Ardmore Shipping Corporation (NYSE:ASC) Q2 2023 Earnings Conference Call August 1, 2023 10:00 AM ET

Company Participants

Anthony Gurnee - CEO

Bart Kelleher - CFO

Conference Call Participants

Jonathan Chappell - Evercore ISI

Omar Nokta - Jefferies

Operator

Good morning, ladies and gentlemen, and welcome to Ardmore Shipping's Second Quarter 2023 Earnings Conference Call. Today's call is being recorded, and an audio webcast and presentation are available in the Investor Relations section of the company's website, ardmoreshipping.com. [Operator Instructions] A replay of the conference call will be accessible anytime during the next two weeks by dialing 1 (877) 344-7529 or 1 (412) 317-0088 and entering passcode 8126419.

At this time, I will turn the call over to Anthony Gurnee, Chief Executive Officer of Ardmore Shipping. Please go ahead.

Anthony Gurnee

Good morning, and welcome to Ardmore Shipping's Second Quarter 2023 Earnings Call. First, let me ask our Chief Financial Officer, Bart Kelleher, to discuss forward-looking statements.

Bart Kelleher

Thanks, Tony. Turning to Slide 2. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause the actual results to differ materially from those in the forward-looking statements is contained in the second quarter 2023 earnings release, which is available on our website.

And now I would like to turn the call back over to Tony.

Anthony Gurnee

Thank you, Bart. Let me first outline the format of today's call. To begin with, I'll discuss highlights, capital allocation and current market conditions, after which Bart will provide an update on tanker fundamentals and on our financial performance, and then I'll conclude and open up the call for questions.

So turning to Slide 4 for highlights. We're seeing MR and chemical tanker TCEs continuing at elevated levels, well above our cash breakeven rate, which now stands at $14,000 per day.

Rates have demonstrated resilience, both during the second quarter, which was impacted by above-average refinery maintenance for this time of the year and into the third quarter during normally weaker summer months.

Second quarter results show adjusted earnings of $23.7 million or $0.57 per share, reflecting the robustness of these markets, which are continuing into the third quarter. Our MRs earned $27,500 per day for the second quarter and with 45% booked so far in the third quarter, we're at $26,100 per day. Our chemical tankers on a capital adjusted basis earned $27,500 per day for the second quarter and with 63% booked so far in the third quarter at $23,000 a day.