D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — Q2 2022 Earnings Presentation
59 slides from D'amico International Shipping's earnings presentation, Jul 28, 2022
Slide 1: Q2 & H1 2022 Presentation
Q2 & H1 2022 Presentation d’Amico International Shipping July 28th, 2022
Slide 2: Disclaimer
DISCLAIMER. There shall be no offering or sale of any securities of d’Amico International Shipping S.A. in the United States of America, Switzerland, Canada, Australia, Japan, the United Kingdom or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to its registration
Slide 3: Agenda
AGENDA. ▪ Executive summary ▪ DIS’ overview ▪ Market overview ▪ Why invest in DIS ▪ DIS’ ESG ▪ Appendix
Slide 4: Executive summary
Executive summary. • Net result – d’Amico International Shipping SA (“DIS” or “the Company”) recorded a Net profit of US$ 19.2m in H1’22 vs. a Net loss of US$ (15.2)m in H1’21 and a Net profit of US$ 25.7m in Q2’22 vs. a Net loss of US$ (5.4)m in Q2’21. Adjusted net result (excluding non-recurring i
Slide 5: DIS' overview
L. Veritoo INTERNATIONAL SHIPPING 5.4 . ‘S ES
Slide 6: A modern, high-quality and versatile fleet
A modern, high-quality and versatile fleet. June 30th, 2022 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 6.0 6.0 17.0 48.5% Bareboat chartered 1.0 7.0 0.0 8.0 22.9% Time chartered-in long-term 0.0 9.0 0.0 9.0 25.7% Time chartered-in short-term 0.0 1.0 0.0 1.0 2.9% TOTAL 6.0 23.0 6.0 35.0 100.0% • DIS c
Slide 7: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm 250.0 194.6 200.0 3.9 DIS has no remaining newbuilding 164.4 151.1 CAPEX, having fully completed its long- 150.0 12.8 0.7 term investment plan in FY’19 101.2 100.0 85.3 83.7 79.0 1.0 190.7 8.1 2.5 151.6 150.3 1.4 65.2 5.2 50.0 100.2 77.1 8
Slide 8: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk. Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)1,2,3 US$/mm US$/mm US$/mm US$/day 150 30 60 6,500 6,147 -- 100 20 6,000 50 - 121.4 50 10 6
Slide 9: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Purch. Build Purch. Option First Ex. Option (In/Out of Vessel Name Obligation 1 Date First Ex. Date the money) Date High Priority 2 Mar-05 Oct-19 Oct-22 Exercised in Q1'21 High Freedom Jan-14 Feb-20 Feb-24 In the money High Fidelity Aug-14 May-20 May-27 Exerc
Slide 10: DIS' purchase options on time-chartered-in vessels
DIS’ purchase options on time-chartered-in vessels Build Purch. Option Purch. Option First Ex. Option (In/Out of Vessel Name Date First Ex. Date Last Ex. Date the money) Crimson Jade Jun-17 Jun-21 Dec-26 Not in the money Crimson Pearl Aug-17 Aug-21 Feb-27 Not in the money High Adventurer Nov-17 Nov-
Slide 11: Contracts and modern fleet to drive future results
Contracts and modern fleet to drive future results. Average TC and TC equivalent covered rates1 • Average contract rates rise while the proportion of the % of ‘employment days’ US$/day 19,883 20,000 fleet covered falls throughout ’22 and ‘23, providing 70% valuable exposure to an ongoing market reco
Slide 12: Large potential upside to earnings
Large potential upside to earnings. Estimated fleet evolution (avg. n. of vessels)1,2 Estimated spot exposure (avg. n. of vessels)3 N. of ships (based on ‘available days’) N. of ships (based on ‘employment days’) 40 40 35.0 34.1 35 0.0 32.1 35 1.9 0.0 30 10.0 8.0 30 1.9 8.0 25 25 8.0 9.1 20 5.2 20 1
Slide 13: DIS focused also on cost savings
