DHT Holdings, Inc. fourth quarter 2016 results
January 30 2017 - 4:36PM
HAMILTON, BERMUDA, January 30, 2017 - DHT Holdings, Inc.
(NYSE:DHT) ("DHT" or the "Company") today announced:
FINANCIAL AND OPERATIONAL HIGHLIGHTS:
USD mill. (except per share) |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q4 2015 |
2016 |
|
2015 |
|
Adjusted Net Revenue1 |
67.0 |
|
50.3 |
|
83.2 |
|
90.2 |
|
80.0 |
|
290.7 |
|
296.3 |
|
Adjusted EBITDA |
46.7 |
|
29.5 |
|
63.7 |
|
69.5 |
|
59.6 |
|
209.4 |
|
214.8 |
|
Net Income/(Loss) |
17.8 |
|
(75.7)2 |
35.6 |
|
31.52 |
|
32.42 |
|
9.32 |
|
105.42 |
|
EPS - basic |
0.19 |
|
(0.81 |
) |
0.38 |
|
0.34 |
|
0.35 |
|
0.10 |
|
1.13 |
|
EPS - diluted3 |
0.18 |
|
(0.81 |
) |
0.34 |
|
0.30 |
|
0.31 |
|
0.10 |
|
1.04 |
|
Interest Bearing Debt |
701.5 |
|
684.9 |
|
613.1 |
|
654.4 |
|
662.5 |
|
701.5 |
|
662.5 |
|
Cash |
109.34 |
|
71.5 |
|
65.0 |
|
77.5 |
|
166.84 |
|
109.34 |
|
166.84 |
|
Dividend5 |
0.08 |
|
0.02 |
|
0.23 |
|
0.25 |
|
0.21 |
|
0.58 |
|
0.69 |
|
Fleet (dwt)6 |
6,725,916 |
|
6,392,011 |
|
6,392,011 |
|
6,556,637 |
|
6,556,637 |
|
6,087,916 |
|
6,556,637 |
|
Spot Exposure7 |
57.3 |
% |
59.9 |
% |
56.6 |
% |
57.2 |
% |
49.9 |
% |
57.8 |
% |
50.5 |
% |
Unscheduled off hire7 |
5.5 |
% |
0.84 |
% |
0.29 |
% |
0.27 |
% |
0.17 |
% |
1.8 |
% |
0.20 |
% |
Scheduled off hire7 |
0.9 |
% |
5.06 |
% |
1.70 |
% |
0.00 |
% |
1.50 |
% |
1.7 |
% |
0.50 |
% |
HIGHLIGHTS OF THE QUARTER:
- EBITDA for the quarter of $46.7 million. Net income for the
quarter of $17.8 million ($0.19 per basic share).
- The Company's VLCCs achieved time charter equivalent earnings
of $37,100 per day in the fourth quarter of 2016 of which the
Company's VLCCs on time-charter earned $41,400 per day and the
Company's VLCCs operating in the spot market achieved $34,300 per
day.
- In accordance with DHT's capital allocation policy whereby the
Company intends to return at least 60% of its ordinary net income
to security holders, the Company repurchased $23.0 million face
value of its convertible senior notes in the open market during the
quarter at an average price of 90.4%. Additionally, the
Company will pay a cash dividend of $0.08 per common share for the
quarter payable on February 22, 2017 for shareholders of record as
of February 14, 2017.
- During the quarter the Company extended the time charter for
the DHT Europe to an oil major for a period of 12 months from
January 2017 at a rate of $31,250 per day.
- On January 16, 2017 the Company took delivery of the last of
its six VLCC newbuildings from Hyundai Heavy Industries. The
vessel is named DHT Tiger and is trading in the spot market.
A total of $48.7 million of debt was drawn in connection with the
delivery of the vessel.
- As previously reported the Company has sold the DHT Chris, a
2001 built VLCC for $23.7 million. The vessel was delivered
to the buyers in January 2017 and is expected to retire from the
trading fleet. The sale is in support of the company's fleet
renewal program. $12.0 million of the net proceeds has been applied
to repay debt and has been recorded as current portion of long term
debt as of December 31, 2016.
- In January 2017 DHT entered in an agreement with Hyundai Heavy
Industries for the construction of two VLCCs of 319,000 dwt
scheduled for delivery in July and September 2018. The newbuilding
contracts will be financed with cash at hand and bank debt; hence
the Company does not intend to issue any stock in relation to this
expansion.
- It is DHT's policy to inspect all newbuildings, including
underwater areas, during their respective warranty periods.
During such routine inspection of the first newbuilding delivered,
a fracture surrounding the inspection window of the rudder was
identified. Following a root cause analysis conducted by the
builder HHI and classification society American Bureau of Shipping
(ABS), DHT implemented a permanent repair plan for a rudder design
improvement on all six newbuildings. DHT completed the work
on all of these ships in the fourth quarter 2016 and incurred a
total of 105 off-hire days. The repair cost has been covered
by HHI under its warranty obligation.
- The Company has consumed $26.8 million of its securities
repurchase program implemented in February 2016 and has elected to
restore the capacity to $50.0 million and extended its validity
through March 2018.
- On January 27, 2017, DHT received a non-binding, highly
conditional proposal from Frontline Ltd. (NYSE/OSE: FRO) to acquire
all of the outstanding shares of common stock of DHT in a
stock-for-stock transaction at a ratio of 0.725 of a Frontline
share for each share of DHT. In the proposal letter delivered to
DHT's Board of Directors, Frontline also disclosed that it has
acquired more than 15 million shares of DHT, or approximately 16%
of DHT's outstanding common stock. Consistent with its fiduciary
duties, DHT's Board will evaluate the proposal from Frontline and
respond accordingly in due course. In light of the developments,
DHT's Board has adopted a one-year shareholder rights plan to give
the Board and DHT time to properly consider the proposal. For
further information please refer to the press release issued on
January 29, 2017. The press release can be found on
www.dhtankers.com.
- DHT has a total fleet of 21 VLCCs, 19 in the water and two
under construction, as well as two Aframaxes. 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:
http://dhtankers.com/index.php?name=About_DHT%2FFleet.html.
Footnotes:1Net
of voyage expenses.2Q3 2016 includes an impairment charge of $76.6
million. Q1 2016 includes an impairment charge of $8.1 million
related to the sale of the DHT Target. 2016 includes total
impairment charges of $84.7 million. Q4 2015 and 2015 include a
loss of $0.8 million related to the sale of the DHT Trader.3Diluted
shares include the dilutive effect of the convertible senior notes
and restricted shares granted to management and members of the
board of directors.4The 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. 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, 2016.5Per common share.6Q4 2016
includes three newbuildings totaling 937,900 dwt; one of which was
delivered on January 16, 2017 and two scheduled to be delivered in
Q3 2018. 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 2016.7As %
of total operating days in period.
The full report can be found on the link below
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. EST/14:00 CET on Tuesday January
31, 2017 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, 23162787
within Norway and +44 20 7136 2056 for international callers. The
passcode is "DHT" or "2174405".
The webcast which will include a slide presentation will be
available on the following
link:http://edge.media-server.com/m/p/wpe8xpiu 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 February 7, 2017. 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 2174405# 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.
CONTACT: Eirik Ubøe, CFO Phone: +1 441 299 4912 and +47 412
92 712 E-mail: eu@dhtankers.com
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/eb7ac78e-21a1-45b0-b43c-f0a1737b3115
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