DHT Holdings, Inc. Third Quarter 2024 Results
HAMILTON, BERMUDA, November 12, 2024 – DHT Holdings, Inc. (NYSE: DHT) (“DHT” or the “Company”) today announced:
FINANCIAL HIGHLIGHTS:
|
USD mill. (except per share)
|
Q3 2024
|
Q2 2024
|
Q1 2024
|
Q4 2023
|
Q3 2023
|
2023
|
2022
|
|
Shipping revenues
|
141.1
|
150.1
|
145.9
|
142.3
|
130.3
|
556.1
|
450.4
|
|
Adjusted net revenues1
|
92.6
|
103.7
|
106.3
|
94.5
|
89.1
|
390.4
|
264.9
|
|
Adjusted EBITDA2
|
70.4
|
80.0
|
83.7
|
72.9
|
67.4
|
302.0
|
177.9
|
|
Profit/(loss) after tax
|
35.2
|
44.5
|
47.1
|
35.3
|
31.0
|
161.4
|
62.0
|
|
EPS – basic
|
0.22
|
0.27
|
0.29
|
0.22
|
0.19
|
0.99
|
0.37
|
|
EPS – diluted3
|
0.22
|
0.27
|
0.29
|
0.22
|
0.19
|
0.99
|
0.37
|
|
Dividend4
|
0.22
|
0.27
|
0.29
|
0.22
|
0.19
|
0.99
|
0.48
|
|
Long-term debt
|
407.6
|
414.6
|
397.8
|
428.7
|
436.6
|
428.7
|
396.7
|
|
Cash
|
73.8
|
72.6
|
73.1
|
74.7
|
73.9
|
74.7
|
125.9
|
|
Net debt
|
333.8
|
342.0
|
324.7
|
354.0
|
362.7
|
354.0
|
270.7
|
QUARTERLY HIGHLIGHTS:
| • |
In the third quarter of 2024, the Company achieved average combined time charter equivalent earnings of $42,400 per day, comprised of $43,700 per day for the Company’s VLCCs
operating in the spot market and $38,800 per day for the Company’s VLCCs on time-charter. Average spot rate for the quarter for vessels below 15-years of age was $47,600 per day.
|
| • |
Adjusted EBITDA for the third quarter of 2024 was $70.4 million. Net profit for the quarter was $35.2 million, which equates to $0.22 per basic share.
|
| • |
The Company entered into a one-year time charter contract for DHT Lion, built in 2016. The time charter contract has a rate of $55,000 per day and the vessel was delivered into the time charter
contract toward the end of the third quarter.
|
| • |
In the third quarter of 2024, the Company paid $25.8 million as installments under its newbuilding program. To date, the Company has paid a total of $77.3 million under its newbuilding program.
|
| • |
For the third quarter of 2024, the Company declared a cash dividend of $0.22 per share of outstanding common stock, payable on November 29, 2024, to shareholders of record as of November 22, 2024.
This marks the 59th consecutive quarterly cash dividend and is in line with the Company’s capital allocation policy to pay out 100% of ordinary net income. The
shares will trade ex-dividend from November 22, 2024.
|
OPERATIONAL HIGHLIGHTS:
| |
Q3 2024
|
Q2 2024
|
Q1 2024
|
Q4 2023
|
Q3 2023
|
2023
|
2022
|
|
Operating days5
|
2,208.0
|
2,184.0
|
2,184.0
|
2,208.0
|
2,177.7
|
8,548.7
|
8,929.0
|
|
Scheduled off hire days
|
23.9
|
8.1
|
60.2
|
-
|
79.1
|
251.8
|
150.3
|
|
Unscheduled off hire6
|
0.0%
|
2.8%*
|
1.5%*
|
0.1%
|
0.1%
|
0.9%
|
0.2%
|
|
Revenue days7
|
2,184.4
|
2,114.0
|
2,090.8
|
2,206.7
|
2,096.0
|
8,221.0
|
8,721.7
|
|
Spot exposure6
|
74.5%
|
78.5%
|
79.2%
|
81.2%
|
77.3%
|
75.6%
|
75.4%
|
|
VLCC time charter rate per day
|
$ 38,800
|
$ 36,400
|
$ 39,500
|
$ 39,600
|
$ 35,500
|
$ 36,400
|
$ 34,600
|
|
VLCC spot rate per day
|
$ 43,700
|
$ 52,700
|
$ 54,000
|
$ 43,600
|
$ 44,700
|
$ 51,200
|
$ 29,000
|
| |
*
|
In Q2 2024 one vessel underwent unscheduled repairs, accounting for the predominant part of the unscheduled off hire
for the quarter. In Q1 2024 two vessels underwent unscheduled repairs, accounting for the unscheduled off hire for the quarter.
