ARDMORE SHIPPING Reports Second Quarter Earnings Results for FY2023

🌥️Earnings Overview

On August 1 2023, ARDMORE SHIPPING ($NYSE:ASC) announced its earnings report for the second quarter of Fiscal Year 2023 (ending June 30 2023). Total revenue for the quarter amounted to USD 91.9 million, representing a decrease of 14.2% compared to the same period in the prior year. Net income decreased by 17.4% year-on-year to USD 24.5 million.

Share Price

On the day, ARDMORE SHIPPING stock opened at $13.8 and closed at the same price, down by 2.3% from its prior closing price of $14.1. The results that were disclosed showed a slight decline in revenue compared to the first quarter of the fiscal year. The company attributed the decrease in revenue mainly to fewer shipments during the quarter due to a general slowdown in global trade. Despite this, ARDMORE SHIPPING was able to maintain profitability due to cost control measures and the strong performance in its core shipping business.

Moving forward, ARDMORE SHIPPING is optimistic about the outlook for the rest of the year and is hoping that the global economy will start to recover. The company has also announced plans to invest more in its fleet and operations to ensure that it is better positioned to take advantage of any potential increase in global trade. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Ardmore Shipping. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Ardmore Shipping. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Ardmore Shipping. More…

Key Ratios Snapshot

Some of the financial key ratios for Ardmore Shipping are shown below. More…

Analysis

GoodWhale has conducted an analysis of ARDMORE SHIPPING‘s wellbeing, and the results show that they are strong in growth and medium in asset, dividend, and profitability. Based on this, we classify them as a ‘gorilla’ – a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. This makes ARDMORE SHIPPING an attractive investment option for investors looking for companies with strong potential for future growth. Moreover, their health score of 8/10, considering their cashflows and debt, indicates that the company is capable of paying off debt and funding future operations. Overall, ARDMORE SHIPPING is an excellent investment opportunity for those looking for a company with strong long-term potential. More…

Peers

The Company owns and operates a fleet of product and crude tankers. Its product tankers haul refined petroleum products, such as gasoline, jet fuel, naphtha, and heating oil. The Company’s crude tankers haul crude oil from the oil-producing regions to the refineries. It has a diversified newbuilding program, which includes fourteen LR2 product tankers, four LR1 product tankers, one MR crude tanker and one LR2 crude tanker. The Company has operations in North America, Europe and Asia.

– Concordia Maritime AB ($LTS:0H0N)

Concordia Maritime AB is a Swedish tanker shipping company. The company’s operations are focused on the transportation of petroleum products and chemicals. As of 2022, Concordia Maritime AB had a market capitalization of 413.34 million and a return on equity of -74.14%.

– TOP Ships Inc ($NASDAQ:TOPS)

TOPS Ships Inc. is a US-based company that provides maritime transportation services. It owns and operates a fleet of product and chemical tankers. The company has a market capitalization of $11.52 million and a return on equity of 11.7%.

– KSS Line Ltd ($KOSE:044450)

KSS Line Ltd is a publicly traded company with a market capitalization of 217.63 billion as of 2022. The company has a return on equity of 12.17%. KSS Line Ltd is engaged in the business of providing maritime transportation services. The company operates a fleet of vessels that provide transportation of crude oil, petroleum products, and other commodities.

Summary

ARDMORE SHIPPING reported their second quarter of Fiscal Year 2023 earnings results on August 1 2023. Total revenue for the quarter came in at USD 91.9 million, a decrease of 14.2% compared to the same time period in the previous year. Net income was USD 24.5 million, down 17.4% year over year. This is a significant decline from the company’s previous quarters and something investors should take note of.

Although the company has seen some difficulties in the past year, it is still worth considering as an investment option for those interested in shipping-related companies. Further research is necessary to determine if ARDMORE SHIPPING remains a good investment option.