d'Amico International reports slight drop in revenues and profits in 2024, citing "less exuberant" freight market
Luxembourg-based product tanker operator d'Amico International Shipping (DIS) achieved a total net revenue of US$371.9 million for full year 2024, a slight drop from US$401.8 milion in full year 2023.
The company's gross operating profit also slightly decreased for full year 2024, ending at US$260.9 million compared to US$277.6 million in full year 2023, while the net profit for full year 2024 stood at US$188.5 million (US$192.2 million in full year 2023).
"Our daily spot rate improved to US$33,871, surpassing 2023's rate of US$32,873, reflecting continued strong demand for our services despite a still robust but less exuberant freight market later in the year," said Carlos Balestra di Mottola, Chief Executive Officer of DIS.
Mottola said that in 2024, DIS thrived in a vibrant freight market, driven by limited fleet growth, growing global oil trade, and numerous trade disruptions.
"Notably, incidents in the Red Sea and Gulf of Aden required us to reroute vessels around the Cape of Good Hope, significantly increasing travel distances.
"Additionally, the ongoing conflict in Ukraine and related EU sanctions reshaped oil trade flows, reducing Russian oil shipments to the EU while increasing exports to more distant locations such as Asia and South America, prompting Europe to source more oil from the US, the Middle East, and Asia. These changes significantly extended the average distances sailed by our product tankers."
On the supply side, orders for newbuild tankers grew over the last two years, with the current orderbook for MRs and LR1s reaching 15.1 per cent of vessels on water (measured in DWT), as at the end of February 2025.
"While vessel deliveries will accelerate from the second half of this year, they are spread over several years," said Mottola. "Furthermore, considering the strong linkages between the different tankers sectors, the orderbook across all tankers (including product and crude carriers), which stands at a lower 13.4 per cent of vessels on water, as at the end of February 2025, might provide a more reliable indicator of the market’s supply fundamentals."
DIS was also active in the sale and purchase in market in 2024, starting with the sale of 2010-built MR tanker Glenda Melanie for US$27.5 million. In April, the company ordered four new LR1 vessels from a Chinese shipyard, with deliveries expected in the second half of 2027.
"These highly efficient, environmentally friendly vessels will considerably strengthen our presence in the LR1 segment, which we anticipate will generate strong returns in the coming years," Mottola remarked.
