D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — FY2022 Earnings Presentation
63 slides from D'amico International Shipping's earnings presentation, Mar 9, 2023
Slide 1: FY 2022 Results Presentation
FY 2022 Results Presentation d’Amico International Shipping March 9th, 2023
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. • FY’22 Net result – In FY’22, d’Amico International Shipping SA (“DIS” or “the Company”) recorded the best annual result in its history1, with a Net profit of US$ 134.9m, compared with a Net loss of US$ (37.3)m posted in FY’21. The adjusted net result (excluding non-recurring ite
Slide 5: Executive summary
Executive summary. • Exercise of purchase options on two TC-in MR vessels – In Q3’22, DIS exercised its purchase option on M/T High Adventurer, an MR vessel built by Onomichi Dockyard Co., Ltd., Japan, in November 2017 and time-chartered-in by d’Amico Tankers ever since, for a consideration of JPY 4
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 31th, 2022 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 9.0 6.0 20.0 55.6% Bareboat chartered 1.0 7.0 0.0 8.0 22.2% Time chartered-in long-term 0.0 6.0 0.0 6.0 16.7% Time chartered-in short-term 0.0 2.0 0.0 2.0 5.6% TOTAL 6.0 24.0 6.0 36.0 100.0% • D
Slide 8: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm DIS has no remaining newbuilding CAPEX, 250.0 having fully completed its long-term investment 194.6 plan in ‘19. ‘Vessel acquisition’ in ’22 and in ‘23 200.0 3.9 refer respectively to the exercise of the 164.4 151.1 purchase options on Hig
Slide 9: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk. Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)1,2,3 US$/mm US$/mm US$/mm US$/day 250 40 60 6,500 6,147 200 - 30 150 6,000 50 20 100 174.5
Slide 10: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Exercised purchase options: • DIS has flexible purchase options on all its Purch. bareboat-in vessels, allowing it to acquire all Vessel Name Build Purch. Option Obligation Purchase option exercised the vessels with three months’ notice from the Date First Ex
Slide 11: DIS' purchase options on time-chartered-in vessels
DIS’ purchase options on time-chartered-in vessels Build Purch. Option Purch. Option First Ex. Option (In/Out of Vessel Name Date First Ex. Date Last Ex. Date the money) Crimson Jade Jun-17 Jun-21 Dec-26 In the money Crimson Pearl Aug-17 Aug-21 Feb-27 In the money High Adventurer Nov-17 Nov-21 Nov-2
Slide 12: Contracts and modern fleet to drive future results
Contracts and modern fleet to drive future results. Average TC and TC equivalent covered rates1 • Average contract rates rise while the proportion of the % of ‘employment days’ US$/day 70% 35,000 fleet covered falls in FY‘23, providing valuable exposure to 30,121 30,550 30,657 29,432 an ongoing mark
Slide 13: Q1'23 estimated TCE earnings
Q1’23 estimated TCE earnings1. Q1’23 fixed days Q1’23 potential blended TCE TCE US$/day % of ‘fixed days’ TCE US$/day 45,000 90% 82% 34,500 40,000 80% 35,000 70% 34,000 58% 30,000 60% 33,500 25,000 50% 33,000 20,000 40% 32,500 15,000 24% 30% 32,000 10,000 20% 5,000 10% 31,500 25,123 38,822 34,735 32
Slide 14: 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$/mm 40 40 35.9 34.1 33.0 35 35 6.3 1.9 2.0 30 6.0 30 5.7 25 7.3 3.2 2.0 25 20 20 35.1 33.9 15 15 22.3 23.0 23.3 24.8 10 10 5 5 11.7 11.3
Slide 15: DIS focused also on cost savings
DIS focused also on cost savings. Daily operating costs – owned and General & administrative costs – total fleet bareboat vessels1 US$/day US$/m 7,200 18.0 16.0 7,000 14.0 6,800 12.0 10.0 6,600 7,121 8.0 16.2 15.5 6,885 14.0 6,400 6.0 12.0 12.9 6,758 6,684 6,671 4.0 6,200 2.0 6,000 0.0 FY'18 FY'19 F
Slide 16: Financial results. FY'22 Net financial position
Financial results. FY’22 Net financial position (US$ million) Dec. 31st, 2021 Dec. 31st, 2022 Gross debt (485.9) (496.7) IFRS 16 – additional liabilities (80.5) (39.8) Cash and cash equivalents 43.4 117.9 Other current financial assets1 2.7 8.8 Net financial position (NFP) (520.3) (409.9) Net financ
Slide 17: Financial results. FY'22 Results
Financial results. FY’22 Results (US$ million) Q4’21 Q4’22 FY’21 FY’22 Non-recurring items: TCE Earnings 43.1 120.2 174.1 330.0 (US$ million) Q4’21 Q4’22 FY’21 FY’22 Total net revenue 44.0 121.4 175.0 334.8 Result on disposal of vessels (0.5) (1.7) (2.1) (3.2) Result on disposal of vessels (0.5) (1.
