SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of May 2021
Commission File Number 001-32640
DHT HOLDINGS, INC.
(Exact name of Registrant as specified in its charter)
Clarendon House
2 Church Street, Hamilton HM 11
Bermuda
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☑ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____
Press Releases
The press release issued by DHT Holdings, Inc. (the “Company”) on May 4, 2021 related to its results for the first quarter of 2021 is attached hereto as Exhibit 99.1 and
is incorporated herein by reference.
Incorporation by Reference
Exhibit 99.1 to this Report on Form 6-K shall be incorporated by reference into the Company’s registration statement on Form F-3 (file No. 333-239430), initially filed
with the Securities and Exchange Commission on June 25, 2020, as amended, to the extent not superseded by information subsequently filed or furnished (to the extent the Company expressly states that it incorporates such furnished information by
reference) by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, in each case as amended.
EXHIBIT LIST
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Exhibit
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Description
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|
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99.1
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Press Release dated May 4, 2021
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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DHT Holdings, Inc.
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||||
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(Registrant)
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||||
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Date: May 5, 2021
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By:
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/s/ Laila C. Halvorsen
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||
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Name:
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Laila C. Halvorsen
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|||
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Title:
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Chief Financial Officer
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Exhibit 99.1
DHT Holdings, Inc. First Quarter 2021 Results
HAMILTON, BERMUDA, May 4, 2021 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) today announced:
FINANCIAL HIGHLIGHTS:
|
USD mill. (except per share)
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
2020
|
2019
|
|
Shipping revenues
|
87.0
|
91.0
|
142.2
|
245.9
|
211.9
|
691.0
|
535.1
|
|
Adjusted net revenue1
|
71.3
|
77.7
|
117.5
|
202.7
|
152.5
|
550.5
|
347.6
|
|
Adjusted EBITDA2
|
46.7
|
51.1
|
92.9
|
178.0
|
128.4
|
450.4
|
254.5
|
|
Net income/(loss) after tax
|
11.6
|
7.63
|
50.73
|
135.8
|
72.2
|
266.33
|
73.7
|
|
EPS – basic
|
0.07
|
0.04
|
0.32
|
0.92
|
0.49
|
1.71
|
0.51
|
|
EPS – diluted4
|
0.07
|
0.04
|
0.31
|
0.81
|
0.44
|
1.61
|
0.51
|
|
Dividend5
|
0.04
|
0.05
|
0.20
|
0.48
|
0.35
|
1.08
|
0.47
|
|
Interest bearing debt
|
574.7
|
450.0
|
492.4
|
719.2
|
780.8
|
450.0
|
851.0
|
|
Cash and cash equivalents
|
54.0
|
68.6
|
75.1
|
137.7
|
75.8
|
68.6
|
67.4
|
|
Net debt
|
520.7
|
381.3
|
417.3
|
581.5
|
705.0
|
381.3
|
783.6
|
QUARTERLY HIGHLIGHTS:
| ● |
In the first quarter of 2021, the Company’s VLCCs achieved an average rate of $31,800 per day.
|
| ● |
Adjusted EBITDA for the first quarter of 2021 was $46.7 million. Net income of $11.6 million equates to $0.07 per basic share. Adjusted for a non-cash gain in fair value related to interest rate derivatives of $3.4 million, net income
would be $8.2 million, equivalent to $0.05 per basic share.
|
| ● |
For the first quarter of 2021, the Company declared a cash dividend of $0.04 per share of outstanding common stock, payable on May 26, 2021 to shareholders of record as of May 19, 2021. This marks the 45th consecutive
quarterly dividend. The shares will trade ex-dividend from May 18, 2021.
|
| ● |
In the first quarter of 2021, the Company acquired two 2016 built VLCCs for a total of $136 million. The Company drew down $125 million under its revolving credit facilities to fund the two VLCCs. DHT
Harrier was delivered on February 18, 2021 and DHT Osprey was delivered on April 12, 2021.
|
1
Interest bearing debt - Notional amount
|
USD mill.
|
|
|
Opening balance January 1, 2021
|
454.7
|
|
Scheduled repayments
|
(0.7)
|
|
Drawdown under revolving credit facilities *)
|
125.0
|
|
Balance notional debt as of March 31, 2021 **)
|
579.0
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*) Consist of $65.0 million under the Nordea Credit Facility and $60.0 million under the ABN Amro Credit Facility which were drawn in 1Q 2021 to partly fund the acquisition of
DHT Harrier and DHT Osprey.
