ARDMORE SHIPPING CORPORATION First Quarter 2018 Earnings - PowerPoint PPT Presentation

ARDMORE SHIPPING CORPORATION First Quarter 2018 Earnings Presentation

Disclaimer 2 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, 2017. 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

Earnings Release: First Quarter 2018 3 Agenda  Performance and Recent Activity  Product and Chemical Tanker Markets  Fleet Update  Financial Review  Summary  Appendix 3

Highlights 4 4

Performance and Recent Market Activity 5 Highlights  Reporting EBITDA of $9.9 million and a net loss of $5.2 million, or $0.16 per share, for the first quarter, reflecting lower than expected operating performance as a result of market positioning (Atlantic Basin) and timing of expenses  MR spot market remains challenged; periods of strength early in 1Q18 followed by reduced refinery throughput in February / March putting downward pressure on charter rates, particularly in the Atlantic Basin  Overall, Ardmore delivered satisfactory chartering performance; MR product tankers earned $12,721 per day for 1Q18 representing a slight increase on 4Q17 while, chemical tankers performed well at $13,504 per day  Took delivery of the Ardmore Sealancer in January 2018, a highly efficient, 2008 built Japanese MR with attractively priced financing under a JOLCO structure Agreed to terms for refinancing of two 2013-built MRs under sale and  leaseback arrangement with top-tier Asian financier on highly attractive pricing and terms  Market outlook positive; we believe we will reach an inflection point this summer, with refinery throughput set to increase significantly over the next four months, oil demand growth is very strong, and product inventories well below five-year average (1)  Looking ahead, 2020 sulphur cap now coming into focus; positive demand impact for MRs, also will benefit more fuel efficient “Eco” vessels 1. IEA April Oil Market Monthly 5

Fleet Profile 6 Vessel Name Type Dwt Tonnes IMO Built Country Flag Specification High Quality Vessels 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  Modern, highly fuel efficient Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 Korea MI Eco-design fleet of MRs 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  Average age of 5.7 years 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  Built at high-quality yards in Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 Korea MI Eco-design Korea and Japan 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  Quality fleet = lower operating Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 Korea MI Eco-design cost, higher utilization and Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 Korea MI Eco-design maximum value appreciation 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  Complementary fleet 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 Sealancer Product 47,451 — Jun-08 Japan MI Eco-mod  Increased scale improves Ardmore Sealeader Product 47,463 — Aug-08 Japan MI Eco-mod commercial flexibility 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 28 1,250,019 5.7 (1) 1. Average age as at Mar 31, 2018 6

Product and Chemical Tanker Markets 7 7

Product Tanker Market 8  ASC MR pool and spot rates averaged $12,721 per day in 1Q18, an Oil Inventory Surplus and Refinery Throughput (1) improvement from $12,131 per day in 4Q17 600 Inventory Surplus Refinery Throughput 84.0  Outlook is increasingly positive: 83.0 Global Refinery Throughput (mpn) 500 Inventroy Surplus (mmb) Refinery throughput set to ramp; increasing 3.2 mbd from April to August to o 82.0 400 average 83.3 mbd; which is highest level on record (1) 81.0 300 Global oil demand growth is strong at 1.5 mbd in 2018, matched with o 80.0 refinery capacity expansions in export-oriented locations (2) 200 79.0 o Refined product inventories now well below five-year averages (2)(3) which 100 78.0 should stimulate incremental trading activity 0 77.0  Meanwhile, MR supply growth is close to zero: -100 76.0 Forecasting 37 MRs to deliver over the remainder of 2018 (12 ytd) (4) o 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18E 3Q18E o Scrapping run rate has increased to approx. 40 MRs per year; 15 scrapped ytd in 2018 and 10 scrapped in 4Q17 (4) Product Tanker Orderbook and Fleet Development (3) Fleet growth net of scrapping expected to be well below 1% in 2018 (4)(5) o 100 50% 4.7% 90 45%  Other factors: 80 40% Increasing focus on 2020 sulphur cap; may begin to be felt in mid-2019 o 70 35% o Downward rate pressure from LRs and crude tankers should ease in 2H18 60 30% Million DWT OB as % Fleet 50 25% Oil trader sentiment more bullish on tightening oil market fundamentals (6) o 40 20% o Increasing geopolitical risk and oil price volatility 30 15% 20 10% Potential scramble for crude supply this summer as refineries ramp up (1) o 10 5%  Overall, we believe that the market will reach an inflection point this 0 0% summer; demand forces are significant and MR tanker supply growth close 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 to zero 1. Source: PIRA S&P Global Platts: March Monthly Oil Market Outlook, IEA April Oil Market Report. Inventory Surplus as defined by OPEC. 2. Source: International Energy Agency, “Oil Market Report April 2018” and management’s estimates. IEA estimates oil demand growth will average 1.5 million bpd per annum in 2018 3. OPEC April Oil Market Report 4. Source: Clarksons Shipping Intelligence Network and management’s estimates. 8 5. Management’s estimates of deliveries for 2018, net of estimated scrapping. Management’s estimates based on 50% of 4Q18 scheduled deliveries slipping into 2018 6. Trafigura annual report for year ending Sept 30, 2017