Product tanker owner and operator d’Amico International Shipping S.A ended the year in the red amid challenging market conditions.
The company reported a net loss of USD 38.1 million for 2017 or USD 27.2 million excluding an impairment registered on three vessels held for sale in 2018.
The loss more than doubled when compared to the figures reported for 2016 when the full-year loss came at USD 12.8 million.
Rates were weak in 2017 for product tankers as the market was depressed by still high global product inventories, low trading activity and supply disruptions in the Atlantic during the hurricane season, the company explained.
DIS’ daily spot rate was USD 12,026 in the full-year 2017 vs. 13,302 in the full-year 2016.
The company maintains a positive market outlook for 2018 and 2019, with all the main fundamentals pointing in the right direction’
“It is difficult to forecast the exact timing of the recovery but, as our peers and segment analysts, I am firmly convinced the product tanker market is finally heading towards a positive cycle. In fact, all the fundamentals are pointing in the right direction, with all the variables aligned for rate improvements. In particular, a strong oil consumption is expected for 2018, also on the back of the estimated growth in global economic activity. This will obviously contribute to a more robust demand for the seaborne transportation of refined products,” Marco Fiori, Chief Executive Officer of d’Amico International Shipping, said.
Furthermore, the high level of product inventories, which has been depressing demand for the last two years, seems to be finally coming to a more manageable level.
In addition, the net fleet growth is expected to be 2.1 pct for 2018 and 1.7 pct for 2019, among the lowest growth rates in 15 years.
Since the beginning of this year, the company took delivery of a product tanker newbuilding, M/T Cielo di Rotterdam, built by Hyundai Vinashin Shipyard, as part of its series of 22-strong Eco-design newbuilding program.
Four ships remain to be delivered to DIS from the series. In February 2018, the company agreed with Hyundai Mipo Dockyard to take the delivery of one vessel in January 2018, two vessels in July 2018 and the last two vessels in January 2019.
“By January 2019, DIS will have completed its long-term investment plan and will position itself on the market with one of the youngest and most versatile product tanker fleets, to meet the requirements of our top-quality customer base,” Fiori added.