**) Please also see Note 4 – Interest bearing debt.
OPERATIONAL HIGHLIGHTS:
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
2020
|
2019
|
|
|
Operating days6
|
2,471.6
|
2,484.0
|
2,484.0
|
2,457.0
|
2,457.0
|
9,882.0
|
9,855.0
|
|
Scheduled off hire days
|
231.9
|
180.0
|
20.6
|
5.8
|
49.1
|
255.5
|
352.6
|
|
Unscheduled off hire days
|
1.4
|
4.1
|
18.5
|
16.2
|
38.9
|
77.7
|
33.9
|
|
Revenue days7
|
2,238.3
|
2,299.9
|
2,444.9
|
2,435.0
|
2,369.0
|
9,548.8
|
9,468.5
|
|
Spot exposure8
|
38.2%
|
39.3%
|
60.8%
|
70.1%
|
84.2 %
|
63.5 %
|
83.1 %
|
|
VLCC time charter rate per day
|
$39,400
|
$41,700
|
$53,000
|
$62,700
|
$54,000
|
$50,400
|
$38,400
|
|
VLCC spot rate per day
|
$18,700
|
$19,200
|
$44,900
|
$92,100
|
$66,400
|
$62,000
|
$36,400
|
| ● |
Scheduled off hire for the quarter was 232 days as the Company took advantage of the weak freight market to bring forward drydockings and planned installations of scrubbers and ballast water treatment systems.
|
| ● |
Our business remains impacted by the Covid-19 virus outbreak with operational challenges related to our seafarers and our ability to change crews at regular intervals. There are still numerous restrictions to facilitate crew changes with
strict transit and quarantine procedures and a limited number of geographical options to execute crew changes. We continue to do everything we reasonably can to facilitate safe and regular crew changes.
|
The virus outbreak led to reduced global consumption of refined oil products resulting in a build-up of shore-based inventories of both feedstock and end products. Further,
leading oil producers have reduced supply with the view to rebalance the oil markets. As such, demand is partly being satisfied by drawing down on inventories, resulting in reduced demand for transportation. We recently note decreases in
inventories and estimates of demand slowly resuming indicating a recovery in demand for oil transportation in the conceivable future.
| ● |
As of March 31, 2021, DHT had a fleet of 28 VLCCs. The total dwt of the fleet was 8,660,835. For more details on the fleet, please refer to the web site: https://www.dhtankers.com/fleetlist/
|
SUBSEQUENT EVENT HIGHLIGHTS:
| ● |
On April 12, 2021, the Company took delivery of DHT Osprey, the second of the two VLCCs acquired in January 2021. The first vessel, DHT Harrier, was delivered on February 18, 2021.
|
| ● |
In April, the Company received binding commitments from seven banks for a new $316.2 million credit facility. The facility serves three purposes for DHT:
|
2
| o |
It contains “DHT-style” mortgage financing ($37.5 million per vessel with $2.5 million in annual amortization reflecting a 20-year repayment profile) for the two newly acquired 2016 built VLCCs,
|
| o |
An extension of final maturity of the current Nordea Credit Facility from April 2023 to January 2027, and,
|
| o |
A new (undrawn) revolving credit line of $60 million collateralized by three currently unencumbered ships (DHT Amazon, DHT Europe and DHT Scandinavia).
|
Additionally, the facility will include an uncommitted “accordion” of $250.0 million. The new facility will have an interest rate of LIBOR + 1.90% and have final maturity in January 2027.
| ● |
After the quarter end, the Company has entered into three separate agreements to sell its three 2004 built VLCCs, DHT Lake, DHT Raven and DHT Condor, for an aggregate of $88.75 million.
|
| o |
The Company expects to book a profit from the sales of about $15 million in Q2 2021.
|
| o |
Net proceeds after repayment of mortgage debt is estimated to be about $78.0 million.
|
OUTLOOK:
| ● |
Thus far in the second quarter of 2021, 75% of the available VLCC days have been booked at an average rate of $21,300 per day on a discharge to discharge basis (not including any potential profit splits on four time charters).
|
| ● |
The Company will continue to take advantage of the weak freight market to bring forward drydockings and planned installations of scrubbers and ballast water treatment systems and expect scheduled off hire to be in the range between 90
and 110 days during the second quarter of 2021.
|
Footnotes:
1Shipping revenues net of voyage expenses.
