Italy’s d’Amico International Shipping (DIS) has reaped the rewards of the best quarterly spot rates in its history.
The Milan-listed company logged a net profit of $66.5m in the second quarter, up from $45.7m a year earlier.
Total net revenue rose to $107.7m, up from $98.4m.
Daily spot rates in the second quarter were $44,949 per day.
That marked a 42% rise from the same quarter of last year and “corresponds to our highest quarterly spot result in history”, said chief executive Carlos Balestra di Mottola.
Total blended daily spot and time charter rates reached $37,698 in the second quarter, compared with $30,831 in the same quarter last year.
“DIS is capitalising on favourable conditions in the product tanker sector, driven by limited fleet growth, rising global oil trade and trade disruptions,” Balestra di Mottola said.
“Attacks by Houthis in the Red Sea and Gulf of Aden have forced most operators, including DIS, to reroute vessels via the Cape of Good Hope, increasing average distances sailed.
“Furthermore, the war in Ukraine has impacted oil markets, with EU sanctions and the associated price cap on Russian exports, reshaping trade flows.
“Russian exports to the EU have decreased, while shipments to China, India, Turkey and other regions have increased, resulting in longer sailing times.”
Stellar first half
DIS logged profits of $122m in the first half of 2024, up from $99.8m last year.
The daily spot rates in the first six months were $41,404, a 21% increase from $34,216 last year.
The product tanker sector is benefiting from structural long-term trends, Balestra di Mottola noted.
“Although vessel orders have increased, market participants remain cautious about newbuilds due to rising costs, technological uncertainties and limited shipyard availability, leading to delivery times often beyond 2027,” he said.
DIS revealed last week that it had torn up a purchase deal agreed in April after Greek owner Evangelos Marinakis’ Capital Maritime & Trading failed to hand over the 50,100-dwt MR tanker Amfitrion (built 2017) in time.
The deal was cancelled because of the “sellers’ failure to comply with the latest possible delivery date of the vessel”.
That has not prevented DIS from going ahead with renewal of its fleet of 33double-hulled product tankers, most of which are MRs and handysizes.
In April, it pushed through the sale of its oldest ship, the 47,200-dwt Glenda Melanie (built 2010), for $27.4m.
It then launched into the LR1 sector with a $232.2m order for four 75,000-dwt vessels at China’s Jiangsu New Yangzi Shipbuilding, scheduled for delivery in July and December 2027.
In June, the company exercised a purchase option on the 51,500-dwt Crimson Jade (built 2017) for $31m — 30% below market value.
Paolo d’Amico stood aside as chief executive in April to become chairman.