|
Chinese economic growth and oil demand have year-to-date not met projections. Whilst China is deploying various inducements to its economy, we are yet to see “whatever it takes” levels of economic policy
changes and stimuli. We do however think it is reasonable to expect efforts from China, which should revitalize the economy and lead to an uptick in demand.
By restraining production, OPEC+ aims to balance the market and support prices, especially in the face of increasing competition from Atlantic basin producers. This strategy also includes targeting Asian
customers’ inventory levels of crude oil below the five-year average, creating a tighter market for when economic conditions improve. However, limited transparency in China’s crude oil inventory data complicates assessments of actual levels. If
Chinese inventories are indeed low as indicated and, as Western inventories are relatively higher than in Asia, one should expect Atlantic based barrels to increasingly go East. Additionally, recovering refinery margins in Asia in combination with
increasing Chinese crude oil import quotas heading into next year should shift the dynamics in favor of a stronger freight market.
The result of the US election leads us to expect certain policy changes that we believe will be constructive for our business:
|
• |
Tightening of Iranian sanctions that should re-impose pressure on Iranian oil exports, barrels that could be replaced by other Middle Eastern producers.
|
|
• |
Reversal of current decarbonization regulations, implying higher medium-term demand for fossil fuels towards 2030.
|
|
• |
Pro-drilling policies should further stimulate US production growth and exports.
|
We believe we have an appropriate strategy tailored to the structure of our market; focusing on solid customer relations offering safe and reliable services, maintaining a competitive cost structure with
robust break-even levels, a solid balance sheet, and a clear capital allocation policy. The whole DHT team continues to work hard and operate with leading governance standards and a high level of integrity.
As of September 30, 2024, DHT had a fleet of 24 VLCCs, with a total dwt of 7,479,177. For more details on the fleet, please refer to the web site: https://www.dhtankers.com/fleetlist/
OUTLOOK:
| |
Estimated
Q4 2024
|
|
Total term time charter days
|
596
|
|
Average term time charter rate ($/day)
|
$ 40,000
|
|
Total spot days for the quarter
|
1,610
|
|
Spot days booked to date
|
1,040
|
|
Average spot rate booked to date ($/day)
|
$ 41,000
|
|
Average spot rate for vessels below 15-years ($/day)
|
$ 44,800
|
|
Spot P&L break-even for the quarter
|
$ 21,500
|
* The months of October and November include
profit-sharing. The month of December assumes only the base rate.
| • |
Thus far in the fourth quarter of 2024, 64% of the available VLCC spot days have been booked at an average rate of $41,000 per day on a discharge-to-discharge basis. 74% of the available VLCC
days, combined spot and time-charter days, have been booked at an average rate of $40,600 per day.
|
Footnotes:
1Shipping revenues net of voyage expenses.
2 Shipping revenues net of voyage expenses, other revenues, vessel
operating expenses and general and administrative expenses.
3Diluted shares include the dilutive effect of the restricted
shares granted to management and members of the board of directors.
4Per common share.
5Operating days are the aggregate number of calendar days in the
period in which the vessels are owned by the Company or chartered by the Company.
6As % of total operating days in period.
7Revenue days are the aggregate number of calendar days in the
period in which the vessels are owned by the Company or chartered by the Company less days on which a vessel is off hire or repositioning days in connection with sale.
THIRD QUARTER 2024 FINANCIALS
The Company reported shipping revenues for the third quarter of 2024 of $141.1 million compared to shipping revenues of $130.3 million in the third
quarter of 2023. The increase from the 2023 period to the 2024 period includes $5.5 million attributable to increased total revenue days and $5.3 million
attributable to higher time charter rates.
Other revenues for the third quarter of 2024 were $1.0 million compared to $1.2 million in the third quarter of 2023 and relate to technical management services
provided.
