Ardmore Shipping Corp (ASC), Golar LNG Limited (USA) (GLNG): Two Ways to Beat the Maritime Industry Doldrums

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During the second quarter, Ardmore Shipping Corp (NYSE:ASC)’s adjusted EBITDA rose year over year by $0.9 million to $3 million.The company’s prospects for a further earnings improvement  look good as the company recently accepted delivery of its second newbuilding, which was immediately employed under a one-year charter with Cargill International. One of its tankers also had its contract renewed at a higher daily rate while another has been contracted to a third party spot chartering agreement.

Attractive valuation

Similarly, Golar LNG Limited (USA) (NASDAQ:GLNG) expects significant improvement in its 2013 third quarter with the increased charter rates for two of its tankers and recent drydocking completed. Net income in the 2013 second quarter slipped to $28 million from the $30.3 million a year earlier mainly due to drydocking.

As encouraging, the company declared a dividend of $0.515 and generated distributable cash flow of $26.4 million for the 2013 second quarter.Currently trading with a  P/E ratio of 3 and at about 5% below its price last year, Golar LNG Limited (USA) (NASDAQ:GLNG) appears an inexpensive entry point to the upbeat prospects for LNG tankers.

To recap, Ardmore Shipping Corp (NYSE:ASC) and Golar LNG Limited (USA) (NASDAQ:GLNG) are value plays to gain a foothold in the budding opportunities in the maritime industry. Global shipping has a vital role in shaping the fortunes of the world economy, and investors well positioned in this sector should benefit in the long term.

The article 2 Ways to Beat the Maritime Industry Doldrums originally appeared on Fool.com and is written by Arturo Cuevas.

Arturo Cuevas has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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