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DIS profits up to $11.4m as product tanker market stays strong

DIS profits up to $11.4m as product tanker market stays strong
d'Amico International Shipping has reported a $11.4m profit for the first quarter, reversing a $6.8m loss in the same period of 2014.

As the product tanker market enjoys rates of a strength it has not seen since the financial crisis, DIS saw a 52% improvement in daily spot rates to $18,503 per day.

Almost half of the company's fleet was employed on time charter contracts at an average of $15,010, giving an overall average daily rate for the quarter of $16,939, up from $13,637 in Q1 2014.

DIS attributed some of the market's strength to unseasonably cold weather, and has seen strength continuing in to Q2, resisting the usual seasonal swing.

Eight vessels remain to be delivered under DIS' 16-vessel, $490.7m newbuilding programme, into which $28m was paid during the first quarter. During April, three-year charters were secured for three of the newbuild vessels, starting in their deliveries in Q4 2015, Q1 2016 and Q4.

DIS is not alone in its ordering of new ships, as the company sees the global orderbook currently has between 140 and 200 MR ships scheduled for delivery this year. In the first quarter, 27 MR ships were delivered into the fleet and 6 were removed.

"I am very confident on the perspectives of our industry, thanks in particular to factors such as the US' ever-growing role as a net exporter of products and the increased refining capacity in the Middle and Far East which both will further expand the tonne/mile demand," commented Marco Fiori, DIS ceo.

"In light of this, we have been seeking further growth in our sector, through the order of two newbuilding LR1s. Thanks to this deal, DIS through its operating subsidiary, namely d’Amico Tankers Limited, will enter a new segment within the product tanker market, which I believe will be in great demand in the years to come, given the largest cargo capacity of this size of ships coupled with the expected increase in the tonne/mile demand."