d'Amico International Shipping (DIS) Q4 2024 earnings summary

Executive summary

• FY 2024 net profit was US$188.5 million, slightly below 2023, with an EBITDA margin over 70% and strong cash flow from operations at US$258.7 million, reflecting robust performance despite a softer freight market in H2.

• Ended 2024 with a modern fleet of 33 ships (27 owned, 3 bareboat, 3 time-chartered), 82% IMO class, 83–85% eco-designed, and an average fleet age of 9.2 years, significantly younger and more efficient than industry averages.

• Significant deleveraging achieved, with net financial position reduced to US$121 million and a net financial position to fleet market value ratio of 9.7%, down from 73% in 2018.

• Proposed final gross cash dividend of US$0.2940/share (US$35 million), with a total payout ratio of 40% including buybacks.

• Market conditions were shaped by geopolitical disruptions, rerouting around the Cape of Good Hope, and evolving oil trade flows.

Financial highlights

• FY 2024 net revenue was US$371.9 million (down from US$401.8 million in 2023); EBITDA was US$260.9 million, EBIT US$202.5 million, and recurring net profit US$184.7 million.

• Q4 2024 net profit was US$25.4 million, lower than Q4 2023 but still highly profitable.

• Average daily spot earnings for 2024 were US$33,871, with a blended TCE of US$31,195; Q4 2024 spot rate was US$23,547.

• Daily operating costs increased 3% in 2024, while G&A costs decreased 10% year-over-year.

• Cash flow from operations was US$258.7 million (US$292.9 million in 2023); net cash flow was US$53.7 million.

Outlook and guidance

• For Q1 2025, 89% of vessel days are fixed at a blended TCE of US$22,373; for FY 2025, 35% of available vessel days are covered at an average TCE of US$24,900.

• Sensitivity analysis shows each US$1,000/day change in spot rates impacts annual earnings by US$5.9 million in 2025.

• Fleet expected to average 32.2 ships in 2025, with further vessel deliveries and option exercises planned.

• Management remains cautious on payout guidance for 2025 due to market volatility and committed investments.

• Product tanker demand expected to grow, with IEA forecasting oil demand up 1.1 million b/d in 2025, led by India and Brazil.