d'Amico International Shipping (DIS) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached $163.1 million, with Q3 profit at $40.2 million, supported by a strong product tanker market despite some Q3 softening.

• Cash and cash equivalents stood at $228.7 million at September end, with net financial position improving to $83 million and leverage (excluding IFRS16) to fleet market value ratio at 6.2%.

• Fleet comprised 33–34 product tankers, average age 9 years, with 83–85% eco-design adoption and 82% IMO classed.

• Annual and interim dividends totaling ~$60 million distributed or declared in 2024, including a $0.2520/share interim dividend; share buybacks reached €8.3 million by Q3.

• Fleet renewal advanced with sale of oldest vessel, purchase options exercised on MR vessels, and four LR1 newbuilds ordered for 2027.

Financial highlights

• EBITDA for the first nine months was $218.8 million (up from $213.1 million in 9M 2023); Q3 EBITDA was $57.7 million (down from $70.4 million in Q3 2023).

• Net revenue for 9M 2024 was $298.1 million (down from $305.4 million in 9M 2023); Q3 net revenue was $85.2 million (down from $99.5 million in Q3 2023).

• Operating cash flow for 9M 2024 was $228.4 million; net cash flow was $117.5 million.

• Earnings per share for 9M 2024 was $1.352 (up from $1.219 in 9M 2023); Q3 2024 EPS was $0.334.

• G&A expenses declined year-over-year to $16.2 million; daily OpEx increased 3–3.3% to $7,700, mainly due to manning cost inflation.

Outlook and guidance

• For Q4 2024, 39–42.4% of days are covered at $27,100–$27,738/day; blended TCE for 68% of days at $26,600/day.

• Sensitivity: Each $1,000/day change in spot rates impacts 2025 earnings by $8.5 million and 2026 by $9.4 million.

• Projected net profit: $29 million for 2025 and $19.6 million for 2026, assuming break-even for unfixed days.

• Market fundamentals remain strong, with limited fleet growth and high demand expected to support rates; management anticipates a market recovery in winter and strong H1 2025.

• Blended TCE for Q4 2024 could range from $24,473 to $27,697 depending on spot market performance.