D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — FY 2023 Earnings Presentation
66 slides from D'amico International Shipping's earnings presentation, Mar 14, 2024
Slide 1: FY 2023 Results Presentation
FY 2023 Results Presentation d’Amico International Shipping March 14th, 2024
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 – In FY’23, d’Amico International Shipping SA (“DIS” or “the Company”) recorded its most profitable year ever, posting a Net profit of US$ 192.2m vs. a Net profit of US$ 134.9m in the previous year. The adjusted net result (excluding non-recurring items) was of US$ 19
Slide 5: Executive summary
Executive summary. • Sale of Vessels – In Mar’24, DIS signed a memorandum of agreement for the sale of the MT Glenda Melanie, a 47,162 dwt MR product tanker vessel, built in 2010 by Hyundai Mipo, South Korea, for a consideration of US$ 27.4m. This transaction allows DIS to sell the oldest vessel of
Slide 6: Executive summary
Executive summary. • Reverse stock split – In June’23, the Board of Directors of DIS resolved to implement a share consolidation with respect to all the shares of the Company at a ratio of one (1) to ten (10), as approved by the Company’s extraordinary general meeting of shareholders held on June 13
Slide 7: DIS' overview
L. Veritoo INTERNATIONAL SHIPPING 5.4 . ‘S ES
Slide 8: A modern, high-quality and versatile fleet
A modern, high-quality and versatile fleet. December 31st, 2023 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 15.0 6.0 26.0 72.2% Bareboat chartered 1.0 2.0 0.0 3.0 8.3% Time chartered-in long-term 0.0 3.0 0.0 3.0 8.3% Time chartered-in short-term 0.0 4.0 0.0 4.0 11.1% TOTAL 6.0 24.0 6.0 36.0 100.0% • D
Slide 9: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm DIS has no remaining newbuilding CAPEX, 250.0 having fully completed its long-term investment 194.6 plan in ‘19. ‘Vessel acquisition’ in ’22 and in ‘23 200.0 3.9 refer respectively to the exercise of the 164.4 151.1 purchase options on the
Slide 10: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk. Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)1,2,3 US$/mm US$/mm US$/mm US$/day 40 -- 30 60 6,500 6,147 20.0 20 20 - 6,000 10 50 17.8 19
Slide 11: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Exercised purchase options: Unexercised purchase options: Build Purch. Option Purch. Vessel Name Build Purch. Option First Ex. Option (In/Out of Date Delivery Date Vessel Name Obligation 7 1 Date First Ex. Date the money) High Priority Mar-05 Feb-21 Date 2 Hi
Slide 12: DIS' purchase options on time-chartered-in vessels
DIS’ purchase options on time-chartered-in vessels Exercised purchase options: Unexercised purchase options: Build Purch. Option Build Purch. Option Purch. Option First Ex. Option (In/Out of Vessel Name Vessel Name Date Delivery Date Date First Ex. Date Last Ex. Date the money) High Adventurer Nov-1
Slide 13: Contracts and modern fleet to drive future results
Contracts and modern fleet to drive future results. Average TC and TC equivalent covered rates1 % of ‘employment days’ US$/day 70% 35,000 • For FY’24, DIS has covered ~34% of its available vessel days 60% 29,350 29,705 29,206 28,742 28,446 28,675 28,397 30,000 at an average TC equivalent rate of ~US
Slide 14: Q1'24 estimated TCE earnings
Q1’24 estimated TCE earnings1. Q1’24 fixed days Q1’24 potential blended TCE TCE US$/day % of ‘fixed days’ TCE US$/day 45,000 94% 100% 90% 33,700 40,000 33,600 35,000 80% 33,500 70% 30,000 33,400 53% 60% 33,300 25,000 50% 33,200 20,000 40% 40% 33,100 15,000 33,000 30% 32,900 10,000 20% 32,800 5,000 1
Slide 15: Large potential upside to future earnings
Large potential upside to future earnings. Estimated fleet evolution (avg. n. of vessels)1 Potential upside to earnings2 N. of ships (based on ‘available days’) US$/mm 40 40 34.1 35 32.0 0.4 30.8 35 3.0 1.6 30 1.9 30 2.7 5.3 2.0 2.4 0.9 25 25 20 20 15 15 29.7 30.9 25.4 25.3 26.0 10 10 18.8 5 5 9.9 1
Slide 16: Temporary upward pressure on costs
Temporary upward pressure on costs. Daily operating costs – owned and General & administrative costs – total fleet bareboat vessels1 US$/day US$/m 7,600 30.0 7,400 25.0 7,200 20.0 7,000 6,800 15.0 7,504 25.8 6,600 7,121 10.0 6,400 6,885 16.2 15.5 6,684 6,671 6,758 12.9 14.0 5.0 12.0 6,200 6,000 0.0
Slide 17: Financial results. FY'23 Net financial position
Financial results. FY’23 Net financial position (US$ million) Dec. 31st, 2022 Dec. 31st, 2023 Gross debt (496.7) (314.3) IFRS 16 – additional liabilities (39.8) (25.6) Cash and cash equivalents 117.9 111.2 Other current financial assets1 8.8 4.5 Net financial position (NFP) (409.9) (224.3) Net finan
Slide 18: Financial results. FY'23 Results
Financial results. FY’23 Results (US$ million) Q4’22 Q4’23 FY’22 FY’23 Non-recurring items: TCE Earnings 120.2 95.2 330.0 397.0 (US$ million) Q4’22 Q4’23 FY’22 FY’23 Total net revenue 121.4 96.4 334.8 401.8 Result on disposal of vessels (1.7) (0.3) (3.2) (4.7) Result on disposal of vessels (1.7) (0.
