D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — FY2021 Earnings Presentation
58 slides from D'amico International Shipping's earnings presentation, Mar 20, 2022
Slide 1: FY 2021 Presentation
FY 2021 Presentation d’Amico International Shipping 10th March, 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 – Due to the challenging freight markets, d’Amico International Shipping SA (“DIS” or “the Company”) recorded a Net loss of US$ (37.3)m in FY’21 vs. a Net profit of US$ 16.6m in FY’20 and an Adjusted net result (excluding non-recurring items and IFRS 16 effects from b
Slide 5: Executive summary (continued)
Executive summary (continued). • Sale of two old vessels, in line with DIS’ strategy of owning and operating a very young and ‘eco’ fleet – In Q4’21, DIS sold the M/T High Venture, an MR vessel built in 2006, for a consideration of US$ 10.7m, generating approximately US$ 8.0m in cash, net of commiss
Slide 6: DIS' overview
L. Veritoo INTERNATIONAL SHIPPING 5.4 . ‘S ES
Slide 7: A modern, high-quality and versatile fleet
A modern, high-quality and versatile fleet. December 31st, 2021 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 8.0 6.0 19.0 51.4% Bareboat chartered 1.0 7.0 0.0 8.0 21.6% Time chartered-in long-term 0.0 9.0 0.0 9.0 24.3% Time chartered-in short-term 0.0 1.0 0.0 1.0 2.7% TOTAL 6.0 25.0 6.0 37.0 100.0% • D
Slide 8: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm 250.0 194.6 200.0 3.9 DIS has no remaining newbuilding 164.4 151.1 CAPEX, having fully completed its long- 12.8 0.7 term investment plan in FY’19 150.0 101.2 85.3 83.7 79.0 1.0 100.0 190.7 8.1 2.5 1.4 65.2 151.6 150.3 5.2 50.0 100.2 77.1 8
Slide 9: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk. Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)1,2,3 US$/mm US$/mm US$/mm US$/day 120 40 60 6,600 -- 6,147 90 30 6,200 50 60 - 20 5,800 10
Slide 10: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Purch. Build Purch. Option First Ex. Option Vessel Name Obligation 1 Date First Ex. Date (In/Out of the money) Date High Priority 2 Mar-05 Oct-19 Oct-22 Exercised in Q1'21 High Freedom Jan-14 Feb-20 Feb-24 In the money High Fidelity Aug-14 May-20 May-27 In th
Slide 11: Contracts and modern fleet to drive future results
Contracts and modern fleet to drive future results. Average TC and TC equivalent covered rates1 • Average contract rates rise while the proportion of % of ‘employment days’ US$/day 70% 19,783 20,000 the fleet covered falls throughout 2022, providing valuable exposure to an expected market recovery.
