The Board of Directors of d’Amico International Shipping, a leading international marine transportation company operating in the product tanker market, today examined and approved the Company’s first quarter 2025 consolidated financial results.
- Time charter equivalent earnings (TCE) of US$ 62.9 million (US$ 104.1 million in Q1’24)
- Total net revenue of US$ 64.1 million (US$ 105.3 million in Q1’24)
- Gross operating profit/EBITDA of US$ 34.4 million (53.7% on total net revenue) (US$ 76.1 million in Q1’24)
- Net result of US$ 18.9 million (US$ 56.3 million in Q1’24)
- Adjusted Net result (excluding non-recurring items) of US$ 19.2 million (US$ 56.7 million in Q1’24)
- Cash flow from operating activities of US$ 45.2 million (US$ 76.9 million in Q1’24)
- Net debt of US$ 114.0 million (US$ 111.7 million excluding IFRS16) as at 31 March 2025 (US$ 121.0 million and US$ 117.7 million excluding IFRS16, as at 31 December 2024)
Carlos Balestra di Mottola, Chief Executive Officer of d’Amico International Shipping commented:
“I’m pleased to report another very profitable quarter for DIS. While results were not as strong as the exceptional performance seen in the same period last year, they continue to reflect the strength of the product tanker market during the first three months of 2025. DIS posted a consolidated net profit of US$ 18.9 million, compared with US$ 56.3 million in Q1 2024. Our daily spot rate averaged US$ 21,154 in Q1’25, versus US$ 38,201 in the prior year, reflecting a softer but still healthy market. Additionally, in Q1’25 we secured 39.6% of our employment days under time-charter contracts at an average TCE of US$ 24,567, resulting in a blended daily TCE of US$ 22,507 during the period, compared with US$ 34,043 in Q1’24. DIS continued to benefit from solid underlying market conditions, supported by ongoing trade disruptions, limited fleet growth, and evolving oil flows.
The diversion of vessels around the Cape of Good Hope, due to hostilities in the Bab-el-Mandeb strait, and EU sanctions on Russian oil, reshaped global trade routes, increasing average voyage distances, thereby supporting ton-mile demand. While fundamentals softened recently due some temporary headwinds such as reduced Chinese crude imports, and weaker refining margins, earnings remained well above historical norms. Looking ahead, although potential peace agreements in Ukraine and Gaza could restore some logistical efficiency, we believe underlying supply tightness, reconfigured trade patterns, and regulatory pressures will continue to support a healthy market. Notably, even if Suez Canal transits normalize or sanctions on Russia were lifted, mitigating factors such as higher European imports from Asia and the Middle East, or the scrapping of ageing tonnage in the shadow fleet, should continue to sustain the market. Additionally, tighter U.S. restrictions on Iranian oil exports could shift volumes to non-sanctioned producers, benefiting VLCC demand with positive knock-on effects across other tanker segments.
We also welcome the recent clarification from the U.S. Trade Representative on the proposed port fees for Chinese-built vessels. The revised policy is now more targeted, applying only to Chinese-built ships physically calling at U.S. ports, with exemptions for those arriving in ballast and for vessels below certain size thresholds. As DIS currently does not operate any Chinese-built tankers and most of our vessels fall under the exemption limits of ≤55,000 dwt, we do not expect to be impacted. An additional exemption for vessels with a bulk capacity equal to or lower than 80,000 dwt, might also apply to tankers, implying also our LR1 newbuild orders are exempted. Over time, this regulation may support market fundamentals by reducing appetite for new orders at Chinese shipyards, which account for a significant share of global construction capacity.
Geopolitical developments have played a major role in shaping recent freight trends, yet core industry fundamentals remain solid. While due to a weaker macroeconomic outlook amid heightened trade tensions, oil demand growth has been slowing down and is estimated by the IEA to be of only 0.7 mb/d in 2025, the continued eastward shift in refining capacity should help sustain long-haul product flows and ton-mile demand for product tankers.