Slide 19: Financial results. FY'23 Key operating measures
Financial results. FY’23 Key operating measures Key Operating Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Measures Avg. n. of vessels 36.1 35.5 35.3 36.0 35.7 36.0 36.0 36.0 36.0 36.0 Fleet contact 44.5% 39.8% 32.0% 19.6% 34.0% 25.2% 27.2% 31.2% 35.6% 29.8% covera
Slide 20: Market overview – market fundamentals
Market overview – market fundamentals
Slide 21: Potential upside to asset values
Potential upside to asset values. Historical MR TC and spot rates1 Historical MR asset values1 US$/day US$/m 1 YR TC is currently ~3% below the last cycle 50,000 peak, whilst spot rates reached an all-time high 60 NB, 5yr old and 10yr old vessels are 45,000 in Dec’22 and they are currently ~26% belo
Slide 22: Trade disruptions – Russian refined product exports
Trade disruptions – Russian refined product exports1. Russia’s refined product exports by destination Russia’s refined product exports Million barrels per day Million barrels per day 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Feb-21 Feb-22 Feb-23 Feb-24 Mar-23 Aug-21 Sep-21 Aug-
Slide 23: Trade disruptions – Red Sea attacks
Trade disruptions – Red Sea attacks. Voyage duration increase on key trades (sea-days)2 Voyage duration increase on key trades (%)2 60 50 50 Ventspils - Singapore +32.4% 45 43 42 40 41 38 40 34 Singapore - Amsterdam +35.5% 30 30 31 28 30 24 Sikka - New York +37.3% 23 20 Ventspils - Jubail +53.6% 10
Slide 24: Trade disruptions – Panama Canal restrictions
Trade disruptions – Panama Canal restrictions. Product tankers’ Panama canal crossings1 Product tankers’ Panama canal crossings1 Number of product tankers % change vs same month in prior year 250 10% 6.9% 209 208 208 5% 200 183 184 182 176 180 185 176 180 179 171 160 160 163 168 0% -2.2% 151 158 153
Slide 25: 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 85.0 103.8 103.7 104.0 84.0 83.1 83.3 102.8 82.6 103.0 83.0 81.9 82.2 81.9 82.0 81.4 101.7 83.4 83.6 102.0 82.0 81.5 102.9 101.0 101.8 102.1 81.0 82.1
Slide 26: Healthy oil supply growth
Healthy oil supply growth. World oil production1 ‘24 average changes Million barrels per day • Due to the pronounced supply cuts by OPEC, oil output in FY’23 averaged 102.1 mb/d, representing only a 0.7 mb/d increase compared to Q4’22. • OPEC+ announced an extension and deepening of cuts in Q1’24. T
Slide 27: 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 Million barrels 83 82.3 81.5 350 82 325 80.7 300 81 275 80.0 250 80 79.3 225 78.8 200 79 78.2 175 77.7 150 78 77.2 125 76.8 100 77 76.4 75 76.1 50 76 25 0 75 Jul'20
Slide 28: Strong refining margins
Strong refining margins. Refining cracks, Rotterdam CIF or Barge FOB vs Brent1 60 50 40 30 20 10 0 -10 -20 -30 -40 Diesel Crack HSFO 3.5% Crack Jet Fuel Crack Gasoline Crack • Overall refining margins are at very attractive levels: o Following a decline in middle distillate margins from the very hig
Slide 29: Naphtha to lead demand growth in '24
Naphtha to lead demand growth in ‘24. % Change in number of commercial Jet fuel & Kerosene demand 2021-2023 Global demand growth by product flights vs. 20191 (kbpd) 2 2024 (kbpd) 2 15% Thousand barrels/day Y-O-Y growth Thousand barrels 8,000 18.5% 20% 17.7% 0% 18% Naphtha +432 7,000 Jan-20 Jan-23 Ja
Slide 30: Support also from a strong crude tanker market
Support also from a strong crude tanker market1. Coated LR2 fleet: clean vs. dirty trading1 Crude tankers’ orderbook % Fleet (dwt)2 45.0% 100% 1% 1% 1% 0% 0% 0% 0% 0% 1% 90% 40.0% 80% 37% 40% 38% 39% 36% 46% 44% 43% 41% 35.0% 70% 30.0% 60% 25.0% 50% 41.0% 40% 20.0% 36.8% 35.8% 30% 63% 60% 62% 61% 64
Slide 31: Longer-term demand – healthy and resilient growth
