February, 2016 Disclaimer This presentation contains certain - - PowerPoint PPT Presentation

ARDMORE SHIPPING CORPORATION Stifel Nicolaus Investor Presentation February, 2016

This presentation contains certain statements that are 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 are forward looking statements, 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

• perating expenses; fuel efficiency savings and the potential impact of the company’s cost structure on the share price; 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 amount of future cash flows and earnings of the Company; dividend amounts actually declared by the Company’s board of directors; the amount of cash reserves established by the Company’s board of directors; limitations on dividends contained in the Company’s credit facilities or under Marshall Islands law; additional issuances of the Company’s shares of common stock, 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; vessel delivery dates 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. 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. Stifel Nicolaus had no involvement in the preparation of this presentation and, accordingly, makes no representation or warranty as to the accuracy or completeness of any of the information or data included therein and expressly disclaims any and all liability relating to or resulting from use of this presentation.

2

Disclaimer

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3

Overview of Ardmore Shipping

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• Leading public product tanker focused on most attractive sector over the

long-term, strategy based on service excellence and operating efficiency

• Owns and operates a fleet of 24 “Eco” medium size (“MR”) product and

chemical tankers. MR’s are the workhorses of the product tanker fleet

• Internal management company and no transactions with affiliates
• MR product tanker rates increased 56% YoY(1) in 2015, yet remain ~50%

below 10-year peak rates

• Generated record earnings of $1.23 per share for the 12 months ended

Dec 31, 2015 with an average of 20 vessels in operation

• World class operations driving significant earnings upside:
• Every $1,000 increase in charter rates adds 34 cents to EPS & Cashflow

and increases the dividend by $0.20 / share(2)

• Attractive new dividend policy:
• Dividend policy to pay out 60% of net income quarterly
• Completed a refinancing of substantially all of our outstanding debt,

reducing our interest expense by ~$2 mln and improving surplus cashflow by ~$6 mln in 2016

1. Source: HRP, increase based on comparison of average triangulation rates January 2nd to December 31st 2015 to the same period in 2014 2. Realized across a full fleet of 24 ships. Calculation based on: ($1,000 day x 363 revenue days x 24 ships) / 26.1mln shares = $0.34 per share. $0.34 x 60% = Dividend of $0.20 per share

Ardmore Shipping Corporation

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High Quality Fleet

 Modern “Eco” Fleet  Average age of ~4.6 yrs  Upgraded for enhanced commercial capability  Built at high-quality yards in Korea and Japan  Quality fleet = lower

• perating cost, higher

utilization and maximum value appreciation  Complementary fleet High Quality Vessels Fleet List

Vessel Name Type Dwt Built Country Specification Employment Ardmore Seavaliant IMO 2/3 49,998 Feb-13 Korea Eco-design Spot Ardmore Seaventure IMO 2/3 49,998 Jun-13 Korea Eco-design Spot Ardmore Seavantage IMO 2/3 49,997 Jan-14 Korea Eco-design Time Charter Ardmore Seavanguard IMO 2/3 49,998 Feb-14 Korea Eco-design Time Charter Ardmore Sealion IMO 2/3 49,999 May-15 Korea Eco-design Pool Ardmore Seafox IMO 2/3 49,999 Jun-15 Korea Eco-design Pool Ardmore Seawolf IMO 2/3 49,999 Aug-15 Korea Eco-design Pool Ardmore Seahawk IMO 2/3 49,999 Nov-15 Korea Eco-design Pool Ardmore Endeavour IMO 2/3 49,997 Jul-13 Korea Eco-design Spot Ardmore Seafarer IMO 3 45,744 Aug-04 Japan Eco-mod Time Charter Ardmore Seatrader Product 47,141 Dec-02 Japan Eco-mod Spot Ardmore Seamaster IMO 3 45,840 Sep-04 Japan Eco-mod Spot Ardmore Seamariner Product 45,726 Oct-06 Japan Eco-mod Spot Ardmore Sealeader Product 47,463 Aug-08 Japan Eco-mod Spot Ardmore Sealifter Product 47,472 Jul-08 Japan Eco-mod Spot Ardmore Dauntless IMO 2 37,764 Feb-15 Korea Eco-design Pool Ardmore Defender IMO 2 37,791 Feb-15 Korea Eco-design Pool Ardmore Centurion IMO 2 29,006 Nov-05 Korea Eco-mod Spot Ardmore Cherokee IMO 2 25,215 Jan-15 Japan Eco-design Pool Ardmore Cheyenne IMO 2 25,217 Mar-15 Japan Eco-design Time Charter Ardmore Chinook IMO 2 25,217 Jul-15 Japan Eco-design Time Charter Ardmore Chippewa IMO 2 25,217 Nov-15 Japan Eco-design Time Charter Ardmore Calypso(1) IMO 2 17,589 Jan-10 Korea Eco-mod Time Charter Ardmore Capella(1) IMO 2 17,567 Jan-10 Korea Eco-mod Time Charter Total 24 969,953 4.6 (2)

