d’Amico International Shipping Sees Geopolitical Tensions As Next Volatility Drivers For Tankers

In Capital Link’s 2026 Corporate Presentation Series, Carlos Balestra di Mottola, CEO of d’Amico International Shipping S.A. (Borsa Italiana: DIS) (OTCQX:DMCOF), outlined the company’s strategy centered on capital allocation, fleet renewal, and earnings visibility, as strengthening product tanker markets and geopolitical disruptions continue to reshape global trade flows.

You can watch the full presentation here:

https://www.youtube.com/watch?v=efWvwxwxfMY

Financial Foundation

The company controls a fleet of 29 product tankers, primarily MR2s, with exposure to the LR1 and Handysize segments. Of these, 27 vessels are owned with an average age of 9.6 years. “The ratio between the net financial position and our fleet market value at the end of September ‘25 was of around 7%,” Balestra di Mottola stated. The company reported net profits of $63 million for the first nine months of 2025. Average daily spot earnings increased from $21,150 in Q1 to $25,500 in Q3.

Fleet Renewal Anchored in Efficiency, Not Expansion

d’Amico’s fleet renewal program includes four LR1s ordered in 2024, two MR1 vessels ordered in late 2025 and two MR2s ordered at the start of 2026. This represents a total investment of almost $419 million, with $374 million remaining payable to shipyards in China. “We realize these vessels are not coming cheap,” Mr. di Mottola acknowledged, “but these vessels are going to be very efficient, and it is important that we maintain a competitive fleet.”

The new MR2s are expected to deliver approximately 17% fuel savings compared to the company’s existing vessels, while the new MR1s promise around 20% savings. Mr. di Mottola noted that in today’s market, an Eco vessel commands about $1,500-$2,000 more per day on a TCE basis than a conventional ship, with a further $1,000 premium for the super Eco newbuilds.

In response to questions, Mr. di Mottola reiterated that shareholder returns remain a priority with a 40% payout ratio from 2024 results expected to be confirmed for 2025.

These newbuilds are methanol-ready, but the company is not investing in full dual-fuel capability yet. They see biofuels, including HVO, as a more immediate solution. The company is also studying wind-assisted propulsion but notes that without stricter IMO measures, the payback period is less compelling.

In terms of earnings visibility, 42% of 2026 available days are covered at an average of about $23,300 per day, and 16% of 2027 is covered at $22,200 per day. Management expects to increase 2026 coverage to around 50% over the next two to three months, while maintaining some spot exposure to benefit from strong market conditions.

Geopolitical Volatility Driving Ton-Mile Demand

According to Mr. di Mottola the recent toughening of sanctions on Russia, including those of OFAC on Lukoil and Rosneft have created further obstacles for exports, leading to a rise in inefficient practices such as ship-to-ship transfer, which have led to a surge in oil on water.

Finally, he noted that a peace agreement between Ukraine and Russia, would not necessarily entail the removal of sanctions, especially those imposed by the EU and the UK and that any such removal is likely to be gradual and occur in stages. Eventually a normalization of Russian trade flows, whilst negative since it would shorten trade routes, should also accelerate the scrapping of elderly vessels, helping the market rebalance.

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