Slide 18: Financial results. FY'22 Key operating measures
Financial results. FY’22 Key operating measures Key Operating Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Measures Avg. n. of vessels 38.8 38.0 38.0 37.7 38.1 36.1 35.5 35.3 36.0 35.7 Fleet contact 49.5% 46.7% 48.4% 45.5% 47.5% 44.5% 39.8% 32.0% 19.6% 34.0% covera
Slide 19: Market overview – market fundamentals
Market overview – market fundamentals
Slide 20: 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 50,000 1 YR TC is still ~15% below the last cycle peak, 45,000 whilst Spot rates reached an all-time high in 60 NB, 5yr old and 10yr old vessels are 40,000 Dec’22 and it now ~11% lower
Slide 21: The Ukrainian war and trade flows
The Ukrainian war and trade flows. Russian Crude and DPP exports to China, India and Turkey (mb/day)1 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 China India Turkey • Exports of Russian Crude and DPP to India and Turkey (mostly from the Baltic rather than Black Sea) increased sharply since the onset
Slide 22: Russian refined product exports
Russian refined product exports. Russian Gasoil and Diesel Loadings by destination1 Russian Gasoil and Diesel to North Africa1 Thousand barrels per day Thousand barrels per day 1,000 80% 90% 200 900 80% 70% 180 800 70% 61% 160 700 60% 600 140 50% 500 120 40% 400 100 300 30% 28% 20% 80 200 8% 9% 14%
Slide 23: The Ukrainian war and oil supply
The Ukrainian war and oil supply. • Russian oil output has proven resilient in ‘22. As sanctions in Europe and the UK come into full force at the end of ‘22, there is however a risk that next year Russian oil production could be more severely affected. Overall, in 2022, Russian oil exports increased
Slide 24: Covid-19, the receding impact of the new variants
Covid-19, the receding impact of the new variants. 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 Thanks to the widespread vaccination campaigns, as well as to the lower mortality of the new variants relative to
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 105.0 102.9 103.5 90.0 84.2 101.1 82.2 83.0 84.4 100.1 81.4 84.1 82.2 83.1 100.6 100.6100.9 80.8 80.8 81.6 80.5 82.9 83.1 85.0 82.9 81.8 82.1 81.5 81.8 100.
Slide 26: 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 81.2 Million barrels 82 80.8 350 81 80.4 325 81 80.1 300 275 80 79.7 250 79.3 225 80 79.0 200 79 78.6 175 150 79 78.2 125 77.8 100 78 75 77.5 78 77.2 50 25 77 0
Slide 27: Very tight diesel market, especially in the US
Very tight diesel market, especially in the US. US Middle distillate stocks by PADD1 Refining Cracks2 80 kbbls Description Current 10y median 2021 Of total vs 10y vs 2021 60 Total 119 131 158 PADD1 East Coast 36.6 41.8 54.3 31% 87% 67% 40 PADD2 Midwest 28.1 30.5 29.5 24% 92% 95% 20 PADD3 Gulf Coast
Slide 28: Jet fuel demand still rising strongly
Jet fuel demand still rising strongly. % Change in number of commercial flights vs. 20191 Jet fuel & Kerosene demand 2020-2023 (kbpd) 2 Thousand barrels/day Y-O-Y growth 10% 8,000 20% 18% 17% 0% 7,000 18% May-20 May-21 May-22 Feb-20 Mar-20 Feb-23 Apr-20 Jul-20 Feb-21 Mar-21 Apr-21 Jul-21 Feb-22 Mar-
Slide 29: Support also from strong crude tanker market
Support also from strong crude tanker market1. Coated LR2 fleet: clean vs. dirty trading Crude tankers’ orderbook % Fleet (dwt) 45.0% 100% 1% 1% 1% 0% 0% 0% 0% 40.0% 90% 80% 37% 38% 39% 36% 35.0% 44% 40% 46% 70% 30.0% 60% 25.0% 50% 41.1% 20.0% 36.9% 40% 35.8% 15.0% 31.8% 30% 63% 60% 62% 61% 64% 54%
Slide 30: Longer-term demand: healthy and resilient growth
Longer-term demand: healthy and resilient growth. World seaborne refined products trade1 Billion Tonne-miles ‘21-’24 CAGR: 8.1% 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, which is
Slide 31: 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 32: 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 13.5 13.0 13.0 12.8 12.6 1500 130 120 12.5 1300 110 100 12.0 11.6 12.3 1100 90 80 11.5 900 70 60 11.0 700 50 10.9 40 10.5 500 30 10.0 300 20 9.7 9.9 10 9.5 100 0 Feb-15 Feb-16 Feb-17 Fe
Slide 33: Several forces spurring demolition
Several forces spurring demolition. Scrap steel price1 US$/ldt 800 22-Apr-2022, 680 700 10-Oct-2014, 510 600 500 400 19-Aug-2011, 445 17-Feb-2023, 565.00 300 200 17-Jul-2020, 270 04-Mar-2016, 240 100 0 Aug-2021 Aug-2011 Aug-2012 Aug-2013 Aug-2014 Aug-2015 Oct-2015 Aug-2016 Aug-2017 Aug-2018 Aug-2019
Slide 34: Growing pool of demolition candidates
