EBITDA was $9.9 mill, a decrease of $1.8 mill from the $11.7 mill reported for 1Q17. Revenue was $50.5 mill, an increase of $0.8 mill from $49.7 mill recorded for 1Q17.
The average number of owned vessels increased to 27.7 for the period, from 27 for 1Q17, resulting in revenue days of 2,416 for the three month period, compared to 2,410 for 1Q17.
Some 24 and 19 vessels were employed directly in the spot market as at 31st March, 2018 and of the same date for 2017, respectively. An increase in revenue days derived from spot chartering arrangements, resulted in a rise in revenue of $4.2 mill, however, changes in spot rates resulted in a decrease of $1.6 mill.
Four and eight vessels were employed under pool arrangements in the same periods, respectively. A decrease in revenue days in pool arrangements resulted in a decrease in revenue of $2.4 mill, while changes in market conditions during 1Q18, compared to 1Q17 resulted in an increase in revenue of $0.6 mill.
The average TCE rate for the fleet was $12,897 per day in 1Q18, a slight decrease from $12,919 per day recorded for 1Q17 due to lower spot rates.
As of 31st March, 2018, Ardmore had $35.3 mill (31st December, 2017: $39.5 mill) available in cash and cash equivalents.
Anthony Gurnee, the company's CEO, commented: "Ardmore continues to execute on its strategy in the face of soft charter market conditions. We remain focused on operating performance, cost efficiency and effective capital allocation to build value for shareholders through improvements to ROIC.
“In January, we took delivery of the ‘Ardmore Sealancer’ and completed financing for the vessel under a Japanese operating lease arrangement. The vessel is a highly efficient 2008 Japanese-built MR that we acquired at an attractive price, providing low break-evens and high earnings power.
“We have also agreed terms for the refinancing of two 2013-built Eco-design MRs under a sale and leaseback arrangement on highly attractive pricing and terms with a top-tier Asian financier, further improving our financial flexibility.
“Following a subdued start to the year that was impacted by various short-term factors, we believe that the positive underlying fundamentals are set to take hold in 2018. Global economic growth is at its firmest level since 2010, driving oil demand growth and pushing oil inventories back below their five-year average.
“Additionally, we believe elevated geopolitical and oil supply risks are increasing oil price volatility. As a result, we expect elevated trading activity to resume over the coming months, re-introducing an additional layer of tonne/mile demand for MRs on top of strong underlying product demand. Meanwhile, tanker supply trends continue to look attractive, with net MR supply growth of well below 1% in 2018.
“We believe shifting oil market dynamics, coupled with underlying strong demand growth and very low supply growth, is setting the stage for a cyclical rebound in the MR market. Ardmore's strong balance sheet, modern fleet, and low-cost structure put us in a strong position to take advantage of a cyclical charter market recovery and to generate highly attractive returns for our shareholders," he concluded.