Vessel sales hit DSS’ bottom line

Nov 29 2019


Diamond S Shipping (DSS) has reported a net loss of $25.9 mill for the third quarter of this year, compared to a net loss of $22 mill in the third quarter of 2018.

Excluding the loss on vessel sales of $18.3 mill, the 3Q19 net loss was $7.6 mill.

The decrease in net loss in 3Q19 was primarily related to an increase in the number of vessels as a result of the merge of DSS Holdings and Capital Product Partners tanker businesses on 27th March, 2019, plus improved tanker market conditions in both the crude and product tanker segments.

Adjusted EBITDA for the period was $34 mill.

During the period, DSS sold two 2008-built MRs, the ‘Atlantic Aquarius’ and ‘Atlantic Leo’, generating about $11.3 mill of liquidity before settlement of working capital. A non-cash write-off of $18.3 mill was recognised in connection with the vessel sales.

As of 30th September, net debt was $819.2 mill.

As of 8th November, DSS had fixed 62% of crude fleet revenue days at $43,000 per day and 63% of product fleet revenue days at $13,500 per day for 4Q19.

Craig Stevenson Jr., DSS President and CEO, commented: “While market conditions remained relatively soft in the third quarter, the sudden and dramatic rise in crude tanker rates suggests that the market was much tighter than rates implied.

“Diamond S is well positioned to generate substantial cash flow in a strong market due to the large size of our fleet, our high level of spot market exposure and our highly competitive breakeven costs.

“Crude tanker rates have stabilised at much higher levels, and we anticipate that product tanker rates will follow suit. We expect disruption and volatility across both segments as the industry makes its final preparations for IMO2020 and believe that the regulation will be a catalyst for further improvements,” he said.

 



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