Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 67

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 4
Chunk 67
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 December 2024, a five-year-old MR product tanker was estimated to be valued at $47.5 million.

The second-hand sale and purchase market, traditionally characterized by liquidity, has generally mirrored the trajectory of freight rates and newbuilding prices. Second-hand prices peaked in 2008 and declined significantly during 2008-2020. In 2022, the uptrend in newbuild tanker prices, coupled with higher demolition prices, pushed up second-hand vessel prices. In 2023, buoyed by the strong charter rates, second-hand prices increased in tandem with newbuild prices. The trends in newbuilding prices, second-hand values, and freight rates for an MR tanker from 2014 to 2024 are summarized in the table below.

Table of Contents

MR Product Tankers: Freight Rate and Asset Value Summary

                        Spot TCE      Time charter (U. S.$/day)                  Asset Prices (U. S.$million)                  
  Period Averages      (US$/day)                         1 Year      3 Year                          Newbuild      5 Year Old  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  2014                     9,833                         14,438      15,417                              36.9            27.1  
  2015                    18,375                         17,271      16,458                              36.1            25.8  
  2016                     9,767                         15,125      15,354                              33.1            24.8  
  2017                     9,158                         13,188      14,333                              32.7            23.4  
  2018                     9,299                         13,175      14,500                              35.3            26.5  
  2019                    14,592                         14,667      15,500                              36.0            28.8  
  2020                    18,551                         14,879      15,083                              34.8            28.0  
  2021                     6,398                         12,442      14,500                              37.3            27.8  
  2022                    35,638                         20,317      15,042                              42.4            34.4