D’Amico Shipping records $6.2m first half loss

The company also reported cash flow from operating activities at negative $1.1 million USD during the first six months of 2017, but positive $0.3 million in the second quarter.    Luxembourg-based product tanker operator d’Amico International Shipping recorded a net loss of $6.2 million USD during the first six months of 2017, compared with a net profit of $13.6 million posted in the same period of last year, the company revealed in its latest financial statements, released July 28.
   The variance compared with the first semester of 2016 is mainly due to a weaker product tanker market, DIS said, particularly in the second quarter of this year. In the first half of 2017, DIS said its daily spot rate was $12,492, compared with $16,848 in the first half of last year.
   At the same time, the company said that 36.9 percent of its total employment days in first half 2017 were covered through time-charter contracts at an average daily rate of $15,908, compared with a first half 2016 in which it had 47.7 percent coverage at an average daily rate of $15,885.
   “Such good level of time charter coverage is one of the pillars of DIS’ commercial strategy and allows it to mitigate the effects of spot market volatility, securing a certain level of earnings and cash generation,” the company explained in a statement.
   DIS’ total daily average rate, including both spot and time-charter contracts, was $13,614 in first half 2017 compared with $16,389 the previous year, company data show. 
   The company also reported cash flow from operating activities at negative $1.1 million during first half 2017 and positive $0.3 million in Q2 2017, compared with $40 million in H1 2016. The lower result in first half 2017, according to the company, was due to the weaker freight markets relative to first half 2016.
   DIS CEO Marco Fiori said in a statement he was content with the company’s performance during the first half of what’s been a trying year so far.
   “The product tanker industry experienced a challenging freight market in the second quarter of 2017. This was mainly due to the relatively high level of newbuilding deliveries, together with the refining maintenance season and a still high level of product inventories,” Fiori explained. “In this context, I am rather satisfied about the results achieved by our company in H1’17. I think that once again DIS’ prudent commercial strategy, based on an efficient mix of spot activity and time-charter coverage, allowed us to mitigate the negative effect produced by the soft markets in Q2’17, also due to seasonal factors.
   “All the medium/long-term fundamentals of the industry are pointing to a proper market rebound starting probably from the end of 2017/beginning of 2018,” he said.