Ardmore orders IMO2 product/chemical tanker pair as profit quadruples

Ardmore Shipping has ordered two 40,500-dwt product/chemical tankers at Wuhu Shipyard in China, retaining the flexibility to scale the order as market conditions evolve.

Under the contract, the Big Board-listed tanker owner will pay US$44.9M per Handysize vessel. This figure includes approximately US$3M for full IMO2 specification and MarineLine tank coatings that will provide "enhanced trading options across a wide range of liquid cargoes, from mainstream oil products to specialised high‑spec chemicals”, said Ardmore chief executive Gernot Ruppelt. The shipowner is also commissioning a package of performance and safety upgrades, but provided no further details.

With deliveries set to start in late 2028, the agreement also grants the New York-listed company the right to acquire two more tankers on the same terms.

"Ardmore continues to execute on a clear, long-term strategy with targeted fleet investment while simultaneously increasing capital returns," said Mr Ruppelt.

Robust returns

This investment comes as the company reported a first-quarter net income of US$23.6M, up from US$5.6M a year earlier. The 321.4% jump marks a more than fourfold increase in bottom-line returns for the period.

Revenue for the three months ended 31 March 2026 rose 18.8% to US$87.9M from the $74M seen in the prior-year period, driven by stronger spot charter rates and increased time-chartered vessel revenue days.

MR tankers earned an average spot TCE of US$33,705 per day in the first quarter, while chemical tankers averaged US$22,284 per day. For the second quarter, with 55% of MR revenue days and 65% of chemical tanker days fixed, average spot TCE rates are projected at about US$52,100 and US$32,500 per day, respectively.

The tanker specialist highlighted that ongoing conflicts in the Middle East and Ukraine have supported tanker demand and freight rates by disrupting global trade flows, though any resolutions to these geopolitical issues could potentially soften market conditions.

To fund the fleet expansion while maintaining a lean balance sheet, Ardmore is engaging in asset rotation. The company has agreed to sell Ardmore Engineer, a 2014-built MR tanker, for US$35.5M.  The vessel is expected to be delivered to a new owner in June 2026.

“We continue to act on attractive commercial opportunities, as our aforementioned vessel sale demonstrates, following multi-ship acquisitions we concluded less than a year ago at significant discounts to today’s levels,” Mr Ruppelt explained.

The financial gains are also being shared with investors.  The company has doubled its dividend payout ratio to two-thirds of adjusted earnings, effective from Q1 2026, a move Ruppelt described as “a core element of our capital allocation framework.”

In related news, Ardmore recently completed a midlife cargo tank recoating programme on six product and chemical tankers as part of its goal to improve commercial flexibility rather than replace tonnage.

As of 31 March 2026, the company had 26 vessels in operation, comprising 20 MRs and six IMO2 product/chemical tankers.