DIS focused also on cost savings. Daily operating costs – owned and General & administrative costs – total fleet bareboat vessels1 US$/day US$/m 7,800 9.0 7,600 8.0 7,400 7.0 7,200 6.0 7,000 5.0 6,800 7,534 4.0 8.1 7.0 6.8 6,600 3.0 5.9 6.2 6,958 6,400 6,796 6,809 2.0 6,679 6,200 1.0 6,000 0.0 H1'18
Slide 14: Financial results. H1'22 Net financial position
Financial results. H1’22 Net financial position (US$ million) Dec. 31st, 2021 Jun. 30th, 2022 Gross debt (485.9) (454.3) IFRS 16 – additional liabilities (80.5) (69.2) Cash and cash equivalents 43.4 46.0 Other current financial assets1 2.7 2.7 Net financial position (NFP) (520.3) (474.8) Net financi
Slide 15: Financial results. H1'22 Results
Financial results. H1’22 Results (US$ million) Q2’21 Q2’22 H1’21 H1’22 Non-recurring items: TCE Earnings 46.1 72.8 88.9 115.6 (US$ million) Q2’21 Q2’22 H1’21 H1’22 Total net revenue - 74.0 - 118.0 Result on disposal of vessels (0.5) (0.5) (1.1) (1.1) Result on disposal of vessels (0.5) (0.5) (1.1) (
Slide 16: Financial results. H1'22 Key operating measures
Financial results. H1’22 Key operating measures Key Operating Q1 2021 Q2 2021 H1 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 H1 2022 Measures Avg. n. of vessels 38.8 38.0 38.4 38.0 37.7 38.1 36.1 35.5 35.8 Fleet contact 49.5% 46.7% 48.1% 48.4% 45.5% 47.5% 44.5% 39.8% 42.1% coverage Daily TCE Spot 9
Slide 17: Market overview – market fundamentals
Market overview – market fundamentals
Slide 18: Large potential upside to asset values
Large potential upside to asset values. Historical MR TC and spot rates1 Historical MR asset values1 US$/day US$/m 45,000 40,000 1 YR TC and Spot rates are 60 35,000 respectively ~34% and ~11% 55 NB, 5yr old and 10yr old vessels are 30,000 below the last cycle peak 50 respectively ~21%, ~38% and ~44
Slide 19: The Ukrainian war and trade flows
The Ukrainian war and trade flows. Russian Crude and DPP exports to China and India (mb/day)1 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 01/21 02/21 03/21 04/21 05/21 06/21 07/21 08/21 09/21 10/21 11/21 12/21 01/22 02/22 03/22 04/22 05/22 06/22 China India • Exports of Russian Crude and DPP to India increa
Slide 20: The Ukrainian war and oil supply
The Ukrainian war and oil supply. • Russian oil output has proven resilient so far in ‘22, with the IEA in its latest July report forecasting an average decline relative to ’21 of only 300k bpd. • As sanctions in Europe and the UK come into full force at the end of ‘22, there is however a risk that
Slide 21: Covid-19, the receding impact of the new variant
Covid-19, the receding impact of the new variant. UK Covid-19 metrics as a percentage of their peak value last winter1 350% 300% 250% 200% 150% 100% 50% 0% Cases Vented Patients Deaths After falling rapidly, Covid-19 cases in the UK and several other European countries have been rising lately. Howev
Slide 22: Oil demand and refining throughputs recovering
Oil demand and refining throughputs recovering. Global oil demand1 Global refinery throughputs1 Million barrels per day Million barrels per day 105.0 90.0 100.6 100.6 84.1 98.8 99.0 100.7 85.0 82.9 82.9 83.1 100.0 82.1 81.2 81.8 82.1 81.8 80.6 80.1 80.2 99.4 100.2 99.3 97.8 98.7 80.0 82.4 82.2 82.5
Slide 23: Refined product inventories at very low levels
Refined product inventories at very low levels. Crude oil price (Brent, US$ bbl), forward curve1 CPP vs DPP and crude oil floating storage2 104.2 Million barrels 105 350 325 300 100 98.6 275 250 96.1 225 94.1 200 95 175 92.5 150 91.1 90.2 125 89.4 100 90 88.6 88.0 87.4 75 86.8 86.3 50 25 0 85 Aug'20
Slide 24: Vehicle demand recovery dampened by high-oil prices
