Ardmore Shipping Corporation (ASC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.69 million, or $ 0.11 a share in the quarter, against a net profit of $5.37 million, or $0.21 a share in the last year period. On an adjusted basis, net loss for the quarter was $3.69 million, when compared with net profit $5.37 million in the last year period.
Revenue during the quarter grew 3.37 percent to $43.18 million from $41.77 million in the previous year period. Total expenses were 96.07 percent of quarterly revenues, up from 76.70 percent for the same period last year. That has resulted in a contraction of 1937 basis points in operating margin to 3.93 percent.
Operating income for the quarter was $1.70 million, compared with $9.73 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.88 million compared with $17.14 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1585 basis points in the quarter to 25.19 percent from 41.04 percent in the last year period.
Anthony Gurnee, the Company's chief executive officer, commented: "Throughout 2016, we achieved a number of key accomplishments that position Ardmore to benefit from the long-term trends driving the market for MR product and chemical tankers. We completed a refinancing of all our debt on improved terms and pricing, concluded a follow-on offering in June to finance the accretive acquisition of six Eco-Design MR product tankers at a highly attractive price, and opportunistically sold three chemical tankers, which partially funded the six-ship acquisition and refocused the fleet more toward MRs with greater earnings upside. Just as importantly, we remained focused on maintaining the best-in-class operational capabilities and cost structure that are central to our identity."
Operating cash flow improves
Ardmore Shipping Corporation has generated cash of $42.63 million from operating activities during the year, up 13.21 percent or $4.97 million, when compared with the last year.
The company has spent $122.31 million cash to meet investing activities during the year as against cash outgo of $232.85 million in the last year.
Cash flow from financing activities was $95.52 million for the year, down 45.55 percent or $79.90 million, when compared with the last year.
Cash and cash equivalents stood at $55.95 million as on Dec. 31, 2016, up 39.50 percent or $15.84 million from $40.11 million on Dec. 31, 2015.
Debt moves up
Ardmore Shipping Corporation has witnessed an increase in total debt over the last one year. It stood at $462.34 million as on Dec. 31, 2016, up 11.40 percent or $47.33 million from $415.01 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.31 for the quarter from 2.24 for the same period last year.
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