The Board of Directors of d’Amico International Shipping S.A., a leading international marine transportation company operating in the product tanker market, today examined and approved the Company’s half-year and second quarter 2025 consolidated financial results.

MANAGEMENT COMMENTARY

Carlos Balestra di Mottola, Chief Executive Officer of d’Amico International Shipping commented:

“I’m pleased to present d’Amico International Shipping’s results for the second quarter and first half of 2025. While not matching the exceptional performance achieved during the same period last year, our results remain robust and continue to reflect the strength of the product tanker market in the first half of the year. DIS reported a consolidated net profit of US$ 38.5 million in H1’25, compared with US$ 122.9 million in H1’24, and US$ 19.6 million in Q2’25, versus US$ 66.5 million in Q2’24. Our average TC equivalent spot rate stood at US$ 22,655 per day in H1’25 (US$ 41,404 in H1’24) and US$ 24,497 in Q2’25 (US$ 44,949 in Q2’24), representing an increase of over US$ 3,300 per day compared to the average for the previous quarter. In addition, we secured 45.2% of our employment days under time-charter contracts in H1’25, at an average TCE of US$ 23,892 per day. This contributed to a blended daily TCE of US$ 23,214 in H1’25 and US$ 23,922 in Q2’25.

Overall, DIS continued to benefit from a supportive market environment, underpinned by ongoing trade disruptions, limited fleet growth, and evolving global oil flows. The rerouting of vessels around the Cape of Good Hope — prompted by hostilities in the Bab-el-Mandeb Strait — and EU sanctions on Russian oil, have reshaped trade routes, increased average voyage distances, and boosted ton-mile demand. The increasing number of vessels sanctioned by the US, UK and EU governments is instead markedly reducing the fleet available for compliant trades. In this respect, on 18 July 2025, the European Union adopted one of its toughest sanctions packages yet — introducing a dynamic oil price cap on crude of US$ 47.6/bbl (reviewed biannually), banning 22 additional Russian banks from SWIFT, and targeting 105 more shadow fleet tankers and related enablers. A ban on refined products made from Russian crude will also take effect in January 2026.

Despite elevated geopolitical risk and near-term volatility — which have so far supported freight markets — we view the industry’s fundamentals as solid. Global oil demand growth has moderated amid weaker macro conditions and rising trade tensions. Still, the IEA projects an increase in oil demand of 0.7 million barrels per day in both 2025 and 2026, after an increase of 0.8 million barrels per day in 2024. Meanwhile, non-OPEC supply is rising, and OPEC+ has accelerated the reversal of its voluntary cuts — effectively restoring nearly 80% of the agreed reductions by August, well ahead of schedule. The oil market is expected to move into oversupply, possibly with a forward oil price curve in contango, historically a supportive scenario for tankers.

On the demand side, structural shifts continue to favour product tankers. The eastward shift in refining capacity, driven by new plants in the Middle East and Asia, combined with refinery closures in mature markets, is increasing voyage distances and supporting long-haul flows. In 2025, over 1.0 million b/d of capacity is expected to close, including more than 400,000 b/d in the US and 370,000 b/d in Europe. At the same time, Chinese tariffs on US LPG, as well as the large Chinese investments in new petrochemical plants, has been boosting Chinese naphtha demand as a petrochemical feedstock, further supporting product tanker utilization. A widening arbitrage for long-distance gasoil imports into Europe from the Middle East, due to low local inventories of this product as well as high refining margins, could further support the market near term.

On the supply side, after rising in recent years, newbuilding activity has slowed sharply. Just 18 MR and LR1 tankers were ordered in H1 2025 (only 4 in Q2), down from 150 in the same period of 2024. The orderbook for these segments now stands at 15.1% of the fleet in dwt terms, versus 14.6% across all tanker types. High newbuilding prices, limited yard availability outside China, and distant delivery slots are discouraging new orders. In addition, the newly announced port fees on Chinese-built vessels by the U.S. Trade Representative could further reduce appetite for Chinese newbuildings, which currently account for a large share of global tanker construction. At the same time, the global fleet is ageing. As of end-June 2025, 18.3% of MR and LR1 vessels were over 20 years old, and 52.5% were older than 15 years. For the overall tanker fleet, 18.4% exceeded 20 years of age and 43.0% was older than 15 years. This ageing trend is expected to increasingly constrain fleet productivity and may accelerate demolition activity in the coming years, particularly as more vessels approach their 25th anniversary.

During the first half of the year, we remained focused on our strategy of gradually increasing timecharter coverage to improve earnings visibility and reduce exposure to market volatility. We secured a number of profitable time-charter agreements with top-tier counterparties, covering approximately 53% of our available days in H2’25 at an average TCE of US$ 23,681/day, and 22.6% in 2026 at US$ 24,639/day. We were also active in the sale and purchase market during the period. In June, we signed memoranda of agreement for the disposal of two of the oldest vessels in our fleet — MT Glenda Melody and MT Glenda Melissa — for a total consideration of US$ 36.2 million. These transactions are expected to generate approximately US$ 31.0 million in cash for the Company upon vessel delivery. Following these sales, the share of Eco-design vessels in our fleet will rise to 85% by year-end 2025. These disposals are fully aligned with our long-term strategy of operating a more fuel-efficient and environmentally sustainable fleet, while also enhancing our earnings potential.

As we navigate a complex geopolitical environment, we remain focused on our long-term strategy: operating a young, efficient, and high-quality fleet, maintaining a strong financial position, and adopting a balanced contract coverage strategy. These foundations ensure DIS remains resilient and well positioned to capture emerging opportunities and deliver sustainable long-term value to our Shareholders.”

Federico Rosen, Chief Financial Officer of d’Amico International Shipping commented:

“d’Amico International Shipping delivered another solid performance in the second quarter and first half of 2025, supported by a firm product tanker market and by our sound commercial and financial strategy. Although earnings were below the exceptional levels recorded last year, our profitability and cash generation remained strong, enabling us to further strengthen our balance sheet. DIS posted a net profit of US$ 38.5 million in H1’25 and US$ 19.6 million in Q2’25 (US$ 122.9 million in H1’24 and US$ 66.5 million in Q2’24). In Q2, our net result was higher than in the previous quarter, driven primarily by a spot result of US$ 24,497, which was 16% higher than in Q1. In H1’25, our EBITDA reached US$ 73.4 million, with a margin of 55.5% on total net revenue, and we generated solid operating cash flow of US$ 86.2million.

Despite a generous 40% payout ratio on FY’24 earnings — including share buybacks and a US$ 35 million dividend paid in May 2025 — and carrying out substantial investments in FY’24 and H1’25, we maintained a very solid financial position. As at June 30, 2025, our net financial position (NFP) stood at US$ 144.3 million, with cash and cash equivalents totaling US$ 124.1 million. The ratio between our NFP (excluding IFRS 16 effects) and the market value of our fleet was of just 13%, a significant reduction from 72.9% at year-end 2018, underscoring the success of the deleveraging strategy we have pursued over recent years.

At the end of Q2, we signed agreements to sell two of our oldest vessels, MT Glenda Melody and MT Glenda Melissa. The transactions are expected to generate about US$ 31.0 million in cash upon delivery, net of commissions and debt repayment. These disposals align with our long-term strategy of operating a predominantly Eco fleet.

We continue to view our strong financial position as a strategic asset; this, combined with a balanced contract coverage strategy and a predominantly Eco, well-maintained fleet, provides us with the required tools to capture potential market opportunities and deliver attractive returns to our Shareholders.”
Source: d’Amico International Shipping