DHT Holdings, Inc. Third Quarter 2024 Results

HAMILTON, BERMUDA, November 12, 2024 – DHT Holdings, Inc. (NYSE: DHT) (“DHT” or the “Company”) today announced:

 

QUARTERLY HIGHLIGHTS:

 

OPERATIONAL HIGHLIGHTS:

*

In Q2 2024 one vessel underwent unscheduled repairs, accounting for the predominant part of the unscheduled off hire for the quarter. In Q1 2024 two vessels underwent unscheduled repairs, accounting for the unscheduled off hire for the quarter.

Chinese economic growth and oil demand have year-to-date not met projections. Whilst China is deploying various inducements to its economy, we are yet to see “whatever it takes” levels of economic policy changes and stimuli. We do however think it is reasonable to expect efforts from China, which should revitalize the economy and lead to an uptick in demand.

By restraining production, OPEC+ aims to balance the market and support prices, especially in the face of increasing competition from Atlantic basin producers. This strategy also includes targeting Asian customers’ inventory levels of crude oil below the five-year average, creating a tighter market for when economic conditions improve. However, limited transparency in China’s crude oil inventory data complicates assessments of actual levels. If Chinese inventories are indeed low as indicated and, as Western inventories are relatively higher than in Asia, one should expect Atlantic based barrels to increasingly go East. Additionally, recovering refinery margins in Asia in combination with increasing Chinese crude oil import quotas heading into next year should shift the dynamics in favor of a stronger freight market.

The result of the US election leads us to expect certain policy changes that we believe will be constructive for our business:

We believe we have an appropriate strategy tailored to the structure of our market; focusing on solid customer relations offering safe and reliable services, maintaining a competitive cost structure with robust break-even levels, a solid balance sheet, and a clear capital allocation policy. The whole DHT team continues to work hard and operate with leading governance standards and a high level of integrity.

As of September 30, 2024, DHT had a fleet of 24 VLCCs, with a total dwt of 7,479,177. For more details on the fleet, please refer to the web site: https://www.dhtankers.com/fleetlist/

OUTLOOK:

 

^* The months of October and November include profit-sharing. The month of December assumes only the base rate.

¹Shipping revenues net of voyage expenses.

² Shipping revenues net of voyage expenses, other revenues, vessel operating expenses and general and administrative expenses.

³Diluted shares include the dilutive effect of the restricted shares granted to management and members of the board of directors.

⁴Per common share.

⁵Operating days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or chartered by the Company.

⁶As % of total operating days in period.

⁷Revenue days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or chartered by the Company less days on which a vessel is off hire or repositioning days in connection with sale.

Other revenues for the third quarter of 2024 were $1.0 million compared to $1.2 million in the third quarter of 2023 and relate to technical management services provided.

Voyage expenses for the third quarter of 2024 were $48.5 million, compared to voyage expenses of $41.2 million in the third quarter of 2023. The change was related to an increase in bunker expenses of $8.1 million and an increase in other voyage-related costs of $0.3 million, partially offset by a decrease in port expenses of $1.2 million. The increased bunker expense in the third quarter of 2024 is mainly due to one additional vessel in the fleet and fewer off hire days. Voyage expenses will in general vary depending on the actual trading patterns during a quarter.

Vessel operating expenses for the third quarter of 2024 were $19.0 million compared to $18.6 million in the third quarter of 2023. The increase was mainly related to an additional vessel in the fleet.

Depreciation and amortization, including depreciation of capitalized survey expenses, was $28.1 million for the third quarter of 2024, compared to $28.3 million in the third quarter of 2023. The decrease was mainly due to decreased depreciation of drydocking and exhaust gas cleaning systems of $0.6 million, partially offset by increased depreciation of vessels $0.4 million due to an additional vessel in the fleet.

General and administrative (“G&A”) expense for the third quarter of 2024 was $4.2 million, consisting of $3.2 million cash and $1.0 million non-cash charges, compared to $4.3 million in the third quarter of 2023, consisting of $3.5 million cash and $0.8 million non-cash charges. Non-cash G&A includes accrual for social security tax.

As a result of the foregoing, the Company had a net profit in the third quarter of 2024 of $35.2 million, or earnings of $0.22 per basic share and $0.22 per diluted share, compared to a net profit in the third quarter of 2023 of $31.0 million, or earnings of $0.19 per basic share and $0.19 per diluted share. The increase from the third quarter of 2023 to the third quarter of 2024 was mainly due to a $3.2 million increase in operating income and a $1.0 million decrease in net financial expenses.

Net cash provided by operating activities for the third quarter of 2024 was $80.1 million compared to $55.7 million for the third quarter of 2023. The increase was due to a net profit of $35.2 million in the third quarter of 2024 compared to a net profit of $31.0 million in the third quarter of 2023, and a $20.3 million change in operating assets and liabilities, partially offset by a decrease in non-cash items included in net profit of $0.1 million.

Net cash used in investing activities was $27.9 million in the third quarter of 2024, comprised of $25.8 million related to investment in vessels under construction and $2.0 million related to investment in vessels. Net cash used in investing activities was $93.0 million in the third quarter of 2023 and was related to investment in vessels.

