“We are pleased with the Company’s third quarter results, as the market continued to trend up and the vessels delivered year-to-date contributed to EBITDA growth. Complementing our financial performance during the quarter, we successfully completed the IPO on the New York Stock Exchange, finalized the acquisition of ten newbuildings, and entered into a commercial arrangement with Vitol Group on six MR tankers.
“We continue to execute the strategy set forth at the time of the IPO. In October, we acquired a high quality second-hand MR tanker at a very attractive price, positioning the Company to continue increasing its fleet size and near-term cash flow potential. In addition, we completed the upgrade of the Ardmore Seamaster to IMO3 and renewed the contract at an improved rate of $14,250 plus an additional $250 per day when the vessel transports IMO3 cargos. Our newbuilding program is progressing well, with two Eco-Design MR’s on schedule to deliver from SPP Shipbuilding in January 2014 and steel cutting commenced on the first of our four newbuildings at Fukuoka Shipbuilding in early November.”
Summary of Recent and Third Quarter Events
Vessel AcquisitionsOn October 28, 2013, the Company completed the acquisition of a 45,726 dwt product tanker , for a purchase price of approximately $20.5 million. The vessel is a sister of the Ardmore Seafarer and was constructed at Minami Nippon Shipbuilding Co., Ltd, Japan in 2006. It is expected that the vessel will deliver to Ardmore in December 2013, and it is envisioned that the vessel will be deployed on a one year time charter or in the spot market. In August 2013, the company negotiated a reduction in the purchase price of two newbuildings in exchange for amended payment terms, reducing the contract price by $300,00 per ship and providing an implied return on cash investment of approximately 5.2%..
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