Vehicle demand recovery dampened by high-oil prices. US interstate vehicle miles traveled S. Europe traffic performance vs. L. America traffic performance vs. (VMT) vs. same week of 20191 same week of 20192 same week of 20192 % change vs. same % change vs. same % change vs. same week in 2019 week in
Slide 25: Jet fuel demand still rising strongly
Jet fuel demand still rising strongly. % Change in number of commercial flights vs. 20191 Jet fuel2 demand by use vs 2019 Pre-Covid (mbpd) 10% 140% 0% 120% May-20 May-21 May-22 Mar-21 Feb-20 Mar-20 Apr-20 Jul-20 Oct-20 Feb-21 Apr-21 Jul-21 Feb-22 Mar-22 Apr-22 Jul-22 Oct-21 Nov-20 Dec-20 Nov-21 Dec-
Slide 26: Longer-term demand: healthy and resilient growth
Longer-term demand: healthy and resilient growth. World seaborne refined products trade1 Billion Tonne-miles ‘21-’23 CAGR: 8.0% ‘00-’19 CAGR: 3.6% • Seaborne demand for the 4,000 3,500 transportation of refined products contracted sharply in 2020 before 3,000 2,500 a strong rebound in 2021, which is
Slide 27: Longer-term demand: changes in the refinery landscape
Longer-term demand: changes in the refinery landscape. Portion of net refinery capacity additions ‘21-’26 40% • Global refinery crude distillation capacity should rise by 4.8m b/d 30% in the ‘21-26 period. 20% • ~91% of the planned refinery net capacity additions in the ‘21- 28% 28% 34% ’26 period a
Slide 28: Longer-term demand: US shale oil comeback
Longer-term demand: US shale oil comeback EIA’s US oil production (mbd)1 US horizontal oil rigs (lhs) vs WTI (US$ bl, rhs)2 14.0 1500 130 13.34 120 13.5 12.97 1300 110 13.0 12.82 100 12.50 1100 90 12.5 80 900 12.0 70 11.6 60 11.5 700 50 500 40 11.0 30 10.5 10.85 300 20 10 10.0 100 0 9.71 Jan-15 Jul-
Slide 29: Several forces spurring demolition
Several forces spurring demolition. Scrap steel price1 US$/ldt 800 22-Apr-2022, 680 700 16-Apr-2010, 480 10-Oct-2014, 510 600 500 400 19-Aug-2011, 445 15-Jul-2022, 580 300 200 17-Jul-2020, 270 04-Mar-2016, 240 100 0 Jan-2021 Jan-2011 Jan-2012 Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan
Slide 30: Growing pool of demolition candidates
Growing pool of demolition candidates. Historical and forecasted fleet composition by age (MRs and LR1s) (dwt, as at period end) 60% 56.7% 50% 47.4% 40% 38.1% 30% 31.6% 28.3% 24.9% 20% 15.9% 20.8% 12.5% 13.7% 13.0% 16.0% 8.9% 8.2% 9.4% 10% 11.1% 8.0% 5.7% 6.4% 6.2% 6.5% 7.0% 0% 5.6% 5.4% 4.9% 6.0% 4
Slide 31: Planned deliveries to slow sharply in coming months
Planned deliveries to slow sharply in coming months. MR & LR1 deliveries, 20221 30 25 20 N. Of vessels 15 27 26 27 22 23 24 10 20 18 18 18 17 16 18 13 5 0 Q1'21 Q1'22 Q2'21 Q2'22 Q3'21 Q3'22 Q4'21 Q4'22 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20221 20 18 16 N. Of vessels 14
Slide 32: Limited newbuild orders
Limited newbuild orders. MR Newbuilding parity curve vs MR & LR1 orders second-hand values1 US$ Million N. Of vessels 50.0 250 43.5 45.0 40.0 35.9 200 35.0 33.5 28.3 30.0 25.0 150 25.0 20.7 20.0 225 16.5 100 189 15.0 143 135 10.0 50 100 68 97 56 57 66 68 73 76 5.0 30 0.0 15 11 0 0 1 2 3 4 5 6 7 8 9
Slide 33: Slowing fleet growth
Slowing fleet growth. MR & LR1 deliveries and scrapping (m dwt) (lhs), and net Current MR & LR1 fleet age fleet growth (%)1 (rhs) profile1 31.6% of current fleet Million Dwt 12 12% Million Dwt 11.3% 11.6%11.9% 45 10 9.7% 10% 39.8 9.5% 40 8.7% 6.5% of current fleet 8 8% 35 3.2% of current fleet 6 6%
Slide 34: Why invest in DIS
Why invest in DIS
