d’Amico International Shipping started the year in red
Despite the first quarter 2018 financial results showed a loss, the Italian company’s management is still confident about the tankers’ market next reprise
The Board of Directors of d’Amico International Shipping S.A. examined and approved the first
quarter 2018 financial results, that showed showed a loss of 3.6 million USD; however, the Italian company’s management is still confident about the tankers’ market next reprise
“We posted a loss in a still relatively soft market. In particular, DIS’ daily spot average was of 12,726 USD is substantially in line with the same quarter of last year (4.8% lower) but considerably better than the average of the previous three quarters (11,677 USD). As usual, our long-term strategy of having a high level of time-charter coverage mitigated the subdued spot market. In fact, our coverage of 15,001 USD/day on 31.7% of our total vessel days led us to achieve a total blended daily TCE (spot and time-charter) of 13,446 USD which is rather satisfactory level given the current market scenario” Marco Fiori, Chief Executive Officer of d’Amico International Shipping S.A. commented.
“As I have been saying for several months, I do think all the macro variables are pointing towards a market rebound, and I think it is now only a matter of timing. Demand for seaborne transportation of refined products is expected to grow strongly in the next years, also on the back of the estimated increase in global economic activity. A significant share of the new world refining capacity is planned in the Middle East and away from some of the key areas of demand. This trend has been driving ton-mile demand for product tankers and is expected to strengthen with the new export oriented refinery capacity coming on line. At the same time, the level of product inventories that have been putting pressure on freights since 2016, is now back in-line with the 5 year average. These positive factors on the demand side are coupled with a very limited supply growth, with amongst the lowest fleet expansions in 15 years expected in the near future (1.9% for 2018 and 1.7% for 2019). DIS’ prudent commercial strategy mitigated the negative effects of the challenging markets experienced in the last couple of years. Our long-term investment plan, as well as the initiatives to strengthen our balance sheet and liquidity position, will put us in a favourable position to benefit from the market rebound that we are all expecting” Fiori concluded.