DHT Holdings, Inc. Third Quarter 2018 Results
November 01 2018 - 5:26PM
HAMILTON, BERMUDA, November 1, 2018 - DHT Holdings, Inc.
(NYSE:DHT) ("DHT" or the "Company") today announced:
FINANCIAL AND OPERATIONAL HIGHLIGHTS:
USD mill. (except per share) |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q3 2017 |
2017 |
2016 |
Adjusted Net Revenue1 |
48.2 |
34.4 |
46.2 |
56.6 |
54.8 |
241.8 |
290.7 |
Adjusted EBITDA2 |
25.1 |
12.7 |
24.0 |
33.5 |
31.4 |
152.1 |
209.4 |
Net Income/(Loss) |
(21.5) 3 |
(28.2) |
(9.2) |
(7.5) 3 |
(5.1) |
6.63 |
9.33 |
EPS - basic |
(0.15) |
(0.20) |
(0.06) |
(0.05) |
(0.04) |
0.05 |
0.10 |
EPS - diluted4 |
(0.15) |
(0.20) |
(0.06) |
(0.05) |
(0.04) |
0.05 |
0.10 |
Interest Bearing Debt |
935.1 |
856.0 |
764.4 |
786.2 |
826.0 |
786.2 |
701.5 |
Cash |
86.6 |
76.9 |
69.8 |
77.3 |
86.5 |
77.3 |
109.35 |
Dividend6 |
0.02 |
0.02 |
0.02 |
0.02 |
0.02 |
0.14 |
0.58 |
Spot Exposure7 |
72.0% |
70.4% |
70.7% |
73.6% |
67.9% |
66.4% |
57.8% |
Unscheduled off hire7 |
0.1% |
0.0% |
0.1% |
0.1% |
0.3% |
0.2% |
1.8% |
Scheduled off hire7 |
0.0% |
0.0% |
0.7% |
0.3% |
2.7% |
2.0% |
1.7% |
QUARTERLY HIGHLIGHTS:
- Adjusted EBITDA for the quarter of $25.1 million. Net loss for
the quarter of $21.5 million or loss of $0.15 per basic share. The
net result was affected by a non-cash finance expense of $3.6
million related to the private exchange of convertible notes due
2019 and a non-cash impairment charge of $3.5 million related to
the planned sale of DHT Cathy and DHT Sophie, equal to $0.05 per
basic share.
- The Company's VLCCs achieved time charter equivalent earnings
of $19,600 per day in the third quarter of 2018 of which the
Company's VLCCs on time-charter earned $22,500 per day and the
Company's VLCCs operating in the spot market achieved $18,500 per
day.
- Thus far in the fourth quarter of 2018, 66% of the available
VLCC spot days have been booked at an average rate of $32,700 per
day.
- For the third 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 November 23, 2018 for shareholders of record as
of November 16, 2018.
- On July 27, 2018 the Company took delivery of DHT Bronco, the
first of its two VLCC newbuildings from HHI. A total of $51.4
million of debt was drawn in connection with the delivery.
- In August 2018 we completed a privately negotiated exchange
agreement with certain holders of the outstanding 4.5% Convertible
Senior Notes due 2019 to exchange approximately $73.0 million
aggregate principal amount of the existing notes for approximately
$80.3 million aggregate principal amount of the Company's new 4.5%
Convertible Senior Notes due 2021. In addition, a private placement
of approximately $44.7 million aggregate principal amount of the
Company's new 4.5% Convertible Senior Notes due 2021 for gross
proceeds of approximately $41.6 million. Following closing of the
private exchange and the private placement, there are $125 million
aggregate principal amount of 2021 Notes outstanding and
approximately $32.9 million aggregate principal amount of 2019
Notes outstanding.
- In September 2018 we secured a $50 million scrubber financing
structured through an increase of the existing $300 million secured
credit facility entered into in the second quarter of 2017. The
increased facility will bear the same interest rate equal to Libor
+ 2.40%. The increased facility is available, but currently
undrawn, and will have quarterly repayments of $2.5 million
commencing second quarter 2020. Other terms and conditions remain
unchanged.
- In the third quarter, the Company entered into 5-year
amortizing interest rate swap agreements totaling $410.3 million
with an average fixed interest rate of 2.96%, as compared to
current 3M Libor of 2.56%, and maturity in the second and third
quarter of 2023.
SUBSEQUENT EVENTS HIGHLIGHTS:
- On October 8, 2018 the Company took delivery of DHT Mustang,
the second of its two VLCC newbuildings from HHI. A total of $51.4
million of debt was drawn in connection with the delivery.
Following this, the company has no further newbuildings under
contract.
- In October, the Company entered into agreement to install
exhaust gas cleaning systems, also known as scrubbers, on four
additional VLCCs. The systems will be installed on ships built
between 2006 and 2011 and the installations will be conducted
during 2019. The Company will have a total of eighteen VLCCs fitted
with scrubbers when the IMO Sulphur Cap will be implemented January
1, 2020.
- In October, the Company has agreed main terms to sell DHT Cathy
and DHT Sophie for $24.3 million enbloc. The vessels are expected
to be delivered to the buyer in the fourth quarter of 2018. We have
recorded an impairment of $3.5 million in the third quarter in
connection with the expected sale. The vessels carry combined debt
of $8.7 million and the Company will net about $15.4 million in
cash from the expected sale. Outstanding debt will be repaid in
connection with the expected sale.
- Subsequent to the quarter the Company extended time-charters
for two of its VLCCs to an oil major for periods of 3- to 4-years.
The vessels are among the ones that will be fitted with
scrubbers and have been extended with fixed base rates plus market
related profit sharing structures that include commercial benefits
of the scrubbers.
- As of November 1, 2018 DHT has a fleet of 27 VLCCs, as well as
two Aframaxes. The total dwt of the fleet is 8,590,740. 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.3Q3 2018
includes a non-cash impairment charge of $3.5 million related to
the planned sale of DHT Cathy and DHT Sophie, Q4 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. 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/13:00 CET on Friday November
2, 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
1 323 794 2423 within the United States, 21 00 26 10
within Norway and +44 330 336 9127 for international
callers. The passcode is "DHT" or "1321003".
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 November 9, 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 "1321003" 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: lch@dhtankers.com
- DHT Q3 2018 financial report.pdf
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