DHT Holdings, Inc. Second Quarter 2017 Results
August 08 2017 - 4:53PM
HAMILTON, BERMUDA, August 8, 2017 - DHT
Holdings, Inc. (NYSE:DHT) ("DHT" or the "Company") today
announced:
FINANCIAL AND OPERATIONAL HIGHLIGHTS:
USD mill. (except per share) |
Q2 2017 |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
2016 |
2015 |
Adjusted Net Revenue1 |
59.6 |
70.7 |
67.0 |
50.3 |
83.2 |
290.7 |
296.3 |
Adjusted EBITDA |
36.7 |
50.6 |
46.7 |
29.5 |
63.7 |
209.4 |
214.8 |
Net Income/(Loss) |
4.8 |
14.32 |
17.8 |
(75.7)2 |
35.6 |
9.32 |
105.42 |
EPS - basic |
0.04 |
0.15 |
0.19 |
(0.81) |
0.38 |
0.10 |
1.13 |
EPS - diluted3 |
0.04 |
0.15 |
0.18 |
(0.81) |
0.34 |
0.10 |
1.04 |
Interest Bearing Debt |
841.1 |
674.6 |
701.5 |
684.9 |
613.1 |
701.5 |
662.5 |
Cash |
104.0 |
72.2 |
109.34 |
71.5 |
65.0 |
109.34 |
166.84 |
Dividend5 |
0.02 |
0.08 |
0.08 |
0.02 |
0.23 |
0.58 |
0.69 |
Fleet (dwt)6 |
9,502,995 |
9,502,995 |
6,725,916 |
6,392,011 |
6,392,011 |
6,087,916 |
6,556,637 |
Spot Exposure7 |
63.5% |
58.1% |
57.3% |
59.9% |
56.6% |
57.8% |
50.5% |
Unscheduled off hire7 |
0.2% |
0.2% |
5.5% |
0.8% |
0.3% |
1.8% |
0.2% |
Scheduled off hire7 |
2.8% |
2.4% |
0.9% |
5.1% |
1.7% |
1.7% |
0.5% |
HIGHLIGHTS OF THE QUARTER:
- Adjusted EBITDA for the quarter of $36.7 million. Net income
for the quarter of $4.8 million or $0.04 per basic share.
- The Company's VLCCs achieved time charter equivalent earnings
of $27,700 per day in the second quarter of 2017 of which the
Company's VLCCs on time-charter earned $37,000 per day and the
Company's VLCCs operating in the spot market achieved $23,500 per
day. For the first six months of 2017 the Company's VLCCs achieved
time charter equivalent earnings of $33,300 per day of 2017 of
which the Company's VLCCs on time-charter earned $37,900 per day
and the Company's VLCCs operating in the spot market achieved
$31,000 per day.
- For the second quarter of 2017, the Company will return $15.1
million to shareholders, equating to 315% of net income. The return
of capital is comprised of $12.2 million of buy-back of convertible
senior notes and $2.9 million, or $0.02 per share, as cash
dividends payable on August 31, 2017 for shareholders of record as
of August 24, 2017. Outstanding amount under the convertible senior
notes is $105.8 million following the buy-backs.
- 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, Nordea, Danish
Ship Finance, SEB, ING and Swedbank for the financing of the cash
portion of the acquisition of the VLCC fleet from BW Group Limited
("BW") as well as the remaining installments under the two
newbuilding contracts. $204.0 million has been drawn in connection
with the delivery of the nine vessels in the water and the
remaining $96.0 million is expected to be drawn 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.
- In June the Company completed the delivery of the nine VLCCs
acquired from the BW and the contracts for the two newbuildings due
for delivery in 2018 have been transferred to DHT. DHT has a
fleet of 30 VLCCs, 26 in the water and four under construction
scheduled for delivery in 2018, as well as two Aframaxes. The total
dwt of the fleet is 9,502,995. The average age of the VLCC
fleet is 6.8 years.
- Subsequent to the issuance of common shares upon the conversion
of the Series D Junior Participating Preferred Stock issued to BW
pursuant to the previously announced Vessel Acquisition Agreement
between DHT and BW the Company has 142,347,298 common shares issued
and outstanding.
- In June 2017, we entered into a financing with DNB and Nordea
totaling $82.5 million to fund the acquisition of the two VLCC
newbuildings ordered from HHI in January 2017. The five year credit
facility is divided 50/50 between a term loan and a revolving
credit facility 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.
- In June the legal action filed by Frontline Ltd. in the High
Court of the Republic of the Marshall Islands, which challenged
DHT's transaction with BW and DHT's Rights Plan, was
dismissed, with prejudice. Frontline is precluded from
bringing similar claims against DHT, its directors and BW in any
other court. Under Marshall Islands' law, the dismissal also
constitutes a ruling on the merits in favor of DHT.
- The DHT Ann and the DHT Phoenix were sold at $24.8 million and
$19.1 million and delivered to the buyers in May and June 2017,
respectively.
- 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 an 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. 2016 includes total impairment charges of $84.7
million. 2015 includes 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 were 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. Q2 2016 includes three newbuildings totaling
899,700 dwt to be delivered in Q3-Q4 2016. 2015 includes 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 8:00 a.m. EDT/14:00 CET on Wednesday August
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
1 646 254 3388 within the United States, 23162771 within
Norway and +44 20 3427 1916 for international callers. The passcode
is "DHT" or "5252127".
The webcast which will include a slide presentation will be
available on the following
link:https://edge.media-server.com/m6/p/j87wynvm 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, 2017. To access the
replay, dial 1 719 457 0820 within the United States,
23500077 within Norway or +44 207 660 0134 for
international callers and enter 5252127 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 Uboe, CFO Phone: +1 441 299 4912 and +47 412
92 712 E-mail: eu@dhtankers.com
Attachments:
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