d'Amico Shipping Rides the Hormuz Shock to Record Profits

Iran conflict drives product tanker rates to records, powering a blockbuster quarter and a strong outlook.

DIS.MI · Earnings Call · 2026-05-07

The Hormuz Shock

d'Amico International Shipping (DIS.MI) entered 2026 with the strongest tanker market in years, and Q1 results show it: net profit of $27.5 million versus $18.9 million a year earlier, with spot rates surging to $32,264/day — up 90% quarter-over-quarter. The driver is unmistakable: the conflict with Iran has disrupted the Strait of Hormuz, removing roughly 14 million barrels per day of seaborne flows. CEO Antonio Carlos Balestra Mottola laid out the magnitude: “There were around 20 million barrels per day transiting the straight last year... just under 2 million barrels per day were able to transit through Hormuz during the period.” — Antonio Carlos Balestra Mottola, CEO · 2026-05-07 The result has been a violent re-rating of clean tanker rates, with the product tanker market hitting record levels and crude tanker market strength spilling over through LR2s migrating to dirty trades.

Record Fixtures and a Strong Q2

CFO Federico Rosen provided remarkably clear forward guidance: for Q2 2026, the company has already fixed 81% of its days at a blended TCE of over $33,000/day. “we are expecting an extremely profitable quarter at the end of June.” — Federico Rosen, CFO · 2026-05-07 The sensitivity is significant — every $1,000/day of spot strength adds $3 million to the bottom line. On the capital allocation front, the company is sticking to its disciplined payout, with payout ratio targeting 55% for 2025 results. The balance sheet is fortress-like: net financial position of $25.8 million against a fleet market value of $1.2 billion, a loan-to-value of just 2%.

Prudent Navigation of the Strait

When asked about resuming Hormuz transits, the CEO was characteristically cautious:

But we will assess this very carefully. And there's also the risk of mines still... So we will take a prudent approach in that respect and try to employ our vessels in other regions initially.
Antonio Carlos Balestra Mottola, CEO · 2026-05-07

The company is balancing fleet allocation between basins, avoiding the most dangerous waters while positioning to benefit from the inevitable reopening, which the CEO believes will actually support rates through pent-up demand.

Fleet Expansion and Market Discipline

With 28 vessels on the water and 10 on order, d'Amico is growing into a larger player. The order book for MRs and LR1s is declining even as fleet age rises — by 2027, nearly 25% of the product tanker fleet will be over 20 years old. This supply discipline, combined with the shift of LR2s to dirty trades, underpins the bullish outlook. As CEO noted: “We can have a strong product tanker market even without a strong crude tanker market.” — Antonio Carlos Balestra Mottola, CEO · 2026-05-07 And the company's net result for the year could reach $112.5 million if free days average $25,000/day — a plausible scenario given current momentum. Prior quarters proved this management team knows how to navigate volatility. In late 2025 they responded to market spikes by product tanker market fixing tactically, and in 2025 they deliberately avoided over-extending on newbuilds, preserving balance sheet strength. As the CEO said then: “we are not really in a hurry to make other investments at this stage” — Carlos Balestra di Mottola, Executive/Management · 2025-05-09 — a stance that now looks prescient. Today, the company is reaping the rewards of that discipline, with a NAV discount below 10% and a fleet positioned to capture both the current rally and the eventual normalization of the Strait.