2 Shipping revenues net of voyage expenses, vessel operating expenses and general and administrative expenses. As showed in the table for reconciliation of non-GAAP measures.
3Q4 2020 includes impairment charge of $7.6 million. Q3 2020 includes impairment charge of $ 4.9 million. 2020 includes impairment charge of $12.6 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.
5Per common share.
6Operating 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.
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.
8 As % of total operating days in period.
3
FIRST QUARTER 2021 FINANCIALS
The Company reported shipping revenues for the first quarter of 2021 of $87.0 million compared to shipping revenues of $211.9 million in the first quarter of 2020. The decrease from the 2020 period to the 2021 period includes $113.2 million attributable to lower tanker rates and $11.7 million attributable to a decrease in total revenue days as a result of scheduled off hire in
connection with special surveys and scrubber installations. The Company took advantage of the weak freight market to bring forward drydockings and planned installations of scrubbers and ballast water
treatment systems.
Voyage expenses for the first quarter of 2021 were $15.7 million, compared to voyage expenses of $59.4 million in the first quarter of 2020. The decrease was due to fewer vessels
in the spot market representing a $37.9 million decrease in bunker expenses and a $5.7 million decrease in port cost.
Vessel operating expenses for the first quarter of 2021 were $19.1 million compared to $19.8 million in the first quarter of 2020. The decrease was mainly related to up-storing
of spares and consumables in 2020 in relation to IMO2020.
Depreciation and amortization, including depreciation of capitalized survey expenses, was $32.0 million for the first quarter of 2021, compared to $30.3 million in the first
quarter of 2020. The increase was mainly due to increased depreciation related to scrubbers of $0.9 million and capitalized survey expenses of $0.9 million.
General & administrative expense (“G&A”) for the first quarter of 2021 was $5.6 million, consisting of $3.7 million cash and $1.9 million non-cash charge, compared to
$4.3 million in the first quarter of 2020, consisting of $3.4 million cash and $0.9 million non-cash charge. Non-cash G&A includes accrual for social security tax.
Net financial expenses for the first quarter of 2021 were $2.9 million compared to $25.5 million in the first quarter of 2020. The decrease was mainly due to
a non-cash gain of $3.4 million related to interest rate derivatives in the first quarter of 2021 compared to a non-cash loss of $12.6 million in the first quarter of 2020 in addition to a $6.2 million decrease in interest expenses due to reduced
outstanding debt.
As a result of the foregoing, the Company had net income in the first quarter of 2021 of $11.6 million, or income of $0.07 per basic share and $0.07 per diluted share, compared
to net income in the first quarter of 2020 of $72.2 million, or an income of $0.49 per basic share and $0.44 per diluted share. The decrease from the 2020 period to the 2020 period was mainly due to lower tanker rates.
Net cash provided by operating activities for the first quarter of 2021 was $10.9 million compared to net cash provided by operating activities of $130.7 million
for the first quarter of 2020. The change of $119.8 million is comprised of a $60.5 million decrease in net income, a $44.0 million decrease in changes in operating assets and liabilities and a $15.3
million decrease in non-cash items included in net income.
Net cash used in investing activities was $141.1 million in the first quarter of 2021 and was related to investment in vessels. Net cash used in investing activities was $3.1
million in the first quarter of 2020 of which $2.8 million related to investment in vessels and $0.3 million related to investment in property, plant and equipment.
Net cash provided by financing activities for the first quarter of 2021 was $115.6 million comprising $125.0 million related to issuance of long-term debt, partially offset by $8.6 million related
to cash dividend paid and $0.7 million related to scheduled repayment of long-term debt. Net cash used in financing activities for the first quarter of 2020 was $119.1 million comprising mainly of $57.8 million related to prepayment of long-term
debt, $47.0 million related to cash dividend paid and $14.2 million related to scheduled repayment of long-term debt.
