DHT Holdings, Inc. Business Update
January 09 2017 - 8:22AM
HAMILTON, BERMUDA, January 9, 2017 - DHT Holdings, Inc.
(NYSE:DHT) ("DHT"). It is DHT's policy to inspect all
newbuildings, including underwater areas, during their respective
warranty periods. During such routine inspection of the DHT
Jaguar, a fracture surrounding the inspection window of the rudder
was identified. Following a root cause analysis conducted by
the builder Hyundai Heavy Industries (HHI) and classification
society American Bureau of Shipping (ABS), DHT implemented a
permanent repair plan for a rudder design improvement on the DHT
Jaguar and its sister ships. DHT has completed the work and
has in relation to this incurred 105 off-hire days during the
fourth quarter of 2016, equaling to about 5% of its trading days
during the same period. The repair cost has been covered by
HHI under its warranty obligation.
DHT agreed with HHI to defer the delivery of its final
newbuilding originally scheduled for delivery during the fourth
quarter of 2016. The vessel, which will be named DHT Tiger,
will be delivered during January 2017 at no additional cost to DHT,
positively impacting her value.
DHT is also taking this opportunity to update on its VLCC spot
trading. The spot earnings for the fourth quarter of 2016
came in at $34,300 per day. DHT has to date booked 32% of its
first quarter 2017 VLCC spot days at an average rate of $53,000 per
day.
Further, during the fourth quarter the company has under its
buy-back program repurchased $23 million of its convertible senior
notes in the open market at an average price of 90.4%.
Including repurchases made during the first half of 2016, the
company has during 2016 repurchased $27 million at an average price
of 91.7%. At the current conversion price of $6.6570, the
company has reduced the potential dilution related to the
convertible notes by 4,055,880 shares, equal to about 4% based on
the current outstanding share count.
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.
CONTACT: Eirik Ubøe, CFO Phone: +1 441 299 4912 and +47 412
92 712 E-mail: eu@dhtankers.com
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