Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2020 | |
Document And Entity Information | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | Ardmore Shipping Corp |
Entity Central Index Key | 0001577437 |
Current Fiscal Year End Date | --12-31 |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 58,217,162 | $ 51,723,107 |
Receivables, net of allowance for bad debts of $0.9 million (2019 $0.9 million) | 19,725,099 | 30,083,358 |
Prepaid expenses and other assets | 1,616,216 | 1,940,030 |
Advances and deposits | 2,881,774 | 4,114,065 |
Inventories | 8,921,239 | 10,158,735 |
Total current assets | 91,361,490 | 98,019,295 |
Non-current assets | ||
Vessels and vessel equipment, net | 655,212,341 | 660,823,330 |
Deferred drydock expenditures, net | 7,346,125 | 7,668,711 |
Advances for Ballast water treatment systems | 2,633,234 | 384,408 |
Other non-current assets, net | 789,066 | 917,222 |
Amount receivable in respect of finance leases | 2,880,000 | 2,880,000 |
Operating lease, right-of-use asset | 1,781,514 | 1,745,464 |
Total non-current assets | 670,642,280 | 674,419,135 |
TOTAL ASSETS | 762,003,770 | 772,438,430 |
Current liabilities | ||
Accounts payable | 4,159,441 | 4,789,935 |
Accrued expenses and other liabilities | 9,556,645 | 16,278,084 |
Accrued interest on debt and finance leases | 815,152 | 880,183 |
Current portion of long-term debt | 21,280,022 | 20,216,171 |
Current portion of finance lease obligations | 18,311,346 | 17,975,322 |
Current portion of derivative liabilities | 324,230 | 0 |
Current portion of operating lease obligations | 464,918 | 289,231 |
Total current liabilities | 54,911,754 | 60,428,926 |
Non-current liabilities | ||
Non-current portion of long-term debt | 182,016,454 | 187,066,842 |
Non-current portion of finance lease obligations | 183,928,543 | 197,704,372 |
Non-current portion of derivative liabilities | 466,902 | 0 |
Non-current portion of operating lease obligations | 1,082,423 | 1,182,522 |
Total non-current liabilities | 367,494,322 | 385,953,736 |
Stockholders' equity | ||
Common stock | 352,067 | 350,192 |
Additional paid in capital | 417,617,733 | 416,841,494 |
Accumulated other comprehensive loss | (705,395) | 0 |
Treasury stock | (15,348,909) | (15,348,909) |
Accumulated deficit | (62,317,802) | (75,787,009) |
Total stockholders' equity | 339,597,694 | 326,055,768 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 762,003,770 | $ 772,438,430 |
Unaudited Interim Condensed C_2
Unaudited Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Unaudited Interim Condensed Consolidated Balance Sheets | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 0.9 | $ 0.9 |
Unaudited Interim Condensed C_3
Unaudited Interim Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unaudited Interim Condensed Consolidated Statements of Operations | ||||
Revenue, net | $ 45,206,271 | $ 52,098,723 | $ 178,332,280 | $ 169,357,211 |
Voyage expenses | (16,830,964) | (22,920,617) | (61,365,121) | (73,449,918) |
Vessel operating expenses | (16,124,919) | (14,857,895) | (46,124,309) | (46,574,921) |
Charter hire costs | (155,550) | 0 | (155,550) | 0 |
Depreciation | (8,117,971) | (8,026,856) | (23,918,364) | (24,289,741) |
Amortization of deferred drydock expenditures | (1,708,215) | (1,190,008) | (4,485,885) | (3,443,651) |
General and administrative expenses | ||||
Corporate | (4,116,490) | (3,897,939) | (12,054,616) | (11,390,669) |
Commercial and chartering | (791,220) | (843,692) | (2,546,319) | (2,493,372) |
Unrealized gains / (losses) on derivatives | 11,289 | 0 | (88,003) | 0 |
Loss on vessel held for sale | 0 | 0 | 0 | (13,162,192) |
Interest expense and finance costs | (4,023,165) | (6,344,892) | (14,252,270) | (20,107,786) |
Interest income | 37,652 | 235,212 | 255,842 | 792,211 |
(Loss) / Income before taxes | (6,613,282) | (5,747,964) | 13,597,685 | (24,762,828) |
Income tax | (19,715) | 35,246 | (128,478) | (46,674) |
(Loss) / Income | $ (6,632,997) | $ (5,712,718) | $ 13,469,207 | $ (24,809,502) |
(Loss) / Earnings per share, basic | $ (0.20) | $ (0.17) | $ 0.41 | $ (0.75) |
Weighted average number of shares outstanding, basic | 33,285,255 | 33,097,831 | 33,243,493 | 33,097,831 |
(Loss) / Earnings per share, diluted | $ (0.20) | $ (0.17) | $ 0.40 | $ (0.75) |
Weighted average number of shares outstanding, diluted | 33,285,255 | 33,097,831 | 33,426,412 | 33,097,831 |
Unaudited Interim Condensed C_4
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income / (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income / (Loss) | ||||
Net income / (loss) | $ (6,632,997) | $ (5,712,718) | $ 13,469,207 | $ (24,809,502) |
Other comprehensive (loss), net of tax: | ||||
Net change in unrealized gains / (losses) on cash flow hedges | 68,024 | 0 | (705,395) | 0 |
Other comprehensive Income / (loss), net of tax | 68,024 | 0 | (705,395) | 0 |
Comprehensive (loss) / income | $ (6,564,973) | $ (5,712,718) | $ 12,763,812 | $ (24,809,502) |
Unaudited Interim Condensed C_5
Unaudited Interim Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Treasury stock | Accumulated surplus/(deficit) | Total |
Balance at Dec. 31, 2018 | $ 350,192 | $ 414,508,403 | $ 0 | $ (15,348,909) | $ (52,925,752) | $ 346,583,934 |
Balance (in shares) at Dec. 31, 2018 | 33,097,831 | |||||
Share-based compensation | $ 0 | 1,646,951 | 0 | 0 | 0 | 1,646,951 |
Changes in unrealized loss on cash flow hedges | 0 | |||||
Profit (loss) for the period | 0 | 0 | 0 | 0 | (24,809,502) | (24,809,502) |
Balance at Sep. 30, 2019 | $ 350,192 | 416,155,354 | 0 | (15,348,909) | (77,735,254) | 323,421,383 |
Balance (in shares) at Sep. 30, 2019 | 33,097,831 | |||||
Balance at Jun. 30, 2019 | $ 350,192 | 415,516,029 | 0 | (15,348,909) | (72,022,536) | 328,494,776 |
Balance (in shares) at Jun. 30, 2019 | 33,097,831 | |||||
Share-based compensation | $ 0 | 639,325 | 0 | 0 | 0 | 639,325 |
Changes in unrealized loss on cash flow hedges | 0 | |||||
Profit (loss) for the period | 0 | 0 | 0 | 0 | (5,712,718) | (5,712,718) |
Balance at Sep. 30, 2019 | $ 350,192 | 416,155,354 | 0 | (15,348,909) | (77,735,254) | 323,421,383 |
Balance (in shares) at Sep. 30, 2019 | 33,097,831 | |||||
Balance at Dec. 31, 2019 | $ 350,192 | 416,841,494 | 0 | (15,348,909) | (75,787,009) | 326,055,768 |
Balance (in shares) at Dec. 31, 2019 | 33,097,831 | |||||
Issue of common stock | $ 1,875 | (1,875) | 0 | 0 | 0 | 0 |
Issue of common stock (in shares) | 187,424 | |||||
Share-based compensation | $ 0 | 2,437,422 | 0 | 0 | 0 | 2,437,422 |
Payment of dividend | 0 | (1,659,308) | 0 | 0 | 0 | (1,659,308) |
Changes in unrealized loss on cash flow hedges | 0 | 0 | (705,395) | 0 | 0 | (705,395) |
Profit (loss) for the period | 0 | 0 | 0 | 0 | 13,469,207 | 13,469,207 |
Balance at Sep. 30, 2020 | $ 352,067 | 417,617,733 | (705,395) | (15,348,909) | (62,317,802) | 339,597,694 |
Balance (in shares) at Sep. 30, 2020 | 33,285,255 | |||||
Balance at Jun. 30, 2020 | $ 352,067 | 416,811,014 | (773,419) | (15,348,909) | (55,684,805) | 345,355,948 |
Balance (in shares) at Jun. 30, 2020 | 33,285,255 | |||||
Share-based compensation | $ 0 | 806,719 | 0 | 0 | 0 | 806,719 |
Changes in unrealized loss on cash flow hedges | 0 | 0 | 68,024 | 0 | 0 | 68,024 |
Profit (loss) for the period | 0 | 0 | 0 | 0 | (6,632,997) | (6,632,997) |
Balance at Sep. 30, 2020 | $ 352,067 | $ 417,617,733 | $ (705,395) | $ (15,348,909) | $ (62,317,802) | $ 339,597,694 |
