Back into profit in 2020 for d’Amico International Shipping

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Despite the challenges of the global pandemic and slow-down in trade, figures just released show d’Amico International Shipping returned to profit in 2020.

A net profit of $16.6m reassured the market that the Company is on a steady course moving forward following its 2019 loss of $27.5m. Net debt of $561.5 million remained manageable.

Reflecting on the respectable figures and the challenges of the difficulties the sector faced in 2020, Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping commented: “In 2020, we experienced an extremely volatile product tanker market.

“During the first half of the year, freight rates rose to record highs as the drop in oil demand caused by COVID-19, coupled with the increase in oil production especially from Saudi Arabia and Russia, moved the oil curve into a steep contango, providing a significant incentive to increase oil stocks worldwide.

“Land-based storage facilities quickly reached almost their full capacity and pushed large quantities of crude and petroleum products into tankers as floating storage, sharply reducing the effective supply of vessels, thus generating a spike in product tanker freight rates.

“However, after the deep oil output cuts by OPEC+ came into effect from the beginning of May, spot tanker earnings went through a steep correction, as the market absorbed the excess product stocks, with floating storage gradually unwinding. Longer term, we remain very positive.”