Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 6

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 3
Chunk 6
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 team.  

  Future sales of our common shares could cause the market price of our common shares to decline.  

  Exposure to currency exchange rate fluctuations could result in fluctuations in our operating results.  
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RISKS RELATED TO OUR INDUSTRY

The tanker industry is cyclical and volatile in terms of charter rates and profitability, which may affect our results of operations.

The tanker industry is both cyclical and volatile in terms of charter rates and profitability. A prolonged downturn in the tanker industry could adversely affect our ability to charter our vessels or to sell them. In addition, the rates payable in respect of any of our vessels operating in a commercial pool, or any renewal or replacement charters that we enter into, may not be sufficient for us to operate our vessels profitably. Fluctuations in charter rates and tanker values result from changes in the supply and demand for tanker capacity and changes in the supply and demand for oil, oil products and chemicals. The factors affecting the supply and demand for tankers are outside of our control, and the nature, timing and degree of changes in industry conditions are unpredictable.

Factors that influence demand for tanker capacity include:

  supply of and demand for oil, oil products and chemicals;  

  regional availability of refining capacity;  

  global and regional economic and political conditions;  

  the distance oil, oil products and chemicals are to be moved by sea;  

  changes in seaborne and other transportation patterns;  
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  environmental and other legal and regulatory developments;  

  weather and natural disasters;  

  competition from alternative sources of energy; and  

  international sanctions, embargoes, import and export restrictions, nationalizations and wars.  

Factors that influence the supply of tanker capacity include:

  the number of newbuilding deliveries;  

  scrapping rates of older vessels;  

  conversion of tankers to other uses;  

  the price of steel and other raw materials;  

  the number of vessels that are out of service; and  

  environmental concerns and regulations.  

Historically, the tanker markets have been volatile as a result of a variety of conditions and factors that can affect the price, supply and demand for tanker capacity. Demand for transportation of oil products and chemicals over longer distances was significantly reduced during the last economic downturn. In addition, from 2015 to 2019 high refined product inventory levels, continued supply of new vessels, and