Buoyant freight rates have helped d’Amico International Shipping (DIS) return to profit, and it expects to keep benefiting from strong markets for years to come.
On Thursday, the Italian owner and charterer of 35 product tankers reported second-quarter net income of $25.7m, reversing a $5.4m loss in the same period last year.
“We expect to continue benefiting from strong markets for several years, due to the very positive fundamentals for our industry, both on the demand and the supply side,” chief executive Paolo d’Amico said in an earnings release.
“Starting from the end of the first quarter, the outbreak of the war in Ukraine has been having a significant impact on the tanker markets.”
With official restrictions on seaborne Russian oil into Europe not coming into force until the end of the year, “current market imbalances could worsen in the coming quarters, providing further support to freight rates”, d’Amico added.
The recovery is visible in net revenue, which soared to $74m in the second quarter from $46.1m a year earlier.
The average spot rate more than doubled to $28,687 per day, up from $12,720 a year ago.
DIS said it had 42% of vessel days covered in the first half at an average daily rate of $15,158, giving a blended total time charter equivalent figure for spot and term deals of $18,559 per day.
It said it has completed a fleet renewal in which it ordered and took delivery of 22 newbuildings over the past few years for an outlay of about $750m.
