Q2 2026 d'Amico International Shipping SA Earnings Call Transcript
Key Points
- Record Q2 2026 spot rates of $57,500 per day, driving a net profit of $52 million and an EBITDA margin of over 72%.
- Achieved a net cash position of $19.2 million by end of H1 2026, with a negative leverage ratio of -1.6%, reflecting strong balance sheet strength.
- Secured a new three-year time charter extension, increasing contract coverage to 57% for H2 2026 and 31% for 2027, providing earnings visibility.
- Fleet modernization continues with 10 newbuildings on order (2027-2029), while the average fleet age is a young 9.9 years, enhancing operational efficiency.
- Benefiting from strong market fundamentals: aging fleet (22% of MR/LR1 fleet over 20 years), low order book (14%), and geopolitical disruptions (Red Sea, Russia sanctions) boosting ton miles and rates.
- Daily OpEx rose 5% year-over-year to $8,580 per day in H1 2026 due to inflationary pressures and higher logistics costs for spare parts.
- Market volatility persists, with spot rates spiking and correcting sharply; Q3 2026 coverage is only 61% at $23,562 per day, leaving significant exposure to spot market fluctuations.
- Geopolitical risks remain high, including potential escalation in the Middle East (Strait of Hormuz) and Red Sea disruptions, which could lead to oil price spikes and demand destruction.
- Order book for MR/LR1 vessels is rising, with 90 vessels ordered in H1 2026 (annualized 180), posing a potential oversupply risk in the coming years if ordering continues at this pace.
- Net financial position turned negative (net cash) but fleet market value is $1.28 billion, and the stock trades at a 30% discount to NAV, indicating market undervaluation despite strong performance.
Good afternoon, this is the conference operator. Welcome and thank you for joining the D'Amico International Shipping second quarter and first half of 2026 results web call.
(Operator Instructions)
I would like to turn the conference over to Mr. Federico Rosen, CFO. Please go ahead.
'-
Good afternoon and welcome to our earnings call for Q2 and H1 2026 results.
As usual, I will skip the executive summary and go straight to page 7.
Snapshot of our fleet as at the end of June 2026, we had 28 ships on the water, six LR1s, 16 Mrs. And six Andys.
We also have, as 10 ships currently under construction for our ones scheduled for delivery in 2027 in the second half of next year.
Four Mrs. Four MR2s also called and two Handys that are scheduled for delivery in 2029.
Modern fleet 9.9 average years.
And moving to the next page, this is our situation on the bank debt front in H126 in line with
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