D’Amico sees continued strength in product tankers
- DIS posts strong results for first quarter, albeit below ‘exceptional’ year-ago profits
- Chief executive Carlos Balestra di Mottola says core industry fundamentals are solid despite influence of geopolitical uncertainties
- Fleet includes no China-built tankers and no impact foreseen from proposed US port fees
Italian product tanker owner says sector is resilient enough to withstand various geopolitical outcomes
GEOPOLITICAL uncertainties have not shaken the faith that Italy-based owner d’Amico International Shipping (DIS) continues to hold in the resilience of the product tanker market after notching another profitable quarter.
“Although potential peace agreements in Ukraine and Gaza could restore some logistical efficiency, we believe underlying supply tightness, reconfigured trade patterns and regulatory pressures will continue to support a healthy market,” said chief executive Carlos di Mottola in a commentary on first-quarter results.
Looking ahead at possible political scenarios, di Mottola said that even if Suez Canal transits normalise or sanctions on Russia be lifted, “mitigating factors such as higher European imports from Asia and the Middle East, or the scrapping of ageing tonnage in the shadow fleet, should continue to sustain the market”.
Tighter US restrictions on Iranian oil exports could also have a silver lining, by shifting volumes to non-sanctioned producers and thus “benefiting VLCC demand with positive knock-on effects across other tanker segments”.
The owner and operator of 32 product tankers does not operate any China-built tankers and the majority of the fleet falls below the 55,000 dwt exemption threshold for proposed additional US port fees, so it does not expect to be impacted from the new policies.
Nonetheless, di Mottola welcomed recent US clarifications on the tariffs, saying they were now “more targeted”.
Geopolitical developments hade played “a major role in shaping recent freight trends, yet core industry fundamentals remain solid”, he added.
Positive trends included a slowing of momentum in ordering of new tankers as well as an ageing fleet profile that would “increasingly constrain productivity and will likely accelerate demolitions”.
DIS posted a first-quarter net profit of $18.9m on revenues of $88.6m.
While this was a significant drop from the “exceptional” first quarter last year, when the owner posted a $56.3m net profit and revenues of $132.2m, the results still reflected the strength of the product tanker market in the first three months of 2025, said di Mottola.
