[Management View]
Ardmore Shipping Corp. reported $9 million in adjusted earnings for Q2 2025, supported by rising TCE rates for both MR and chemical tanker segments and the execution of strategic vessel acquisitions. The company consolidated its debt under a €350 million revolving facility with favorable terms to maintain low cash breakeven and improve operational flexibility. Capital allocation included sustained dividend distributions, targeted acquisitions, and continued investment in fleet enhancements.

[Outlook]
Management indicated that drydocking and related capex will moderate in future periods, creating the potential for increased revenue days and earnings power. Market dynamics remain favorable, driven by stronger refining margins, OPEC+ production increases, and heightened geopolitical factors. The company noted progress on digitalization and AI investments contributing to operational efficiencies across fleet and shoreside operations. Refinery relocations and closures, particularly in the West, are driving longer ton-miles and increased transportation demand, which management believes could accelerate over the next year.

[Financial Performance]
Adjusted earnings were $9 million, or $0.22 per share, for the second quarter. MR tankers achieved $23,500 per day during Q2 2025 and booked $25,500 per day so far in the third quarter, with 50% of available days secured. Chemical tankers earned $20,400 per day, and $21,700 per day so far in the third quarter, with 65% of available days secured. Reported EBITDAR was $22.4 million for Q2 2025.

[Q&A Highlights]
Question 1: Clearly, the company has been in a net cash position for the past several quarters. You are buying these MRs. And it is not really going to stress your balance sheet. Is there a target leverage you want to get to in a perfect world given this environment, assuming nothing changes from here, is there a certain net leverage ratio you would like to get to?
Answer: We are focusing on value and being opportunistic in all avenues of capital allocation. We saw great value in these three ships, quality built, top yard, attractive prices. We have demonstrated patience as the market went through a notable correction over the past year. Now, at an opportune time, we were able to be very decisive. Financial flexibility is important, but we are not trying to optimize for a specific growth target. Maintaining some dry powder to be opportunistic and build value while maintaining low breakeven are key focuses.

Question 2: Recently, we have been seeing the U.S. stepping up pressure on Russia and using tariffs as a deterrent for Chinese or Indian refiners to buy those barrels and refine them. How do you see this affecting the product market if things start to take shape on that front?
Answer: Markets are getting a stronger sense of direction. We have gone through a period of risk aversion earlier this year, now overcome by a snapback in activity. Inventories need to be rebuilt, leading to a catch-up phase in trading activity. We are not far from a structurally stronger winter. Monitoring geopolitical landscape closely, reshift in trade and regulation creates constant reshift in trade flows. This volatility benefits the overall product tanker market, and we are perfectly geared for that, positioning ourselves in shifting trade flows.

[Sentiment Analysis]
The tone of analysts was inquisitive and focused on understanding the strategic financial positioning and market implications. Management's responses were confident, emphasizing strategic opportunism and market adaptability.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|-------------------------|---------------|---------------|---------------|
| Adjusted Earnings | $9 million | $8 million | $7 million |
| EPS | $0.22 | $0.20 | $0.18 |
| MR Tanker TCE Rates | $23,500/day | $22,000/day | $21,000/day |
| Chemical Tanker TCE Rates| $20,400/day | $19,500/day | $18,500/day |
| EBITDAR | $22.4 million | $21 million | $20 million |

[Risks and Concerns]
Management highlighted the aging MR fleet with the decreasing order book, emphasizing limited newbuild supply as a favorable dynamic. Geopolitical factors and regulatory changes were noted as potential risks that could impact market conditions and trade flows.

[Final Takeaway]
Ardmore Shipping Corp. demonstrated strong financial performance in Q2 2025, driven by strategic acquisitions and favorable market dynamics. The company maintained a disciplined approach to capital allocation, balancing growth, reinvestments, and shareholder returns. Management's focus on operational efficiency and adaptability positions Ardmore Shipping Corp. well to navigate market volatility and create long-term value through market cycles.