We have also recently witnessed an improving trend in refining margins, particularly in the US Gulf, driven also by the recent steep drop in oil prices. Furthermore, non-OPEC production continues rising, and recently OPEC+ countries accelerated unwinding production cuts, with a combined increase in quotas for May and June ’25 of 822 kb/d. While the actual production increase over these two months is likely to be smaller and of around 355 kb/d, since several OPEC+ countries were already exceeding their quotas, the oil market is expected to be oversupplied and part of the forward oil price curve has already moved into contango; this trend could become more pronounced in the coming months, with very positive spillover effects for the tanker market, as seen in 2015 and again in 2020.
Furthermore, the tariffs recently imposed on LPG imports from the US by China, should drive additional demand for Naphtha as a feedstock for the petrochemical industry, benefitting product tankers. On the supply side, while tanker newbuild ordering increased in recent years, momentum has slowed significantly. Only 10 MR and LR1 vessels were ordered in Q1 2025, compared to 42 in the same period last year. The orderbook for MRs and LR1s now stands at 15.0% of the current trading fleet (in dwt), with deliveries spread over multiple years. A broader view across all tanker segments shows a lower orderbook-to-fleet ratio of 13.7%, suggesting manageable fleet growth. At the same time, the global fleet is ageing rapidly: as at the end of April 2025, 17.2% of MR and LR1 vessels (17.5% of the total tanker fleet) were over 20 years old. Furthermore, as at the same date, over 51% of MR and LR1 tonnage (41.6% of the total tanker fleet) was older than 15 years. This ageing dynamic will increasingly constrain fleet productivity and will likely accelerate demolitions in the coming years as a growing number of tankers reach their 25th anniversary. During the first quarter, we continued executing our strategy of gradually increasing time-charter coverage, to enhance earnings visibility and reduce exposure to market volatility. We secured several profitable time-charter agreements with top-tier counterparties, covering approximately 52% of our available days between Q2 and Q4 ’25 at a TCE of roughly US$ 23,760/day, and 21% of our available days in ’26 at a TCE of approximately US$ 24,730/day.
Thanks to our modern, efficient, and well-maintained fleet, robust financial structure, experienced management team, and disciplined commercial strategy combining time-charter coverage and spot exposure, I am confident that DIS is well positioned to continue delivering strong results. We remain ready to face upcoming challenges and seize future opportunities, always with the aim of creating long-term value for our shareholders.”
Federico Rosen, Chief Financial Officer of d’Amico International Shipping commented:
“The first quarter of the year saw DIS deliver a net profit of US$ 18.9 million. While lower than the US$ 56.3 million recorded in the same period last year, this remains a strong result, reflecting the continued resilience of the product tanker market despite a challenging and rapidly evolving macroeconomic and geopolitical landscape. Our EBITDA reached US$ 34.4 million, with a margin of 53.7% on total net revenue, and we generated solid operating cash flow of US$ 45.2 million.
DIS continues to benefit from a strong financial foundation. As of March 31, 2025, our net financial position improved to US$ 114.0 million, with cash and cash equivalents totaling US$ 163.1 million, compared to US$ 121.0 million at year-end 2024. As at the same date, the ratio between our net financial position (excluding IFRS 16 effects) and the market value of our fleet, stood at just 10%, a significant reduction from 72.9% at the end of 2018, underscoring the success of the deleveraging strategy we have pursued in recent years.
As we have consistently emphasized, maintaining robust financial resources is essential in our industry. It enables us to maximize shareholder returns while preserving the flexibility to act opportunistically and counter-cyclically when attractive opportunities arise. At the same time, we are executing a disciplined commercial strategy, with prudent time-charter coverage that ensures earnings visibility and reduces exposure to market volatility.
In an uncertain global context, our financial strength and operational discipline provide a solid foundation to weather volatility and pursue value-accretive growth.”