Ardmore Shipping Increases Fixed-Rate MR/Chemical Coverage, Tightening Revenue Visibility
- Ardmore increases fixed-rate coverage on MR and chemical tankers, securing charters (including $26k/day 12-month, $21,250/day two-year).
- About half of Q1 MR days and 30% of chemical days fixed; Q1 estimated MR TCE $29,100, chemical $20,800.
- Q4 adjusted earnings $11.6m, full-year adjusted $38.8m; declared $0.09 dividend, redeemed remaining Series shares.
Tanker chartering strategy tightens revenue visibility
Ardmore Shipping reports it is increasing fixed-rate coverage across its medium-range (MR) and chemical tanker fleet to shore up revenue visibility as market rates fluctuate. The company highlights a 12-month charter for a 2013-built MR set to begin in March at $26,000 per day and two two-year charters for 2014-built MRs that commenced in December at $21,250 per day. Management says these hires, together with its existing coverage, strengthen near-term cash flow and reduce exposure to volatile spot markets.
The firm notes that roughly half of revenue days for Q1 2026 are fixed for MRs and about 30% for chemical tankers, improving the predictability of earnings in the quarter. Ardmore reports MR spot time-charter equivalent (TCE) earnings of $25,257 per day in the fourth quarter of 2025 and chemical tanker spot TCE of $19,948 per day. With current forward cover, it estimates weighted MR spot TCE for Q1 at about $29,100 per day and chemical tankers at about $20,800 per day.
Ardmore frames these moves as part of a broader fleet optimisation and risk-management push, seeking to prioritise cash generation through selective fixed-rate employment and charter length choices. Management underscores an operational emphasis on matching contract duration to market signals, trimming downside risk while retaining upside exposure where pricing is attractive. The company also signals ongoing attention to fleet composition and deployment to balance commercial returns and operating flexibility.
Quarterly and annual financials
Ardmore reports adjusted earnings of $11.6 million and net income attributable to common stockholders of $9.3 million, or $0.28 per share, for the quarter ended Dec. 31, 2025, versus adjusted earnings of $10.3 million and net income of $5.1 million in the comparable 2024 quarter. For the full year the company reports adjusted earnings of $38.8 million and net income of $36.1 million, down from 2024 levels that benefited from a $12.3 million gain on the April 2024 sale of the Ardmore Seafarer.
Dividend and corporate actions
Consistent with its variable dividend policy of distributing one-third of adjusted earnings, Ardmore declares a cash dividend of $0.09 per common share on Feb. 12, 2026, payable March 13 to shareholders of record Feb. 27. The company also notes it fully redeems all remaining outstanding shares of its Series on Oct. 31, 2025, as part of its capital management actions.