Net cash used in financing activities for the third quarter of 2024 was $51.6 million comprised of $43.6 million related to cash dividend paid and $7.6 million related to scheduled repayment of long-term debt. Net cash used in financing activities for the third quarter of 2023 was $19.3 million comprised of $56.7 million related to cash dividend paid, $45.0 million related to prepayment of long-term debt, $9.9 million related to purchase of treasury shares and $6.9 million related to scheduled repayment of long-term debt, partially offset by $99.5 million related to issuance of long-term debt.

The Company monitors its covenant compliance on an ongoing basis. As of September 30, 2024, the Company was in compliance with its financial covenants.

As of September 30, 2024, the Company had 161,464,487 shares of common stock outstanding compared to 160,999,542 shares as of December 31, 2023.

The Company reported shipping revenues for the first three quarters of 2024 of $437.1 million compared to $413.8 million in the first three quarters of 2023. The increase from the 2023 period to the 2024 period includes $25.8 million attributable to increased total revenue days, partially offset by $2.5 million attributable to lower tanker rates.

Other revenues for the first three quarters of 2024 were $3.3 million compared to $3.4 million in the first three quarters of 2023 and relate to technical management services provided.

Voyage expenses for the first three quarters of 2024 were $134.4 million compared to voyage expenses of $117.9 million in the first three quarters of 2023. The change was mainly related to an increase in bunker expenses of $18.5 million, partially offset by a decrease in port expenses of $2.7 million. The increased bunker expense in the first three quarters of 2024 is mainly due to one additional vessel in the fleet, more vessels in the spot market and fewer off hire days. Voyage expenses will in general vary depending on the actual trading patterns during the period.

Vessel operating expenses for the first three quarters of 2024 were $58.6 million compared to $56.7 million in the first three quarters of 2023. The increase was mainly related to an additional vessel in the fleet and insurance deductibles.

Depreciation and amortization, including depreciation of capitalized survey expenses, was $84.3 million for the first three quarters of 2024, compared to $80.4 million in the first three quarters of 2023. The increase was mainly due to increased depreciation of vessels and drydocking of $3.2 million due to an additional vessel in the fleet and an increase in depreciation of exhaust gas cleaning systems of $0.7 million.

G&A for the first three quarters of 2024 was $13.4 million, consisting of $10.5 million cash and $2.9 million non-cash charges, compared to $13.5 million, consisting of $10.8 million cash and $2.7 million non-cash charges for the first three quarters of 2023. Non-cash G&A includes accrual for social security tax.

Net cash used in investing activities for the first three quarters of 2024 was $84.0 million comprised of $77.3 million related to investment in vessels under construction and $6.6 million related to investment in vessels. Net cash used in investing activities for the first three quarters of 2023 was $122.8 million comprised of $125.9 million related to investment in vessels, partially offset by $3.3 million related to proceeds from sale of derivatives.

Net cash used in financing activities for the first three quarters of 2024 was $150.0 million comprised of $125.9 million related to cash dividends paid, $74.0 million related to prepayment of long-term debt and $24.1 million related to scheduled repayment of long-term debt, partially offset by $75.0 million related to issuance of long-term debt. Net cash used in financing activities for the first three quarters of 2023 was $138.2 million comprised of $216.8 million related to repayment of long-term debt in connection with refinancing, $156.1 million related to cash dividends paid, $45.0 million related to prepayment of long-term debt, $18.8 million related to purchase of treasury shares and $15.6 million related to scheduled repayment of long-term debt, partially offset by $315.7 million related to issuance of long-term debt.

The Company assesses the financial performance of its business using a variety of measures. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. These non-GAAP measures include “Adjusted Net Revenue”, “Adjusted EBITDA” and “Adjusted spot time charter equivalent per day”. The Company believes that these non-GAAP measures provide useful supplemental information for its investors and, when considered together with the Company’s IFRS financial measures and the reconciliation to the most directly comparable IFRS financial measure, provide a more complete understanding of the factors and trends affecting the Company’s operations. In addition, DHT’s management measures the financial performance of the Company, in part, by using these non-GAAP measures, along with other performance metrics. The Company does not regard these non-GAAP measures as a substitute for, or as superior to, the equivalent measures calculated and presented in accordance with IFRS. Additionally, these non-GAAP measures may not be comparable to other similarly titled measures used by other companies and should not be considered in isolation or as a substitute for analysis of the Company’s operating results as reported under IFRS.

* Per revenue days. Revenue days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or chartered by the Company less days on which a vessel is off hire.

** For vessels operating on spot charters, voyage revenues are calculated on a discharge-to-discharge basis. Under IFRS 15, spot charter voyage revenues are calculated on a load-to-discharge basis. IFRS 15 impact refers to the timing difference between discharge-to-discharge and load-to-discharge basis.

EARNINGS CONFERENCE CALL AND WEBCAST INFORMATION

To access the conference call the participants are required to register using this link:

Upon registering, each participant will be provided with participant dial-in numbers, and a unique personal PIN. Participants will need to use the conference access information provided in the e-mail received at the point of registering. Participants may also use the Call Me feature instead of dialing the nearest dial-in number.

The webcast, which will include a slide presentation, will be available on the following link:

https://edge.media-server.com/mmc/p/6xhku6mf and can also be accessed in the Investor Relations section of DHT's website at http://www.dhtankers.com.

ABOUT DHT HOLDINGS, INC.

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. 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 20, 2024.

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.

Laila C. Halvorsen, CFO

Phone: +1 441 295 1422 and +47 984 39 935

 

DHT HOLDINGS, INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2024

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