1. Agreed sale of the Ardmore Calypso and Ardmore Capella, expected to deliver to buyer in 2Q16 2. Average age of fleet as at Jan 27th, 2016

500 1,000 1,500 2,000 2,500 3,000 3,500

Million Tonnes

Crude Seaborne Trade Product Seaborne Trade

6

MRs in Perspective

Crude Tankers

(Uncoated)

Product / Chemical Tankers

(Coated: 25,000 Dwt to 120,000 Dwt )

Short Range / Stainless / Specialized

World Tanker Fleet(1)

5,907 Vessels

UL / VLCC SUEZ AFRA PAN LR2 LR1 MR SR Stainless Spec 635 494 629 84 262 329 1,892 896 577 109

Growing Share of World Tanker Fleet

Products Share of Oil Seaborne Trade Increasing(2)

75% 25% 64% 36%

• MR tankers comprise ~32% of the world tanker

fleet by number of ships(1)

• Seaborne oil transport is gradually shifting away

from crude and toward refined products

• This is the main growth driver for MRs

1. Drewry as at Feb 2015 2. Source: Clarksons Shipping Intelligence Network Time series

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MRs the “Yellow Cabs” of the World Tanker Fleet

MRs Trade Everywhere And Are The Ship Of Choice For Oil Traders Due To Their Versatility

MR VLCC LR1 LR2

8

Consistent and Focused Strategy

• Acquire vessels at cyclical lows: low cash

breakeven and maximum ship value appreciation

• Operate and maintain vessels efficiently
• Low overhead at approx. $1,200 per ship /

day (1)

Cost Efficiency

• Time charter and spot employment - mix

adjusted to maximize TCE

• 1Q16: Spot 71% v Time Charter 29%
• Maintain close dialogue with charterers at

all times for time-charter opportunities

• Maintain a high-quality, fuel efficient fleet
• Exploit the product and chemical overlap
• Close operational collaboration with

charterers: service excellence

• Optimise voyage performance: maximise

TCE

Highly Effective Chartering Strategy

2

Superior Operational And Financial Performance

3

Consistent Focus on MR Product and Chemical Tankers

1

Value Added Service = Max Earnings

4

1. Based on full fleet of 24 ships

9

Strong Management Team with Proven Track Record

Name Experience (Years) Past Positions Tony Gurnee

33 CEO

Mark Cameron

30 COO

Paul Tivnan

14 CFO

Gernot Ruppelt

14 Director of Chartering and Business Development

Greg Chad

38 Director of Human Resources

• CEO of Industrial Shipping Enterprises, COO of MTM Group and CFO of Teekay Shipping

Corporation

• Shipping financier with Citicorp and U.S. Naval Officer
• MBA, CFA, Fellow of the Institute of Chartered Shipbrokers
• VP of Strategy and Planning at Teekay Marine Services
• Fleet Manager at AP Møller-Maersk
• Chief Engineer at Safmarine
• Formerly at Ernst & Young, Financial Services Advisory
• Associate of the Institute of Chartered Accountants of Ireland and the Irish Taxation Institute
• Member of the Institute of Chartered Shipbrokers
• Tanker Broker at Poten & Partners
• Chartering Manager Maersk Broker / AP Møller-Maersk (Copenhagen, Singapore, Germany)
• Graduate of Hamburg Shipping School and Member of the Institute of Chartered Shipbrokers
• VP Corporate Services at Teekay Shipping Corporation
• Held human resource management positions at BC Telephone and Canadian Airlines
• Graduate of the University of British Columbia and holds MBA in Human Resource Management

from Seattle City University

Decades Of Experience With Industry Leading Companies

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Product Tanker Market

Average MR Triangulation Rates(1) Product Tanker Orderbook and Fleet Development(4)