Voyage expenses for the third quarter of 2024 were $48.5 million, compared to voyage expenses of $41.2 million in the third quarter of 2023. The change was
related to an increase in bunker expenses of $8.1 million and an increase in other voyage-related costs of $0.3 million, partially offset by a decrease in port expenses of $1.2 million. The increased bunker expense in the third quarter of 2024 is
mainly due to one additional vessel in the fleet and fewer off hire days. Voyage expenses will in general vary depending on the actual trading patterns during a quarter.
Vessel operating expenses for the third quarter of 2024 were $19.0 million compared to $18.6 million in the third quarter of 2023. The increase was mainly related
to an additional vessel in the fleet.
Depreciation and amortization, including depreciation of capitalized survey expenses, was $28.1 million for the third quarter of 2024, compared to $28.3 million
in the third quarter of 2023. The decrease was mainly due to decreased depreciation of drydocking and exhaust gas cleaning systems of $0.6 million, partially offset by increased depreciation of vessels $0.4 million due to an additional vessel in
the fleet.
General and administrative (“G&A”) expense for the third quarter of 2024 was $4.2 million, consisting of $3.2 million cash and $1.0 million non-cash charges, compared to $4.3
million in the third quarter of 2023, consisting of $3.5 million cash and $0.8 million non-cash charges. Non-cash G&A includes accrual for social security tax.
Net financial expenses for the third quarter of 2024 were $7.0 million compared to $8.0 million in the third quarter of 2023. The decrease was mainly due to decreased interest expenses of $1.5 million due to a decline in interest rates, partially offset by a $0.3 million increase related to currency loss and a $0.2 million decrease in interest income.
As a result of the foregoing, the Company had a net profit in the third quarter of 2024 of $35.2 million, or earnings of $0.22 per basic share and $0.22 per
diluted share, compared to a net profit in the third quarter of 2023 of $31.0 million, or earnings of $0.19 per basic share and $0.19 per diluted share. The increase from the third quarter of 2023 to the third quarter of 2024 was mainly due to a
$3.2 million increase in operating income and a $1.0 million decrease in net financial expenses.
Net cash provided by operating activities for the third quarter of 2024 was $80.1 million compared to $55.7 million for the third quarter of 2023. The increase
was due to a net profit of $35.2 million in the third quarter of 2024 compared to a net profit of $31.0 million in the third quarter of 2023, and a $20.3 million change in operating assets and liabilities, partially offset by a decrease in non-cash
items included in net profit of $0.1 million.
Net cash used in investing activities was $27.9 million in the third quarter of 2024, comprised of $25.8 million related to investment in vessels under construction and $2.0 million
related to investment in vessels. Net cash used in investing activities was $93.0 million in the third quarter of 2023 and was related to investment in vessels.
Net cash used in financing activities for the third quarter of 2024 was $51.6 million comprised of $43.6 million related to cash dividend paid and $7.6 million
related to scheduled repayment of long-term debt. Net cash used in financing activities for the third quarter of 2023 was $19.3 million comprised of $56.7 million related to cash dividend paid, $45.0 million related to prepayment of long-term debt,
$9.9 million related to purchase of treasury shares and $6.9 million related to scheduled repayment of long-term debt, partially offset by $99.5 million related to issuance of long-term debt.
As of September 30, 2024, the cash balance was $73.8 million, compared to $74.7 million as of December 31, 2023.
The Company monitors its covenant compliance on an ongoing basis. As of September 30, 2024, the Company was in compliance with its financial covenants.
As of September 30, 2024, the Company had 161,464,487 shares of common stock outstanding compared to 160,999,542 shares as of December 31, 2023.
The Company declared a cash dividend of $0.22 per common share for the third quarter of 2024 payable on November 29, 2024,
for shareholders of record as of November 22, 2024.
NINE MONTHS 2024 FINANCIALS
The Company reported shipping revenues for the first three quarters of 2024 of $437.1 million compared to $413.8 million in the first three quarters of 2023. The
increase from the 2023 period to the 2024 period includes $25.8 million attributable to increased total revenue days, partially offset by $2.5 million attributable to lower tanker rates.
Other revenues for the first three quarters of 2024 were $3.3 million compared to $3.4 million in the first three quarters of 2023 and relate to technical
management services provided.
Voyage expenses for the first three quarters of 2024 were $134.4 million compared to voyage expenses of $117.9 million in the first three quarters of 2023. The
change was mainly related to an increase in bunker expenses of $18.5 million, partially offset by a decrease in port expenses of $2.7 million. The increased bunker expense in the first three quarters of 2024 is mainly due to one additional vessel
in the fleet, more vessels in the spot market and fewer off hire days. Voyage expenses will in general vary depending on the actual trading patterns during the period.