Longer-term demand – healthy and resilient growth. World seaborne refined products trade1 Billion Tonne-miles ‘21-’25 CAGR: 5.6% 4,000 ‘00-’19 CAGR: 3.6% 3,500 • Seaborne demand for the 3,000 transportation of refined products contracted sharply in 2020 before 2,500 a strong rebound in 2021, 2,000 e
Slide 32: Longer-term demand – changes in the refinery landscape
Longer-term demand – changes in the refinery landscape. Net refinery capacity additions by year ‘23-’261 % of net refinery capacity additions ‘23-’261 Thousand barrels/day 1,500 35.0% 1,300 30.0% 1,100 25.0% 900 20.0% 700 34.3% 15.0% 500 26.3% 10.0% 19.4% 20.5% 300 5.0% 100 6.3% 5.8% 0.0% 2023 2024
Slide 33: Longer-term demand – US shale oil
Longer-term demand – US shale oil. EIA’s US oil production (mbd)1 US horizontal oil rigs (lhs) vs WTI (US$ bl, rhs)2 14.0 13.7 1500 130 13.3 13.3 120 13.5 13.0 1300 110 13.0 12.8 100 1100 90 12.5 80 900 12.0 11.7 70 12.1 60 700 11.5 50 500 40 11.0 30 10.5 10.9 300 20 10 10.0 100 0 9.7 9.9 Aug-15 Aug
Slide 34: Several forces spurring demolition
Several forces spurring demolition. Scrap steel price1 US$/ldt 800 22-Apr-2022, 680 700 10-Oct-2014, 510 600 500 400 01-Mar-2024, 510 19-Aug-2011, 445 300 200 17-Jul-2020, 270 04-Mar-2016, 240 100 0 Sep-2014 Sep-2021 Sep-2011 Sep-2012 Sep-2013 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Se
Slide 35: Growing pool of demolition candidates
Growing pool of demolition candidates. Historical and forecasted fleet composition by age (MRs and LR1s)1 60% 56.0% 50% 51.3% • The proportion of vessels which have 42.2% 43.1% more than 15 and 20 years has been 40% 34.6% rising rapidly and this trend is 28.4% expected to accelerate over the 30% 25.
Slide 36: Planned deliveries to slow sharply in coming months
Planned deliveries to slow sharply in coming months. MR & LR1 deliveries, 2023-20241 25 20 N. Of vessels 15 10 20 14 13 14 5 10 11 11 11 8 7 8 2 4 0 Q1'23 Q1'24 Q2'23 Q2'24 Q3'23 Q3'24 Q4'23 Q4'24 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20231 20 18 16 N. Of vessels 14 12 10
Slide 37: Newbuild orders rising but still limited
Newbuild orders rising but still limited. MR newbuilding parity curve vs MR & LR1 orders2 second-hand values1 Period end US$ Million N. of vessels orderbook/fleet ratio 250 70% 50.049.5 61% 45.0 60% 45.5 40.7 200 40.0 47% 50% 35.0 38.0 31.8 150 30.0 40% 31% 25.0 23.0 26.0 30% 20.0 100 21% 17% 16% 16
Slide 38: 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 43.1% of current fleet Million Dwt 12 14% Million Dwt 12.7% 10.8% of current fleet 10 11.9% 12.0% 12% 60 55.4 7.7% of current fleet 8 10.0% 9.7% 10% 9.2% 50 8% 6
Slide 39: Why invest in DIS
Why invest in DIS
Slide 40: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1,2,3 US$/m US$/share 1200 12.00 39 26 9.81 9.76 30 993 1000 10.00 8.92 871 8.23 7.84 767 800 7.55 8.00 6.94 7.14 6.27 6.24 600 5.58 5.54 6.00 4.44 4.21 406 3.98 3.86 400 348 3.51 3.56 340 4.00 327 309 286 246 2.75 262 233 230 3.12 2.13 2.53 200
Slide 41: 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 (79% of owned and bareboat ships) and IMO classed (79% of owned and bareboat ships). • First-class in-house technical management provides
Slide 42: DIS' ESG
BA INTERNATIONAL SHI Vy “3
Slide 43: DIS' Purpose and Values
DIS’ PURPOSE and VALUES. Long-term vision, Family tradition and Business Ethics Innovation Our sustainable business model pursues the goal of Inspired by the values of our family, we build our creating value and generating a positive impact on the business with a long-term view, focusing on innovati
Slide 44: DIS' ESG Key figures
DIS’ ESG Key figures. GOVERNANCE RESPONSIBILITY 2023 Cases of corruption, bribery or anti-competitive behavior - Instances for which fines were incurred - ENVIRONMENTAL RESPONSIBILITY (owned and bareboat vessels) 1 2023 EEXI Compliant ships (as at year-end) 100.0% EEDI - Pre-EEDI (%) (as at year-end