Balance (in shares) at Sep. 30, 2020 | 33,285,255 |
Unaudited Interim Condensed C_6
Unaudited Interim Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income / (loss) | $ 13,469,207 | $ (24,809,502) |
Adjustment to reconcile net income / (loss) to net cash provided by operating activities: | ||
Depreciation | 23,918,364 | 24,289,741 |
Amortization of deferred drydock expenditures | 4,485,885 | 3,443,651 |
Share-based compensation | 2,437,422 | 1,646,951 |
Loss on sale of vessels | 0 | 13,162,192 |
Amortization of deferred finance fees | 1,301,184 | 1,526,417 |
Unrealized losses on derivatives | 88,003 | 0 |
Foreign exchange | 39,537 | (100,398) |
Deferred drydock expenditures | (4,535,473) | (4,295,870) |
Changes in operating assets and liabilities: | ||
Receivables | 10,358,259 | 2,757,139 |
Prepaid expenses and other assets | 323,816 | 739,601 |
Advances and deposits | 1,232,291 | (912,491) |
Inventories | 1,237,496 | 3,784,136 |
Accounts payable | (936,126) | (4,230,783) |
Accrued expenses and other liabilities | (6,422,257) | (3,696,144) |
Accrued interest on debt and finance leases | (81,654) | (28,100) |
Net cash provided by operating activities | 46,915,954 | 13,276,540 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of vessels | 0 | 26,557,707 |
Payments for acquisition of vessels and vessel equipment | (17,664,815) | (2,517,886) |
Advances for Ballast water treatment systems | (2,248,826) | 253,429 |
Payments for other non-current assets | (121,425) | (159,856) |
Net cash (used in) / provided by investing activities | (20,035,066) | 24,133,394 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 7,801,248 | 0 |
Repayments of long-term debt | (12,579,795) | (26,183,384) |
Repayments of finance leases | (13,948,978) | (21,915,830) |
Payment of dividend | (1,659,308) | 0 |
Net cash (used in) financing activities | (20,386,833) | (48,099,214) |
Net increase / (decrease) in cash and cash equivalents | 6,494,055 | (10,689,280) |
Cash and cash equivalents at the beginning of the year | 51,723,107 | 56,903,038 |
Cash and cash equivalents at the end of the period | $ 58,217,162 | $ 46,213,758 |
General information and signifi
General information and significant accounting policies | 9 Months Ended |
Sep. 30, 2020 | |
General information and significant accounting policies | |
General information and significant accounting policies | 1. General information and significant accounting policies 1.1. Background Ardmore Shipping Corporation (NYSE: ASC) (“ASC”), together with its subsidiaries (collectively, the “Company”), provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size product and chemical tankers and the Company operates its business in one operating segment, the transportation of refined petroleum products and chemicals. As at September 30, 2020, the Company had 26 owned vessels in operation, including the Ardmore Seafarer which was purchased in the third quarter 2020. The average age of the Company’s operating fleet as at September 30, 2020 was 7.3 years. Ardmore also chartered in one vessel in the third quarter of 2020 on a short-term lease. On March 11, 2020, the World Health Organization declared the recent novel coronavirus (“COVID-19”) outbreak a pandemic. In response to the outbreak, many countries, ports and organizations, including those where the Company conducts a large part of its operations, have implemented measures to combat the outbreak, such as quarantines and travel restrictions. Such measures have caused and will likely continue to cause severe trade disruptions. The extent to which COVID-19 will impact the Company's results of operations and financial condition, including possible impairments, will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the virus and the measures taken to contain or treat its impact, among others. Accordingly, an estimate of the impact cannot be made at this time. 1.2. Management and organizational structure ASC was incorporated in the Republic of the Marshall Islands on May 14, 2013. ASC commenced business operations through its predecessor company, Ardmore Shipping LLC, on April 15, 2010. As at September 30, 2020, ASC had 76 wholly owned subsidiaries, the majority of which represent single ship-owning companies for ASC’s fleet, and one 50%-owned joint venture, Anglo Ardmore Ship Management Limited ("AASML"), which provides technical management services to a majority of the ASC fleet. Ardmore Shipping (Bermuda) Limited, a wholly owned subsidiary incorporated in Bermuda, carries out the Company’s management services and associated functions. Ardmore Shipping Services (Ireland) Limited, a wholly owned subsidiary incorporated in Ireland, provides the Company’s corporate, accounting, fleet administration and operations services. Each of Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC, wholly owned subsidiaries incorporated in Singapore and Delaware, respectively, performs commercial management and chartering services for the Company 1. General information and significant accounting policies (continued) 1.3. Basis of preparation The accompanying interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that apply to interim condensed financial statements. Accordingly, they do not include all of the information and footnotes normally included in consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 20-F, filed with the SEC on April 3, 2020. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the footnotes required by U.S. GAAP for complete financial statements. The accompanying interim condensed consolidated financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed consolidated financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All subsidiaries are 100% directly or indirectly owned by ASC. AASML, which is a 50% owned joint venture, is accounted for using the equity method. All intercompany balances and transactions have been eliminated on consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported consolidated results of operations. 1.4. Significant accounting policies During the nine months ended September 30, 2020, the Company entered into floating-to-fixed interest rate swap agreements, associated with existing variable-rate debt and financing facilities, over a three-year term with multiple counterparties. In accordance with these transactions, the Company will pay an average fixed-rate interest amount of 0.32% and will receive floating rate interest amounts based on LIBOR. The Company’s accounting policy in relation to derivatives is noted below. 1. General information and significant accounting policies (continued) 1.1.4 Derivatives As required by ASC 815, Derivatives and Hedging , the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. The Company elected to classify settlement payments as operating activities within the statement of cash flows. There have been no other changes in the Company’s significant accounting policies for the nine months ended September 30, 2020 as compared to the significant accounting policies described in the Company’s audited consolidated financial statements for the year ended December 31, 2019. The accounting policies used in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2019. 