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 Third Interim Management Statements as at September 30, 2026 (Q3 and 9M 2026 consolidated financial results).
NINE MONTHS 2026 RESULTS
• Time charter equivalent earnings (TCE) of US$ 222.0 million (US$ 196.6 million in 9M’25)
• Total net revenue of US$ 225.7 million (US$ 200.2 million in 9M’25)
• Gross operating profit/EBITDA of US$ 145.9 million (64.7% of total net revenue) (US$ 112.5 million in 9M’25)
• Net result of US$ 107.2 million (US$ 62.8 million in 9M’25)
• Adjusted net result (excluding non-recurring items) of US$ 101.6 million (US$ 67.1 million in 9M’25)
• Cash flow from operating activities of US$ 136.6 million (US$ 132.2 million in 9M’25)
• Net cash position of US$ 56.6 million (US$ 58.3 million excluding IFRS 16) as at 30 September 2026 (Net debt of US$ 27.4 million as at 31 December 2025)
THIRD-QUARTER 2026 RESULTS
• Time charter equivalent earnings (TCE) of US$ 67.0 million (US$ 66.8 million in Q3’25)
• Total net revenue of US$ 68.2 million (US$ 68.0 million in Q3’25)
• Gross operating profit/EBITDA of US$ 40.2 million (58.8% of total net revenue) (US$ 39.2 million in Q3’25)
• Net result of US$ 27.8 million (US$ 24.3 million in Q3’25)
• Adjusted net result (excluding non-recurring items) of US$ 26.9 million (US$ 24.3 million in Q3’25)
MANAGEMENT COMMENTARY
Carlos Balestra di Mottola, Chief Executive Officer of d’Amico International Shipping, commented: “d’Amico International Shipping delivered strong results in the third quarter and the first nine months of 2026, reporting net profits of US$ 27.8 million and US$ 107.2 million, respectively, compared with US$ 24.3 million and US$ 62.8 million in the corresponding periods of 2025. Our average daily spot TCE rate reached US$ 34,940 in Q3 2026 and US$ 41,094 in the first nine months of the year, 37% and 75% higher, respectively, than in the corresponding periods of 2025. At the same time, we maintained substantial fixed rate coverage, with 63.2% of our employment days during the first nine months of 2026 secured through 1 period contracts at an average daily TCE rate of US$ 23,402. As a result, our blended daily TCE, comprising both spot and time-charter employment, averaged US$ 27,446 in Q3 2026 and US$ 29,911 in the first nine months of 2026, compared with US$ 24,335 and US$ 23,583, respectively, in the corresponding periods of 2025.
Geopolitical developments remained a major driver of global energy and tanker markets throughout the third quarter of 2026. The conflict in Iran and the associated disruption to oil flows through the Strait of Hormuz continued to reshape global trade patterns and generate considerable freight market volatility. Following the surge in freight rates associated with the reconfiguration of trade flows at the onset of the conflict, the market was softer albeit at still historically high levels in July and August, as the lack of refined volumes played a more prominent role in freight rate formation.
Middle Eastern oil exports, however, recovered substantially from August, although remain erratic and vulnerable to renewed disruption. Over the last four weeks, average crude and product flows transiting Hormuz reached approximately three-quarters of their pre-conflict levels; If we account also for the redirected barrels (to Yanbu, Fujairah and Ceyhan), the recovery in oil exports from the Persian Gulf over this period has been closer to 90%. Ship-to-ship transfers in the Gulf of Oman and further afield, which often involve extended waiting times, as well as vessel repositioning and the routing of certain Red Sea exports via the Cape of Good Hope, continued to reduce effective fleet availability and support freight rates. A recent resurgence in attacks on regional energy infrastructure and commercial vessels, nevertheless highlights the fragility of this recovery and the persistent risks affecting key maritime routes.
The strength of the crude markets, has continued drawing LR2 vessels into that trade, substantially contracting the product tanker fleet available for transporting clean cargoes. That coupled, with the ongoing increase in product exports, especially from China, as additional crude exports reaches refineries, the critically low stocks of certain refined products, and the resulting high refining margins and wide trading arbitrages on certain routes, should further stimulate product freight markets in the coming months, which have again reached record levels recently.
It is today difficult to predict by when a lasting peace agreement in Iran and a resulting normalization of trade flows in the area might occur. While such an event would eliminate some important inefficiencies in the market, increasing effective fleet supply, it would also spur a much-needed oil restocking phase, substantially boosting volumes transported. It is likely stocks will need to rise to higher levels than prior to when the Iran war started as both exporting and importing countries realise the importance for them of having access to oil outside of Hormuz. In this respect, the anticipated increase in oil production from the Americas as well as the UAE’s decision to leave OPEC, should contribute to a well-supplied market in the coming years.