Slide 35: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1,2,3 US$/m US$/share 1000 1.20 900 0.98 0.98 1.00 800 0.89 700 0.78 0.76 0.80 0.69 600 0.56 0.55 500 421 0.60 406 0.42 348 0.44 400 327 340 0.35 286 0.36 309 0.34 0.31 262 0.40 300 246 233 230 0.28 0.25 0.21 0.20 200 0.14 0.16 0.11 0.11 0.20 10
Slide 36: Why invest in DIS today
Why invest in DIS today. • Young-fleet, most of which acquired at historically attractive prices and at top-tier yards. Furthermore, vessels are mostly eco-design (84% of owned and bareboat ships) and IMO classed (76% of owned and bareboat ships). • First-class in-house technical management provides
Slide 37: DIS' ESG
BA INTERNATIONAL SHI Vy “3
Slide 38: DIS' core values
DIS’ CORE VALUES. Long term vision Guided by the values of family tradition, we build our success on long term planning and turning our promises into actions. Focus onthe environment and safety We do not compromise when it comes to environmental concerns. Care and attention, prudence and respect for
Slide 39: DIS' ESG at a glance
DIS’ ESG at a glance. DIS’ Key facts and DIS Industry DIS DIS’ Key facts and figures: figures: Figures Average Figures Lost Time Injury ✓ IMO Classed Fleet (%) 1 76% 44% ✓ Frequency (LTIF YTD)2,6 0 Owned and bareboat Percentage of female ✓ fleet Age (Years) 1,3 7.1 12.3 ✓ colleagues onshore2 43.5% O
Slide 40: DIS' ESG – Environment and Safety
DIS’ ESG – Environment and Safety DIS seeks to be an industry leader on environmental and safety issues: • Among the first fleets worldwide compliant with Monitoring Reporting and Verification criteria for CO2 emissions. • Since 2011 DIS has a fleet performance monitoring department to optimize vess
Slide 41: DIS' ESG – Environmental KPIs
DIS’ ESG – Environmental KPIs. 2019 2020 2021 Var % 20-21 C02 emissions, total fleet CO2 (Millions tons) Scope 1 0.607 0.578 0.505 -12.6% AER (g C02/dwt tonne*miles) 6.74 6.44 6.22 -3.4% EEDI/EEXI (g Co2/dwt tonne* Miles) 4.96 4.96 4.70 -5.2% EEOI (g C02/tonne* miles) 16.10 16.18 15.78 -2.50% SOx em
Slide 42: DIS' ESG – Corporate Governance
DIS’ ESG – Corporate Governance DIS is listed on the most demanding segment of the Milan stock exchange (the Star), and has therefore adopted a first-class corporate governance framework: • Listed on the Star segment of the Milan Stock Exchange since 2007; • High standards of corporate governance: •
Slide 43: DIS' ESG – Social responsibility
DIS’ ESG – Social responsibility DIS seeks a diverse and inclusive work environment, where team work is highly valued. The high levels of employee satisfaction result in high retention rates. • 23 onshore personnel as at 31 December 2021; • 558 seagoing personnel as at 31 December 2021; • 96% retent
Slide 44: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable DIS’ Sustainable DIS’ Sustainable Sustainability Development Sustainability Development Sustainability Development Topics Goals Topics Goals Topics Goals Vessel energy Integrated Ship recycling efficiency management system for ongoing improvement
Slide 45: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Vessel energy efficiency • Renewal of the fleet with “Eco” vessels, in line with IMO directives, thanks to the implementation of innovative technologies. Innovation: • Projects aime
Slide 46: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Integrated management • Transparent statement of policies governing operations on board managed ships - in system for ongoing order to ensure safety and efficiency - and of the meth
