“We are pleased with the Company’s first quarter 2014 results, which reflect improvement in our chartering performance as well as continued fleet expansion. We took delivery of two newbuildings and one second-hand vessel during the quarter, so that now 52% of our fleet is on the water generating cash flow. Complementing our fleet growth during the quarter, we increased our financial flexibility significantly by raising $108.7 million from an upsized follow-on equity offering to fund vessel acquisitions, as well as closing on a $172 million senior debt facility to fund our existing newbuilding program. We believe Ardmore is well positioned to benefit from favorable long-term fundamentals for product and chemical tankers by continuing to engage in well-timed fleet growth.”
Summary of Recent and First Quarter Events
On January 7, 2014, Ardmore took delivery of the 2006-built Ardmore Seamariner, a 45,726 Dwt MR product tanker built at Minami-Nippon Shipbuilding Co., Ltd. in Japan, which was acquired by the Company in October 2013. On delivery, the vessel entered drydock, where it was upgraded to Eco-mod in conjunction with its scheduled intermediate survey. On completion of drydock, the vessel commenced employment on a three-month time charter at a rate of $16,050 per day.We also took delivery of the Ardmore Seavantage and Ardmore Seavanguard on January 17, 2014 and February 14, 2014, respectively. These vessels are 49,997 Dwt IMO 3 Eco-design MR product and chemical tankers built at SPP Shipbuilding Co., Ltd. in South Korea. Following delivery, both vessels commenced employment under existing charter arrangements with a major oil trader. On January 30, 2014, Ardmore completed upgrades to the Ardmore Centurion. The upgrades further improve fuel efficiency, allow carriage of a broader range of cargos and reduce cleaning time, which will enhance the vessel’s earnings potential. As a result of the above deliveries, Ardmore’s fleet currently stands at 11 ships in operation and 10 Eco-design product and chemical tankers on order, with our next vessel on order scheduled to deliver in November 2014.