Growing pool of demolition candidates. Historical and forecasted fleet composition by age (MRs and LR1s) (dwt, as at period end) 60% 52.9% 50% 43.6% 40% 34.6% 35.5% 28.3% 30% 24.9% 20.8% 20% 15.9% 16.0% 12.5% 13.8% 13.1% 11.1% 8.9% 8.4% 9.5% 10% 8.1% 6.4% 6.2% 7.2% 7.5% 5.7% 0% 4.2% 5.6% 5.4% 4.9% 5
Slide 35: Planned deliveries to slow sharply in coming months
Planned deliveries to slow sharply in coming months. MR & LR1 deliveries, 2022-20231 30 25 20 N. Of vessels 15 26 10 20 18 18 17 16 16 15 14 5 9 10 4 4 0 Q1'22 Q1'23 Q2'22 Q2'23 Q3'22 Q3'23 Q4'22 Q4'23 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20221 20 18 16 N. Of vessels 14
Slide 36: Limited newbuild orders
Limited newbuild orders. MR newbuilding parity curve vs MR & LR1 orders2 second-hand values1 Period end US$ Million N. of vessels orderbook/fleet ratio 50.045.5 45.0 250 70% 61% 40.0 41.5 37.5 60% 35.0 200 47% 50% 30.0 32.0 29.5 150 40% 25.0 21.5 31% 20.0 30% 21.0 100 21% 15.0 17% 16% 16% 13% 13% 20
Slide 37: 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 35.5% of current fleet Million Dwt 12 11.6%11.9% 12% 11.3% Million Dwt 10 9.7% 9.5% 10% 8.7% 50 8 8% 45.1 7.5% of current fleet 45 6 6% 3.2% of current fleet 4.6
Slide 38: Why invest in DIS
Why invest in DIS
Slide 39: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1,2,3 US$/m US$/share 1200 1.20 0.98 0.98 1000 1.00 0.89 0.78 800 0.76 737 0.80 0.69 0.60 600 0.56 0.55 0.60 0.42 0.44 421 406 0.40 400 348 0.35 0.36 340 0.40 327 0.31 309 0.34 286 262 246 233 230 0.28 0.25 0.21 0.20 200 0.14 0.16 0.20 0.11 0.11
Slide 40: 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 (78% of owned and bareboat ships). • First-class in-house technical management provides
Slide 41: DIS' ESG
BA INTERNATIONAL SHI Vy “3
Slide 42: 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 43: DIS' ESG Key figures
DIS’ ESG Key figures. GOVERNANCE RESPONSIBILITY 2022 Cases of corruption, bribery or anti-competitive behavior 0 Instances for which fines were incurred 0 ENVIRONMENTAL RESPONSIBILITY 2022 EEXI Compliant ships (as at year-end)/ Eco ships 78.6% EEDI - Pre-EEDI (%) (as at year-end) 7.1% EEDI - Phase 1
Slide 44: 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 45: DIS' ESG – Environmental KPIs
DIS’ ESG – Environmental KPIs. CO2 Emissions (owned and bareboat) 2020 2021 2022 Var 2022/21 Var 2022/20 CO2 per nautical mile [tCO2/ Nautical Mile] 0.31127 0.32049 0.30518 -4.8% -2.0% CO2 per transport unit [tCO2/tons] 0.03956 0.03913 0.0384 -1.9% -2.9% AER [g C02/dwt tonne*miles] 6.44 6.16 6.39 3.
Slide 46: 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 47: 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. • 24 onshore personnel as at 31 December 2022; • 593 seagoing personnel as at 31 December 2022; • 92% retent
Slide 48: 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 49: 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 50: 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 51: 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 52: Appendix
INTERNATIONAL SHIPPING SA
Slide 53: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 d'Amico International SA 65.65% Others 32.89% 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 €590.7 million Shares repurchased / % of shar
Slide 54: 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 55: 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 56: 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 57: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement US$ Thousand 2022 2021 Revenue 479,619 246,455 Voyage costs (149,661) (72,369) Time charter equivalent earnings* 329,958 174,086 Bareboat charter revenue 4,812 888 Total net revenue 334,770 174,974 Time charter hire costs (3,250) (3,395) Other direct
Slide 58: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet As at As at US$ Thousand 31 December 2022 31 December 2021 ASSETS Property, plant and equipment (PPE) and Right-of-use assets (RoU) 809,298 821,434 Other non-current financial assets 9,103 9,849 Total non-current assets 818,401 831,283 Inventories 18,303
Slide 59: Financial results. Consolidated Cash Flow Statement
Financial results. Consolidated Cash Flow Statement US$ Thousand 2022 2021 Profit (loss) for the period 134,869 (37,261) Depreciation and amortisation 60,845 64,802 Net Impairment (impairment reversal) 89 6,422 Current and deferred income tax 403 445 Net lease cost 17,152 17,131 Other financial char
Slide 60: 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 61: 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 62: 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 63: Thank you!
Thank you!
d'Amico International Shipping — FY2022 Earnings Presentation on 6ix