1.5. Recently adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13: Financial Instruments - Credit Losses (Topic 326) which requires recognition of management’s estimates of current expected credit losses, rather than the current incurred losses model. The new model is generally applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The implementation of this standard on January 1, 2020 did not represent a significant impact on the consolidated financial statements and related disclosures. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Debt | 2. Debt As at September 30, 2020, the Company had five loan facilities, which it has used primarily to finance vessel acquisitions or vessels under construction and also for working capital. The Company’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the loan facilities, which totaled 13 vessels as at September 30, 2020. ASC and its subsidiary Ardmore Shipping LLC have provided guarantees in respect of the loan facilities and ASC has granted a guarantee over its trade receivables in respect of the ABN AMRO Revolving Facility. These guarantees can be called upon following a payment default. The outstanding principal balances on each loan facility as at September 30, 2020 and December 31, 2019 were as follows: As at September 30, 2020 December 31, 2019 NIBC Bank Facility 4,980,000 6,045,000 Nordea/SEB Joint Bank Facility 91,377,469 100,000,000 Nordea/SEB Revolving Facility 39,200,000 40,000,000 ABN/CACIB Joint Bank Facility 58,570,236 61,462,500 ABN AMRO Revolving Facility 12,620,255 4,019,007 Total debt 206,747,960 211,526,507 Deferred finance fees (3,451,484) (4,243,494) Net total debt 203,296,476 207,283,013 Current portion of long-term debt 22,261,236 21,274,111 Current portion of deferred finance fees (981,214) (1,057,940) Total current portion of long-term debt 21,280,022 20,216,171 Non-current portion of long-term debt 182,016,454 187,066,842 Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As at September 30, 2020 2020 (1) 4,675,309 2021 21,906,236 2022 29,901,491 2023 17,281,236 2024 132,983,688 206,747,960 (1) NIBC Bank Facility On September 12, 2014, one of ASC’s subsidiaries entered into a $13.5 million long-term loan facility with NIBC Bank N.V. to finance a secondhand vessel acquisition which delivered to the Company in 2014. The facility was drawn down in September 2014. Interest is calculated at a rate of LIBOR plus 2.90%. Principal repayments on the loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The loan facility matures in September 2021. 2. Debt (continued) Nordea / SEB Joint Bank Facility and Nordea / SEB Revolving Facility On December 11, 2019, eight of ASC’s subsidiaries entered into a $100 million long-term loan facility and a $40 million revolving credit facility with Nordea Bank AB (publ) and Skandinaviska Enskilda Banken AB (publ) to refinance existing facilities. The facility was fully drawn down in December 2019. Interest is calculated at a rate of LIBOR plus 2.4%. Principal repayments on the term loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The revolving facility may be drawn down or repaid with five days’ notice. The term loan and revolving credit facility mature in December 2024. ABN/CACIB Joint Bank Facility On December 11, 2019, four of ASC’s subsidiaries entered into a $61.5 million long-term loan facility with ABN AMRO Bank N.V. and Credit Agricole Corporate and Investment Bank to refinance existing facilities. Interest is calculated at a rate of LIBOR plus 2.4%. Principal repayments on the term loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The loan facility matures in December 2024. ABN AMRO Revolving Facility On October 24, 2017, the Company entered into a $15 million revolving credit facility with ABN AMRO to fund working capital. On July 17, 2020, this facility was renewed for a further two years. Interest under this facility is calculated at a rate of LIBOR plus 3.9%. Interest payments are payable on a quarterly basis. The facility matures in July 2022 with options to extend for two more years. Long-term debt financial covenants The Company’s existing long-term debt facilities described above include certain covenants. The financial covenants require that the Company: · maintain minimum solvency of not less than 30%; · maintain minimum cash and cash equivalents (of which at least 60% of such minimum amount is held in cash and which includes the undrawn portion of the Nordea/SEB Revolving Facility), based on the number of vessels owned and chartered-in and 5% of outstanding debt; the required minimum cash and cash equivalents as at September 30, 2020 was $20.4 million; · ensure that the aggregate fair market value of the applicable vessels plus any additional collateral is, depending on the facility, no less than 130% of the debt outstanding for the facility; · maintain a corporate net worth of not less than $150 million; and · maintain positive working capital, excluding balloon repayments and amounts outstanding under the ABN AMRO Revolving Facility, provided that the facility has a remaining maturity of more than three months. The Company was in full compliance with all of its long-term debt financial covenants as at September 30, 2020 and December 31, 2019. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Finance Leases | |
Finance Leases | 3. Leases As at September 30, 2020, the Company was a party, as the lessee, to six finance lease facilities. The Company’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the finance lease facilities, which totaled 12 vessels as at September 30, 2020. ASC has provided guarantees in respect of the finance lease facilities. These guarantees can be called upon following a payment default. The outstanding principal balances on each finance lease facility as at September 30, 2020 and December 31, 2019 were as follows: As at September 30, 2020 December 31, 2019 Japanese Leases No.1 and 2 27,741,400 31,398,900 Japanese Lease No.3 13,710,500 15,498,000 Japanese Lease No.4 22,455,089 23,983,699 CMBFL Leases No.1 to 4 74,306,774 79,896,836 Ocean Yield ASA 57,093,060 61,153,740 China Huarong Leases 43,166,842 46,717,764 Finance lease obligations 238,473,665 258,648,939 Amounts representing interest and deferred finance fees (36,233,776) (42,969,245) Finance lease obligations, net of interest and deferred finance fees 202,239,889 215,679,694 Current portion of finance lease obligations 18,953,094 18,650,022 Current portion of deferred finance fees (641,748) (674,700) Non-current portion of finance lease obligations 186,083,386 200,335,437 Non-current portion of deferred finance fees (2,154,843) (2,631,065) Total finance lease obligations, net of deferred finance fees 202,239,889 215,679,694 Maturity analysis of the Company’s finance lease facilities for each year are as follows: As at September 30, 2020 2020 (1) 6,692,825 2021 26,523,339 2022 26,470,805 2023 38,028,900 2024 24,179,292 2025 - 2030 116,578,504 Finance lease obligations 238,473,665 Amounts representing interest and deferred finance fees (36,233,776) Finance lease obligations, net of interest and deferred finance fees 202,239,889 (1) Three-month period ending December 31, 2020 3. Leases (continued) Japanese Leases No. 1 and 2 On May 30, 2017, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealeader and Ardmore Sealifter, with JPV No. 7 and JPV No. 8, respectively. The facility was drawn down in May 2017. Repayments on the leases are made on a monthly basis and include principal and interest. The finance leases are scheduled