d’Amico Sees ‘Strongest’ Returns in Years

Image Courtesy: d'Amico

Italian-listed ship operator d’Amico International Shipping (DIS) has reported its net income at USD 54.4 million for the full year of 2015, compared to a net loss seen a year earlier, representing the company’s best results since 2009.

During the fourth quarter of 2015, d’Amico recorded a net income of USD 9.9 million, while the company saw a net loss of USD 5.4 million in the corresponding period in 2014.

“Thanks to a very favourable product tanker market, DIS achieved a daily spot rate of USS 18,814 for FY 2015, which corresponds to a year-on-year 37% increase. Product tanker spot rates were particularly strong in the first three quarters of the year and eased early in the fourth quarter mainly due to the refinery maintenance in the US Gulf, which resulted in a temporary drop in volumes. The spot market picked up again in the latter part of Q4 and going into early 2016,” Marco Fiori, Chief Executive Officer of d’Amico International Shipping, said.

Time charter equivalent earnings were at USD 310.7 million vs. USD 212.5 million in 2014, benefitting from the very strong product tanker market which characterized 2015. The company’s quarterly TCE earnings reached USD 67.6 million, representing a slight increase compared to USD 65.1 million reported in the fourth quarter of 2014.

2015 TCE earnings were at USD 310.7 million

“In this positive market environment, I think DIS has planned a very well-timed growth, ordering 22 newbuildings at historically low prices,” Fiori added.

d’Amico said that it maintained a high level of coverage throughout the year, securing an average of 46% of its revenue at a daily average fixed rate of USD 15,214.

In January 2016, d’Amico Tankers signed two time charter contract extensions for a period of one year. In the same month, the company expanded its fleet with an Eco newbuilding Medium Range tanker. The 50,000 dwt M/T High Trust, built by Vietnamese Hyundai Vinashin Shipyard, will start its three-year charter deal with an oil company in March 2016.

d’Amico said that the key drivers expected to affect the company’s performance in 2016 are global oil demand, worldwide GDP growth and its large fleet.