ARDMORE SHIPPING CORPORATION First Quarter 2017 Earnings - PowerPoint PPT Presentation

ARDMORE SHIPPING CORPORATION First Quarter 2017 Earnings Presentation

Disclaimer This presentation contains certain statements that may be deemed to be “forward -looking statements” within the meaning of applicable U.S. federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Ardmore Shipping Corporation (“Ardmore” or the “Company”) expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about: future operating or financial results; global and regional economic conditions and trends; pending vessel acquisitions or possible upgrades to vessels; the Company’s business strategy and expected capital spending or operating expenses; competition in the tanker industry; shipping market trends; the Company’s financial condition and liquidity, including ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities; the Company’s share repurchase program; ability to enter into fixed-rate charters after the current charters expire and the Company’s ability to earn income in the spot market; expectations of the availability of vessels to purchase and the time it may take to construct new vessels and vessels’ useful lives are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company’s Annual Report on Form 20-F for the year ended December 31, 2016. This presentation is for information purposes only and does not constitute an offer to buy or sell securities of the Company. For more complete information about the Company, the information in this presentation should be read together with the Company's filings with the SEC which may be accessed on the SEC website at www.sec.gov. Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commercial capability 2

Earnings Release: First Quarter 2017 Agenda  Performance and Recent Activity  Product and Chemical Tanker Markets  Fleet Update  Financial Review  Summary  Appendix Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commercial capability 3

Highlights Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commercial capability 4

Performance and Recent Market Activity Highlights  Reported EBITDA of $11.7 million and net loss $2.2 million, equating to loss of $0.06 per share in the first quarter; compared to net loss of $3.7 million or $0.11 per share in fourth quarter 2016  Recently acquired 6 x Eco- Design MR’s highly accretive, generated $0.8 million equating to 42% increase in operating income  Delivered satisfactory chartering performance in soft market with: o Spot and pool MR tankers averaging $13,131 per day in 1Q17 vs. $12,113 in 4Q16 o Chemical tankers averaging $12,907 per day in 1Q17 vs $12,502 in 4Q16  Maintained tight control of operating costs and overhead expenses  Demand impacted in the short-term by high levels of refined product inventories; evidence that drawdown is well underway  Fundamentals remain strong; demand set to exceed supply in 2017 which should result in rebound in charter rates as early as 4Q17  Maintained dividend policy of paying out 60% of earnings from continuing operations. Consistent with policy, the Company is declaring no dividend for 1Q17 Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commercial capability 5

High Quality Fleet Vessel Name Type Dwt Tonnes IMO Built Country Flag Specification Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea MI Eco-design Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea MI Eco-design Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 Korea MI Eco-design Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 Korea MI Eco-design Ardmore Sealion Product/Chemical 49,999 2/3 May-15 Korea MI Eco-design Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 Korea MI Eco-design Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 Korea MI Eco-design Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 Korea MI Eco-design Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 Korea MI Eco-design Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 Korea MI Eco-design Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 Korea MI Eco-design Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 Korea MI Eco-design Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 Korea MI Eco-design Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 Korea MI Eco-design Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 Korea MI Eco-design Ardmore Seafarer Product/Chemical 45,744 3 Aug-04 Japan MI Eco-mod Ardmore Seatrader Product 47,141 — Dec-02 Japan MI Eco-mod Ardmore Seamaster Product/Chemical 45,840 3 Sep-04 Japan MI Eco-mod Ardmore Seamariner Product/Chemical 45,726 3 Oct-06 Japan MI Eco-mod Ardmore Sealeader Product 47,463 — Aug-08 Japan MI Eco-mod Ardmore Sealifter Product 47,472 — Jul-08 Japan MI Eco-mod Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 Korea MI Eco-design Ardmore Defender Product/Chemical 37,791 2 Feb-15 Korea MI Eco-design Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan MI Eco-design Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan MI Eco-design Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan MI Eco-design Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan MI Eco-design Total 27 1,202,568 4.6 (1) 1. Average age as at Mar 31, 2017 6

Product and Chemical Tanker Market Modern Fleet of Eco-design and Eco-mod built at high quality Korean and Japanese shipyards with upgrades to improve fuel efficiency and commercial capability 7

Product Tanker Market  MR product tanker rates improved slightly in the quarter; ASC MR Average MR Spot Market TCE Rates (1) Spot & Pool TCE averaged $13,131 in 1Q17 vs. $12,113 in 4Q16 $30,000  1Q17 Activity: $28,000 TCE $25,000 / day ASC EPS ~$2.80 (2) $26,000 o Demand continues to be negatively impacted by de-stocking from $24,000 high level of refined product inventories $22,000 o But offsetting strong demand from Latin America for US gasoline $20,000 and diesel coupled with increased activity into West Africa $18,000 resulting in stronger Atlantic basin rates $16,000 EPS Breakeven $14,000  Demand Outlook: $12,000 $10,000 o Demand growth estimated to be in 4-5% range; underpinned by 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 1.3 million bpd estimated oil consumption growth in 2017 (4) o Ongoing refinery development away from points of consumption; Product Tanker Orderbook and Fleet Development (3) 7.2 million bpd additional refinery capacity by 2022 (5) 100 50%  4.5% MR supply growth continues to drop; orderbook at historical lows, 90 45% pace of deliveries receding while scrapping continues: 80 40% o Deliveries 1Q17: January: 16 / February: 7 / March: 2 70 35% OB as % Fleet Million DWT 60 30% o 51 MRs scheduled to deliver from 2Q17 to 4Q17 (before slippage); scrapping estimated at 20 – 25 vessels per year 50 25% 40 20% o Resulting in net fleet growth of approximately 2.0% 2017 and 1% 30 15% or less 2018 (6) 20 10%  Overall, continued tightening of supply / demand balance and end 10 5% to destocking of refined products should lead to sustained increase 0 0% in charter rates as early as 4Q17 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1. Source: Howe Robinson Partners - Rates quoted are the average $/day rates for TC6, TC7, TC 10, TC11/4 and TC2/14 for a MR Eco-design vessel from 1Q14 to 1Q17 2. Management’s estimates based on a full fleet of 27 vessels operating in the spot market for 363 revenue days / ship and MR pr oduct tankers earning $25,0000 / day and chemical tankers earning $18,000 / day Source: Clarksons Shipping Intelligence Network and management’s estimates as at Apr 18 th , 2017 3. 8 4. Source: International Energy Agency, “Oil Market Report Apr 2017”. IEA estimates oil demand growth will average 1.2 million bpd per annum from 2016 to 2022 (IEA: “Market Series Report: Oil 2017”) 5. Source: International Energy Agency, “Market Series Report: Oil 2017”. Gross capacity additions, excludes impact of closures 6. Management’s estimates of deliveries for 2017 and 2018, net of estimated scrapping