ARDMORE SHIPPING CORPORATION Second Quarter 2014 Earnings - PowerPoint PPT Presentation

ARDMORE SHIPPING CORPORATION Second Quarter 2014 Earnings Presentation July 29, 2014

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 ability to enter into fixed-rate charters after the current charters expire and the Company’s ability to earn income in the spot market, and expectations of the availability of vessels to purchase, 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"). 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. 2

Agenda  Highlights  Corporate Update  Product and Chemical Markets  Financial Performance  Summary  Appendix 3

Highlights 4

Highlights  Acquired three MR product and chemical tankers - Ardmore Endeavour, Ardmore Sealifter and Ardmore Sealeader  Completed a $39 million credit facility with Credit Agricole for two Eco-design chemical Key Developments tankers under construction at Fukuoka Shipbuilding  Increased the ABN AMRO, Nordea and SEB credit facility by $53 million to $225 million for three recent acquisitions  Renewed a time charter for one Eco-design MR for ~7 months and renewed time charters for three Eco- mod MR’s ships for an average period of ~7 months  Ardmore Endeavour and Ardmore Sealifter commenced trading in the spot market in June Fleet Update 2014 and July 2014 respectively  Ardmore Seafarer completed scheduled drydock on June 23, 2014 and Ardmore Seamaster completed scheduled drydock on July 25, 2014 (1) and net profit for 2Q 2014 of $5.0 million and $0.1 million respectively  Reported EBITDA (1) and adjusted net profit (1) amounted to  Adjusting for non-cash items adjusted EBITDA Financial Highlights (1) $5.3 million and $0.4 million respectively  Declared a cash dividend of $0.10 per share for 2Q 2014 1. EBITDA, adjusted EBITDA and adjusted net profit are non-GAAP measures. Reconciliations of such measures are included in the appendix of this presentation 5

Corporate Update 6

Acquisitions MT Ardmore Endeavour Acquired Three MR Product Tankers in 2Q14  Three attractive acquisitions in line with our focused strategy of MR product and mid-sized chemicals  Ardmore Endeavour - 49,997 Dwt Eco-design product / chemical tanker − Purchase price: $36 million − Built July 2013 at STX Offshore & Shipbuilding Co. Ltd, Korea MT Ardmore Sealifter − Delivered to Ardmore: June 25, 2014  Ardmore Sealifter - 47,472 Dwt product tanker − Purchase price: $23 million − Built July 2008 at Onomichi Dockyard Co. Ltd, Japan − Delivered to Ardmore: July 22, 2014  TBN Ardmore Sealeader - 47,463 Dwt product tanker TBN MT Ardmore Sealeader − Purchase price: $23 million − Built August 2008 at Onomichi Dockyard Co. Ltd, Japan − Delivered to Ardmore: Est August 2014  Acquisitions accretive to EPS and NAV  $1 million increase in vessel values = $0.92 increase NAV / share (1) 1. 24 ships x $1 million = $24 million / 26.1 million shares = $0.92 / share 7

Chartering Employment Outlook 1Q 2014 A 2Q 2014 A 3Q 2014 E Operating Days 893 1,007 1,220 Drydock / Repositioning Days 30 19 30 Revenue Days (1) 861 985 1,182 Revenue Days Breakdown: Fixed TC Days 683 798 792 Spot Days (2) 178 187 390 Expected Revenue Days for 3Q14 MR Eco-design MR Eco-mod Chemical 365 336 183 91 115 92 3Q E TCE: 3Q E TCE: 3Q E TCE: ~$15,800 ~$13,800 ~$13,500 TC Days Spot Days TC Days Spot Days TC Days Spot Days 1. Revenue days for 3Q 2014 is based on 99.25% utilization 2. Spot days includes unfixed TC days 8

Delivery Schedule and Newbuilding Progress Newbuilding Programme Construction Progress HMD HULL H-2480  58% of fleet in operation upon delivery of the Ardmore FKA HULL N-2062 Sealeader (expected in August 2014) HMD HULL H-2481 SPP HULL S-1162 3 FKA HULL N-2063  Ardmore Cherokee (FKA N-2062) launched in Japan in July SPP HULL S-1163 2014 and expected to deliver in November 2014 SPP HULL S-1171 FKA HULL N-2065  H-2480 and H-2481 expected to deliver in January 2015 SPP HULL S-1172 FKA HULL N-2067 Completed To Complete Scheduled/Contracted Fleet Development (1) 3 5 8 10 12 24 23 21 19 16 14 12 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 In Operation Predelivery 1. Assumes on time deliveries of all our vessels currently under construction 9

Product and Chemical Markets 10

Product Tanker Market Commentary PADD3 Refinery Utilization 2Q13 v 2Q14 100%  PADD 3 utilization has a big impact on rates in Atlantic Basin 2Q13 2Q14 95% − Dropped significantly in 2Q14 (~84% in June ‘14 ) leading to decline in long haul exports 90% − Utilisation improvement in July (94.8% as of July 23, 2014) has 85% driven rates from WS 70 up to WS 150 on TC14 80%  Time charter market reflected spot weakness 75% − MR Eco-mods TC rates ~$13,750 / day - $14,500 / day 70% − MR Eco-designs TC rates ~$15,000 / day - $16,000 / day Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 depending on charter structure  Outlook remains positive − GDP improvement and refinery developments − Yanbu and Ruwais refineries in Middle East expected to open Product Tanker Orderbook and Fleet Development towards end of 2014 140 70%  MR product tanker orderbook declining 120 60% − Orderbook: ~293 vessels or 17% of fleet based on Dwt Orderbook (% of Fleet) Fleet million Dwt, start year 100 50% − 55 MR’s delivered in 2014 80 40% − 19 vessels reported scrapped in same period 60 30%  Sale and Purchase 40 20% − Low level of activity 20 10% − Secondhand ship quality varies significantly 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Drewry, Clarksons Shipping Intelligence Network, internal market data 11

Chemical Tanker Market Commentary Chemical Vessels Cargo Split 2Q14  Chemical pool rates remain steady − Our vessels continue to trade across CPP / Vegoil / Chemicals CPP 28% − Ardmore Centurion performing well on time charter  Considerable chartering interest in our newbuilding fleet Chem / Vegoils  U.S. petrochemical expansion driven by shale gas 72% continues − Exports from US Gulf expected to increase 45% by 2018 (3) − Expect increased tonne mile demand Chemical Tanker Orderbook and Fleet Development (2)  Chemical tanker orderbook − Approx 132 ships on orderor 11% of fleet based on Dwt (1) 35 70% Fleet million Dwt, start year Orderbook (% of Fleet) − Delivering 2014 to 2017 30 60% − Delays expected for orders outside the core chemical 25 50% shipyards in Japan and Korea 20 40% 15 30%  Sale and Purchase 10 20% − Newbuilding ordering slowed in 2Q14 5 10% − Second-hand activity limited 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Drewry, Clarksons Shipping Intelligence Network, internal market data 1. Orderbook for coated IMO2 and stainless steel ships above 10,000 Dwt only 2. Clarksons Shipping Intelligence Network. Handy chemical tanker fleet development (start of period ) Excludes all IMO 3 tankers and IMO 2 tankers sized 30-60,000 dwt of MR product tanker design characteristics 3. American Chemistry Council 12

Financial Performance 13