• Fleet Size: 33 vessels as of September 2024, with an average age of 9 years.

• Bank Debt: $240 million at the end of September 2024.

• Cash and Cash Equivalents: $228.7 million at the end of September 2024.

• Net Financial Position: $83 million at the end of September 2024.

• Net Profit: $163.1 million for the first nine months of 2024.

• EBITDA: Almost $219 million for the first nine months of 2024.

• Q3 Profit: $40.2 million in the third quarter of 2024.

• Daily OpEx: $7,700 per day for the first nine months of 2024.

• G&A Expenses: $16.2 million for the first nine months of 2024.

• Daily Spot Rate: $37,563 per day for the first nine months of 2024.

• Blended Daily TCE: $33,400 per day for the first nine months of 2024.

• Cash Flow: Over $117.5 million of net cash flow generated in the first nine months of 2024.

• Interim Dividend: $30 million approved.

• Share Buyback: EUR 8.3 million worth of shares as of the end of last week.

• Warning! GuruFocus has detected 4 Warning Sign with DMCOF.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• d'Amico International Shipping SA (DMCOF) has a young fleet with an average age of nine years, significantly lower than the industry average.

• The company has a strong cash position with cash and cash equivalents of $228.7 million at the end of September 2024.

• The net financial position improved significantly, with a ratio of 6.2% between net financial position and fleet market value.

• The company generated a strong operating cash flow of $228.4 million in the first nine months of 2024.

• d'Amico International Shipping SA (DMCOF) declared an interim dividend of $30 million and has been actively buying back shares, indicating strong shareholder returns.

Negative Points

• The spot market was weaker in Q3 2024 compared to the same quarter last year, impacting profitability.

• There is a potential for market softening in the second half of 2025 and 2026 due to increased vessel deliveries.

• The company faces inflationary pressures, particularly on manning costs, which increased operational expenses.

• The current freight rate environment is soft, with lower rates impacting the company's ability to secure favorable time charter contracts.

• The geopolitical situation, including potential tariffs and sanctions, could negatively impact the market and demand for oil imports.

Q & A Highlights

Q: What is your outlook for the tanker market, considering the recent sharp correction in rates and the stock prices reflecting a potential prolonged weakness? A: Carlos Balestra di Mottola, CEO: We expect the market to improve this winter, although the recovery might be delayed due to high product stocks in Europe and mild weather. We anticipate a strong crude market next year, which should benefit the clean markets indirectly. The fundamentals remain strong, and we expect a good first half of 2025, with potential softening in the second half.