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

Executive summary

• Net profit for the first nine months of 2024 reached $163.1M, up from $148.7M year-over-year, with Q3 profit at $40.2M, supported by a strong product tanker market despite some Q3 softening.

• EBITDA for the nine months was $218.8M, slightly higher than $213.1M in the prior year, reflecting strong freight market conditions.

• Maintained low leverage with net financial position improving to $83M at September end, and cash and equivalents at $228.7M.

• Fleet averaged 33-34 product tankers, with 83-85% eco-design adoption and an average age of 9 years.

• Significant shareholder returns with $30M interim dividend declared and ongoing share buybacks totaling €8.3M by Q3.

Financial highlights

• 9M 2024 EBITDA was $218.8M; Q3 EBITDA was $57.7M, both up year-over-year.

• Operating cash flow for 9M 2024 was $228.4M, with net cash flow at $117.5M.

• G&A expenses declined to $16.2M from $18.4M year-over-year; daily OpEx increased 3-3.3% to $7,700.

• Earnings per share for 9M 2024 was $1.352, up from $1.219 in 9M 2023.

• Net financial position to fleet market value ratio improved to 6.2% at September 2024, down from 18% at 2023 year-end.

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.

• Product tanker demand is forecast to grow 5.9% in 2024, with long-haul trades and refinery shifts supporting ton-mile demand.

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

• Market fundamentals remain strong, with limited fleet growth and regulatory-driven inefficiencies expected to support rates.

• Management expects market recovery in winter, with stronger performance anticipated in H1 2025 and possible softening in H2 2025 and 2026.