DHT Holdings, Inc. third quarter 2016 results

HAMILTON, BERMUDA, November 1, 2016 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) today announced:

Financial and operational highlights:

USD mill. (except per share) Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 2015 2014
Adjusted Net Revenue[1] 50.3 83.2 90.2 80.0 74.7 296.3 101.5
Adjusted EBITDA 29.5 63.7 69.5 59.6 54.8 214.8 40.6
Net Income/(loss) (75.7)2 35.6 31.52 32.4[2] 27.5 105.42 12.9
EPS – basic (0.81) 0.38 0.34 0.35 0.30 1.13 0.18
EPS – diluted7 (0.81) 0.34 0.30 0.31 0.27 1.04 0.18
Interest bearing debt 684.9 613.1 654.4 662.5 621.9 662.5 661.3
Cash 71.5 65.0 77.5 166.8[3] 158.2 166.83 166.7
Dividend[4] 0.02 0.23 0.25 0.21 0.18 0.69 0.11
Fleet (dwt)[5] 6,392,011 6,392,011 6,556,637 6,556,637 6,709,560 6,556,637 6,709,560
Spot exposure[6] 59.9% 56.6% 57.2% 49.9% 44.4% 50.5% 58.2%
Unscheduled off hire6 0.84% 0.29% 0.27% 0.17% 0.18% 0.20% 0.55%
Scheduled off hire6 5.06% 1.70% 0.00% 1.50% 0.00% 0.50% 2.4%

Highlights of the quarter:

  • Adjusted EBITDA and adjusted net income for the quarter of $29.5 million and $0.9 million, respectively, after adjusting for a non-cash impairment charge of $76.6 million.  Net loss for the quarter of $75.7 million (loss of $0.81 per basic share) reflecting a non-cash impairment charge of $76.6 million.
  • The Company’s VLCCs achieved time charter equivalent earnings of $29,700 per day in the third quarter of 2016 of which the Company’s VLCCs on time charter achieved $46,700 per day and the Company’s VLCCs operating in the spot market achieved $20,300 per day.
  • The Company will pay a dividend of $0.02 per common share for the quarter payable on November 23, 2016 for shareholders of record as of November 16, 2016.
  • In October 2016 the Company agreed to sell the DHT Chris, a 2001 built VLCC for $23.7 million.  The sale is in support of the company’s fleet renewal program. About $11.9 million of the net proceeds will be applied to repay debt and has been recorded as current portion of long term debt as of September 30, 2016.
  • On August 5, 2016 and August 31, 2016, respectively the Company took delivery of two of the last three of its six VLCC newbuildings from Hyundai Heavy Industries (HHI).  The vessels are named DHT Panther and DHT Puma, respectively and are trading in the spot market.  A total of $87.0 million of debt was drawn in connection with the two vessels.
  • During the quarter the Company refinanced the RBS credit facility totaling $40.0 million which had final maturity in July 2017.  The new financing for the DHT Ann (2001 VLCC), DHT Chris (2001 VLCC), DHT Cathy (2004 Aframax) and DHT Sophie (2003 Aframax) totals $40.0 million, bear interest at a rate equal to Libor + 2.75% and is repayable in quarterly installments of $2.1 million commencing in December 2016 with a final payment of $17.3 million in August 2019. The refinancing is structured as a separate tranche of the DHT Leopard financing entered into in December 2015.  Subsequent to the sale of DHT Chris, the credit facility is repayable in quarterly installments of $1.3 million with a final payment of $13.6 million in August 2019.
  • In October 2016, the Company entered into a firm commitment for a five year revolving credit facility with ABN Amro totaling $50.0 million to be used for general corporate purposes including security repurchases and acquisition of ships. The financing bears interest at a rate equal to Libor + 2.50%.
  • The Company has revised the capital allocation policy as follows: DHT intends to return at least 60% of its ordinary net income (adjusted for non-recurring items) to shareholders in the form of quarterly cash dividends and/or through buybacks of its own securities.  Further, DHT intends to allocate surplus cash flow, after dividends and/or security buybacks, to acquire ships or for general corporate purposes.  The extent and allocation will depend on market conditions and other corporate considerations.  DHT will apply its updated capital allocation policy starting with the fourth quarter of 2016.

  • DHT currently has a fleet of 20 VLCCs and two Aframaxes. Of the 21 vessels currently in operation, six of the VLCCs and the two Aframaxes are on fixed rate 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.

The company will host a conference call and webcast which will include a slide presentation at 8:00 a.m. EDT/13:00 CEST on Wednesday November 2, 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 1357 within the United States, 23162771 within Norway and +44 20 3450 9987 for international callers. The passcode is “DHT” or “3021563”. 

The webcast which will include a slide presentation will be available on the following link:
http://edge.media-server.com/m/p/chhq53g6 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 November 9, 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 3021563# 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 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.

2Q3 2016 includes and impairment charge of $76.6 million, Q1 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 $50.0 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]Q3 2016 includes one newbuilding totaling 299,900 dwt to be delivered in Q4 2016. Q1 and Q2 2016 include three newbuildings totaling 899,700 dwt to be delivered in Q3-Q4 2016. Q4 2015 and 2015 include five newbuildings totaling 1,499,500 dwt to be delivered in 2016.  2014 and 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 Q3 2016 financial report