Slide 47: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Ship recycling • Preparation of hazardous material inventories on all new buildings and on the existing fleet. Stakeholder engagement • Stakeholder mapping and detection of needs an
Slide 48: Appendix
INTERNATIONAL SHIPPING SA
Slide 49: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 d'Amico International SA 65.67% Others 32.87% d'Amico International Shipping SA 1.46% 2 100.00% 1 Listing market Borsa Italiana, STAR No. of shares issued 1,241,065,569 Market capitalisation1 €230.6 million Shares repurchased / % of shar
Slide 50: d'Amico Group Structure
d’Amico Group Structure. 100% d’Amico Società di Navigazione Spa d’Amico International S.A. 100% 100% d’Amico Shipping Ishima Pte Ltd Italia SpA 51% 85% Mida Maritime Rudder S.A.M. Company d.a.c 76.9% 100% Sirius Ship d’Amico Dry d.a.c. Management S.r.l. 65.65% d’Amico International Shipping S.A. 10
Slide 51: IMO (MEPC 76): CII and EEXI
IMO (MEPC 76): CII and EEXI. In June 2021, IMO's Marine Environment Protection Committee (MEPC 76) adopted amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI that will require ships to reduce their greenhouse gas emissions. These amendments combin
Slide 52: EU Emission Trading System (ETS) and Fuel EU
EU Emission Trading System (ETS) and Fuel EU. The European Commission has recently published a set of legislative proposals to enable the EU to attain its 2030 target of reducing its greenhouse gas emissions by at least 55% by 2030 compared with 1990 levels. In particular, the EU Commission proposed
Slide 53: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement Q2 2022 Q2 2021 H1 2022 H1 2021 UNREVIEWED UNREVIEWED US$ Thousand 108,742 62,916 Revenue 175,280 122,037 (35,956) (16,781) Voyage costs (59,673) (33,146) 72,786 46,135 Time charter equivalent earnings* 115,607 88,891 1,200 - Bareboat charter revenue
Slide 54: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet As at As at Note US$ Thousand 30 June 2022 31 December 2021 ASSETS Property, plant and equipment (PPE) and Right-of-use assets (RoU) 780,102 821,434 Other non-current financial assets 15,867 9,849 Total non-current assets 795,969 831,283 Inventories 17,9
Slide 55: Financial results. Consolidated Cash Flow Statement
Financial results. Consolidated Cash Flow Statement Q2 2022 Q2 2021 US$ Thousand H1 2022 H1 2021 UNREVIEWED UNREVIEWED 25,714 (5,411) Profit (loss) for the period 19,218 (15,179) 15,045 16,203 Depreciation and amortisation of PPE and RoU 30,448 32,631 - - Impairment 2,080 - (33) 90 Current and defer
Slide 56: DIS' current fleet overview. LR1 & MR Fleet
DIS’CURRENT FLEET OVERVIEW. LR1 & MR Fleet Owned - LR1 Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Londra 75,000 2019 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo di Cagliari 75,000 2018 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo Rosso 75,000 2018 Hyundai
Slide 57: DIS' current fleet overview. MR Fleet
DIS’CURRENT FLEET OVERVIEW. MR Fleet TC - IN Long Term with purchase option Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified High Leader 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High Navigator 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High
Slide 58: DIS' current fleet overview. Handy Fleet
DIS’CURRENT FLEET OVERVIEW. Handy Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Salerno 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Hanoi 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Capri 39
Slide 59: Thank you!
Thank you!
d'Amico International Shipping — Q2 2022 Earnings Presentation on 6ix