As of March 31, 2021, the cash balance was $54.0 million, compared to $68.6 million as of December 31, 2020.
The Company monitors its covenant compliance on an ongoing basis. As of the date of the most recent compliance certificates submitted for the first quarter of 2021, the Company is in compliance with
its financial covenants.
As of March 31, 2021, the Company had 171,499,004 shares of common stock outstanding compared to 170,798,328 shares as of December 31, 2020.
4
The Company declared a cash dividend of $0.04 per common share for the first quarter of 2021 payable on May 26, 2021 for shareholders of record as of May 19, 2021.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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, the 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.
|
USD in thousands except time charter equivalent per day
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
2020
|
2019
|
|
Reconciliation of adjusted net revenue
|
|||||||
|
Shipping revenues
|
86,983
|
90,992
|
142,196
|
245,942
|
211,908
|
691,039
|
535,068
|
|
Voyage expenses
|
(15,705)
|
(13,268)
|
(24,691)
|
(43,220)
|
(59,385)
|
(140,564)
|
(187,500)
|
|
Adjusted net revenue
|
71,278
|
77,724
|
117,506
|
202,721
|
152,524
|
550,475
|
347,568
|
|
Reconciliation of adjusted EBITDA
|
|||||||
|
Net income/(loss) after tax
|
11,611
|
7,627
|
50,672
|
135,824
|
72,158
|
266,281
|
73,680
|
|
Income tax expense
|
160
|
196
|
127
|
152
|
426
|
900
|
131
|
|
Other financial (income)/expenses
|
644
|
81
|
181
|
147
|
925
|
1,334
|
1,790
|
|
Fair value (gain)/loss on derivative financial liabilities
|
(3,430)
|
(2,403)
|
(2,611)
|
444
|
12,644
|
8,074
|
9,863
|
|
Interest expense
|
6,033
|
6,296
|
8,863
|
11,022
|
12,226
|
38,408
|
55,332
|
|
Interest income
|
(1)
|
(12)
|
(3)
|
(98)
|
(99)
|
(212)
|
(1,077)
|
|
Share of profit from associated companies
|
(344)
|
(344)
|
(340)
|
(303)
|
(206)
|
(1,193)
|
(852)
|
|
Impairment charges
|
-
|
7,640
|
4,920
|
-
|
-
|
12,560
|
-
|
|
Depreciation and amortization
|
31,995
|
32,028
|
31,117
|
30,774
|
30,326
|
124,245
|
115,584
|
|
Adjusted EBITDA
|
46,668
|
51,108
|
92,926
|
177,962
|
128,401
|
450,397
|
254,452
|
|
Reconciliation of adjusted spot time charter equivalent per day*
|
|||||||
|
Spot time charter equivalent per day
|
18,700
|
19,200
|
44,900
|
92,100
|
66,400
|
62,000
|
|
|
IFRS 15 impact on spot time charter equivalent per day
|
(1,400)
|
1,300
|
(4,200)
|
(4,900)
|
(900)
|
(2,600)
|
|
|
Adjusted spot time charter equivalent per day
|
17,300
|
20,500
|
40,600
|
87,200
|
65,500
|
59,400
|
* 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.
5
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. EST/14:00 CET on Wednesday May 5, 2021 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 +1 646 741 3167 within the United States, +47 21 56 30 15 within Norway and +44 (0) 207 192
8338 for international callers. The passcode is “4079222”.
The webcast, which will include a slide presentation, will be available on the following link:
https://edge.media-server.com/mmc/p/jw4g3fsx 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 until 1:00 p.m. EST/19:00 CET on Wednesday May 12, 2021.
To access the replay, dial +1 917 677 7532 within the United States, +47 21 03 42 35 within Norway or +44 (0) 333 300 9785 for international
callers and enter “4079222” 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 segment. We operate through our integrated management companies in Monaco, Singapore and Oslo, Norway. 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 to accommodate staying power through
the business cycles, a combination of market exposure and fixed income contracts for our fleet, a counter cyclical philosophy with respect to investments, employment of our fleet and capital allocation 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 25, 2021.
