DHT Holdings, Inc. first quarter 2017 results
May 08 2017 - 4:29PM
HAMILTON, BERMUDA, May 8, 2017 - DHT Holdings, Inc. (NYSE:DHT)
("DHT" or the "Company") today announced:FINANCIAL AND
OPERATIONAL HIGHLIGHTS:
USD mill. (except per share) |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
2016 |
2015 |
Adjusted Net Revenue1 |
70.7 |
67.0 |
50.3 |
83.2 |
90.2 |
290.7 |
296.3 |
Adjusted EBITDA |
50.6 |
46.7 |
29.5 |
63.7 |
69.5 |
209.4 |
214.8 |
Net Income/(Loss) |
14.32 |
17.8 |
(75.7)2 |
35.6 |
31.52 |
9.32 |
105.42 |
EPS - basic |
0.15 |
0.19 |
(0.81) |
0.38 |
0.34 |
0.10 |
1.13 |
EPS - diluted3 |
0.15 |
0.18 |
(0.81) |
0.34 |
0.30 |
0.10 |
1.04 |
Interest Bearing Debt |
674.6 |
701.5 |
684.9 |
613.1 |
654.4 |
701.5 |
662.5 |
Cash |
72.2 |
109.34 |
71.5 |
65.0 |
77.5 |
109.34 |
166.84 |
Dividend5 |
0.08 |
0.08 |
0.02 |
0.23 |
0.25 |
0.58 |
0.69 |
Fleet (dwt)6 |
9,503,121 |
6,725,916 |
6,392,011 |
6,392,011 |
6,556,637 |
6,087,916 |
6,556,637 |
Spot Exposure7 |
58.1% |
57.3% |
59.9% |
56.6% |
57.2% |
57.8% |
50.5% |
Unscheduled off hire7 |
0.2% |
5.5% |
0.84% |
0.29% |
0.27% |
1.8% |
0.20% |
Scheduled off hire7 |
2.4% |
0.9% |
5.06% |
1.70% |
0.00% |
1.7% |
0.50% |
HIGHLIGHTS OF THE QUARTER:
- Adjusted EBITDA for the quarter of $50.6 million. Net income
for the quarter of $14.3 million or $0.15 per basic share. After
adjusting for an impairment charge totaling $7.5 million related to
the sale of DHT Ann and DHT Phoenix, net income is $21.8 million or
$0.23 per basic share.
- The Company's VLCCs achieved time charter equivalent earnings
of $40,100 per day in the first quarter of 2017 of which the
Company's VLCCs on time-charter earned $38,800 per day and the
Company's VLCCs operating in the spot market achieved $40,900 per
day.
- For the first quarter of 2017, the Company will return $15.1
million to shareholders, equating to 69% of net income adjusted for
the $7.5 million impairment charge. The return of capital is
comprised of $5.0 million of buy-back of convertible senior notes
and $10.1 million, or $0.08 per share, as cash dividends payable on
May 31, 2017 for shareholders of record as of May 22, 2017.
- In March DHT entered into an agreement with BW Group Limited
("BW") for the acquisition of BW's VLCC fleet. The fleet consists
of 11 VLCCs, including two newbuildings due for delivery in 2018.
BW's VLCC fleet has a value of approximately $538 million at
prevailing broker valuations. DHT is financing the
acquisition by issuing approximately $256 million of DHT stock to
BW at $5.37 per share. DHT will also pay BW Group $177.4
million in cash and assume approximately $104.2 million in
remaining capex related to the two newbuildings. The cash
requirements associated with the purchase will be financed with
bank debt. Following delivery of all vessels and novation of
newbuilding contracts, BW will own approximately 33.5% of the
company. DHT has to date taken delivery of 7 of the vessels
and novated the two newbuilding contracts. A total of about 31.2
million shares of common stock have been issued to BW to
date. DHT expects the remaining 2 vessels to be delivered
during the second quarter. As a result of the acquisition,
DHT will have a fleet with an average age of 6.9 years, consisting
of 30 VLCCs (including four newbuildings for delivery in 2018), and
two Aframaxes.
