DHT Holdings, Inc. Second Quarter 2018 Results
HAMILTON, BERMUDA, August 7, 2018 - DHT Holdings, Inc. (NYSE: DHT) ("DHT" or the "Company") today announced:
FINANCIAL AND OPERATIONAL HIGHLIGHTS:
| USD mill. (except per share) | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | 2017 | 2016 |
| Adjusted Net Revenue1 | 34.4 | 46.2 | 56.6 | 54.8 | 59.6 | 241.8 | 290.7 |
| Adjusted EBITDA2 | 12.7 | 24.0 | 33.5 | 31.4 | 36.7 | 152.1 | 209.4 |
| Net Income/(Loss) | (28.2) | (9.2) | (7.5) 3 | (5.1) | 4.8 | 6.63 | 9.33 |
| EPS - basic | (0.20) | (0.06) | (0.05) | (0.04) | 0.04 | 0.05 | 0.10 |
| EPS - diluted4 | (0.20) | (0.06) | (0.05) | (0.04) | 0.04 | 0.05 | 0.10 |
| Interest Bearing Debt | 856.0 | 764.4 | 786.2 | 826.0 | 841.1 | 786.2 | 701.5 |
| Cash | 76.9 | 69.8 | 77.3 | 86.5 | 104.0 | 77.3 | 109.35 |
| Dividend6 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.14 | 0.58 |
| Spot Exposure7 | 70.4% | 70.7% | 73.6% | 67.9% | 63.5% | 66.4% | 57.8% |
| Unscheduled off hire7 | 0.0% | 0.1% | 0.1% | 0.3% | 0.2% | 0.2% | 1.8% |
| Scheduled off hire7 | 0.0% | 0.7% | 0.3% | 2.7% | 2.8% | 2.0% | 1.7% |
QUARTERLY HIGHLIGHTS:
- Adjusted EBITDA for the quarter of $12.7 million. Net loss for the quarter of $28.2 million or loss of $0.20 per basic share. The net result was affected by a non-cash finance expense of $4.3 million (or $0.03 per basic share) related to the $484 million refinancing.
- The Company's VLCCs achieved time charter equivalent earnings of $14,700 per day in the second quarter of 2018 of which the Company's VLCCs on time-charter earned $22,000 per day and the Company's VLCCs operating in the spot market achieved $11,900 per day (after adoption of IFRS 15 as of January 1, 2018).
- Thus far in the third quarter of 2018, 60% of the available VLCC spot days have been booked at an average rate of $21,100 per day.
- For the second 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 August 31, 2018 for shareholders of record as of August 24, 2018.
- In April, the Company entered into a $484 million secured credit facility agreement with all nine of its existing relationship banks for the refinancing of 13 of the Company's VLCCs. Also, the Company entered into an agreement with ABN Amro to increase the revolving credit facility from $43.4 million to $57.3 million. The revolving credit is currently undrawn.
SUBSEQUENT EVENTS HIGHLIGHTS:
- On July 27, 2018 the Company took delivery of the first of its two VLCC newbuildings from HHI. The vessel is named DHT Bronco. The second newbuilding from HHI is expected to be delivered in September 2018.
- In July, the Company entered into agreements to install exhaust gas cleaning systems, also known as scrubbers, on twelve of its VLCCs. The Company has entered into agreement with Alfa Laval to supply the systems and has also secured shipyard capacity to install all systems within 2019. These twelve systems will come in addition to the two systems being installed on the newbuildings DHT Bronco, delivered in July 2018, and DHT Mustang set for delivery from Hyundai Heavy Industries ("HHI") in Q3 2018. The Company has received proposals to finance the majority of the project with debt and is confident to conclude this in the near future.
- In August, the Company entered into 5-year interest rate swaps with Nordea totaling $168.8 million with an average fixed rate of 3.01% - as compared to current 3m Libor of about 2.34%. $168.8 million equals 22% of total outstanding bank mortgage debt.
- As of August 7, 2018 DHT has a fleet of 27 VLCCs, 26 in the water and one under construction scheduled for delivery in Q3 2018, as well as two Aframaxes. The total dwt of the fleet is 8,590,740. Seven of the VLCCs and one of the Aframaxes are on time charters. For more details on the fleet, please refer to our web site: http://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.2 Shipping Revenues net of voyage expenses, vessel operating expenses and general and administrative expenses.3Q4 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. 4Diluted shares include the dilutive effect of the convertible senior notes and restricted shares granted to management and members of the board of directors.5The 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. 6Per common share.7As % of total operating days in period.
EARNINGS CONFERENCE CALL AND WEBCAST INFORMATIONThe company will host a conference call and webcast which will include a slide presentation at 8:00 a.m. EDT/14:00 CEST on Wednesday August 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 1 929 477 0324 within the United States, 23 50 02 96 within Norway and +44 330 336 9411 for international callers. The passcode is "DHT" or "9279966".
The webcast which will include a slide presentation will be available on the following link:https://edge.media-server.com/m6/p/5hbucz6q and can also be accessed in the Investor Relations section on DHT's website at http://www.dhtankers.com. An audio replay of the conference call will be available through August 16, 2018. To access the replay, dial 1 719 457 0820 within the United States, 23 50 00 77 within Norway or +44 207 660 0134 for international callers and enter "9279966" 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: Laila C. Halvorsen, CFO Phone: +1 441 299 4981 and +47 984 39 935 E-mail: [email protected]
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Source: DHT Holdings, Inc.