-ship acquisition, together with attractive lease financing, the transaction will provide a meaningful boost to earnings and cash flow and highlights our disciplined approach to growth and capital allocation.
“We believe that a shift of short-term oil market dynamics, coupled with underlying strong demand growth and declining supply growth, is setting the stage for a seasonal rebound in the MR market. Ardmore’s strong balance sheet, modern fleet, and industry-leading cost structure put us in a very strong position to take advantage of a cyclical charter market recovery and to generate highly attractive returns and value for our shareholders,” he concluded.
Revenue for 3Q17 was $48.7 mill, an increase of $10.7 mill from $38 mill for 3Q16.
The average TCE rate for the fleet was $12,376 per day during the quarter, a decrease of $1,513 per day from $13,889 per day for 3Q16. The decrease in average TCE rate was the result of lower average timecharter and spot rates.
Fleet operating costs per day, including technical management fees, were $6,538 for 3Q17, compared to $6,541 for 3Q16.