Ardmore Shipping Orders Two IMO2 Tankers at $44.9M Each and Raises Dividend Payout
Ardmore ordered two 40,500 dwt IMO2 product/chemical tankers at $44.9 million each with deliveries from late 2028 and options for two more vessels. The company will double its dividend payout ratio to two-thirds of adjusted earnings from 1Q 2026 and agreed to sell a 2014-built MR tanker for $35.5 million.
1. Fleet Investment Plans
Ardmore signed contracts at Wuhu Shipyard to build two 40,500 dwt IMO2 product/chemical tankers at $44.9 million each, inclusive of $3 million for full IMO2 specifications and MarineLine coatings. The agreement includes options for two additional vessels on identical terms, with deliveries commencing in late 2028 alongside performance and safety upgrades.
2. Dividend Payout Increase
Effective 1Q 2026, Ardmore will double its dividend payout ratio to two-thirds of adjusted earnings, enhancing shareholder returns through a more aggressive capital allocation framework while maintaining financial flexibility.
3. Vessel Sale Transaction
The company agreed to divest a 2014-built MR tanker for $35.5 million, with delivery scheduled in June 2026, demonstrating disciplined fleet management and capital recycling amid favorable market valuations.
4. TCE Rate Update
Preliminary Time Charter Equivalent rates for 1Q 2026 reached $33,700 per day on MR tankers across 1,310 revenue days and $22,300 per day on chemical tankers across 319 days. For 2Q 2026 to date, spot MR rates average $50,000 per day with 50% fixed, and chemical tankers average $32,100 per day with 65% fixed commitments.