The Board of Directors of d’Amico International Shipping has approved and published its Q3 and 9M 2016 results.
They show that DIS achieved a net profit of $6.1million in the first nine months of this year and an operating cash flow of $57.9m.
The third quarter results highlights include: time charter equivalent (TCE) earnings of $58.5m in Q3’16 ($85m in Q3’15); EBITDA -$7.9m in Q3’16 (13.5% on TCE) ($29.7m in Q3’15); net result – $ (7.6)m in Q3’16 ($14.7 million in Q3’15); cash flow from operating activities – $17.9m in Q3’16 ($9.3m in Q3’15).
The nine months 2016 results were: time charter equivalent (TCE) Earnings – $202.9m in the first 9M of 2016 ($243.1m in 9M’15); EBITDA – $48.1m (23.7% on TCE) in the first 9M of 2016 ($74.8m in 9M’15); Net Result – $6.1m in the first 9M of 2016 ($44.8m in 9M’15); Cash Flow from Operating Activities – $57.9m in the first 9M of 2016 (US$ 39.5 million in 9M’15); Net debt – $485.6m at the end of September 2016.
Marco Fiori, Chief Executive Officer of d’Amico International Shipping commented: “I am rather satisfied about the $6.1million Net Profit posted by DIS in the first nine months of the year, considering the very challenging market scenario experienced in the third quarter. In fact, following a strong Q1, the spot market softened in the second quarter and hit historically low levels in the following three months. The relative oil price stability has been putting pressure on refinery margins with the consequent decline in their throughput and has been leading to a greater utilization of petroleum product inventories.
“In addition to this, a large number of newbuildings has hit the market in the first nine months of the current year, increasing the global tonnage supply. DIS has somewhat limited the negative impacts of this market correction, thanks in particular to its traditionally high level of time charter-out coverage (47% of its available vessel days at a daily average fixed rate of US$ 15,959) which allow us to mitigate the effects of spot market volatility, securing a certain level of earnings and cash generation.
“Despite this short-term market volatility, I believe the product tanker market has still strong underlying fundamentals. I refer in particular to the trend of refineries moving away from main consuming regions, which will increase the ton-mile demand, and to a historically low fleet growth expected for the years to come, with virtually no new ordering activity. Meanwhile, we are also expecting a gradual improvement in market conditions already in the following two quarters, which should benefit from a cold winter season expected in the Western hemisphere.”
Carlos Balestra di Mottola, Chief Financial Officer of d’Amico International Shipping, said: “Despite a challenging market in the third quarter of the year, DIS achieved a net profit of $6.1 million YTD. The company also generated substantial operating cash flow of $ 57.9 million in the first nine months of the year. DIS continued implementing its ambitious $755 million investment plan in 22 newbuildings, with $106 million in capital expenditures in the first nine months of 2016 and an additional three new vessels delivered from the yards. The remaining investment plan amounts to $265.5m and 84% will be financed with bank debt, already fully secured as of today.”