The Board of Directors of d’Amico International Shipping S.A., a leading international marine transportation company operating in the product tanker market, examined and approved the Company’s half-year and second quarter 2026 consolidated financial results.
MANAGEMENT COMMENTARY
Carlos Balestra di Mottola, Chief Executive Officer of d’Amico International Shipping, commented: “d’Amico International Shipping delivered a very strong performance in both the second quarter and the first half of 2026, generating a net profit of US$ 51.9 million in Q2 and US$ 79.4 million in H1, compared with US$ 19.6 million and US$ 38.5 million, respectively, in the corresponding periods of 2025. Thanks to a buoyant product tanker market and our effective commercial strategy, we achieved a record average daily spot TCE rate of US$ 57,547 in Q2 2026 and US$ 44,247 in H1 2026, representing increases of 135% and 95%, respectively, compared with the corresponding periods of last year. In addition, 63.7% of our employment days in H1 2026 were covered by time-charter contracts at an average daily TCE rate of US$ 23,646. Consequently, our total blended daily TCE, including both spot and time-charter contracts, 2 amounted to US$ 35,833 in Q2 2026 and US$ 31,125 in H1 2026, compared with US$ 23,922 and US$ 23,214, respectively, in the corresponding periods of 2025.
Geopolitical developments had a significant impact on global energy and tanker markets during the second quarter of 2026, while the renewed escalation of tensions in recent weeks has created further uncertainty. The conflict in Iran and the resulting severe disruption to oil flows through the Strait of Hormuz, through which approximately 20 million barrels per day of crude oil and refined products transited before the conflict, caused the largest oil supply disruption on record. Product tanker demand benefited from the need to replace disrupted Middle Eastern product supplies with cargoes from alternative refining centres. The resulting reconfiguration of global trade flows, longer voyage distances and vessel repositioning led to a brief surge in freight rates, which reached record levels. Despite considerable volatility and some easing from their peaks, freight rates remained at historically strong levels during the second quarter.
The interim agreement between the US and Iran, reached in June, led to a material, although incomplete, recovery in tanker transits through the Strait of Hormuz and a partial rebound in Gulf oil exports. However, the resurgence of hostilities and further attacks on commercial vessels have resulted in a renewed decline in traffic. Recent developments have also heightened risks around the Bab el-Mandeb Strait, another key maritime route for regional oil flows, which was critical in reducing the oil shortfall since the onset of the Iranian war, as crude was redirected through Saudi Arabia’s East-West pipeline and exported from Yanbu. A partial closure of this strait could markedly alter trade flows, increasing sailing distances for vessel repositioning and creating refined product shortfalls in Asia, which might have to be compensated by greater flows from the Atlantic basin, through Cape of Good Hope; these changes should reduce fleet productivity, boosting spot freight rates.
Given the rapidly evolving situation, the timing and extent of any sustainable normalisation remain difficult to assess. A sustained de-escalation and gradual restoration of Persian Gulf production and exports could initially support tanker demand through the release of locally accumulated inventories, further fleet repositioning and the rebuilding of depleted commercial and strategic stocks by importing countries. Conversely, a prolonged disruption could further reduce regional oil exports and seaborne trade, while pushing oil prices significantly higher once inventories approach critical levels, ultimately weighing on global economic growth and oil demand.
Beyond the Iranian conflict, other geopolitical factors continued to have a material impact on tanker markets. The war in Ukraine and the related sanctions regime continue to structurally reshape trade flows, redirecting Russian crude exports towards more distant destinations, while Europe sources replacement barrels from further afield. These dynamics have supported ton-mile demand, while the growing number of sanctioned vessels has reduced effective fleet availability and contributed to tighter freight market conditions. More recently, intensifying Ukrainian drone attacks on Russian refineries have curtailed the country’s refining activity and its product exports, prompting Russia to introduce a temporary ban on diesel exports to prioritise its domestic market. As one of the world’s largest diesel exporters, this further tightened global product markets, leading to a surge in refining margins, and an increase in demand for compliant tonnage.