Vessel operating expenses for the first three quarters of 2024 were $58.6 million compared to $56.7 million in the first three quarters of 2023. The increase was
mainly related to an additional vessel in the fleet and insurance deductibles.
Depreciation and amortization, including depreciation of capitalized survey expenses, was $84.3 million for the first three quarters of 2024, compared to $80.4
million in the first three quarters of 2023. The increase was mainly due to increased depreciation of vessels and drydocking of $3.2 million due to an additional vessel in the fleet and an increase in depreciation of exhaust gas cleaning systems of
$0.7 million.
G&A for the first three quarters of 2024 was $13.4 million, consisting of $10.5 million cash and $2.9 million non-cash charges, compared to $13.5 million, consisting of $10.8
million cash and $2.7 million non-cash charges for the first three quarters of 2023. Non-cash G&A includes accrual for social security tax.
Net financial expenses for the first three quarters of 2024 were $22.6 million, compared to $22.2 million in the first three quarters of 2023. The increase was due to decreased interest income of $0.5 million, $0.3 million related to currency loss and increased interest expense of $0.1 million, partially offset by a non-cash loss of $0.5 million related to interest
rate derivatives in the first three quarters of 2023.
The Company had a net profit for the first three quarters of 2024 of $126.7 million, or earnings of $0.78 per basic share and $0.78 per diluted
share compared to a net profit of $126.1 million, or earnings of $0.77 per basic share and $0.77 per diluted share in the first three quarters of 2023. The difference between the two periods
was mainly due to a $1.1 million increase in operating income, partially offset by a $0.4 million increase in net financial expenses.
Net cash provided by operating activities for the first three quarters of 2024 was $232.9 million compared to $209.1 million for the first three quarters of 2023. The increase was mainly due to a net profit of $126.7 million in the first three quarters of
2024 compared to a net profit of $126.1 million in the first three quarters of 2023, a $19.0 million change in operating assets and liabilities, and a $4.1 million increase in non-cash items included in net profit.
Net cash used in investing activities for the first three quarters of 2024 was $84.0 million comprised of $77.3 million related to investment in vessels under
construction and $6.6 million related to investment in vessels. Net cash used in investing activities for the first three quarters of 2023 was $122.8 million comprised of $125.9 million related to investment in vessels, partially offset by $3.3
million related to proceeds from sale of derivatives.
Net cash used in financing activities for the first three quarters of 2024 was $150.0 million comprised of $125.9 million related to cash dividends paid, $74.0
million related to prepayment of long-term debt and $24.1 million related to scheduled repayment of long-term debt, partially offset by $75.0 million related to issuance of long-term debt. Net cash used in financing activities for the first three
quarters of 2023 was $138.2 million comprised of $216.8 million related to repayment of long-term debt in connection with refinancing, $156.1 million related to cash dividends paid, $45.0 million related to prepayment of long-term debt, $18.8
million related to purchase of treasury shares and $15.6 million related to scheduled repayment of long-term debt, partially offset by $315.7 million related to issuance of long-term debt.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The Company assesses the financial performance of its business using a variety of measures. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that
are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. These
non-GAAP measures include “Adjusted Net Revenue”, “Adjusted EBITDA” and “Adjusted spot time charter equivalent per day”. The Company believes that these non-GAAP measures provide useful supplemental information for its investors and, when
considered together with the Company’s IFRS financial measures and the reconciliation to the most directly comparable IFRS financial measure, provide a more complete understanding of the factors and trends affecting the Company’s operations. In
addition, DHT’s management measures the financial performance of the Company, in part, by using these non-GAAP measures, along with other performance metrics. The Company does not regard these non-GAAP measures as a substitute for, or as superior
to, the equivalent measures calculated and presented in accordance with IFRS. Additionally, these non-GAAP measures may not be comparable to other similarly titled measures used by other companies and should not be considered in isolation or as a
substitute for analysis of the Company’s operating results as reported under IFRS.
