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Ardmore Shipping Corporation Announces Financial Results For Third Quarter 2013

Management’s Discussion and Analysis of Financial Results

Revenue for the three months ended September 30, 2013 was $10.6 million, an increase of $5.0 million from $5.6 million for the three months ended September 30, 2012. Product tanker revenue was $6.7 million for the three months ended September 30, 2013, an increase of $3.7 million from $3.0 million for the three months ended September 30, 2012. The increase primarily relates to additional revenue attributable to the Ardmore Seavaliant and Ardmore Seaventure, which were delivered on February 27, 2013 and June 7, 2013, respectively, and to increases in rates for time charter renewals since September 30, 2012. Chemical tanker revenue on owned vessels was $3.9 million for the three months ended September 30, 2013, as compared to $2.6 million for the three months ended September 30, 2012. This increase is due to both the employment of the Ardmore Centurion and the more favorable pool rates in the three months ended September 30, 2013, as compared to September 30, 2012. As of August 3, 2013, the Ardmore Centurion is employed under a third party spot chartering arrangement. Under U.S. GAAP, revenue earned under this arrangement is recognised at gross freight rate. This vessel was on a time charter for the three months ended September 30, 2012, and as such, the revenue was recognised based on the time charter rate.

Commissions and voyage related costs were $1.2 million for the three months ended September 30, 2013, an increase of $1.0 million as compared to $0.2 million for the three months ended September 30, 2012. This increase is primarily due to the employment of the Ardmore Centurion, as voyage expenses such as fuel, port costs, and other voyage expenses incurred are recognised in the Company’s accounts under a spot chartering arrangement. This vessel was on a time charter for the three months ended September 30, 2012, and, as such, voyage costs were borne primarily by the charterer.

Vessel operating expenses were $4.8 million for the three months ended September 30, 2013, an increase of $1.0 million from $3.8 million for the three months ended September 30, 2012. This increase is due to a greater fleet in operation for the three months ended September 30, 2013 . Fleet operating costs per day (defined under Unaudited Other Operating Data below) were $6,350 for the three months ended September 30, 2013, a decrease of $556 from $6,906 for the three months ended September 30, 2012. The decrease in vessel operating expenses primarily relates to the timing of vessel expenses and lower initial operating costs on newly delivered vessels.

Depreciation expense for the three months ended September 30, 2013 was $2.3 million, an increase of $0.8 million from $1.5 million for the three months ended September 30, 2012. The increase is due to an increase in the average number of owned vessels to eight from six for the three months ended September 30, 2013 and 2012, respectively, as a result of the delivery of the Ardmore Seavaliant and the Ardmore Seaventure. Amortization of deferred drydock expenditure for the three months ended September 30, 2013 was $0.3 million, an increase of $0.2 million from $0.1 million for the three months ended September 30, 2012. This increase is due to timing of vessels drydocking.

General and administrative expenses for the three months ended September 30, 2013 were $1.8 million, an increase of $1.0 million from $0.8 million for the three months ended September 30, 2012. The increase is primarily due to non-recurring IPO-related costs of $0.4 million incurred in the three months ended September 30, 2013, along with general increases arising from business expansion and listing on the New York Stock Exchange.

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