Slide 45: 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 46: DIS' ESG – Environmental KPIs
DIS’ ESG – Environmental KPIs. EEDI compliance (owned and bareboat) – at year-end Pre-EEDI Phase 1 Phase 2 Phase 3 EEDI compliant ships (%) 20.7% 0.0% 62.1% 17.2% EEXI compliance (owned and bareboat) - at year-end 2021 2022 2023 EEXI compliant ships (%) 70.0% 89.3% 100.0% Fleet certified for the use
Slide 47: 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: • Incorporated in Luxembourg, it is organized and governed in compliance with Luxembourg laws • Listed on the ST
Slide 48: DIS' ESG – Social responsibility
DIS’ ESG – Social responsibility DIS seeks a diverse and inclusive work environment, where teamwork is highly valued. The high levels of employee satisfaction result in high retention rates. • 25 onshore personnel as at 31 December 2023; • 626 seagoing personnel as at 31 December 2023; • 100% retent
Slide 49: 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 50: 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 51: 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 52: 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 53: Appendix
INTERNATIONAL SHIPPING SA
Slide 54: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 1. d'Amico International SA 65.65% 2. Others 31.62% 2 3. d'Amico International Shipping SA 2.73% 100.00% 1 Listing market Borsa Italiana, STAR No. of shares issued 124,106,556 Market capitalisation1 €755.1 million Shares repurchased / %
Slide 55: 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 56: DIS' estimated sensitivity to interest rates
DIS’ estimated sensitivity to interest rates1. (US$ million) FY’24 FY’25 FY’26 Estimated average bank debt (228.6) (197.7) (160.9) Estimated average hedged bank debt 102.3 67.3 25.6 Estimated average unhedged bank debt (126.3) (130.4) (135.3) Assumed average cash & equivalents 100.0 100.0 100.0 Esti
Slide 57: IMO (MEPC 76): CII and EEXI. 1/2
IMO (MEPC 76): CII and EEXI. 1/2 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 co
Slide 58: IMO (MEPC 76): CII and EEXI. 2/2
IMO (MEPC 76): CII and EEXI. 2/2 In July 2023, IMO's Marine Environment Protection Committee (MEPC 78) has set more ambitious targets compared with the Initial IMO Strategy on Reduction of GHG Emissions from Ships. The new targets consider the Well-to-Wake (WtW) GHG emissions of marine fuels, as add
Slide 59: 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 included
Slide 60: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement US$ Thousand 2023 2022 Revenue 538,954 479,619 Voyage costs (141,984) (149,661) Time charter equivalent earnings 396,970 329,958 Bareboat charter revenue 4,869 4,812 Total net revenue 401,839 334,770 Time charter hire costs (136) (3,250) Other direct
Slide 61: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet As at As at US$ Thousand 31 December 2023 31 December 2022 ASSETS Property, plant and equipment (PPE) and Right-of-use assets (RoU) 794,259 809,298 Other non-current financial assets 2,434 9,103 Total non-current assets 796,693 818,401 Inventories 13,727
Slide 62: Financial results. Consolidated Cash Flow Statement
Financial results. Consolidated Cash Flow Statement US$ Thousand 2023 2022 Profit for the period 192,225 134,869 Depreciation and amortisation 62,454 60,845 Net Impairment (impairment reversal) - 89 Current and deferred income tax 1,225 403 Lease cost 8,336 17,152 Other financial charges (income) 13
Slide 63: 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 2 Bright Future 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 64: 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 Crim
Slide 65: 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 66: Thank you!
Thank you!
d'Amico International Shipping — FY 2023 Earnings Presentation on 6ix