Double Hull Tankers, Inc. Reports Fourth Quarter 2007 Results

ST. HELIER, JERSEY, Channel Islands–(BUSINESS WIRE)–Feb. 7, 2008–Double Hull Tankers, Inc. (NYSE:DHT) today announced results for the period from October 1 to December 31, 2007. Total revenues for this period were $20.3 million and net income was $5.9 million, or $0.20 per share (diluted). The Board of Directors of DHT has declared a dividend of $0.35 per share, which will be paid on March 11, 2008 to shareholders of record as of the close of business on February 26, 2008. DHT plans to host a conference call at 9 am ET on February 7, 2008 to discuss the results for the quarter (see below for further details).

Fourth quarter 2007 Results

Total revenues for the fourth quarter of $20.3 million (compared to $20.1 million in the third quarter 2007 and $21.9 million in the fourth quarter of 2006) consist of $18.8 million in base charter hire revenue and $1.5 million in additional hire under the company’s profit sharing arrangements with Overseas Shipholding Group Inc. (“OSG”). Of the additional hire, $0.5 million relates to DHT’s Very Large Crude Carriers (“VLCCs”) and $1.0 million relates to DHT’s Aframax tankers. In the quarter ended December 31, 2007, DHT’s VLCCs achieved average time charter equivalent (“TCE”) earnings in the commercial pool of $34,900 per day (compared to $34,500 per day in the third quarter of 2007 and $52,900 per day in the fourth quarter of 2006) and the Aframax tankers achieved $25,800 per day (compared to $22,100 per day in the third quarter of 2007 and $34,100 per day in the fourth quarter of 2006), according to data from the commercial pools.

In general, through the profit sharing elements of the charter agreements, DHT earns an additional amount equal to 40% of the excess of the vessels’ actual net TCE earnings in the commercial pools over the base charter hire rates for the quarter, calculated on a fleet wide basis and on a four quarter rolling average. The actual average TCE earnings that DHT received for its vessels during the quarter ended December 31, 2007 were $38,500 per day for the VLCCs (compared to $41,000 per day in the third quarter of 2007 and $46,100 per day in the fourth quarter of 2006) and $24,600 per day for the Aframax vessels (compared to $25,600 per day in the third quarter of 2007 and $26,200 per day in the fourth quarter 2006).

The Suezmax Overseas Newcastle, delivered on December 4, 2007, had actual earnings during the period from December 4 to December 31 of $27,400 per day including profit sharing of 33% of the vessel’s earnings above the time charter equivalent of $35,000 per day.

Actual average TCE earnings are calculated by dividing the total revenue actually earned by the vessels by the sum of the total days each vessel was on hire during the relevant period, or “revenue days”. In the quarter ended December 31, 2007, revenue days were 274 for the VLCCs (compared to 267 revenue days in the fourth quarter of 2006) and 364 for the Aframaxes (compared to 367 revenue days in the fourth quarter of 2006). In addition, the Suezmax Overseas Newcastle had 27 earning days in the quarter.

For the quarter ended December 31, 2007, DHT’s vessel expenses, including insurance costs, were $4.8 million, depreciation and amortization expenses were $4.6 million and general and administrative expenses were $1.2 million. Net finance expenses, including amortization of deferred debt issuance costs, were $3.7 million for the quarter.

Market Update

The fourth quarter is traditionally a quarter with strong freight market for tankers, and this year the market improvement came late in the quarter but very strong and exceeded the highs of 2004. This was a result of increased oil production and the need to replenish inventories at the time of a tight balance in the spot market. China’s demand for oil imports remains the key driver for the growth in demand and import by seaborne transportation.

Newbuilding and second hand prices of tankers rose some 5 – 10 % during 2007 and for dry cargo vessels much more. The supply and demand balance of tanker tonnage is positively affected by the strong dry cargo market experienced. Conversion of older, single hull VLCCs to Very Large Ore Carriers and conversion of newbuilding contracts from tankers to dry cargo ships are having a positive effect on the supply and demand balance of tankers.

The market fundamentals for oil transportation by sea remain solid, based on continued and stronger growth than expected, in the world economy and demand for oil. Additionally, the increase in distances between oil producers and consumers results in increased tonne-mile demand. Tankers with double hull design continue to trade at a premium to single hull vessels and the difference appear to be widening since the recent oil spill by a single hull tanker outside South Korea. Double hull vessels also experience shorter waiting periods between cargos.

Vessels’ Charter Arrangements and Vessel Operations

Of our fleet of nine vessels, seven vessels are time chartered to Overseas Shipholding Group (OSG) until end 2010 – early 2012. The two recently delivered Suezmax tankers are bareboat chartered to OSG until 2014 and 2018, respectively. We believe that the charter hire will provide us with stable cash flows during the down turns in a volatile market, as our charters provide for fixed monthly hire payments regardless of prevailing market rates. If market rates exceed the daily base hire rates set forth in the charters we have for eight of our vessels the opportunity to participate in any excess under the profit sharing component of the charter arrangements.

The seven vessels on time charter are subject to scheduled periodic dry docking for the purpose of special survey and other interim inspections. In addition to scheduled off hire, these vessels can be subject to unscheduled off hire for ongoing maintenance purposes. Vessels on time charter are not paid hire when off hire. Total days of offhire for running repairs and mandatory inspections amounted to 6 days during the quarter.