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 60 35.2 34.9 35 31.2 50 8.0 8.0 30 8.0 40 25 9.2 8.9 20 5.2 30 15 20 32.2 10 18.0 18
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 7,200 18.0 16.0 7,000 14.0 6,800 12.0 10.0 6,600 7,121 8.0 16.2 14.0 6,400 6.0 12.0 12.9 6,758 6,684 6,671 4.0 6,200 2.0 6,000 0.0 FY'18 FY'19 FY'20 FY'21
Slide 14: Financial results. FY'21 Net financial position
Financial results. FY’21 Net financial position (US$ million) Dec. 31st, 2020 Dec. 31st, 2021 Dec. 31st, 2021 Pro-Forma Gross debt (532.0) (485.9) (483.6) IFRS 16 – additional liabilities (96.4) (80.5) (80.5) Cash and cash equivalents 62.1 43.4 51.3 Other current financial assets1 4.7 2.7 2.7 Net fi
Slide 15: Financial results. FY'21 Results
Financial results. FY’21 Results Non-recurring items: (US$ million) Q4’20 Q4’21 FY’20 FY’21 (US$ million) Q4’20 Q4’21 FY’20 FY’21 TCE Earnings 53.6 43.1 257.8 174.1 Result on disposal of vessels (0.6) (0.5) (1.3) (2.1) Result on disposal of vessels (0.6) (0.5) (1.3) (2.1) Non-recurring financial ite
Slide 16: Financial results. FY'21 Key operating measures
Financial results. FY’21 Key operating measures Key Operating Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Measures Avg. n. of vessels 46.0 44.4 41.9 40.4 43.2 38.8 38.0 38.0 37.7 38.1 Fleet contact 64.6% 62.6% 63.0% 56.6% 61.9% 49.5% 46.7% 48.4% 45.5% 47.5% covera
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 ~59% and ~77% 55 NB, 5yr old and 10yr old vessels are 30,000 below the last cycle peak 50 respectively ~23%, ~44% and ~58
Slide 19: 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 In the UK and several other European countries Covid-19 cases have been falling rapidly. Furthermore, during the mo
Slide 20: 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 90.0 101.7 101.6 100.1 84.1 84.1 98.9 100.6 85.0 82.9 82.1 81.8 82.9 82.2 82.8 100.0 100.6 82.4 80.6 81.2 80.1 81.2 100.2 84.2 83.1 98.8 99.0 98.7 80.
Slide 21: Refined product inventories at low levels
Refined product inventories at low levels. Crude oil price (Brent, US$ bbl), forward curve1 CPP vs DPP and crude oil floating storage2 100.0 Million barrels 95.1 350 95.0 92.5 325 90.8 300 89.5 275 90.0 88.4 87.4 86.6 250 85.9 85.1 225 84.4 83.8 85.0 83.2 82.6 200 175 150 80.0 125 100 75 75.0 50 25
Slide 22: Near-term demand green shoots: vehicles are rolling
Near-term demand green shoots: vehicles are rolling. 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 23: Near-term demand green shoots: jet fuel recovery
Near-term demand green shoots: jet fuel recovery. % 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 Feb-20 Mar-20 Apr-20 Jul-20 Feb-21 Mar-21 Apr-21 Jul-21 Feb-22 Oct-20 Oct-21 Nov-20 Dec-20 Nov-21 Dec-21 Jan-20 Jun-20
Slide 24: The impact of the Ukrainian war
The impact of the Ukrainian war Russian crude exports (mbpd)1 Russian exports of petroleum products (mbpd)1 6.0 70% 3.5 64% 63% 5.0 60% 3.0 63% 50% 2.5 62% 4.0 40% 2.0 62% 3.0 61% 30% 1.5 2.0 61% 20% 1.0 60% 1.0 10% 0.5 60% 0.0 59% 0.0 0% December '21 January '22 First 3 weeks Feb '22 Last week Feb
Slide 25: 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: 5.7% 3,500 ‘00-’19 CAGR: 3.6% 3,000 • Seaborne demand for the transportation of refined products 2,500 contracted sharply in 2020 before 2,000 a strong rebound in 2021, which is
Slide 26: 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 27: 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 13.0 12.97 12.84 12.82 1500 110 12.39 12.5 100 1300 11.82 90 12.0 1100 80 11.5 70 900 60 11.0 50 700 40 10.5 10.85 500 30 10.0 20 300 9.71 10 9.77 9.5 100 0 Mar-18 Jun-18 Jun-1
Slide 28: Several forces spurring demolition
Several forces spurring demolition. Scrap steel price1 US$/ldt 700 25-Feb-2022, 630 16-Apr-2010, 480 600 515 10-Oct-2014, 510 500 400 19-Aug-2011, 445 300 200 17-Jul-2020, 270 04-Mar-2016, 240 100 0 • The restocking phase following the pandemic, in addition to the important fiscal stimulus and infra
Slide 29: Growing pool of demolition candidates
Growing pool of demolition candidates. Historical and forecasted fleet composition by age (MRs and LR1s) (dwt, as at period end) 60% 54.1% 50% 44.7% 40% 35.2% 30% 28.7% 24.9% 20% 15.9% 20.8% 12.5% 13.7% 12.9% 16.0% 8.9% 8.2% 9.2% 10% 11.1% 8.0% 5.7% 6.4% 6.2% 6.8% 0% 5.6% 5.4% 4.9% 6.0% 4.8% 3.9% 5.
