d'Amico International Shipping (DIS) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached $122.9M, up from $99.8M in H1 2023, driven by robust product tanker markets and record spot rates; Q2 2024 net profit was $66.5M, the highest quarterly result.

• EBITDA for H1 2024 was $161.1M, up from $142.7M in H1 2023, with a margin of 75.7%.

• Maintained a strong balance sheet with net debt at $122.2M and cash of $181.9M as of June 30, 2024; net debt to fleet market value at 9.1%.

• Increased fixed contract coverage to 41.9% of vessel days at $28,016/day, enhancing earnings stability.

• Sold the oldest vessel for $27.4M and exercised a $31M purchase option on a modern tanker.

Financial highlights

• H1 2024 net profit: $122.9M (H1 2023: $99.8M); Q2 2024 net profit: $66.5M (Q2 2023: $45.7M); adjusted H1 2024 net profit: $118.4M.

• H1 2024 EBITDA: $161.1M (H1 2023: $142.7M); Q2 2024 EBITDA: $85.0M (Q2 2023: $66.3M).

• H1 2024 TCE earnings: $210.5M (H1 2023: $203.5M); Q2 2024 TCE earnings: $106.5M (Q2 2023: $97.2M).

• Operating cash flow for H1 2024: $155.2M (H1 2023: $173.0M); net cash flow: $70.7M (H1 2023: $5.1M).

• Basic and diluted EPS for H1 2024: $1.018 (H1 2023: $0.82).

Outlook and guidance

• 37% of H2 2024 vessel days covered at ~$27,500/day; Q3 2024: 71% of days fixed at $28,677/day; blended TCE could range from $28,330 to $29,803 depending on spot rates.

• Product tanker demand expected to grow 5.3% in 2024; global oil demand to rise by 1.0 mb/d, led by non-OECD countries.

• Limited fleet growth (1.8% in 2024) and aging vessels support a positive market outlook.

• Market outlook remains positive, supported by ongoing Red Sea disruptions, refinery expansions, and regulatory constraints on newbuilds.

• Cash break-even for 2024 estimated at $14,000/day.