DHT Holdings, Inc. Third Quarter 2018 Results

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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 INFORMATION
The 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