The adjusted net result was a negative $5.9 mill, compared with minus $20.9 mill in 3Q18. Gross operating profit/EBITDA was $21.4 mill, compared with $2.2 mill in same quarter of 2018.
TCE earnings were $59.8 mill, compared with $55.1 mill in 3Q18.
For the first nine months of this year, DIS suffered a negative net result of $32.5 mill, compared with a negative $41.2 mill in the same period of last year. The adjusted net result was a negative $15.1 mill, compared to $44.4 mill in 2018.
TCE earnings were $186.1 mill, compared to $180.7 mill in the first nine months of 2018.
EBITDA was $69.3 mill (37.3% on TCE), compared to $7.8 mill in 2018.
Net debt at the end of the third quarter was $685.3 mill, compared to $553 mill as at 30th September, 2018 and $588.7 mill as at 31 December, 2018.
Paolo d’Amico, DIS Chairman and CEO, commented: “Excluding non-recurring items from both years, DIS’ net result would have amounted to minus $15.1 mill in the first nine months of 2019, compared with $44.4 mill recorded in the same period of 2018, corresponding to a $29.3 mill increase year-on-year.
Looking at the third quarter of the year, such substantial improvement is mainly attributable to the better market conditions and to cost efficiencies achieved in 2019.
DIS realised a daily average spot rate of $12,786 in the first nine months of 2019, which is $2,212 per day higher than the $10,574 achieved in the same period of 2018. In line with its long-term commercial strategy, DIS had also a high level of coverage in the period, equal to 48.7% of its total days at an average daily rate of $14,610. Therefore, our total blended daily TCE (spot and timecharter) was $13,674 in the first nine months of 2019 versus $11,967 in the same period of last year.
The third quarter is traditionally the weakest of the year for the product tanker market, which generally tends to improve towards the middle of 4Q19 and going into the winter season. However, 3Q19 though certainly weaker than the first half of the year, was considerably better than in 2018 and the upward movement of 4Q19 began materialising already in October, way earlier than usual.
This scenario is clearly reflected by DIS’ daily spot earnings, which averaged $11,616 in 3Q19 versus $8,689 in 3Q18. The refining throughput in the first half of 2019 was negatively affected by a longer than usual refining maintenance programme, with the objective of reducing off-time in the fall, in anticipation of the additional product demand generated by the new IMO2020 regulations.
“Despite the subdued freight market in 3Q19, period rates as well as asset values have continued moving upwards. At the end of the third quarter, the assessed one-year TC rate was $15,000 per day for conventional MRs and $17,000 per day for Eco MRs, and these rates have strengthened over the last few weeks to around $16,000 per day and $17,500 per day, respectively.
“As already disclosed in our second quarter report, DIS has been taking advantage of this growing interest from oil-majors and leading trading houses to fix some of its MR and LR1 vessels at profitable levels.
“The freight market for our vessels is currently benefiting from the reduced transportation capacity in the crude sector, due mainly to sanctions affecting a number of these vessels and to scrubber retrofits. Spot rates, which are already at profitable levels for our vessels, could improve further this winter, as refining throughput ramps up towards the end of the year.
“Looking at the future, we maintain a very positive outlook for the product tanker industry. Fundamentals are very solid, with an orderbook at record low levels and a growing demand for seaborne transportation of refined products.
“In addition, the new IMO regulations, which limit the sulfur content in bunker fuels to 0.5% from January, 2020, should further stimulate refining activity and demand for our vessel, with Clarksons’ expecting an increase in demand of around 6% for product tankers next year. I believe we are just at the beginning of a sustained positive market cycle and we are already seeing some very positive signs as we speak.
“Over the last few years, DIS embarked on well-timed and substantial newbuilding programme, while maintaining a prudent commercial strategy. More recently, the company focused on strengthening its financial structure and this is going to be one of our continuing priorities. I am absolutely convinced that these strategic initiatives, positioned DIS very favourably to strongly benefit from the ongoing market recovery and adequately reward our shareholders in the very near term,”he concluded.