DHT Holdings, Inc. first quarter 2016 results

HAMILTON, BERMUDA, May 2, 2016 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) today announced:

Financial and operational highlights:

USD mill. (except per share) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 2015 2014
Net Revenue[1] 90.2 80.0 74.7 68.1 73.5 296.3 101.5
EBITDA 61.4 59.6 54.8 49.5 51.0 214.8 40.6
Net Income 31.52 32.4[2] 27.5 22.2 23.2 105.42 12.9
EPS – basic 0.34 0.35 0.30 0.24 0.25 1.13 0.18
EPS – diluted7 0.30 0.31 0.27 0.22 0.23 1.04 0.18
Interest bearing debt 654.4 662.5 621.9 628.2 654.4 662.5 661.3
Cash 77.5 166.8[3] 158.2 137.1 176.5 166.83 166.7
Dividend[4] 0.25 0.21 0.18 0.15 0.15 0.69 0.11
Fleet (dwt)[5] 6,556,637 6,556,637 6,709,560 6,709,560 6,709,560 6,556,637 6,709,560
Spot exposure[6] 57.2% 49.9% 44.4% 46.3% 61.5% 50.5% 58.2%
Unscheduled off hire6 0.27% 0.17% 0.18% 0.31% 0.13% 0.20% 0.55%
Scheduled off hire6 0.00% 1.50% 0.00% 0.40% 0.00% 0.50% 2.4%

Highlights of the quarter:

  • EBITDA for the quarter of $61.4 million and net income of $31.5 million ($0.34 per basic share) including an impairment charge of $8.1 million (equal to $0.09 per basic share) related to the sale of the 2001 built Suezmax, the DHT Target.
  • The Company’s VLCCs operating in the spot market achieved time charter equivalent earnings of $62,600 per day in the first quarter of 2016.
  • The Company will pay a dividend of $0.25 per common share for the quarter payable on May 25, 2016 for shareholders of record as of May 16, 2016 which equates to 60% of net income excluding the impairment charge of $8.1 million.
  • On January 4, 2016 and March 15, 2016, respectively the Company took delivery of the second and third of its six VLCC newbuildings from Hyundai Heavy Industries (HHI). The vessels are named DHT Leopard and DHT Lion and are trading in the spot market. The remaining three newbuildings will be delivered from July to October 2016. The newbuildings are all fully funded and are expected to contribute significantly to the company’s earnings power.
  • In Q1 2016, the company prepaid the credit facility for DHT Hawk and DHT Falcon in its entirety, $42.0 million, as well as a $4.9 million prepayment on the RBS credit facility. In connection with these prepayments the Company recorded a non-cash finance expense of $0.9 million related to unamortized upfront fees.
  • During the quarter, the Company repurchased $3.0 million of its convertible senior notes due 2019 in the open market at a price of 99% of par and 359,831 shares of DHT common stock in the open market at an average price of $5.64 per share. In April 2016, the Company repurchased a further $1.0 million of its convertible senior notes due 2019 in the open market at a price of 99% of par.
  • In April 2016 the Company agreed to sell the DHT Target, a 2001 built Suezmax for $22.5 million and the vessel will be delivered to the buyers in May 2016.  The sale is in support of the company’s fleet renewal program and took place during a period in which three VLCC newbuildings have been delivered since November 2015 and three further VLCC newbuildings will be delivered by October 2016. An impairment charge of $8.1 million was recognized on the reclassification of the vessel as asset held for sale in the first quarter 2016. The entire net proceeds will be applied to repay debt under the RBS facility being in support of the Company’s capital allocation policy and $22.3 million has been recorded as current portion of long term debt as of March 31, 2016.
  • DHT has a fleet of 20 VLCCs (including three VLCCs under construction at HHI to be delivered from July to October 2016) and two Aframaxes as well as a 50% ownership in Goodwood Ship Management. Of the 19 vessels in operation, six of the VLCCs and the two Aframaxes are on fixed rate time charters and 11 VLCCs have spot market exposure. For more details on the fleet, please refer to our web site: https://www.dhtankers.com/index.php?name=About_DHT%2FFleet.html.

The full report can be found on the link below.


DHT will host a conference call and webcast which will include a slide presentation at 8:00 a.m. EDT/14:00 CEST on Tuesday May 3, 2016 to discuss the results for the quarter.  All shareholders and other interested parties are invited to join the conference call, which may be accessed by calling 1 718 354 1152 within the United States, 23162771 within Norway and +44 20 7136 2051 for international callers. The passcode is “DHT” or “4727682”. 

The webcast which will include a slide presentation will be available on the following link:
http://edge.media-server.com/m/p/biohnsrq and can also be accessed in the Investor Relations section on DHT’s website at https://www.dhtankers.com.

An audio replay of the conference call will be available through May 10, 2016.  To access the replay, dial 1 347 366 9565 within the United States, 21000498 within Norway or +44 20 3427 0598 for international callers and enter 4727682# as the pass code.

About DHT Holdings, Inc.
DHT is an independent crude oil tanker company. Our fleet trades internationally and consists of crude oil tankers in the VLCC, Suezmax and Aframax segments. We operate through our integrated management companies in Oslo, Norway and Singapore. You shall recognize us by our business approach with an experienced organization with focus on first rate operations and customer service, quality ships built at quality shipyards, prudent capital structure with robust cash break even levels to accommodate staying power through the business cycles, a combination of market exposure and fixed income contracts for our fleet and a transparent corporate structure maintaining a high level of integrity and good governance.  For further information: www.dhtankers.com.

Forward Looking Statements

This press release contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company’s management as well as assumptions, expectations, projections, intentions and beliefs about future events, in particular regarding dividends (including our dividend plans, timing and the amount and growth of any dividends), daily charter rates, vessel utilization, the future number of newbuilding deliveries, oil prices and seasonal fluctuations in vessel supply and demand. When used in this document, words such as “believe,” “intend,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “potential,” “will,” “may,” “should” and “expect” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  These statements reflect the Company’s current views with respect to future events and are based on assumptions and subject to risks and uncertainties.  Given these uncertainties, you should not place undue reliance on these forward-looking statements.  These forward-looking statements represent the Company’s estimates and assumptions only as of the date of this press release and are not intended to give any assurance as to future results.  For a detailed discussion of the risk factors that might cause future results to differ, please refer to the Company’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission on March 21, 2016.

The Company undertakes no obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, except as required by law.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and the Company’s actual results could differ materially from those anticipated in these forward-looking statements.

Eirik Ubøe, CFO
Phone: +1 441 299 4912 and +47 412 92 712
E-mail: eu@dhtankers.com

1Net of voyage expenses.

2Q1 2016 includes an impairment charge of $8.1 million related to the sale of the DHT Target and Q4 2015 and 2015 includes a loss of $0.8 million related to the sale of the DHT Trader.

[3] The cash balance as of December 31, 2015 includes $50 million relating to the financing for DHT Leopard which was drawn on December 29, 2015 in advance of the delivery of the DHT Leopard on January 4, 2016.

[4] Per common share.

[5] Q1 2016 includes three newbuildings totaling 899,700 dwt to be delivered in 2016. Q4 2015 and 2015 include five newbuildings totaling 1,499,500 dwt to be delivered in 2016.  2014 and Q4 2014 – Q3 2015 include six newbuildings totaling 1,799,400 dwt to be delivered in 2015/2016.

[6] As % of total operating days in period.
7 Diluted shares include the dilutive effect of the convertible senior notes and restricted shares granted to management and members of the board of directors.

DHT Q1 2016 Financial Report