D'Amico Group closed another year in the red
Its 2018 financial statement improved and its financial year loss decreased to 21 million, although cousins Paolo and Cesare had better expectations
In 2018, D’Amico Società di Navigazione Spa increased its revenues and reduced losses despite its decreased Ebitda. Incomes amounted to 711 million (against 678.7 million in 2017), its positive Ebitda amounted to 29.2 million (against 41.1 million), its negative Ebit amounted to 41 million (being already negative for 35.8 million) and the final result is still negative for 21 million, though it improved compared to the -44.6 million of 2017 and -98 million of 2016.
According to Paolo (Chairman) and Cesare d’Amico’s (CEO) annual report, “the group’s operating income improved, even though expectations for 2018 were definitely better. The dry market continued its 2017 trend, while the tanker market recovered after a weak first half of the year recording good rates in the second half of 2018. Expectations are still positive, and the results recorded in the first months of 2019 confirm it”.
With regard to the company performance related to dry bulk and container ships, the report reads that “thanks to the quality of d’Amico Group’s fleet, both in terms of design and performance, to the flexibility achieved through arbitrage policies and to a consolidated commercial network, the company managed to exploit the market in its most positive stages, thus improving its average Time Charter Equivalent results compared to 2017 by 28% for the Capesize segment, by 18% for the Panamax/Kamsarmax segment, by 24% for the Supramax segment and by 20% for the Handy segment”.
As concerns tankers, the shipping group observed that, in the first 9 months of 2018, market conditions in all its sectors remained weak, mainly due to the tonnage oversupply related to a weakened demand. However, in the last quarter of the year, the market stabilised significantly.
At the end of 2018, time charter fees on the spot market amounted to 13,500 dollars per day for ordinary (not “Eco”) MR tankers, and to 15,000 dollars per day for “Eco” MR tankers.
Finally, according to D’Amico Società di Navigazione Spa’s annual report section focusing on shipping services, Ishima – the Singapore-based 100% subsidiary providing technical assistance services both to the Group’s ships and to third-party units – increased its profits achieving some 3.2 million euro.
Also the brokerage activity related to bunker fuel purchases and managed by the Monaco-based company Rudder (85% subsidiary) closed the 2018 financial year with a positive contribution to its consolidated result. Similarly, the Italian manning company Sirius Ship management (78% subsidiary) closed its financial statement with a positive result amounting to some 233,000 euro.