• Strong Spot & Pool TCE rates in 2015 averaging $21,548 for the full

year:

• Very strong rates in 2Q15 and 3Q15 but eased in 4Q15 due to

seasonality and refinery turnarounds

• 1Q16 starting strong but refinery maintenance in the USG and a fire

at Exxon’s Beaumont refinery reducing cargo volumes

• Seaborne product trade increased by 1.3 million bpd to 22 million bpd

in 2015 (~6% YoY increase), while tonne mile demand grew by ~7% YoY(4)

• EIA data shows US Gulf Coast (PADD 3) exports of finished

petroleum products averaged ~2.3 million bpd from Jan to Nov 2015, a 7% increase YoY(3)

• US Gulf refineries currently operating at 83.1% utilization(2) due to:
• Scheduled maintenance (turnarounds)
• Power outage at Exxon's 344kbd Beaumont refinery on Jan 21st
• Orderbook at ~9.5% of the fleet which is the lowest level since 2001:
• 146 MR’s delivered and 20 MR’s scrapped in 2015
• Est. 99 MR deliveries and net fleet growth of ~4% in 2016(5)
• Orderbook may be <5% of the fleet by year end 2016(6)

$10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 Trailing 12 Mth. Average Rates

1. Source: HRP - Trailing 12 month average of TC11/TC4 and TC2/TC14 triangulation rates as at December 31st, 2015 2. Source: EIA Weekly Inputs & Utilization report for the week ending January 29th, 2016 3. Source: EIA Finished Petroleum Product Export Data 4. Source: Clarksons Shipping Intelligence Network 5. Based on management estimates 6. Assumes no new orders placed in 2016

0% 10% 20% 30% 40% 50% 60% 10 20 30 40 50 60 70 80 90 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

OB as % Fleet Million DWT

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Product Tanker Demand Outlook

Seaborne Volume of Oil Products Traded(2) Estimate of 2016 Seaborne Imports / Exports(1)

1. Source: Clarkson's Shipping Intelligence Network, forecast for 2016 according to Clarkson’s SIN data 2. Source: Seaborne volume of Oil Products sourced from Clarkson's Shipping Intelligence Network, forecast for 2016 according to Clarkson’s SIN data 3. Source: IEA Medium Term Market Report 2015 and management estimates

Global Refinery Capacity Growth(3)

94.0 95.0 96.0 97.0 98.0 99.0 100.0 101.0 102.0 2015 2016e 2017e 2018e

mb/d

+1.6mbd +1.2mbd +1.5mbd 12.2 22.8 0.0 5.0 10.0 15.0 20.0 25.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e

MMbpd Import Export Net Imports as % Total Trade Exports as % Total Trade Middle East 1.2 2.7 1.5 5.3% 11.8% North America 1.8 3.3 1.5 7.9% 14.5% China 0.5 0.6 0.1 2.2% 2.6% Asia (ex China) 8.1 5.7

• 2.4

35.5% 25.0% Europe 7.1 5.7

• 1.4

31.1% 25.0% Latin America 1.9 0.6

• 1.3

8.3% 2.6% Africa 1.3 0.4

• 0.9

5.7% 1.8% FSU n/a 3.1 n/a n/a 13.6% Other 0.9 0.7

• 0.2

3.9% 3.1% Total Trade MMbpd 22.8 22.8 100% 100% CAGR +4%

• ~1.6 million bpd of new refining capacity expected to come on

stream in 2016(3):

• United States +300kbd (primarily PADD3)
• China +490kbd / Other Asia +330kbd / Middle East +296kbd
• Increasing diesel exports from China driving trade
• Refinery margins remain strong, particularly for gasoline,

resulting in higher outputs worldwide

Comments

12

Chemical Tanker Market

25k Dwt / 37k Dwt Chemical Tanker TCE $/day(1) Chemical Tanker Orderbook and Fleet Development (2)

