Backed by robust profitability, product tanker player d’Amico International Shipping (DIS) announced its third dividend payment to shareholders in 11 months, on the back of record profitability last year.
The Milan-listed company posted on Thursday a net income of $192.2m for 2023, up 42% from the previous year.
Professing unwavering confidence “in the enduring positive fundamentals of the product tanker industry”, company chief executive Paolo d’Amico announced a $30m gross dividend payment to shareholders.
This is in line with comments about possible dividend increases made by management during the company’s previous financial earnings announcement in November.
DIS had made a $20m cash payout in November and another one over $22m in April. That compares with just $1.5m in dividends distributed for the full year of 2021 and $100,000 in 2020.
DIS has been making efforts to increase the visibility of its shares, notably by initiating parallel trading on the OTCQX Best Market.
In addition to dividends, the company bought back $7.1m worth of its own shares during 2023.
Dividends and share buybacks were instrumental in the company obtaining a “buy” rating from Fearnley Securities in December.
Red Sea journeys suspended
DIS owns 25 LR1, MR and handysize tankers and operates 10 more chartered-in on long-term, short-term or bareboat charter.
Changes in oil trade routes due to sanctions imposed on Russia continued stimulating demand for product tankers last year.
The market got a further boost in recent months from trade disruption in the Red Sea, in the wake of Houthi attacks against shipping.
DIS itself has decided recently to halt Red Sea transits and sail instead around the much longer route via the Cape of Good Hope.
Despite its overall profitability for the full year, net income growth reversed in the fourth quarter, during which profit dropped at an annual pace of 40% to $43.5m.
DIS said earlier this week it will book a $20.5m cash infusion from the $27.4m sale of its oldest ship, the 47,200-dwt Glenda Melanie (built 2010), to undisclosed interests — possibly China’s Xintong Shipping.
DIS, however, can also grow in the next months and years through very attractively priced purchase options on seven of its operated ships.
