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The floating oil storage and tanker trade thesis continues to get a lot of investor attention, even as many start to fear the trade is over and the air has gone out of the balloon. Ardmore Shipping (ASC), a product tanker, is down nearly 15% since reporting earnings last week, as concerns creep up about future shipping rates.
J Mintzmyer of Value Investor's Edge spoke with Ardmore Shipping's CEO, Anthony Gurnee, and their CFO, Paul Tivnan, in the afternoon after the report. They discussed the results, the current outlook, and long-term prospects.
- 1:00 minute mark - What’s the underlying trade in the product tanker markets?
- 2:30 - Thoughts on broker rates versus actual ‘market levels?’
- 5:30 - Difference in voyages in progress versus completed QTD?
- 6:30 - Thoughts on chemical side of the business, rates coming in lower?
- 8:45 - Shift in dividend policy, shift to deleveraging?
- 12:00 - Is Ardmore aligned? Can we trust you not to blow money on ships?
- 16:00 - At what point do you have to repurchase shares?
- 18:30 - Repurchases versus secondhand vessel acquisitions.
- 22:00 - Review of normalized ROA and ROE?
- 23:15 - Review of normal average MR product market?
- 27:00 - How do you communicate a ‘normalized value’?
- 30:15 - Visibility and thoughts on product floating storage volumes?
- 32:00 - Indications from customers/markets regarding terminal capacity?
- 34:30 - Parting thoughts for investors in Ardmore or product tankers?
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