to expire in 2023 and include purchase options exercisable by the Company. As part of the lease arrangement, the Company provided the purchasers with $2.9 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. This amount is included in the consolidated balance sheets as ‘Amount receivable in respect of finance leases’ with the associated finance lease liability presented gross of the $2.9 million. Japanese Lease No. 3 On January 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealancer with Neil Co., Ltd. The facility was drawn down in January 2018. Repayments on the lease are made on a monthly basis and include principal and interest. The finance lease is scheduled to expire in 2024 and includes purchase options exercisable by the Company. As part of the lease arrangement, the Company provided the purchaser with $1.4 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. This amount has been offset against the finance lease liability in the consolidated balance sheets, with the associated finance lease liability presented net of the $1.4 million. Japanese Lease No. 4 On November 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Engineer with Rich Ocean Shipping. The facility was drawn down in December 2018. Interest is calculated at a rate of LIBOR plus 3.20%. Principal repayments on the lease are made on a monthly basis. The finance lease is scheduled to expire in 2029 and includes a mandatory purchase obligation for the Company to repurchase the vessel, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. CMBFL Leases No. 1 to 4 On June 26, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Endurance and Ardmore Enterprise, respectively , with CMB Financial Leasing Co., Ltd (“CMBFL”). The facility was drawn down in June 2018. Interest is calculated at a rate of LIBOR plus 3.10%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Encounter and Ardmore Explorer , respectively, with CMBFL. The facility was drawn down in October 2018. Interest is calculated at a rate of LIBOR plus 3.00%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. 3. Leases (continued) Ocean Yield ASA On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Dauntless and Ardmore Defender , respectively, with Ocean Yield ASA. The facility was drawn down in October 2018. Interest is calculated at a rate of LIBOR plus 4.50%. Principal repayments on the leases are made on a monthly basis. The finance leases are scheduled to expire in 2030 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. China Huarong Leases On November 30, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Seavanguard and Ardmore Exporter , respectively, with China Huarong Financial Leasing Co., Ltd (“China Huarong”). The facility was drawn down in December 2018. Interest is calculated at a rate of LIBOR plus 3.50%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. Finance leases financial covenants Some of the Company’s existing finance lease facilities (as described above) include financial covenants which are the same, or no more onerous than, the Company’s long-term debt financial covenants described in Note 2. The Company was in full compliance with all of its finance lease related financial covenants as at September 30, 2020 and December 31, 2019. Short Term Lease The Company entered into an agreement effective July 23, 2020 to charter-in a 2010 built vessel for a period of 12 months. The Company elected the practical expedient of ASC 842 that allows for time charter-in contracts with an initial lease term of less than 12 months to be excluded from the operating lease right-of-use assets and lease liabilities. The Company will continue to recognize the lease payments for all operating leases as charter hire expenses on the condensed consolidated statements of operations on a straight-line basis over the lease term. |
Interest Rate Swaps
Interest Rate Swaps | 9 Months Ended |
Sep. 30, 2020 | |
Interest Rate Swaps | |
Interest Rate Swaps | 4. Interest Rate Swaps The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the second quarter of 2020, the Company entered into floating-to-fixed interest rate swap agreements, associated with existing variable-rate debt and financing facilities, over a three-year term with multiple counterparties. In accordance with these transactions, the Company will pay an average fixed-rate interest amount of 0.32% and will receive floating rate interest amounts based on LIBOR. These interest rate swaps have a total notional amount of $324.1 million of which $273.3 million is designated as cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company records the fair value of the interest rate swap as an asset or liability on its balance sheet. The following table shows the interest rate swap liabilities as of September 30, 2020 and December 31, 2019: Derivatives designated as hedging instruments Balance Sheet location September 30, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 289,030 — Interest rate swap Non - current portion of derivative liabilities $ 416,366 — The following table shows the interest rate swap liabilities not designated as hedging instruments as of September 30, 2020 and December 31, 2019: Derivatives not designated as hedging instruments Balance Sheet location September 30, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 35,200 — Interest rate swap Non - current portion of derivative liabilities $ 50,536 — |
Loss on sale of vessels
Loss on sale of vessels | 9 Months Ended |
Sep. 30, 2020 | |
Loss on sale of vessel | |
Sale of vessels | 5. Loss on sale of vessel In February 2019, Ardmore agreed to terms for the sale of the Ardmore Seamaster . Effective February 1, 2019, Ardmore reclassified the vessel as held for sale and ceased to depreciate the vessel. Ardmore repaid the outstanding debt facility on the vessel in February 2019. The sales price for the vessel was $9.7 million, resulting in a net loss of $6.6 million when the vessel delivered to the buyer in February 2019. In May 2019, Ardmore agreed to terms for the sale of the previous vessel named the Ardmore Seafarer . Effective May 7, 2019, Ardmore reclassified the vessel as held for sale and ceased to depreciate the vessel. Ardmore repaid the outstanding debt facility on the vessel in May 2019. The sales price for the vessel was $9.1 million, resulting in a net loss of $6.6 million when the vessel delivered to the buyer in May 2019. The net loss on the sale of vessels for the nine months ended September 30, 2019 is calculated as follows: Seamaster Seafarer Total Sales proceeds (1) 9,700,000 9,100,000 18,800,000 Net book value of vessels (15,979,901) (15,537,708) (31,517,609) Sales related costs (223,178) (99,503) (322,681) Debt termination costs and related finance fees (66,684) (55,218) (121,902) Loss on sale of vessels (6,569,763) (6,592,429) (13,162,192) There was no sale of vessels in the nine months ended September 30, 2020. (1) Proceeds from sale of vessel per the condensed consolidated statement of cash flows is $26.6 million as this includes proceeds of $7.9 million related to the Ardmore Seatrader that was held for sale at December 31, 2018 and delivered to the buyer in January 2019. |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent events. | |