1. TCE $/day based on internal chemical tanker voyage data 2. Orderbook for coated IMO2 with average tank size <3000m3 and stainless steel ships above 10,000 Dwt 3. Based on comparison of Chemical Tanker “Eco-Mod” rates FY2015 vs FY2014 4. Based on management estimates 5. Based on management estimates and assumes no new orders placed in 2016 6. Source: Richardson Lawrie Associates, Chemical Carrier World No. 40. Calculation based on the growth in the combined exports of the US and Middle East from 2014 to 2015

• Chemical tanker charter rates were strong in 2015, evidenced by

ASC rate performance up 18% year-on-year(3)

• The chemical tanker market continues to improve:
• Continued expansion of petrochemical plants in US and Middle

East leading to increased exports of commodity chemicals (+6% YoY)(6)

• Imports of chemicals into China remain strong despite slowdown in

GDP growth, in particular those used in light industrial / textile manufacturing

• Strong start to 2016 with Veg Oil / Biodiesel volumes at historical

highs

• Simpler, coated chemical tankers such as those in ASC fleet are

benefiting from strong product tanker market:

• Continuing to engage in regional CPP trade to a greater degree
• ASC chemical fleet spending 50% of time in CPP trade, 25% in veg
• ils and 25% in commodity chemicals
• As chemical market strengthens further, these ships can swing

back into more chemical business

• Fleet growth expected to be relatively moderate with:
• Orderbook at ~11% of the fleet
• Est. 80 deliveries (~2 mln Dwt), resulting in net fleet growth of ~5%

in 2016(4)

• Orderbook expected to be <5% of the fleet by year end 2016(5),

assuming no new orders placed

5,000 10,000 15,000 20,000 25,000 TCE $/day CHEM-25s CHEM-37s 0% 10% 20% 30% 40% 50% 60% 70% 80% 5 10 15 20 25 30 35 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

OB as % Fleet Million DWT

MR Shipyards and Product Tanker Demand & Supply

MR Product Tankers

• Fleet:

1,984 ships

• Demand growth:

114 ships / year ++

• Expected deliveries(1):

99 ships / year

• Expected scrapping(2):

20 ships / year

• Net fleet growth:

79 ships / year Demand And Supply Lead To Positive Outlook

Source: Drewry, Internal data, publicly disclosed market information. 1. Management estimates based on analysis of MR Product orderbook, vessel deliveries and yard capacity 2. Internal Estimate based on average dwt of ships scrapped over the last three years adjusted for average vessel size in total fleet. 39 ships scrapped in 2013 ,30 ships in 2014 and 20 ships in 2015 3. Source: Clarkson's Shipping Intelligence Network, forecast based on management estimates. 2015 estimate assumes Sungdong SB Korea is closed

Demand Growth 5%+ vs. Supply Growth ~4%

13 Shipyard Capacity(3)

4 4 2 3 6 7 5 4 4 2 2 4 6 2 2 2 4 6 8 10 12 14 16 18 20 2007 2008 2014 2015e

Number of Yards

Number of Yards to Deliver at Least One MR Tanker

China Korea Japan Other

• 42%

15 20 25 30 35 40 45 50 55 60 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16

Vessel Price ($mln)

Newbuild (47 - 51K Dwt) Secondhand (5yr Old 47k Dwt) 10,000 15,000 20,000 25,000 30,000 35,000 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16

US$ per Day

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Rates and Asset Values Still at Low Levels

Historical 1YR MR Charter Rates Historical MR Asset Values

Charter Rates And Asset Values Remain Well Below Historical Averages And Ardmore’s Fleet Has Been Assembled At An Attractive Point In The Cycle

Source: Clarkson’s Shipping Intelligence Network, Internal data, publicly disclosed market information.