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: +1 441 295 1422 and +47 984 39 935
Laila C. Halvorsen, CFO
Phone: +1 441 295 1422 and +47 984 39 935
E-mail: lch@dhtankers.com
Wilhelm Flinder, Manager - Investor Relations & Business Analysis
Phone: +1 441 295 1422 and +47 936 11 350
Phone: +1 441 295 1422 and +47 936 11 350
E-mail: wf@dhtankers.com
6
DHT HOLDINGS, INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2021
7
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
($ in thousands)
|
Note
|
March 31, 2021
(Unaudited)
|
December 31, 2020
(Audited)
|
|||
| ASSETS | |||||
|
Current assets
|
|||||
| Cash and cash equivalents |
$
|
53,978 |
68,641 |
||
| Accounts receivable and accrued revenues | 7 |
29,787 |
30,060 |
||
| Capitalized voyage expenses | 560 |
1,039 |
|||
| Prepaid expenses | 7,064 |
6,685 |
|||
| Bunkers, lube oils and consumables | 19,272 | 11,854 | |||
|
Total current assets
|
$
|
110,660 | 118,279 | ||
|
Non-current assets
|
|||||
|
Vessels and time charter contracts
|
5 |
$
|
1,524,119 | 1,476,436 | |
|
Advances for vessels and vessel upgrades
|
5 |
86,005 |
17,269 | ||
|
Other property, plant and equipment
|
4,506 | 4,772 |
|||
|
Investment in associate company
|
5,516 | 5,233 |
|||
|
Total non-current assets
|
$
|
1,620,146 | 1,503,710 | ||
|
TOTAL ASSETS
|
$
|
1,730,807 | 1,621,989 | ||
| LIABILITIES AND EQUITY | |||||
|
Current liabilities
|
|||||
|
Accounts payable and accrued expenses
|
$
|
14,884 |
18,503 |
||
|
Derivative financial liabilities
|
4 |
8,576 |
9,073 |
||
|
Current portion long-term debt
|
4 |
11,761 |
3,396 |
||
| Other current liabilities | 707 |
721 |
|||
|
Deferred shipping revenues
|
8 |
2,698 |
16,236 |
||
|
Total current liabilities
|
$
|
38,625 | 47,929 | ||
|
Non-current liabilities
|
|||||
|
Long-term debt
|
4 |
$
|
562,957 | 446,562 | |
|
Derivative financial liabilities
|
4 |
11,667 |
14,601 |
||
|
Other non-current liabilities
|
3,738 |
3,957 |
|||
|
Total non-current liabilities
|
$
|
578,362 | 465,120 | ||
|
TOTAL LIABILITIES
|
$
|
616,987 | 513,049 | ||
|
Equity
|
|||||
|
Common stock at par value
|
6 |
$
|
1,715 | 1,708 | |
|
Additional paid-in capital
|
1,295,138 | 1,291,505 | |||
|
Accumulated deficit
|
(185,661) | (188,709) | |||
|
Translation differences
|
111 | 169 |
|||
|
Other reserves
|
2,496 | 4,248 |
|||
|
Total equity attributable to the Company
|
1,113,799 | 1,108,921 |
|||
|
Non-controlling interest
|
20 |
19 |
|||
|
Total equity
|
$
|
1,113,819 | 1,108,940 | ||
|
TOTAL LIABILITIES AND EQUITY
|
$
|
1,730,807 | 1,621,989 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
8
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
($ in thousands except per share amounts)
|
Q1 2021
|
Q1 2020
|
|||
|
Note
|
Jan. 1 - Mar. 31, 2021
|
Jan. 1 - Mar. 31, 2020
|
||
|
Shipping revenues
|
3 |
$
|
86,983
|
211,908 |
|
Operating expenses
|
||||
|
Voyage expenses
|
(15,705)
|
(59,385)
|
||
|
Vessel operating expenses
|
(19,055)
|
(19,827)
|
||
|
Depreciation and amortization
|
5
|
(31,995)
|
(30,326)
|
|
|
General and administrative expense
|
(5,555)
|
(4,296)
|
||
|
Total operating expenses
|
$
|
(72,310)
|
(113,833)
|
|
|
Operating income
|
$
|
14,673
|
98,075
|
|
|