Geopolitical developments outside the Middle East also continued to materially influence the tanker markets. The war in Ukraine and the associated sanctions framework continue to alter established trade patterns, directing Russian crude exports towards more distant locations and requiring Europe to source replacement barrels from further afield. This has supported ton-mile demand, while the increasing number of sanctioned vessels has constrained the availability of tonnage for compliant trades and contributed to tighter freight market conditions. Continued Ukrainian attacks on Russian refineries have reduced the country’s refining activity and product exports. According to the IEA, Russian product exports declined to approximately 1.2 million barrels per day in September, around 1.1 million barrels per day below the level recorded a year earlier. The October diesel supply agreement between the United States and Russia could 2 facilitate a partial recovery in exports. However, its impact on the global diesel market balance is expected to be limited by the constrained capacity of Russia’s refining system. The continuing shortfall in Russian middle-distillate exports has further tightened global product markets, increasing the need for replacement cargoes from alternative suppliers.
On the supply side, the newbuilding orderbook has continued to expand. At the end of September 2026, it represented 16.2% of the existing Handy, MR and LR1 fleet and 26.1% of the overall tanker fleet, in dwt terms. The prospective increase in vessel supply is partly mitigated by the ageing profile of the fleet currently on the water. At the end of September 2026, 22.5% of the Handy, MR and LR1 fleet and 21.3% of the overall tanker fleet, in dwt terms, were 20 years old or older, while 54.7% and 47.4%, respectively, were over 15 years old. Fleet ageing may constrain vessel productivity and encourage higher demolition activity, particularly if freight market conditions weaken, thereby contributing to a gradual rebalancing of supply.
We continued to actively manage our fleet during 2026, in line with our long-term strategy of controlling modern, fuel-efficient vessels. This included the sale of our two oldest and only remaining non-eco vessels. High Seas, a 2012-built MR vessel, was sold for US$ 27.6 million and delivered to its buyers in April 2026, generating net cash proceeds of approximately US$ 27.0 million. High Tide, also a 2012-built MR vessel, was sold for US$ 28.5 million and delivered to its buyers in early November 2026, generating net cash proceeds of approximately US$ 28.0 million.
Our fleet renewal plan currently comprises 10 newbuildings, representing a total investment of approximately US$ 512.3 million. The programme includes four LR1 vessels ordered in 2024 and scheduled for delivery during the second half of 2027, as well as six highly fuel-efficient MR product tankers due for delivery in 2029. The latter comprise two 40,000 dwt MR1 vessels, contracted in December 2025 at a price of US$ 43.2 million each, with delivery scheduled for April and July 2029, and four 50,000 dwt MR2 vessels, ordered between January and March 2026 at a price of US$ 45.4 million each, with delivery scheduled between March and October 2029. The six MR newbuildings are designed to deliver significant fuel efficiency improvements even compared with our existing eco-fleet, further strengthening our operational competitiveness.
We are very pleased with DIS’ strong performance in the first nine months of 2026 and the further strengthening of our balance sheet, allowing us to reward our Shareholders with an interim gross dividend of US$ 0.3360 per share. Our modern and efficient fleet, solid financial position, experienced team and disciplined capital allocation strategy provide a strong foundation for navigating future market cycles while generating substantial value for our Shareholders.”
Federico Rosen, Chief Financial Officer of d’Amico International Shipping, commented:
“DIS recorded a net profit of US$ 107.2 million in the first nine months of 2026, compared with US$ 62.8 million in the corresponding period of 2025. Third-quarter net profit amounted to US$ 27.8 million, up from US$ 24.3 million in Q3 2025. This strong profitability reflected average daily spot TCE rates of US$ 41,094 in the first nine months of 2026 and US$ 34,940 in Q3, while blended daily TCE rates, comprising both spot and time-charter employment, averaged US$ 29,911 and US$ 27,446, respectively. EBITDA for the first nine months of the year amounted to US$ 145.9 million, representing 64.7% of total net revenue, while operating cash flow reached US$ 136.6 million.
The strong profitability and cash flow generated during the period further strengthened DIS’ balance sheet, resulting in a net cash position of US$ 56.6 million at 30 September 2026, compared with net debt of US$ 3 27.4 million at 31 December 2025. Excluding US$ 1.7 million of lease liabilities arising from IFRS 16, DIS’ net cash position amounted to US$ 58.3 million, equivalent to 4.3% of the fleet’s market value, at the end of September 2026. This compares with net debt equivalent to 72.9% of the fleet’s market value at the end of 2018 and reflects the significant transformation of our financial position over recent years, driven by strong operating cash flow generation, disciplined balance sheet management and selective vessel disposals.
DIS maintained a strong liquidity position, with cash and cash equivalents of US$ 265.4 million at the end of September 2026, together with approximately US$ 20.8 million in available and undrawn short-term credit lines. This financial flexibility supports a balanced capital allocation strategy, enabling us to meet our commitments under the approximately US$ 512.3 million newbuilding programme, preserve the capacity to pursue attractive market opportunities and return capital to our Shareholders. In this context, the Board approved the distribution of an interim gross dividend of US$ 0.3360 (US$ 0.2856 net, after deducting the maximum applicable withholding tax of 15%) per issued and outstanding share, with payment scheduled in November 2026.
Looking ahead, we will continue to apply a disciplined approach to capital allocation, balancing investment in the long-term competitiveness of our fleet with financial flexibility and sustainable Shareholder returns. Our financial position enables us to pursue these priorities while remaining responsive to evolving market conditions.”