Subsequent events | 7 . Subsequent events In October 2020, the Company agreed to terms for the $10 million financing for the Ardmore Seafarer , a 2010 Japanese built MR product tanker delivered in August 2020, with a Japanese bank. The draw down is expected to take place in November 2020. |
General information and signi_2
General information and significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
General information and significant accounting policies | |
Basis of preparation | 1. General information and significant accounting policies (continued) 1.3. Basis of preparation The accompanying interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that apply to interim condensed financial statements. Accordingly, they do not include all of the information and footnotes normally included in consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 20-F, filed with the SEC on April 3, 2020. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the footnotes required by U.S. GAAP for complete financial statements. The accompanying interim condensed consolidated financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed consolidated financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All subsidiaries are 100% directly or indirectly owned by ASC. AASML, which is a 50% owned joint venture, is accounted for using the equity method. All intercompany balances and transactions have been eliminated on consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported consolidated results of operations. |
Significant accounting policies | 1.4. Significant accounting policies During the nine months ended September 30, 2020, the Company entered into floating-to-fixed interest rate swap agreements, associated with existing variable-rate debt and financing facilities, over a three-year term with multiple counterparties. In accordance with these transactions, the Company will pay an average fixed-rate interest amount of 0.32% and will receive floating rate interest amounts based on LIBOR. The Company’s accounting policy in relation to derivatives is noted below. |
Derivatives | 1. General information and significant accounting policies (continued) 1.1.4 Derivatives As required by ASC 815, Derivatives and Hedging , the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. The Company elected to classify settlement payments as operating activities within the statement of cash flows. There have been no other changes in the Company’s significant accounting policies for the nine months ended September 30, 2020 as compared to the significant accounting policies described in the Company’s audited consolidated financial statements for the year ended December 31, 2019. The accounting policies used in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2019. |
Recently adopted accounting pronouncements | 1.5. Recently adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13: Financial Instruments - Credit Losses (Topic 326) which requires recognition of management’s estimates of current expected credit losses, rather than the current incurred losses model. The new model is generally applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The implementation of this standard on January 1, 2020 did not represent a significant impact on the consolidated financial statements and related disclosures. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Schedule outstanding principal balances on each loan facility | As at September 30, 2020 December 31, 2019 NIBC Bank Facility 4,980,000 6,045,000 Nordea/SEB Joint Bank Facility 91,377,469 100,000,000 Nordea/SEB Revolving Facility 39,200,000 40,000,000 ABN/CACIB Joint Bank Facility 58,570,236 61,462,500 ABN AMRO Revolving Facility 12,620,255 4,019,007 Total debt 206,747,960 211,526,507 Deferred finance fees (3,451,484) (4,243,494) Net total debt 203,296,476 207,283,013 Current portion of long-term debt 22,261,236 21,274,111 Current portion of deferred finance fees (981,214) (1,057,940) Total current portion of long-term debt 21,280,022 20,216,171 Non-current portion of long-term debt 182,016,454 187,066,842 |
Schedule of future minimum repayments under the loan facilities | Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As at September 30, 2020 2020 (1) 4,675,309 2021 21,906,236 2022 29,901,491 2023 17,281,236 2024 132,983,688 206,747,960 (1) |
Finance Leases (Tables)
Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Finance Leases | |
Schedule of outstanding principal balances on finance lease facility | As at September 30, 2020 December 31, 2019 Japanese Leases No.1 and 2 27,741,400 31,398,900 Japanese Lease No.3 13,710,500 15,498,000 Japanese Lease No.4 22,455,089 23,983,699 CMBFL Leases No.1 to 4 74,306,774 79,896,836 Ocean Yield ASA 57,093,060 61,153,740 China Huarong Leases 43,166,842 46,717,764 Finance lease obligations 238,473,665 258,648,939 Amounts representing interest and deferred finance fees (36,233,776) (42,969,245) Finance lease obligations, net of interest and deferred finance fees 202,239,889 215,679,694 Current portion of finance lease obligations 18,953,094 18,650,022 Current portion of deferred finance fees (641,748) (674,700) Non-current portion of finance lease obligations 186,083,386 200,335,437 Non-current portion of deferred finance fees (2,154,843) (2,631,065) Total finance lease obligations, net of deferred finance fees 202,239,889 215,679,694 |
Schedule of future minimum lease payments required under the finance lease facilities | Maturity analysis of the Company’s finance lease facilities for each year are as follows: As at September 30, 2020 2020 (1) 6,692,825 2021 26,523,339 2022 26,470,805 2023 38,028,900 2024 24,179,292 2025 - 2030 116,578,504 Finance lease obligations 238,473,665 Amounts representing interest and deferred finance fees (36,233,776) Finance lease obligations, net of interest and deferred finance fees 202,239,889 (1) Three-month period ending December 31, 2020 |
Interest Rate Swaps (Tables)
Interest Rate Swaps (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Designated as hedging instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of interest rate swap liabilities | Derivatives designated as hedging instruments Balance Sheet location September 30, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 289,030 — Interest rate swap Non - current portion of derivative liabilities $ 416,366 — |
Not designated as hedging instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of interest rate swap liabilities | Derivatives not designated as hedging instruments Balance Sheet location September 30, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 35,200 — Interest rate swap Non - current portion of derivative liabilities $ 50,536 — |
Loss on sale of vessel (Tables)
Loss on sale of vessel (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loss on sale of vessel | |
Schedule of Capital Leased Assets | The net loss on the sale of vessels for the nine months ended September 30, 2019 is calculated as follows: Seamaster Seafarer Total Sales proceeds (1) 9,700,000 9,100,000 18,800,000 Net book value of vessels (15,979,901) (15,537,708) (31,517,609) Sales related costs (223,178) (99,503) (322,681) Debt termination costs and related finance fees (66,684) (55,218) (121,902) Loss on sale of vessels (6,569,763) (6,592,429) (13,162,192) There was no sale of vessels in the nine months ended September 30, 2020. (1) Proceeds from sale of vessel per the condensed consolidated statement of cash flows is $26.6 million as this includes proceeds of $7.9 million related to the Ardmore Seatrader that was held for sale at December 31, 2018 and delivered to the buyer in January 2019 |