Share of profit from associated companies
|
344
|
206
|
||
|
Interest income
|
1
|
99
|
||
|
Interest expense
|
(6,033)
|
(12,226)
|
||
|
Fair value gain/(loss) on derivative financial liabilities
|
3,430
|
(12,644)
|
||
|
Other financial (expense)/income
|
(644)
|
(925)
|
||
|
Profit/(loss) before tax
|
$
|
11,771
|
72,584
|
|
|
Income tax expense
|
(160)
|
(426)
|
||
|
Net income/(loss) after tax
|
$
|
11,611
|
72,158
|
|
|
Attributable to owners of non-controlling interest
|
1
|
(1)
|
||
|
Attributable to the owners of parent
|
$
|
11,611
|
72,159
|
|
|
Basic net income/(loss) per share
|
0.07
|
0.49
|
||
|
Diluted net income/(loss) per share
|
0.07
|
0.44
|
||
|
Weighted average number of shares (basic)
|
171,287,646
|
146,940,908
|
||
|
Weighted average number of shares (diluted)
|
171,351,269
|
168,596,765
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
9
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
($ in thousands except per share amounts)
| |
Q1 2021 | Q1 2020 | ||||
|
Note
|
Jan. 1 - Mar. 31, 2021
|
|
Jan. 1 - Mar. 31, 2020
|
|||
|
Net income/(loss) after tax
|
$
|
11,611 |
|
72,158 | ||
|
Other comprehensive income/(loss):
|
||||||
| Items that will not be reclassified subsequently to income statement: | ||||||
| Remeasurement of defined benefit obligation (loss) | - |
- |
||||
| Total |
$
|
- |
|
- |
||
| Items that may be reclassified subsequently to income statement: | ||||||
| Exchange gain/(loss) on translation of foreign currency | ||||||
| denominated associate and subsidiary | (58) | (161) | ||||
|
Total
|
$
|
(58) |
|
(161) | ||
|
Other comprehensive income/(loss)
|
$
|
(58) |
|
(161) | ||
|
Total comprehensive income/(loss) for the period
|
$
|
11,553 |
|
71,997 | ||
| Attributable to owners of
non-controlling interest |
$ |
1 |
(1) |
|||
|
Attributable to the owners of parent
|
$
|
11,552 | |
71,998 |
||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
10
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED)
($ in thousands)
|
Q1 2021
|
Q1 2020
|
||||
|
Note
|
Jan. 1 - Mar. 31,
2021
|
Jan. 1 - Mar. 31,
2020
|
|||
|
CASH FLOW FROM OPERATING ACTIVITIES
|
|||||
|
Net income / (loss) after tax
|
$
|
11,611
|
72,158
|
||
|
Items included in net income not affecting cash flows
|
30,544
|
45,825
|
|||
|
Depreciation and amortization
|
5
|
31,995
|
30,326
|
||
|
Amortization of upfont fees
|
435
|
1,792
|
|||
|
Fair value (gain) / loss on derivative financial liabilities
|
4
|
(3,430)
|
12,644
|
||
|
Compensation related to options and restricted stock
|
1,889
|
1,269
|
|||
|
Share of profit in associated companies
|
(344)
|
(206)
|
|||
|
Income adjusted for non-cash items
|
$
|
42,156
|
117,983
|
||
|
Changes in operating assets and liabilities
|
(31,286)
|
12,679
|
|||
|
Accounts receivable and accrued revenues
|
7
|
273
|
21,815
|
||
|
Capitalized voyage expenses
|
479
|
73
|
|||
|
Prepaid expenses
|
(379)
|
(159)
|
|||
|
Accounts payable and accrued expenses
|
(10,676)
|
(5,849)
|
|||
|
Deferred shipping revenues
|
8
|
(13,538)
|
(930)
|
||
|
Bunkers, lube oils and consumables
|
(7,418)
|
(2,194)
|
|||
|
Pension liability
|
(27)
|
(77)
|
|||
|
Net cash provided by operating activities
|
$
|
10,870
|
130,662
|
||
|