The aframax tanker Overseas Ania is scheduled for statutory class inspection in the first or second quarter 2008. This vessel is employed in the U.S. lightering trade and it is expected that the scheduled interim survey will result in about 20 days off hire. There are no scheduled drydockings after this until the end of 2008 or early 2009 (special surveys for the Aframaxes Overseas Sophie and Overseas Cathy).

Recent Development

The company’s previously announced acquisitions of the two Suezmax vessels are completed. The Overseas Newcastle was delivered on December 4, 2007 and the Overseas London was delivered on January 28, 2008.

On January 4, 2008, DHT announced a dividend policy to provide the shareholders with a fixed quarterly dividend of $ 0.25 per common share commencing with the first dividend payment attributable to the 2008 fiscal year. The dividend policy is intended to provide the shareholders with a stable distribution, and position the company to use its incremental cash flow to fund future growth opportunities consistent with the company’s long term strategy of increasing shareholders value.


($ in thousands except per share amounts)

Shipping revenues $20,303 $21,933 $81,427 $86,793
Vessel expenses 4,802 4,648 19,423 18,690
Depreciation and
amortization 4,620 4,264 17,271 16,915
General and administrative 1,201 721 3,775 2,389
========== ========== ========== ==========
Total operating expenses 10,623 9,633 40,469 37,994
========== ========== ========== ==========
Income from vessel
operations 9,680 12,300 40,958 48,799
Interest income 224 227 962 908
Interest expense and
amortization of deferred
debt issuance cost 3,961 3,494 14,457 13,957
========== ========== ========== ==========
Net income 5,943 9,033 27,463 35,750
========== ========== ========== ==========
Basic net income per share $0.20 $0.30 $0.91 $1.19
========== ========== ========== ==========
Diluted net income per
share $0.20 $0.30 $0.91 $1.19
========== ========== ========== ==========
Weighted average number of
shares (basic) 30,030,811 30,009,250 30,024,407 30,007,000
Weighted average number of
shares (diluted) 30,034,022 30,023,522 30,036,523 30,016,352

($ in thousands)

Dec. 31, 2007 Dec. 31, 2006
Unaudited Audited
Current Assets
Cash and Cash Equivalents $10,365 $17,680
Voyage receivables from OSG 1,547 4,009
Unrealized gain on interest rate swap 1,712
Prepaid Expenses 452 331
Prepaid Technical Management Fee to OSG 1,357 1,324
============= =============
Total Current Assets 13,721 25,056
Vessels, net 398,005 322,577
Other assets incl. deferred debt issuance
cost 1,337 1,407
Vessel acquisition deposits 9,145
Total Assets $422,208 $349,040
============= =============
Current Liabilities
Accounts payable and accrued expenses $4,409 $3,456
Unrealized loss on interest rate swap 10,218
Deferred Shipping Revenues 7,006 6,169
============= =============
Total Current liabilities 21,633 9,625
Long term debt 328,700 236,000
Total Stockholders equity 71,875 103,415
Total Liabilities and Stockholders’ Equity $422,208 $349,040
============= =============


DHT plans to host a conference call at 9 am ET on February 7, 2008 to discuss the results for the fourth quarter. All shareholders and other interested parties are invited to call into the conference call, which may be accessed by calling (866) 825-1692 within the United States and +1-617-213-8059 for international calls. The passcode is “66620483”. A live webcast of the conference call will be available in the Investor Relations section on DHT’s website at

An audio replay of the conference call will be available from 11:00 a.m. ET on February 7, 2008 through 1 p.m. ET on February 14, 2008 by calling toll free (888) 286-8010 within the United States or +1-617-801-6888 for international callers. The passcode for the replay is 11245482. A webcast of the replay will be available in the Investor Relations section on DHT’s website at

Forward Looking Statements

This press release contains assumptions, expectations, projections, intentions and beliefs about future events, in particular regarding daily charter rates, vessel utilization, the future number of newbuildings, 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 are intended as “forward-looking statements.” All statements in this document that are not statements of historical fact are forward-looking statements.

The forward-looking statements included in this press release reflect DHT’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. We caution that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be material. The reasons for this include the risks, uncertainties and factors described under the section of our latest annual report on Form 20-F entitled “Risk Factors,” a copy of which is available on the SEC’s website at These include the risk that DHT may not be able to pay dividends; the highly cyclical nature of the tanker industry; global demand for oil and oil products; the number of newbuilding deliveries and the scrapping rate of older vessels; the risks associated with acquiring additional vessels; changes in trading patterns for particular commodities significantly impacting overall tonnage requirements; risks related to terrorist attacks and international hostilities; expectations about the availability of insurance; our ability to repay our credit facility or obtain additional financing; our ability to find replacement charters for our vessels when their current charters expire; compliance costs with environmental laws and regulations; risks incident to vessel operation, including discharge of pollutants; and unanticipated changes in laws and regulations.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements included in this press release. DHT does not intend, and does not assume any obligation, to update these forward-looking statements.

Double Hull Tankers, Inc.
Eirik Uboe
Phone: +44 1534 639 759 and +47 412 92 712
Email; and

SOURCE: Double Hull Tankers, Inc.