Ardmore Shipping Is A Triple Play Of Wide Operating Margins, Robust Dividends, And A Strong Balance Sheet

Summary:

  • ASC operates 26 vessels, including 20 MR and 6 chemical tankers, with a market cap of $720 million.
  • The global refinery market is becoming more polarized and supportive of high shipping rates. I believe the market has plateaued, and the current environment is sustainable.
  • The company is continuing to drive down its cash breakeven level to ensure long term success.
  • The balance sheet is in terrific shape with a net positive cash position.
  • I rate ASC as a BUY.

Oil Tanker at Sea

HeliRy

Thesis

Ardmore Shipping Corporation (NYSE:ASC) has three key attributes that warrant a BUY rating.

First, the company is operating in a fundamentally advantaged shipping market for refined petroleum products. This allows the company to enjoy large operating margins.

Second, the


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *