Ardmore Shipping Corporation (NYSE:ASC) Q1 2023 Earnings Conference Call May 9, 2023 10:00 AM ET

Company Participants

Anthony Gurnee - CEO

Bart Kelleher - CFO

Conference Call Participants

Jon Chappell - Evercore ISI

Omar Nokta - Jefferies

Ben Nolan - Stifel

Operator

Good morning, ladies and gentlemen, and welcome to Ardmore Shipping's First 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. We will conduct a question-and-answer session after the opening remarks. Instructions will follow at that time. 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 312-65-95.

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

Anthony Gurnee

Good morning, and welcome to Ardmore Shipping's first 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 first quarter 2023 earnings release, which is available on our website.

And now I'll turn the call back over to Tony.

Anthony Gurnee

Thank you, Bart.

Let me first outline the format for today's call. To begin with, I'll discuss highlights, market outlook and updates on our capital allocation policy. After which Bart will provide an update on product and chemical tanker fundamentals and our financial performance. And then I'll conclude the presentation and open up the call for questions.

So, turning first to Slide 4 for highlights. We've seen strong momentum and positive volatility being sustained in the first quarter and into the second quarter with TCE rates remaining at extremely elevated levels compared with historical norms.

First quarter results reflect continued strength in the product and chemical tanker markets, with adjusted earnings of $43 million or $1.04 per share, equating to an annualized book return on equity of 35%. On a TCE basis, our MRs earned $37,500 per day for the first quarter.

And so far, we're running at 34,000 per day for the second quarter with 50% booked. Our chemical tankers on a capital adjusted basis earned $32,000 per day for the first quarter and are running at $38,000 for the second quarter, also with 50% booked. Ardmore continues to deliver on its capital allocation policy, and we're very pleased to declare a quarterly cash dividend of $0.35 per share, representing one-third of adjusted earnings and equating to an annualized current yield of approximately 10%.