CASH FLOW FROM INVESTING ACTIVITIES
|
|||||
|
Investment in vessels
|
(141,133)
|
(2,769)
|
|||
|
Investment in property, plant and equipment
|
(9)
|
(310)
|
|||
|
Net cash used in investing activities
|
$
|
(141,142)
|
(3,079)
|
||
|
CASH FLOW FROM FINANCING ACTIVITIES
|
|||||
|
Cash dividends paid
|
6
|
(8,563)
|
(47,022)
|
||
|
Repayment principal element of lease liability
|
(152)
|
(128)
|
|||
|
Issuance of long-term debt
|
4
|
125,000
|
-
|
||
|
Scheduled repayment of long-term debt
|
4
|
(676)
|
(14,194)
|
||
|
Prepayment of long-term debt
|
4
|
-
|
(57,762)
|
||
|
Net cash provided by/ (used in) financing activities
|
$
|
115,609
|
(119,107)
|
||
|
Net (decrease)/increase in cash and cash equivalents
|
(14,663)
|
8,476
|
|||
|
Cash and cash equivalents at beginning of period
|
68,641
|
67,356
|
|||
|
Cash and cash equivalents at end of period
|
$
|
53,978
|
75,832
|
||
|
Specification of items included in operating activities:
|
|||||
|
Interest paid
|
5,288
|
11,502
|
|||
|
Interest received
|
1
|
99
|
|||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
11
SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
($ in thousands except shares)
|
Paid-in
|
Non-
|
|||||||||||||||
|
Additional
|
Accumulated
|
Translation
|
Other
|
Controlling
|
Total
|
|||||||||||
|
Note
|
Shares
|
Stock
|
Capital
|
Deficit
|
Differences
|
Reserves
|
Interest
|
Equity
|
||||||||
|
Balance at January 1, 2020
|
146,819,401
|
$
|
1,468
|
$
|
1,169,537
|
$
|
(240,165)
|
$
|
73
|
$
|
1,531
|
$
|
5
|
$
|
932,449
|
|
|
Net income/(loss) after tax
|
72,159
|
(1)
|
72,158
|
|||||||||||||
|
Other comprehensive income/(loss)
|
-
|
(161)
|
(161)
|
|||||||||||||
|
Total comprehensive income/(loss)
|
72,159
|
(161)
|
(1)
|
71,997
|
||||||||||||
|
Cash dividends declared and paid
|
|
|
|
(47,022) |
(47,022)
|
|||||||||||
|
Compensation related to options and restricted stock
|
125,649
|
1
|
509
|
759
|
1,269
|
|||||||||||
|
Balance at March 31, 2020
|
146,945,050
|
$
|
1,469
|
$
|
1,170,046
|
$
|
(215,028)
|
$
|
(88)
|
$
|
2,290
|
$
|
4
|
$
|
958,692
|
|
|
Balance at January 1, 2021
|
170,798,328
|
$
|
1,708
|
$
|
1,291,505
|
$
|
(188,709)
|
$
|
169
|
$
|
4,248
|
$
|
19
|
$
|
1,108,940
|
|
|
Net income/(loss) after tax
|
11,611
|
1
|
11,611
|
|||||||||||||
|
Other comprehensive income/(loss)
|
-
|
(58)
|
(58)
|
|||||||||||||
|
Total comprehensive income/(loss)
|
11,611
|
(58)
|
1
|
11,553
|
||||||||||||
|
Cash dividends declared and paid
|
(8,563)
|
(8,563)
|
||||||||||||||
|
Compensation related to options and restricted stock
|
700,676
|
7
|
3,634
|
(1,752)
|
1,889
|
|||||||||||
|
Balance at March 31, 2021
|
171,499,004
|
$
|
1,715
|
$
|
1,295,138
|
$
|
(185,661)
|
$
|
111
|
$
|
2,497
|
$
|
20
|
$
|
1,113,819
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
12
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2021
Note 1 – General information
DHT Holdings, Inc. (“DHT” or the “Company”) is a company incorporated under the laws of the Marshall Islands whose shares are listed on the New York Stock Exchange. The Company’s
principal executive office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The Company is engaged in the ownership and operation of a fleet of crude oil carriers.