|
USD in thousands except time charter equivalent per day
|
Q3 2024
|
Q2 2024
|
Q1 2024
|
Q4 2023
|
Q3 2023
|
2023
|
2022
|
|
Reconciliation of adjusted net revenue
|
|
|
|
|
|
|
|
|
Shipping revenues
|
141,125
|
150,066
|
145,876
|
142,292
|
130,322
|
556,075
|
450,381
|
|
Voyage expenses
|
(48,484)
|
(46,370)
|
(39,537)
|
(47,771)
|
(41,235)
|
(165,667)
|
(185,502)
|
|
Adjusted net revenues
|
92,641
|
103,696
|
106,339
|
94,521
|
89,087
|
390,408
|
264,880
|
| |
|
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA
|
|
|
|
|
|
|
|
|
Profit/(loss) after tax
|
35,189
|
44,489
|
47,072
|
35,308
|
30,967
|
161,397
|
61,979
|
|
Income tax expense
|
79
|
129
|
206
|
226
|
137
|
649
|
587
|
|
Other financial (income)/expenses
|
719
|
470
|
454
|
599
|
413
|
1,984
|
2,826
|
|
Fair value (gain)/loss on derivative financial liabilities
|
-
|
-
|
-
|
-
|
-
|
504
|
(14,983)
|
|
Interest expense
|
7,318
|
7,921
|
8,775
|
9,194
|
8,789
|
33,061
|
26,197
|
|
Interest income
|
(1,035)
|
(935)
|
(1,091)
|
(908)
|
(1,213)
|
(4,485)
|
(1,076)
|
|
Share of profit from associated companies
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,327)
|
|
(Gain)/loss, sale of vessel
|
-
|
-
|
-
|
-
|
-
|
-
|
(19,513)
|
|
Depreciation and amortization
|
28,135
|
27,878
|
28,250
|
28,475
|
28,326
|
108,902
|
123,255
|
|
Adjusted EBITDA
|
70,406
|
79,953
|
83,666
|
72,894
|
67,419
|
302,012
|
177,946
|
| |
|
|
|
|
|
|
|
|
Reconciliation of adjusted spot time charter equivalent per day*
|
|
|
|
|
|
|
|
|
Spot time charter equivalent per day
|
43,700
|
52,700
|
54,000
|
43,600
|
44,700
|
51,200
|
29,000
|
|
IFRS 15 impact on spot time charter equivalent per day**
|
(2,800)
|
(1,500)
|
400
|
2,700
|
(2,400)
|
300
|
1,200
|
|
Adjusted spot time charter equivalent per day
|
40,900
|
51,200
|
54,400
|
46,300
|
42,300
|
51,500
|
30,200
|
* Per revenue days. Revenue days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or chartered
by the Company less days on which a vessel is off hire.
** For vessels operating on spot charters, voyage revenues are calculated on a discharge-to-discharge basis. Under IFRS 15, spot charter voyage
revenues are calculated on a load-to-discharge basis. IFRS 15 impact refers to the timing difference between discharge-to-discharge and load-to-discharge basis.
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. ET/14:00 CET on Tuesday, November 13, 2024, to discuss the results for the quarter.
To access the conference call the participants are required to register using this link:
https://register.vevent.com/register/BIe6d54a86b4c8465d8786999b1bf65709
Upon registering, each participant will be provided with participant dial-in numbers, and a unique personal PIN. Participants will need to use the conference access information provided in the e-mail
received at the point of registering. Participants may also use the Call Me feature instead of dialing the nearest dial-in number.
The webcast, which will include a slide presentation, will be available on the following link:
https://edge.media-server.com/mmc/p/6xhku6mf and can also be accessed in the Investor Relations section of DHT's website at http://www.dhtankers.com.
A recording of the audio and slides presented will be available until November 20, 2024, at 14:00 CET. The recording can be accessed through the
following link: https://edge.media-server.com/mmc/p/6xhku6mf
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 segment. We operate through our integrated management companies in Monaco, Norway, Singapore, and India. You may recognize us by our renowned business approach as an experienced organization with focus on first
rate operations and customer service; our quality ships; our prudent capital structure that promotes staying power through the business cycles; our combination of market exposure and fixed income contracts for our fleet; our counter cyclical
philosophy with respect to investments, employment of our fleet, and capital allocation; and our transparent corporate structure maintaining a high level of integrity and good governance. For further
information please visit http://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. 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 20, 2024.
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:
Laila C. Halvorsen, CFO
Phone: +1 441 295 1422 and +47 984 39 935
E-mail: lch@dhtankers.com
DHT HOLDINGS, INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2024