DHT Holdings, Inc. First Quarter 2018 Results

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DHT Holdings, Inc. First Quarter 2018 Results

HAMILTON, BERMUDA, May 7, 2018 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) today announced:

FINANCIAL AND OPERATIONAL HIGHLIGHTS:

USD mill. (except per share) Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 2017 2016
Adjusted Net Revenue1 46.2 56.6 54.8 59.6 70.7 241.8 290.7
Adjusted EBITDA 24.0 33.5 31.4 36.7 50.6 152.1 209.4
Net Income/(Loss) (9.2) (7.5)2 (5.1) 4.8 14.32 6.62 9.32
EPS – basic (0.06) (0.05) (0.04) 0.04 0.15 0.05 0.10
EPS – diluted3 (0.06) (0.05) (0.04) 0.04 0.15 0.05 0.10
Interest Bearing Debt 764.4 786.2 826.0 841.1 674.6 786.2 701.5
Cash 69.8 77.3 86.5 104.0 72.2 77.3 109.34
Dividend5 0.02 0.02 0.02 0.02 0.08 0.14 0.58
Spot Exposure6 70.7% 73.6% 67.9% 63.5% 58.1% 66.4% 57.8%
Unscheduled off hire6 0.1% 0.1% 0.3% 0.2% 0.2% 0.2% 1.8%
Scheduled off hire6 0.7% 0.3% 2.7% 2.8% 2.4% 2.0% 1.7%

HIGHLIGHTS:

  • Adjusted EBITDA for the quarter of $24.0 million. Net loss for the quarter of $9.2 million or loss of $0.06 per basic share.
  • The Company’s VLCCs achieved time charter equivalent earnings of $21,400 per day in the first quarter of 2018 of which the Company’s VLCCs on time-charter earned $25,000 per day and the Company’s VLCCs operating in the spot market achieved $20,200 per day (after adoption of IFRS 15 as per January 1, 2018).
  • For the quarter the Company generated positive cash flow from operations after payment of ordinary debt amortization and drydocking costs.
  • So far in the second quarter of 2018, 55% of the available VLCC spot days have been booked at an average rate of $14,200 per day.
  • For the first quarter of 2018, the Company will return $2.9 million to shareholders in the form of a cash dividend of $0.02 per share, payable on May 30, 2018 for shareholders of record as of May 21, 2018.
  • In April 2018 the Company entered into a $485 million secured credit facility agreement with a six year tenor for the refinancing of 13 of the Company’s VLCCs. The new credit facility will bear interest at a rate equal to Libor + 2.40% and will have a 20-year repayment profile.
  • In April 2018, the Company also entered into an agreement with ABN Amro to increase the Company’s revolving credit facility to $57.0 million from the current availability of $43.4 million. The revolving credit is currently undrawn. 
  • On April 27, 2018 the Company took delivery of the first of its two VLCC newbuildings from DSME. The vessel is named DHT Stallion. The second newbuilding from DSME will be delivered in May 2018 while the two newbuildings from HHI are expected to be delivered in June 2018 and September 2018. 
  • DHT has a fleet of 27 VLCCs, 24 in the water and three under construction scheduled for delivery in 2018, as well as two Aframaxes. The total dwt of the fleet is 8,590,740.  Six of the VLCCs and one of the Aframaxes are on time charters. 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

Footnotes:
1Shipping Revenues net of voyage expenses.
2Q4 2017 includes a non-cash impairment charge of $1.1 million and a net loss of $3.3 million related to the sale of DHT Eagle and DHT Utah. Q1 2017 includes a non-cash impairment charge of $7.5 million related to the sale of DHT Ann and DHT Phoenix. 2017 includes  impairment charges of $8.5 million and net loss of $3.5 million related to sale of vessels. 2016 includes total impairment charges of $84.7 million.
3Diluted shares include the dilutive effect of the convertible senior notes and restricted shares granted to management and members of the board of directors.
4The cash balance as of December 31, 2016 includes $48.7 million relating to the financing for DHT Tiger which was drawn in 2016 in advance of the delivery of the DHT Tiger on January 16, 2017.
5Per common share.
6As % of total operating days in period.

EARNINGS CONFERENCE CALL AND WEBCAST INFORMATION
The company 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 8, 2018 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 1 323 701 0225 within the United States, 21002610 within Norway and +44 330 336 9105 for international callers. The passcode is “DHT” or “4264945”.

The webcast which will include a slide presentation will be available on the following link:
https://edge.media-server.com/m6/p/i8sjfybn 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 15, 2018.  To access the replay, dial 1 719 457 0820 within the United States, 23500077 within Norway or +44 207 660 0134 for international callers and enter “4264945” 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 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 April 24, 2018.

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.

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

DHT Q1 2018 financial report