D'Amico Sees Big Demand for Eco-Vessels

Fiori said he expects a market turnaround after temporary problems

d'Amico International Shipping S.A. (DIS) says it is betting on strong demand for fuel-saving vessels, despite losses that widened to $6.8 million in the first quarter of 2014.

The company's time charter equivalent earnings (TCE) dropped to $46.5 million in Q1, down from $50.1 million for the same period last year.

The product tanker market was weaker than expected in Q1'14 only due to seasonal effects," said CEO Marco Fiori.

"In fact, a harsh winter in the US and the closure of several American refineries for maintenance temporarily reduced US exports of Oil Products.

"However I firmly believe this was only temporary turbulence and I expect the situation will reverse in the short term, with the USA leading again the market recovery."

The company said it repositioned many of its ships in the Atlantic to take advantage of an expected market rebound and took advantage of contracts fixed at profitable levels.

"As a further evidence of our belief in the positive market perspectives of our Industry, we increased our orderbook by three further MR 'ECO vessels' in Q1'14, bringing our total newbuilding plan to 16 product tankers for an overall investment of US$490.7 million."

Fiori said half the new vessels have already been fixed on long-term time charter contracts with oil majors and a refining company at "very profitable levels."

Seven of the newbuildings will be delivered in 2014.

The company announced separately that it has received two eco-MR tankers from Hyundai Vinashin Shipyard Co. Ltd. in Vietnam, and they area already on time charter agreements with a major oil refiner.