ASC - Ardmore Shipping surges to 52-week high after Q4 beat dividend declaration

Ardmore Shipping ( NYSE: ASC ) closed +9.7% Tuesday to a fresh 52-week high after reporting Q4 adjusted earnings and revenues that beat analyst estimates while also declaring its first cash dividend under its new policy of paying out a third of adjusted earnings.

At the end of Q4, Ardmore ( ASC ) said it had 21 MR tankers in operation, all trading in the spot market; these tankers earned an average TCE rate of $41,911/day in Q4.

Also at the end of Q4, the company said it had six Eco-Design IMO 2 product/chemical tankers in operation, all trading in the spot market; these vessels earned an average TCE rate of $28,544/day in Q4.

For Q1 2023, Ardmore ( ASC ) expects to have all revenue days for its MR tankers and Eco-Design IMO 2 tankers employed in the spot market.

The refined product tanker market saw a buying spree of diesel leading up to the winter, "with the situation currently evolving," CCO Gernolt Ruppelt said on Ardmore's ( ASC ) post-earnings conference call, as reported by S&P Global Platts.

"The world cannot live on diesel alone," Ruppelt said in response to the production of diesel at the expense of naphtha and gasoline, which "could kick off the next long-haul arbitrage, with a positive impact on tanker demand."

Ardmore Shipping ( ASC ) shares have gained 30% so far this year and 386% during the past year .

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