Rates remain more than ~40% below the last cycle peak Ardmore’s Investment Period

$6 $8 $10 $12 $14 $16 $18 $20 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Nov-15 Dec-15 Jan-16 Feb-16

Share Price Average Spot MR Tanker Rates

Average Spot MR Tanker Rates vs ASC Share Price Performance (1)

Average MR Spot Rates Share Price

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Attractive Share Price – Disconnected from Ship Rates

1. Source: Bloomberg, HRP. Period November 02, 2015 to February 04, 2016 2. Source: Bloomberg. Period November 02, 2015 to February 04, 2016 3. Source: HRP – Comparison of the average of the combined TC11 / TC 4 and TC 2/ TC 14 triangulation rates as at November 02, 2015 to the same rate as at February 04, 2016

• Volatility in the stock market has created a disconnect between share price and business prospects
• ASC share price now trading at a considerable discount to the inherent value of the company. ASC price down

~42% since November 2015(2), while average MR spot rates have are flat over the same period(3)

Disconnect Between Share Price and Rates

ASC Share Price

• 42% Vs MR Spot Rates

Nov - Feb

4,280 7,071 8,221

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 FY14 1Q15 2Q15 3Q15 4Q15 FY15 FY16 EST

Revenue Days

16 Executing On Rapid And Profitable Growth Through Fleet Expansion Program

Strong Financial Performance and Significant Growth

EBITDA Growth ($Mln)(2) Revenue Growth ($Mln)

1. Revenue Days based on managements estimates. FY16 estimates include the impact of the sale of the Ardmore Calypso and Ardmore Capella 2. EBITDA is a non-GAAP measure that is defined as earnings before interest, taxes, depreciation and amortization. Management uses this measure in evaluating Ardmore’s operating performance.

Revenue Days Growth From New Deliveries(1)

+65% (Y-o-Y) +16% (Y-o-Y) $25.2 $35.9 $67.3 $157.9 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 FY 2012 FY 2013 FY 2014 FY 2015 $5.1 $9.5 $22.7 $70.6 $0 $10 $20 $30 $40 $50 $60 $70 $80 FY 2012 FY 2013 FY 2014 FY 2015

$423.6 $699.4 $1.3 $9.4 $9.4 $9.4 Vessel Assets @ 4Q15 Gross Debt @ 4Q15 (1) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Debt Repayments

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Conservative Capital Structure

• Book value of vessel assets ~$700 mln and gross debt of ~$424 mln as at Dec 31, 2015(1)
• Low corporate leverage: ~55% as at Dec 31, 2015, with significant balance sheet cash
• Completed a refinancing of $344 mln of debt in January 2016, reducing our interest expense by ~$2 mln and improving surplus

cashflow by ~$6 mln in 2016

• Additional incremental commitment of ~$20 mln provided by ABN AMRO and DVB Bank to fund future acquisitions
• All debt is amortizing at ~$38 mln per year

Debt Profile

(2)

1. Gross Debt excludes impact of netting of deferred finance fees as required under US GAAP ($423.6 mln - $8.6 mln = $415 mln) 2. Proforma debt repayment profile based on 1Q16 debt refinancing

$0.72 $1.14 $1.50 Base Rates Rates FY2015 Upside Rates - 3Q15 $1.20 $1.89 $2.50

Vessel Type TCE per day TCE per day TCE per day MR Product (50k) $18,500 $21,500 $24,250 MR Chem (25-37k) $16,500 $17,500 $18,000

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Every $1,000 / day increase in rates equals 34 cents per share in EPS and Cashflow & dividend increase of $0.20 / share(2) Earnings Per Share(1)

1. Management estimates based on a full fleet of 24 vessels operating in the spot market for 363 revenue days / ship 2. Realized across a full fleet of 24 ships. Calculation based on: ($1,000 day x 363 revenue days x 24 ships) / 26.1mln shares = $0.34 per share. $0.34 x 60% = Dividend of $0.20 per share

Efficient Operation Resulting in Significant Earnings Power

Dividend Per Share(1)

Earnings Power

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Why Invest In Ardmore?