Slide 30: Strong pick-up in demolitions already visible
Strong pick-up in demolitions already visible. MR & LR1 deliveries, 20221 30 25 N. Of vessels 20 15 27 26 27 22 23 24 10 20 18 16 15 15 5 11 8 0 Q1'21 Q1'22 Q2'21 Q2'22 Q3'21 Q3'22 Q4'21 Q4'22 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20221 20 18 16 N. Of vessels 14 12 10 19
Slide 31: Limited newbuild orders
Limited newbuild orders. MR Newbuilding parity curve vs MR & LR1 orders second-hand values1 US$ Million N. Of vessels 45.0 42.0 250 40.0 34.7 35.0 200 30.0 30.0 27.5 150 25.0 20.2 20.0 19.0 225 100 189 15.0 11.0 143 135 10.0 68 50 100 97 57 52 66 68 73 76 5.0 30 15 2 0.0 0 0 1 2 3 4 5 6 7 8 9 10 11
Slide 32: 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 28.7% of current fleet Million Dwt 12 12% Million Dwt 11.3% 11.6%11.9% 40 10 10% 36.0 9.7% 9.5% 8.7% 35 6.2% of current fleet 8 8% 3.8% of current fleet 30 6 6%
Slide 33: Why invest in DIS
Why invest in DIS
Slide 34: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1,2 US$/m US$/share 1000 0.94 1.00 0.89 0.90 900 0.90 800 0.76 0.80 0.72 700 0.65 0.70 600 0.56 0.60 0.53 500 0.50 0.42 374 0.40 400 334 0.35 0.34 0.40 302 0.31 314 291 288 300 255 0.25 240 245 0.24 0.24 0.30 230 222 218 213 0.20 0.20 0.16 0.17
Slide 35: 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 (78% of owned and bareboat ships) and IMO classed (74% of owned and bareboat ships). • First-class in-house technical management provides
Slide 36: DIS' ESG
BA INTERNATIONAL SHI Vy “3
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: Appendix
INTERNATIONAL SHIPPING SA
Slide 48: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 d'Amico International SA 65.65% Others 32.87% d'Amico International Shipping SA 1.48% 100.00% 2 1 Listing market Borsa Italiana, STAR No. of shares issued 1,241,055,569 Market capitalisation1 €115.1 million Shares repurchased / % of shar
Slide 49: 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 50: 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 51: 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 52: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement US$ Thousand 2021 2020 Revenue 246,455 316,314 Voyage costs (72,369) (58,538) Time charter equivalent earnings 174,086 257,776 Bareboat charter revenue 888 - Total net revenue 174,974 257,776 Time charter hire costs (3,395) (13,961) Other direct opera
Slide 53: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet As at As at US$ Thousand 31 December 2021 31 December 2020 ASSETS Property, plant and equipment (PPE) and Right-of-use assets (RoU) 821,434 901,765 Investments in jointly controlled entities - 4,312 Other non-current financial assets 9,849 12,110 Total n
Slide 54: Financial results. Consolidated Cash Flow Statement
Financial results. Consolidated Cash Flow Statement US$ Thousand 2021 2020 Profit (loss) for the period (37,261) 16,556 Depreciation and amortisation 64,802 69,522 Impairment 6,422 2,223 Current and deferred income tax 445 267 Net finance lease cost 17,131 19,870 Other financial charges (income) 12,
Slide 55: 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 56: 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 57: 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 58: Thank you!
Thank you!
d'Amico International Shipping — FY2021 Earnings Presentation on 6ix