Product Tankers Continue to Benefit from "the New Oil Market"

by Ship & Bunker News Team
Monday January 18, 2016

Anthony Gurnee, CEO at Ardmore Shipping Corporation (Ardmore) [NYSE: ASC] Thursday reaffirmed the company's bullish outlook for the product tanker market that was preciously offered in October.

"We continue to be bullish on the outlook for the product tanker market, which is benefiting from the on-going impact of the new oil market and strong underlying fundamentals that are driving an increasing disparity between tonne mile demand growth and a declining MR (Medium Range) orderbook," said Gurnee.

Ardmore says that the winter market strengthened towards the end of 2015's fourth quarter, a trend that it notes has continued into the 2016 year with average global spot rates of $20,000 per day seen for MR tankers on a time charter equivalent basis.

"With our substantial year-on-year increase in revenue days for 2016, a strong charter rate environment for our high-quality MR tanker fleet, and an improved cost of capital as a result of this successful refinancing, Ardmore is well positioned to continue generating strong returns and creating substantial value for shareholders," concluded Gurnee.

Also last week the company refinanced its outstanding debt.

Ship & Bunker News Team
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