• Generated record earnings of $1.23 per share for the 12 months ended Dec

31, 2015

• Near-term outlook remains positive, anticipating a solid charter market in

2016 driven by refinery expansion and increased output, underpinned by continuation of oil market dynamics (volatility and congestion)

• Strong secular demand growth continues as worldwide refinery expansions

and complexity of trading activity drives tonne mile demand, almost independent of underlying oil consumption growth (6% vs 1.4% over the last seven years)

• MR orderbook now at lowest point in 15 years and set to decline by year-

end to around 5% without additional ordering

• Ardmore is well positioned to take advantage of continued strong rates -

every $1,000 increase in charter rates across the delivered fleet equates to $0.34 in EPS and $0.20 in dividend(1)

• Attractive dividend yield driven by world class operations:
• Dividend policy to pay out to pay out 60% of net income quarterly
• Completed a refinancing of substantially all of our outstanding debt,

reducing our interest expense by ~$2 mln and improving surplus cashflow by ~$6 mln in 2016

1. Calculations based on a full year at our existing cost structure and assumes (a) fleet of 24 vessels, (b) utilization of 99.45% and (c) 26.1 mln shares. Assumes no change in tax rate, cost of debt or share count

.

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Thank You

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Crude Oil NGL Plant

Appendix: Origin of Product and Chemical Cargos

Gas Refinery Ethylene Cracker Naphtha Cracker Reformate Ethane Propane Butane Naphtha Pygas Ethylene Propylene Butylene

• Ethylene Dichloride
• Ethylene Glycol
• Linear Alcohols
• Vinyl Acetate
• Styrene
• Misc chemicals

Manufacturing

• Polystyrene
• Fibres
• Resin
• Latex
• Polyester
• Nylon
• Adhesives
• Solvents
• Detergent
• Anti-Freeze
• Flooring
• Textiles

Fuel Blending

• Oxygenates
• Anti-knock agents

Agri-Business

• Fertilizers

Commercial Use M/A Production Plant

• Methanol
• MTBE
• UAN

Liquid Cargos

• Benzene
• Toulene
• Xylenes
• Styrene
• Cyclohexane
• Misc chemicals

Methane

• Gasoline
• Jet Fuel and Diesel
• Fuel Oil

Ardmore’s Fleet Capability Ethylene

Natgas, NGL’s and Naphtha are the key feedstocks for chemicals shipped by sea

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Appendix: Product and Chemical Overlap

Gasoline Diesel Kerosene Jet Fuel Naphtha Clean Petroleum Products (CPP) Chemicals*

* Certain chemicals such as Caustic Soda can be carried on IMO3 ships. However the vast majority of inorganic chemicals must be carried on IMO2 ships and acid based cargos are only suitable for stainless steel ships.

IMO 3 Tankers

• Cargo
• Tank Coating:
• Tank Size:
• Inerting:
• Crewing:

IMO 2 Tankers

• Cargo:
• Tank Coating:
• Tank Size:
• Inerting:
• Crewing:

IMO 2 (Coated) IMO 3

CPP + Vegoils Epoxy >3,000 m3 Required (standard IGS not suitable for chemicals) Standard tanker competency CPP + Vegoils + Biofuels + Chemicals Phenolic Epoxy / Stainless Steel / Marine Line <3,000 m3 Not required for chemicals but growing preference for Nitrogen Chemical tanker competency

Organic Inorganic Vegoils Biofuels Ethanol Other Cargos

Coated IMO2 Ships Are Essentially More Sophisticated Product Tankers

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Appendix: Product Tanker – Long Term Secular Drivers

• Underlying / ongoing demand coming from:
• Increased demand for oil products driven by

low oil price

• New export refineries in Middle East(1)
• US Gulf increasing exports of refined products
• Sulphur and other regulations increasing

voyage duration and demand for ship days

• Product tanker tonne mile demand grew by ~5%

CAGR between 2005 and 2015(3)

• MR vessel supply estimated to be ~4% in 2016
• Combination of constrained supply growth and

fundamental secular demand drivers should result in further tightening, leading to continued improvements in charter rates Secular Trends + Positive Supply–Demand Outlook Is Supporting Rate Increase

Note: Ongoing trend of refineries expanding closer to the oil well as refineries in areas of consumption close down.

• 1. Seaborne trade of refined products is ~22 million barrels / day. New / expanded refineries in Yanbu (Saudi Arabia) and Ruwais (UAE) for export market is equal to ~820,000 barrels / day commenced in 1Q15. Significant additional refinery

expansion in 2015 -2018

• 2. Source: IEA Medium Term Market Report 2015, World Refinery Capacity Additions 2015 -2020 (thousand barrels per day)
• 3. Source Drewry as at January 2016

Global Refinery Developments (2015-2020) (2) Drivers in Product Tanker Market