Ardmore Shipping Stock

Ardmore Shipping Corporation operates as an integrated shipping company.

The company provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size product and chemical tankers.

The company has 79 wholly owned subsidiaries, the majority of which represent single ship-owning companies for its fleet, one 50%-owned joint venture entity, Anglo Ardmore Ship Management Limited (AASML), which provides technical management services to the majority of its fleet, one 33.33%-owned joint venture entity, and one 10% equity stake in another entity.

Ardmore Maritime Services (Asia) Pte. Limited (AMSA), a wholly owned subsidiary incorporated in Singapore, carries out the company’s management services and associated functions. Ardmore Shipping Services (Ireland) Limited (ASSIL), a wholly owned subsidiary incorporated in Ireland, provides the company’s corporate, accounting, fleet administration and operations services. Ardmore Shipping (Asia) Pte. Limited (ASA), a wholly owned subsidiary incorporated in Singapore, and Ardmore Shipping (Americas) LLC (ASUSA), a wholly owned subsidiary incorporated in Delaware, each perform commercial management and chartering services for the company.

The company is strategically focused on modern, fuel-efficient, mid-size product and chemical tankers. The company actively pursues opportunities to exploit the overlap between the clean petroleum product (CPP) and chemical sectors in order to enhance earnings, and also seek to engage in more complex CPP trades, such as multi-grade and multi-port loading and discharging operations, where its knowledge of chemical operations is beneficial to its CPP customers.

The company has established Ardmore Ventures as its holding company for existing and future potential investments related to the Energy Transition Plan (ETP) and the company completed its first projects under the ETP in June 2021.

The company, through its in-house chartering and commercial team, markets its services directly to a broad range of customers, including oil majors, national oil companies, oil and chemical traders, chemical companies, and pooling service providers.

As of February 15, 2022, the company’s fleet consisted of 25 owned vessels, including 21 Eco-design and four Eco-mod vessels, all of which were in operation. The average age of its vessels was 8.7 years as of February 15, 2022.

Business Strategy

The key elements of the company’s business strategy include disciplined capital allocation and well-timed growth; focusing on modern high-quality, mid-size product and chemical tankers; optimizing fuel efficiency; and commercial independence, flexibility and customer service.

As part of the company’s growth strategy, it regularly monitors, evaluates, and enters into discussions regarding potential expansion opportunities, including through vessel and business acquisitions and joint ventures.

Customers

The company’s customers include national, regional, and international companies. Its fleet is employed directly on the tanker spot market through its in-house chartering and commercial team.

Environmental and Other Regulations in the Shipping Industry

A variety of government and private entities subject the company’s vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities, such as the United States Coast Guard (USCG), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators.

The company’s vessels are in full compliance with SOLAS and LLMC (the Convention of Limitation of Liability for Maritime Claims) standards.

Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the ‘ISM Code’), the company’s operations are also subject to environmental standards and requirements.

The company has obtained applicable documents of compliance for its offices and safety management certificates for all of its vessels for which the certificates are required by the International Maritime Organization, the United Nations agency for maritime safety and the prevention of pollution by vessels (IMO).

Both the U.S. Oil Pollution Act of 1990 and the Comprehensive Environmental Response, Compensation and Liability Act impact the company’s operations.

The company complies and plans to comply going forward with the USCG’s financial responsibility regulations by providing applicable certificates of financial responsibility.

The U.S. Environmental Protection Agency and the USCG have also enacted rules relating to ballast water discharge, compliance with which requires the installation of equipment on the company’s vessels to treat ballast water before it is discharged or the implementation of other port facility disposal arrangements or procedures at potentially substantial costs, and/or otherwise restrict the company’s vessels from entering the U.S. Waters.

All the company’s vessels are in substantial compliance with and are certified to meet the Maritime Labor Convention 2006.

History

Ardmore Shipping Corporation was founded in 2010. The company was incorporated under the laws of the Republic of the Marshall Islands in 2013.