Supply-side fundamentals also continue to provide structural support to the tanker market. The newbuilding orderbook has risen to 14.1% of the fleet for MRs and LR1s and to 23.6% for the overall tanker fleet (in dwt terms), as at the end of June 2026. 3 This increase in future supply is, however, partly offset by an ageing fleet on the water. As at the end of June 2026, 21.6% of the MR and LR1 fleet and 20.8% of the overall tanker fleet (in dwt terms) were over 20 years old, while 54.6% and 46.7%, respectively, exceeded 15 years of age. This ageing profile is expected to constrain effective fleet productivity and to support a gradual rebalancing of the market through increased scrapping, particularly in the event of weaker market conditions.
During the first six months of the year, we were particularly active in the sale and purchase market, consistent with our long-term strategy of managing a modern and fuel-efficient fleet. In this regard, we sold our two oldest and only remaining non-eco vessels. High Seas, a 2012-built MR, was sold for US$ 27.6 million and delivered to its buyer in April 2026, generating approximately US$ 27.0 million in net cash proceeds. High Tide, also a 2012-built MR, was sold for US$ 28.5 million, with delivery expected in Q4 2026 and estimated to generate approximately US$ 28.0 million in net cash proceeds.
In December 2025, DIS entered into a shipbuilding contract for two MR1 (40,000 dwt) product tankers, at a price of US$ 43.2 million each, scheduled for delivery in April and July 2029. This was followed in January 2026 by an order for two MR2 (50,000 dwt) vessels, at US$ 45.4 million each, scheduled for delivery in March and June 2029. In March 2026, DIS exercised options for two further MR2 vessels on the same terms, scheduled for delivery in August and October 2029. Designed to deliver materially enhanced fuel efficiency even compared with our existing eco-fleet, these six newbuildings are part of a broader investment programme of approximately US$ 512.3 million, spanning 10 vessels in total, including the LR1 tankers ordered in 2024 for delivery in the second half of 2027.
We are extremely pleased with the strong results achieved during the first half of the year and with the significant strengthening of DIS’ financial position, culminating in a net cash position at the end of June. Supported by our modern and competitive fleet, proven team and well-established strategy, we are well positioned to pursue our long-term objectives. These strengths give me confidence in DIS’ outlook and in our ability to continue generating attractive returns for our Shareholders. I would like to sincerely thank all our people for their continued commitment and contribution to our success.”
Federico Rosen, Chief Financial Officer of d’Amico International Shipping, commented: “DIS delivered an outstanding financial performance in the first half of 2026, generating a net profit of US$ 79.4 million, compared with US$ 38.5 million in H1 2025. Of this amount, US$ 51.9 million in net profits were generated in the second quarter, compared with US$ 19.6 million in Q2 2025. These results were underpinned by average daily spot TCE rates of US$ 44,247 in H1 and US$ 57,547 in Q2 2026, and by blended daily TCE rates, including both spot and time-charter contracts, of US$ 31,125 in H1 and US$ 35,833 in Q2. In the first half of the year, EBITDA reached US$ 105.8 million, corresponding to a margin of 67.2% on total net revenue, while operating cash flow amounted to US$ 87.2 million.
The profitability and cash generation recorded during the period enabled DIS to reach a net cash position of US$ 19.2 million at 30 June 2026, compared with a net debt of US$ 27.4 million at 31 December 2025. Excluding the US$ 1.8 million IFRS 16 effect, DIS’ net cash position was equivalent to 1.6% of the fleet’s market value at the end of June 2026, compared with net debt equivalent to 72.9% at the end of 2018. This substantial improvement reflects the disciplined deleveraging strategy pursued in recent years, supported by solid operating cash flow generation, selective vessel disposals and the increase in the market value of our fleet. 4 Our liquidity position remained robust, with cash and cash equivalents of US$ 231.7 million at the end of June, together with approximately US$ 20.8 million in available and undrawn short-term credit lines. This financial flexibility supports the execution of DIS’ newbuilding investment programme of approximately US$ 512.3 million across 10 vessels, while preserving our ability to respond to attractive market opportunities.
Maintaining a strong balance sheet is a core pillar of our strategy, providing the resilience required to navigate shipping cycles and the flexibility to pursue our investment plans with discipline. We remain focused on balancing investment in a modern and increasingly fuel-efficient fleet with prudent financial management and sustainable long-term value creation. This progress would not have been possible without the trust and continued support of our business and banking partners, as well as our Shareholders, all of whom I would like to sincerely thank.”