Share-based compensation (Table
Share-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock appreciation rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of awards, simulation inputs and outputs | A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Weighted Risk-free Average Fair SARs Exercise Vesting Grant Dividend rate of Expected Value Average Expected Valuation Grant Date Awarded Price Period Price Yield Return Volatility grant date Exercise Life Method 12‑Mar‑14 22,118 $ 13.66 3 yrs $ 13.66 2.93 % 2.06 % 56.31 % $ 4.17 4.6 – 5.0 yrs Monte Carlo 01‑Sept‑14 5,595 $ 13.91 3 yrs $ 13.91 2.88 % 2.20 % 53.60 % $ 4.20 4.5 – 5.0 yrs Monte Carlo 06‑Mar‑15 37,797 $ 10.25 3 yrs $ 10.25 3.90 % 1.90 % 61.38 % $ 2.98 4.2 – 5.0 yrs Monte Carlo 15‑Jan‑16 205,519 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04‑Apr‑18 1,719,733 $ 7.40 3 yrs $ 7.40 0 % 2.51 % 40.59 % $ 2.67 4.25 yrs Black-Scholes 07‑Mar‑19 560,000 $ 5.10 3 yrs $ 5.10 0 % 2.43 % 43.65 % $ 2.00 4.5 yrs Black-Scholes 04‑Mar‑20 549,020 $ 5.25 3 yrs $ 5.25 0 % 0.73 % 46.42 % $ 2.04 4.5 yrs Black-Scholes |
Schedule of changes in the Stocks | Changes in the SARs for the nine months ended September 30, 2020 are set forth below: Weighted average No. of SARs exercise price Balance as at January 1, 2020 $ 7.14 SARs granted during the nine months ended September 30, 2020 549,020 $ 5.25 SARs forfeited during the nine months ended September 30, 2020 — — Balance as at September 30, 2020 (none of which are exercisable or convertible) $ |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested SAR awards expected to be recognized through 2023 is set forth below: Period TOTAL 2020 (1) 186,667 2021 746,667 2022 435,556 2023 62,222 1,431,112 (1) Three-month period ending December 31, 2020. |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of awards, simulation inputs and outputs | A summary of awards is as follows: Grant Date RSUs Awarded Service Period Grant Price 02-Jan-19 176,659 2 years $ 4.64 07-Mar-19 86,210 3 years $ 5.10 28-May-19 59,237 1 year $ 7.47 04-Mar-20 83,916 2 years $ 5.25 29-May-20 78,510 1 year $ 5.84 |
Schedule of changes in the Stocks | Changes in the RSUs for the nine months ended September 30, 2020 are set forth below: Weighted average fair value at grant No. of RSUs date Balance as at January 1, 2020 322,106 $ 5.28 RSUs granted during the nine months ended September 30, 2020 162,426 $ 5.54 RSUs vested during the nine months ended September 30, 2020 (176,304) $ (5.67) RSUs forfeited during the nine months ended September 30, 2020 — — Balance as at September 30, 2020 (none of which are vested) 308,228 $ 5.19 |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested RSU awards expected to be recognized through 2023 is set forth below: Period TOTAL 2020 (1) 290,439 2021 484,451 2022 171,279 2023 24,476 970,645 (1) Three-month period ending December 31, 2020. |
Dividend equivalent rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of awards, simulation inputs and outputs | A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs DERs Service Fair Dividend Risk-free rate Expected Valuation Grant Date Awarded Period Value Yield of Return Volatility Method 04-Nov-19 yrs $ 2.93 % 2.06 % 30.22 % Monte Carlo |
Schedule of changes in the Stocks | Changes in the DERs for the nine months ended September 30, 2020 are set forth below: Weighted average fair No. of DERs value at grant date Balance as at January 1, 2020 1,146,517 0.49 DERs granted during the nine months ended September 30, 2020 — — DERs forfeited during the nine months ended September 30, 2020 — — Balance as at September 30, 2020 (none of which are vested) 1,146,517 $ 0.49 |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested DER awards expected to be recognized through 2021 is set forth below: Period TOTAL 2020 (1) 70,224 2021 234,081 304,305 (1) Three-month period ending December 31, 2020. |
General information and signi_3
General information and significant accounting policies - Additional information (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020item | Sep. 30, 2020item | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number Of Vessels In Operation | 26 | 26 |
Average Age Of Vessels | 7 years 3 months 18 days | |
Derivative, Term of Contract | 3 years | 3 years |
Derivative, Fixed Interest Rate | 0.32% | 0.32% |
Corporate Joint Venture [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Debt - Outstanding Principal Ba
Debt - Outstanding Principal Balances (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Total debt | $ 206,747,960 | $ 211,526,507 |
Deferred finance fees | (3,451,484) | (4,243,494) |
Net total debt | 203,296,476 | 207,283,013 |
Current portion of deferred finance fees | (641,748) | (674,700) |
Total current portion of long-term debt | 21,280,022 | 20,216,171 |
Non-current portion of long-term debt | 182,016,454 | 187,066,842 |
Loans Payable [Member] | ||
Current portion of long-term debt | 22,261,236 | 21,274,111 |
Current portion of deferred finance fees | (981,214) | (1,057,940) |
Total current portion of long-term debt | 21,280,022 | 20,216,171 |
Non-current portion of long-term debt | 182,016,454 | 187,066,842 |
NIBC Bank Facility [Member] | ||
Total debt | 4,980,000 | 6,045,000 |
Nordea SEB Joint Bank Facility [Member] | ||
Total debt | 91,377,469 | 100,000,000 |
Nordea SEB Revolving Facility [Member] | ||
Total debt | 39,200,000 | 40,000,000 |
ABN CACIB Joint Bank Facility [Member] | ||
Total debt | 58,570,236 | 61,462,500 |
ABN AMRO Revolving Facility | ||
Total debt | $ 12,620,255 | $ 4,019,007 |
Debt - Future minimum repayment
Debt - Future minimum repayments (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt | |||
2020 | [1] | $ 4,675,309 | |
2021 | 21,906,236 | ||
2022 | 29,901,491 | ||
2023 | 17,281,236 | ||
2024 | 132,983,688 | ||
Total long-term debt | $ 206,747,960 | $ 211,526,507 | |
[1] | Three-month period ending December 31, 2020. |
Debt - Additional information (
Debt - Additional information (Details) - USD ($) $ in Millions | Jul. 17, 2020 | Dec. 11, 2019 | Sep. 12, 2014 | Sep. 30, 2020 | Oct. 24, 2017 |
Required minimum cash and cash equivalents | $ 20.4 | ||||
Minimum Net Worth Required | $ 150 | ||||
Minimum [Member] | |||||
Required Minimum Solvency Covenant | 30.00% | ||||
Cash and Cash Equivalent Percentage | 5.00% | ||||
Fair market Value Percentage | 130.00% | ||||
NIBC Bank Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 13.5 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.90% | ||||
Debt Instrument Maturity Period | September 2021 | ||||
NIBC Bank Facility [Member] | LIBOR [Member] | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.90% | ||||
Nordea SEB Joint Bank Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | ||||
Debt Instrument Maturity Period | December 2024 | ||||
Nordea SEB Revolving Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40 | ||||
Number of days to provide notice for draw down or repayment of debt | 5 days | ||||
ABN CACIB Joint Bank Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 61.5 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | ||||
Debt Instrument Maturity Period | December 2024 | ||||
ABN CACIB Joint Bank Facility [Member] | LIBOR [Member] | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.4% | ||||
