Diamond S Shipping (DSS) reported a net loss of $1 mill and adjusted EBITDA of $30.3 mill, for the first quarter of this year, reports Tanker Operator.
Better tanker market conditions
The net loss, compares to a net loss of $13.7 mill in 1Q18. This primarily reflects an increase in revenues as a result of better tanker market conditions in both the crude and product tanker segments.
Only four days of the fully merged company, DSS and Capital Product Partners (CPP), are included in the financial results for this quarter, the company explained.
Successful completion of merger
On 27th March, 2019, DSS successfully completed the merger with the tanker business of CPP, thus creating a publicly traded, large scale company with 68 crude and product carriers with an estimated gross vessel asset value of over $1.6 bill, as of April, 2019.
To facilitate this transaction, DSS agreed a credit facility that provides a $300 mill term loan and up to $60 mill in revolving loans. At close of the merger, the company borrowed $345 mill on this facility.
DSS said it maintained a healthy balance sheet with net debt as of 31st March, 2019 of $877.5 mill.
Craig Stevenson Jr, DSS President and CEO, said: “The merger of Diamond S with the tanker fleet of Capital Product Partners has created one of the leading publicly traded tanker operators in the world.”
Integration of the two fleets
He said that it was hard at work finalising the integration of the two fleets. The integration of platforms would drive operating and overhead efficiencies resulting in significant cost savings.
As of 10th May, 2019, the company has booked around 60% of the crude fleet at $15,700 per day. Product fleet tankers were are 70% fixed at $12,800 per day.
Earnings are expected to be impacted by positioning/repositioning of three to four product fleet vessels for drydockings in 2Q19.
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Source: Tankeroperator
