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d'Amico International Shipping slides into the red for 2016

d'Amico International Shipping slides into the red for 2016
d’Amico International Shipping (DIS) fell into the red in 2016 to the tune of $12.8m as product tanker rates slumped in the second half of the year.

The $12.8m net loss included a $6.6m impairment on three vessels held for sale and compared to a $54.5m net profit in 2015. In the fourth quarter of 2016 the company reported a loss of $18.9m.

“Such negative result was due to the soft market scenario we experienced in the second half of the year, when rates hit historically low levels, said Marco Fiori, ceo of DIS.

“The substantial level of inventories built up in the previous months and in 2015 together with a relatively high influx of newbuildings coming into the market in 2016, put downward pressure on freight rates.”

DIS said that its daily sport rate for 2016 was $13,302 per day versus $18,814 per day in the previous year. It was able achieve better rates on vessels of fixed contracts which accounted for 45.9% of available days and stood at $15,989 per day.

Fiori remained confident of the tanker market in the medium term which he described as having “very strong underlying fundamentals”.

“On the demand side, we are expecting a good level of growth on the back of the trend of refineries moving away from main consuming regions, which will increase ton-mile demand. On the supply side, we have a historically low fleet growth expected over the next two years, with the current MRs orderbook close to its 20 years' low and very limited ordering activity at the moment,” he said.

“At the same time, the new environmental rules, which are gradually coming in place, will lead to a further reduction on the supply side, benefitting owners of very young fleets like ourselves.”