ABN AMRO Revolving Facility | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15 | ||||
Debt Instrument, Description of Variable Rate Basis | July 2022 | ||||
Renewal term | 2 years | ||||
Extension term | 2 years | ||||
ABN AMRO Revolving Facility | LIBOR [Member] | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.9% |
Finance Leases (Details)
Finance Leases (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 238,473,665 | $ 258,648,939 |
Amounts representing interest and deferred finance fees | (36,233,776) | (42,969,245) |
Finance lease obligations, net of interest and deferred finance fees | 202,239,889 | 215,679,694 |
Current portion of finance lease obligations | 18,953,094 | 18,650,022 |
Current portion of deferred finance fees | (641,748) | (674,700) |
Non-current portion of finance lease obligations | 186,083,386 | 200,335,437 |
Non-current portion of deferred finance fees | (2,154,843) | (2,631,065) |
Total finance lease obligations, net of deferred finance fees | 202,239,889 | 215,679,694 |
Japanese Leases No.1 and 2 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 27,741,400 | 31,398,900 |
Japanese Lease No.3 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 13,710,500 | 15,498,000 |
Japanese Lease No.4 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 22,455,089 | 23,983,699 |
CMBFL Leases No.1 to 4 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 74,306,774 | 79,896,836 |
Ocean Yield ASA [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 57,093,060 | 61,153,740 |
China Huarong Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 43,166,842 | $ 46,717,764 |
Finance Leases - Future minimum
Finance Leases - Future minimum lease payments (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Finance Leases | |||
2020 | [1] | $ 6,692,825 | |
2021 | 26,523,339 | ||
2022 | 26,470,805 | ||
2023 | 38,028,900 | ||
2024 | 24,179,292 | ||
2025 – 2030 | 116,578,504 | ||
Finance lease obligations | 238,473,665 | $ 258,648,939 | |
Amounts representing interest and deferred finance fees | (36,233,776) | (42,969,245) | |
Finance lease obligations, net of interest and deferred finance fees | $ 202,239,889 | $ 215,679,694 | |
[1] | Three-month period ending December 31, 2020. |
Finance Leases - Additional Inf
Finance Leases - Additional Information (Details) $ in Millions | Nov. 30, 2018 | Oct. 25, 2018 | Jun. 26, 2018 | Sep. 30, 2020item | Jan. 30, 2018USD ($) | May 30, 2017USD ($) |
Number Of Finance Lease Facility | item | 6 | |||||
Vessels [Member] | ||||||
Number of vessel in operation | item | 12 | |||||
Japanese Leases No.1 and 2 [Member] | ||||||
Sellers Credit Note | $ 2.9 | |||||
Japanese Leases No.1 and 2 [Member] | Other Noncurrent Assets [Member] | Finance Liability [Member] | ||||||
Sellers Credit Note | $ 2.9 | |||||
Japanese Lease No.3 [Member] | ||||||
Sellers Credit Note | $ 1.4 | |||||
Japanese Lease No.3 [Member] | Finance Liability [Member] | ||||||
Sellers Credit Note | $ 1.4 | |||||
Japanese Lease No.4 [Member] | ||||||
Finance Lease Expiry Period | 2029 | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.20% | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.20% | |||||
CMBFL Leases No.1 to 4 [Member] | ||||||
Finance Lease Expiry Period | 2025 | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | 3.10% | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.00% | LIBOR plus 3.10% | ||||
Ocean Yield ASA [Member] | ||||||
Finance Lease Expiry Period | 2030 | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 4.50% | |||||
China Huarong Leases [Member] | ||||||
Finance Lease Expiry Period | 2025 | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.50% |
Interest Rate Swaps (Details)
Interest Rate Swaps (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Interest Rate Swaps | |||
Term of the interest rate swap agreements | 3 years | 3 years | |
Average fixed-rate interest (as a percent) | 0.32% | 0.32% | |
Notional amount | $ 324,100,000 | $ 324,100,000 | |
Interest rate swaps located in current portion of derivative liabilities | 324,230 | 324,230 | $ 0 |
Interest rate swaps located in non-current portion of derivative liabilities | 466,902 | 466,902 | $ 0 |
Not designated as hedging instrument | |||
Interest Rate Swaps | |||
Interest rate swaps located in current portion of derivative liabilities | 35,200 | 35,200 | |
Interest rate swaps located in non-current portion of derivative liabilities | 50,536 | 50,536 | |
Cash flow hedge | Designated as hedging instrument | |||
Interest Rate Swaps | |||
Notional amount | 273,300,000 | 273,300,000 | |
Interest rate swaps located in current portion of derivative liabilities | 289,030 | 289,030 | |
Interest rate swaps located in non-current portion of derivative liabilities | $ 416,366 | $ 416,366 |
Loss on sale of vessel - Additi
Loss on sale of vessel - Additional information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
May 31, 2019 | Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Loss on sale of vessels | $ 0 | $ 13,162,192 | ||
Ardmore Seamaster [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Vessel sales price | $ 9,700,000 | |||
Loss on sale of vessels | $ 6,600,000 | 6,569,763 | ||
Ardmore Seafarer [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Vessel sales price | $ 9,100,000 | |||
Loss on sale of vessels | $ 6,600,000 | $ 6,592,429 |
Loss on sale of vessel (Details
Loss on sale of vessel (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2019 | Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment [Line Items] | ||||||
Sales proceeds | $ 18,800,000 | |||||
Net book value of vessel | (31,517,609) | |||||
Sales related costs | (322,681) | |||||
Debt termination costs and related finance fees | (121,902) | |||||
Net loss on sale of vessel | $ 0 | (13,162,192) | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ 0 | 26,557,707 | $ 26,600,000 | |||
Ardmore Seamaster [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Sales proceeds | 9,700,000 | |||||
Net book value of vessel | (15,979,901) | |||||
Sales related costs | (223,178) | |||||
Debt termination costs and related finance fees | (66,684) | |||||
Net loss on sale of vessel | $ (6,600,000) | (6,569,763) | ||||
Ardmore Seafarer [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Sales proceeds | [1] | 9,100,000 | ||||
Net book value of vessel | (15,537,708) | |||||
Sales related costs | (99,503) | |||||
Debt termination costs and related finance fees | (55,218) | |||||
Net loss on sale of vessel | $ (6,600,000) | $ (6,592,429) | ||||
Ardmore Seatrader [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 7,900,000 | |||||
[1] | Proceeds from sale of vessel per the condensed consolidated statement of cash flows is $26.6 million as this includes proceeds of $7.9 million related to the Ardmore Seatrader that was held for sale at December 31, 2018 and delivered to the buyer in January 2019. |
Share-based compensation - Stoc
Share-based compensation - Stock appreciation rights - Awards, simulation inputs, outputs (Details) - Stock appreciation rights - $ / shares | Mar. 04, 2020 | Mar. 07, 2019 | Apr. 04, 2018 | Jan. 15, 2016 | Jan. 15, 2016 | Mar. 06, 2015 | Mar. 06, 2015 | Sep. 01, 2014 | Mar. 12, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
SARs Awarded (in shares) | 549,020 | 560,000 | 1,719,733 | 205,519 | 37,797 | 5,595 | 22,118 | ||
