Diamond S Shipping Inc. announces results for the first quarter of 2020

Diamond S Shipping Inc. announces results for the first quarter of 2020


Diamond S Shipping Inc., (one of the largest publicly listed owners and operators of crude oil and product tankers), has announced results for the first quarter of 2020.

It said net income was attributable to Diamond S of $45.0 million, (or $1.13 per basic share), and it reported an adjusted EBITDA of $84.7 million.

Its net debt at March 31, 2020 was $720.6 million, implying a net debt to asset value leverage ratio of 43 per cent, based on broker valuations as of December 2019.

As of May 7, 2020, it had fixed 63 per cent of Crude Fleet revenue days at an average rate of approximately $41,800 per day, and 60 per cent of Product Fleet revenue days at an average rate of approximately $18,500 per day in the second quarter of 2020.

Diamond S said it had repurchased 137,289 shares for a total of $1.4 million under the share repurchase programme, as of March 31, 2020, 

Craig H. Stevenson Jr., President and CEO of Diamond S, said: “Diamond S would like to thank the dedicated seafarers aboard our 66 ships who have kept our Company moving in the face of the global pandemic. These seafarers, many of whom have had their terms of service extended due to logistical difficulties, are absolutely critical to the global energy economy. 

“While the pandemic has created a difficult operational environment, the changes in the oil and petroleum products supply chain have led to a positive near term environment for tankers. This unprecedented volatility provides a reminder of both the benefits of unit leverage and spot market exposure.”

He added that while Diamond S is positioned to generate substantial cash flow, its focus is on appropriately managing the volatility inherent in its markets by ensuring that its liquidity profile remains strong and that its cash break evens stay at highly competitive levels. 

He concluded: “After the current inventory stocking cycle reverses and oil and petroleum products begin to come out of storage, operators that have maintained capital discipline and have low daily break evens will be best positioned to withstand the trough cycle rate environment. We believe these strategic priorities will create value for our shareholders over the long term.”

For more information visit diamondsshipping.com

18th May 2020