d'Amico International Shipping S.A.

Good afternoon, this is the Corsco Conference Operator. Welcome and thank you for joining the D'Amico International Shipping Second Quarter and First Half 2023 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be a Q&A session. For operator assistance via web call, please press the headset icon on the bottom left side of your screen. For conference call assistance, please press star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Paolo D'Amico, Chairman and CEO. Please go ahead, sir.

Thank you. So good morning, good afternoon to everybody. Thank you for joining us on this call for our first half result and second quarter. As usual, I leave the floor to Carlos to give you the first part of the presentation. Carlos, please go ahead.

Good afternoon. Thank you, Paolo. And as usual, we start with a quick glance at our fleet profile. We still control 36 vessels. However, the number of own vessels has been increasing. This is just a photograph. As of 30th of June, we had 24 owned vessels and five variable chartered-in vessels, seven time chartered-in vessels. Since then, we took delivery of two vessels on which we had exercised purchase options, so the number of owned vessels has risen to 26 and the Burbo chartered in has fallen to three vessels. We will look more closely at these remaining options later on in the presentation. Young fleet, average age of eight years relative to an industry average of around 13 for MRs and NO1s. and large majority eco-design, almost 80%. Going on to the following page, not much new to report here. The maintenance capex for the second half of the year is quite significant, 8.4 million, but it then does fall quite a lot next year to 3.3 million. we have 10 vessels which have stopped or will be stopping for dry duct this year. So that's quite a big number relative to the total number of owned and bear bought chartered in vessels. Going on to the following page, our bank debt refinancings. We are still to roll down the refinancing of 20 million, which is related to the Cielo di Londra. It will be drawn down in the coming days. We don't have any balloons to refinance this year or next year. We do only have one facility relating to one vessel. with a balloon of $11 million to be refinanced in 25, and then the following facilities to be refinanced towards the end of 26 only. So a good runway without having to be concerned about that. The daily bank loan repayments have been falling and will continue falling over the coming years. As we exercise the purchase options on the bearable chartered investors, we are keeping them debt-free. And that is the main reason why these daily repayments are falling. Also, on the new refinancings, we have been negotiating or were able to negotiate slightly longer repayment profiles. So also that is helping. Going on to the following page, we show here the vessels which were already exercised. Only three, as I mentioned, left to be exercised. Two next year, one in March and one in September, and then another one in September 2025. And as it looks, given the current outlook for the market and our current situation, I would say it's very high. very likely that these will be exercised at the first opportunity. Going on to the following page here, instead we show the time charted in options, which were exercised on the left-hand side, the adventurer delivered to us in December last year and the explorer in May this year, and then the remaining options still to be exercised. Um, they're all in the money. Um, and, uh, we will, uh, we will be exercising these at the latest stage, uh, currently, uh, according to our calculations, it's, uh, more convenient to, uh, retain the optionality, uh, and, uh, and then, uh, reconsider the exercise closer to the end of the TCN contracts. Going on to the following page here, we show our TC coverage. This hasn't increased significantly since our last update relating to the Q1 results. but we did secure actually two days ago a new OTC contract for around one year for one of our MR vessels. So you will see that the coverage for Q4 has risen to now to 22%, and that for 24 to 9%, which is still very low relative to our standards. So most likely, this coverage for Q4 and in particular for 2024 will continue rising over the coming quarters as we take advantage of opportunities that will arise in the market to cover more of our fleet at attractive rates. The coverage we do have is at a very good level. We have now 25% of the days in the second half are covered at an average rate of 28.7,000. So going on to the following page here, we provide a quick update on the trading for Q3. And we have already fixed 28% of the available days in Q3 at an average rate of 28,000.