Exercise Price (in dollars per share) | $ 5.25 | $ 5.10 | $ 7.40 | $ 9.20 | $ 9.20 | $ 10.25 | $ 10.25 | $ 13.91 | $ 13.66 |
Vesting Period (in years) | 3 years | 3 years | 3 years | 3 years | 3 years | ||||
Grant Price (in dollars per share) | $ 5.25 | $ 5.10 | $ 7.40 | $ 9.20 | $ 9.20 | $ 10.25 | $ 10.25 | $ 13.91 | $ 13.66 |
Dividend Yield (in hundredths) | 0.00% | 0.00% | 0.00% | 6.63% | 3.90% | 2.88% | 2.93% | ||
Risk-free rate of Return (in hundredths) | 0.73% | 2.43% | 2.51% | 1.79% | 1.90% | 2.20% | 2.06% | ||
Expected Volatility (in hundredths) | 46.42% | 43.65% | 40.59% | 58.09% | 61.38% | 53.60% | 56.31% | ||
Weighted Average Fair Value at grant date (in dollars per share) | $ 2.04 | $ 2 | $ 2.67 | $ 2.20 | $ 2.98 | $ 4.20 | $ 4.17 | ||
Average Expected Exercise Life | 4 years 6 months | 4 years 3 months | |||||||
Valuation Method | Black-Scholes | Black-Scholes | Black-Scholes | Monte Carlo | Monte Carlo | Monte Carlo | Monte Carlo | ||
Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Average Expected Exercise Life | 5 years | 5 years | 5 years | 5 years | |||||
Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Average Expected Exercise Life | 4 years | 4 years 2 months 12 days | 4 years 6 months | 4 years 7 months 6 days |
Share-based compensation - St_2
Share-based compensation - Stock appreciation rights - Changes in SARs (Details) - Stock appreciation rights | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Balance, No. of Units (Beginning) | shares | 2,544,983 |
Balance, Weighted average exercise price | $ / shares | $ 7.14 |
SARs granted during the six months | shares | 549,020 |
SARs granted during the six months | $ / shares | $ 5.25 |
SARs forfeited during the six months | shares | 0 |
SARs forfeited during the six months | $ / shares | $ 0 |
Balance, No. of Units (Ending) (none of which are exercisable or convertible) | shares | 3,094,003 |
Balance, Weighted average exercise price | $ / shares | $ 6.80 |
Share-based compensation - St_3
Share-based compensation - Stock appreciation rights - Cost related to non-vested awards (Details) - Stock appreciation rights | Sep. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
2020 | $ 186,667 | [1] |
2021 | 746,667 | |
2022 | 435,556 | |
2023 | 62,222 | |
Total | $ 1,431,112 | |
[1] | Three-month period ending December 31, 20203. Leases (continued) |
Share-based compensation - Rest
Share-based compensation - Restricted stock units - Summary of awards (Details) - Restricted stock units - $ / shares | May 20, 2020 | Mar. 04, 2020 | May 28, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
SARs Awarded (in shares) | 78,510 | 83,916 | 59,237 | 86,210 | 176,659 | 162,426 |
Service Period | 1 year | 2 years | 1 year | 3 years | 2 years | |
Grant Price (in dollars per share) | $ 5.84 | $ 5.25 | $ 7.47 | $ 5.10 | $ 4.64 |
Share-based compensation - Re_2
Share-based compensation - Restricted stock units - Changes in RSUs (Details) - $ / shares | May 20, 2020 | Mar. 04, 2020 | May 28, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
RSUs vested (in shares) | (176,304) | |||||
RSUs vested during the period, Weighted average fair value at grant date | $ (5.67) | |||||
RSUs forfeited (in shares) | 0 | |||||
RSUs forfeited during the period, Weighted average fair value at grant date | $ 0 | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Balance as at the beginning | 322,106 | |||||
Balance as at the beginning, Weighted average fair value at grant date | $ 5.28 | |||||
Granted (in shares) | 78,510 | 83,916 | 59,237 | 86,210 | 176,659 | 162,426 |
Granted during the period, Weighted average fair value at grant date | $ 5.54 | |||||
Balance as at the end (none of which are vested) | 308,228 | |||||
Balance as at the end (none of which are vested), Weighted average fair value at grant date | $ 5.19 |
Share-based compensation - Re_3
Share-based compensation - Restricted stock units - Cost related to non-vested awards (Details) - Restricted stock units | Sep. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
2020 | $ 290,439 | [1] |
2021 | 484,451 | |
2022 | 171,279 | |
2023 | 24,476 | |
Total | $ 970,645 | |
[1] | Three-month period ending December 31, 2020. |
Share-based compensation - Divi
Share-based compensation - Dividend equivalent rights - Summary of awards (Details) - Dividend equivalent rights - $ / shares | Nov. 04, 2019 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
SARs Awarded (in shares) | 1,146,517 | 0 |
Service Period | 2 years | |
Granted during the period, Weighted average fair value at grant date | $ 0.49 | $ 0 |
Dividend Yield (as a percent) | 2.93% | |
Risk-free rate of Return (as a percent) | 2.06% | |
Expected Volatility (as a percent) | 30.22% | |
Valuation Method | Monte Carlo |
Share-based compensation - Di_2
Share-based compensation - Dividend equivalent rights - Changes in DERs (Details) - $ / shares | Nov. 04, 2019 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
DERs forfeited (in shares) | 0 | |
DERs forfeited during the period, Weighted average fair value at grant date | $ 0 | |
Dividend equivalent rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as at the beginning | 1,146,517 | |
Balance as at the beginning, Weighted average fair value at grant date | $ 0.49 | |
Granted (in shares) | 1,146,517 | 0 |
Granted during the period, Weighted average fair value at grant date | $ 0.49 | $ 0 |
DERs forfeited (in shares) | 0 | |
DERs forfeited during the period, Weighted average fair value at grant date | $ 0 | |
Balance as at the end (none of which are vested) | 1,146,517 | |
Balance as at the end (none of which are vested), Weighted average fair value at grant date | $ 0.49 |
Share-based compensation - Di_3
Share-based compensation - Dividend equivalent rights - Cost related to non-vested awards expected (Details) - Dividend equivalent rights | Sep. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
2020 | $ 70,224 | [1] |
2021 | 234,081 | |
Total | $ 304,305 | |
[1] | Three-month period ending December 31, 2020. |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) - shares | May 20, 2020 | Mar. 04, 2020 | Nov. 04, 2019 | May 28, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Apr. 04, 2018 | Jan. 15, 2016 | Mar. 06, 2015 | Sep. 01, 2014 | Mar. 12, 2014 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |||||||||||
Stock appreciation rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 549,020 | 560,000 | 1,719,733 | 205,519 | 37,797 | 5,595 | 22,118 | |||||
Dividend equivalent rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,146,517 | 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |||||||||||
Restricted stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 78,510 | 83,916 | 59,237 | 86,210 | 176,659 | 162,426 | ||||||
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3,099,782 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 5,779 | |||||||||||
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | Dividend equivalent rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,146,517 | |||||||||||
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | Restricted stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 484,532 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) | Nov. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Debt | $ 206,747,960 | $ 211,526,507 | |
Ardmore Seafarer [Member] | |||
Debt | $ 10,000,000 |