Q2 2024 d'Amico International Shipping SA Earnings Call Transcript
Key Points
- d'Amico International Shipping SA (DMCOF) reported a strong financial performance with a net profit of $122.9 million in the first half of 2024, up from $99.8 million in the same period last year.
- The company achieved its best quarterly spot results in history, with a spot rate of almost $45,000 per day in Q2 2024.
- The fleet is young, with an average age of 8.8 years, and 85% of the vessels feature Eco-design, which is beneficial for operational efficiency and environmental compliance.
- The company has a strong financial structure with a low leverage ratio of 9.1%, significantly reduced from 18% at the end of 2023.
- d'Amico International Shipping SA (DMCOF) has a substantial liquidity position, with cash and cash equivalents of almost $182 million, allowing for strategic flexibility and potential future investments.
- The company faced technical problems during the earnings call, which delayed the start of the presentation.
- There was a delay in the delivery of a vessel due to an unreliable counterparty, leading to the cancellation of the contract and potential financial implications.
- The market experienced weakness in July, particularly east of Suez, due to crude tankers cleaning up to transport refined products, impacting demand for LR2s.
- Inflationary pressures have impacted operational costs, although they seem to be stabilizing.
- The company anticipates a substantial use of funds of around $380 million for exercising purchase options and newbuilding vessels, which could impact cash flow and financial flexibility.
Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the d'Amico International Shipping second quarter and first half 2024 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Carlos Balestra di Mottola, CEO. Please go ahead, sir.
'-
Okay. Good afternoon. Sorry, we had a few technical problems today. So we are starting the presentation now. As usual, we start with an overview of our fleet. We controlled as at the end of June 33 vessels, of which 25 owned and three bareboat chartered-in and five time chartered-in vessels.
Since then, we exercised and received or delivered one vessel, which was previously time chartered in. And so now we have 26 owned vessels and four time chartered-in vessels and three bareboat chartered-in vessels. It's a young fleet with an average age of 8.8 years and mostly Eco-design 85% of the entire control features Eco-design
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