Ardmore Shipping Corporation (NYSE:ASC) Q4 2018 Earnings Conference Call Transcript

Feb 06, 2019 • 10:00 am ET

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Ardmore Shipping Corporation (NYSE:ASC) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to Ardmore Shipping's Fourth Quarter 2018 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 10128501.

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

Executive
Anthony Gurnee

Good morning and welcome, everyone, to Ardmore Shipping's fourth quarter 2018 earnings call. First, let me ask our CFO, Paul Tivnan, to describe the format for the call and discuss forward-looking statements.

Executive
Paul Tivnan

Thanks, Tony, and welcome, everyone. Before we begin our conference call, I would like to direct all participants to our website at ardmoreshipping.com, where you'll find a link to this morning's fourth quarter 2018 earnings release and presentation. Tony and I will take about 15 minutes to go through the presentation and then open up the call to questions.

Turning to slide two, please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from the results projected from those forward-looking statements and additional information concerning factors that could cause those results to differ materially from those in the forward-looking statements is contained in our fourth quarter and full year 2018 earnings release, which is available on our website.

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

Executive
Anthony Gurnee

Thanks, Paul. Let me first outline the format of today's call. First, I'll discuss the fourth quarter and then key market developments. After which, Paul will provide a summary of the fourth quarter and full year 2018 performance, an update on recent tanker market activity and fundamentals and a detailed financial update and then I'll conclude the presentation and open up the call for questions.

Turning first to slide four on highlights for the quarter. We're reporting a net loss from continuing operations of $8.75 million or $0.26 per share for the fourth quarter as compared to a net loss of $12.2 million or $0.37 per share for the third quarter, reflecting improved but still weak charter market conditions overall, notwithstanding the strong finish to the year. To that point, our MR performance rebounded strongly during the quarter, increasing from $11,000 per day in October up to $17,500 per day by the end of December. At present, we have 45% of our revenue days for the first quarter of 2019 booked at $15,500 per day, reflecting much improved levels into the new year, albeit down slightly from their highs at year-end.

In-spite of the weak charter market conditions for much of 2018, we've maintained a strong liquidity position and balance sheet with a year-end cash balance of $57 million and corporate leverage on a net debt basis of 52%. Consistent with our modern fleet strategy, we've just