- The Board of Directors of DHT expanded the size of the board by
one director and appointed BW's designee, Mr. Carsten Mortensen,
CEO of BW Group.
- In April 2017, the Company entered into a six year term loan
and revolving credit facility agreement totaling $300.0 million, of
which $74.0 is a revolving credit facility, with ABN Amro, DNB and
Nordea for the financing of the cash portion of the acquisition of
BW's VLCC fleet as well as the remaining installments under the two
newbuilding contracts. $204.0 million is expected to be drawn
in connection with the delivery of the nine vessels in the water
and the remaining $96.0 million in connection with the delivery of
the two newbuildings in the second quarter of 2018.
Borrowings bear interest at a rate equal to Libor + 2.40% and are
repayable with quarterly installments calculated based on the
borrowings being repaid to zero assuming a 20 year economic life
for the vessels.
- On January 16, 2017 the Company took delivery of the last of
its six VLCC newbuildings ordered from HHI in 2013 and 2014.
The vessel is named DHT Tiger and is trading in the spot
market.
- In February 2017, we agreed to the sale of DHT Phoenix for a
price $19.1 million. The vessel is expected to be delivered
to the buyers in the second quarter of 2017 and is expected to
retire from the trading fleet. The vessel is debt free. We
recorded a book loss of about $3.5 million in the first quarter
2017 in connection with the sale.
- In March 2017, we agreed to the sale of DHT Ann, a 2001 built
VLCC, for a price $24.8 million. The vessel was delivered to
the buyers in May 2017 and is expected to retire from the trading
fleet. About $13.3 million of bank debt, which has been
recorded as current portion of long term debt as of March 31, 2017,
was repaid in connection with the sale. The company recorded a book
loss of about $4.0 million in the first quarter 2017 related to the
sale.
- In January 2017 DHT entered into an agreement with HHI for the
construction of two VLCCs of 318,000 dwt scheduled for delivery in
July and September 2018. The newbuilding contracts will be financed
with cash at hand and bank debt.
- In February 2017, we obtained a financing commitment totaling
$82.5 million to fund the acquisition of the two VLCC newbuildings
ordered from HHI in January 2017 through a secured term credit
facility with DNB and Nordea. The credit facility is divided 50/50
between a term loan and a revolving credit facility, will be for a
five-year term and borrowings will bear interest at a rate equal to
LIBOR plus a margin of 250 basis points. Borrowings are repayable
with quarterly installments calculated based on the borrowings
being repaid to zero assuming a 20 year economic life for the
vessels.
- DHT has a fleet of 30 VLCCs, 26 in the water and four under
construction, as well as two Aframaxes. Seven 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.
The
full report can be found on the link
below Footnotes:1Net
of voyage expenses.2Q1 2017 includes and impairment charge of $7.5
million related to the sale of DHT Ann and DHT Phoenix. Q3 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. 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.6Q1 2017 includes 11 VLCCs (incl. two newbuildings)
acquired from BW Group of which 9 are expected to be delivered in
Q2 2017. Q4 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.
EARNINGS CONFERENCE CALL AND WEBCAST INFORMATION The
company will host a conference call and webcast which will include
a slide presentation at 10:00 a.m. EDT/16:00 CET on Tuesday May 9,
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 1158 within the United States, 23162729 within Norway and +44
20 3450 9987 for international callers. The passcode is "DHT" or
"2928368".
The webcast which will include a slide presentation will be
available on the following
link:http://edge.media-server.com/m/p/jfoocqae 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 May 15, 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
2928368# 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 23, 2017. 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/fcf8ed6c-16e1-4aa7-a4a4-e5416dbac090
DHT (NYSE:DHT)
Historical Stock Chart
From Aug 2024 to Sep 2024
DHT (NYSE:DHT)
Historical Stock Chart
From Sep 2023 to Sep 2024