The financial statements were approved by the Company’s Board of Directors (the “Board”) on May 4, 2021 and authorized for issue on May 4, 2021.
Note 2 – General accounting principles
The condensed consolidated interim financial statements do not include all information and disclosures required in the annual financial statements and should be read in
conjunction with DHT’s audited consolidated financial statements included in its Annual Report on Form 20-F for 2020. The interim results are not necessarily indicative of the results for the entire year or for any future periods.
The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting
Standards Board (“IASB”).
The condensed consolidated interim financial statements have been prepared on a historical cost basis, except for derivative financial instruments that have been measured at fair
value. The accounting policies applied in these condensed consolidated interim financial statements are consistent with those presented in the 2020 audited consolidated financial statements.
These condensed consolidated interim financial statements have been prepared on a going concern basis.
Application of new and revised International Financial Reporting Standards (“IFRSs”)
New and revised IFRSs that are not mandatorily effective (but allow early application) for the financial year beginning January 1, 2021 are listed below. The
standards are not expected to have any material impact on the financial statements:
| o |
IFRS 17 Insurance Contracts
|
| o |
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associates or Joint Venture
|
| o |
Amendments to IAS 1 Classification of Liabilities as Current or Non-current
|
| o |
Amendments to IFRS 3 Reference to the Conceptual Framework
|
| o |
Amendments to IAS 16 Property, Plant and Equipment – Proceeds before Intended Use
|
| o |
Amendments to IAS 37 Onerous Contracts – Cost to Fulfilling a Contract
|
| o |
Annual Improvements to IFRS Standards 2018-2020 Cycle - Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 16
Leases and IAS 41 Agriculture
|
13
Note 3 – Segment reporting
Since DHT’s business is limited to operating a fleet of crude oil tankers, management has organized the entity as one segment based upon the service provided. Consequently, the
Company has one operating segment as defined in IFRS 8, Operating Segments.
The below table details the Company’s shipping revenues:
|
$ in thousands
|
Q1 2021
|
Q1 2020
|
||
|
Time charter revenues*
|
56,812
|
21,162
|
||
|
Voyage charter revenues
|
30,171
|
190,746
|
||
|
Shipping revenues
|
86,983
|
211,908
|
* The portion of time charter revenue related to technical management services, equaling $11.9 million in the first quarter of 2021 and $3.5 million in the first quarter of 2020, is recognized in
accordance with IFRS 15 Revenue from Contracts with Customers. The remaining portion of time charter revenue is recognized in accordance with IFRS 16 Leases.
As of March 31, 2021, the Company had 28 vessels in operation; 14 vessels were on time charters and 14 vessels operating in the spot market.
Information about major customers:
For the period from January 1, 2021 to March 31, 2021 five customers represented $14.7 million, $12.8 million, $9.8 million, $8.3 million, and $7.0 million, respectively, of the Company’s total revenues. The five
customers in aggregate represented $52.6 million, equal to 60 percent of the total revenue of $87.0 million for the period from January 1, 2021 to March 31, 2021.
For the period from January 1, 2020 to March 31, 2020 five customers represented $39.3 million, $28.5 million, $21.3 million, $17.3 million, and $12.9 million, respectively, of the Company’s total revenues. The five
customers in aggregate represented $119.3 million, equal to 56 percent of the total revenue of $211.9 million for the period from January 1, 2020 to March 31, 2020.
Note 4 – Interest bearing debt
As of March 31, 2021, DHT had interest bearing debt totaling $574.7 million.
Scheduled debt repayments (USD thousands) and margin above Libor
|
Margin
|
Q2
|
Q3-Q4
|
|||||
|
$ in thousands
|
above Libor
|
2021
|
2021
|
2022
|
2023
|
Thereafter
|
Total
|
|
ABN Amro Credit Facility*
|
2.40%
|
-
|
-
|
33,378
|
33,378
|
262,750
|
329,505
|
|
Credit Agricole Credit Facility
|
2.19%
|
676
|
1,351
|
2,703
|
32,433
|
-
|
37,163
|
|
Danish Ship Finance Credit Facility
|
2.00%
|
1,213
|
1,213
|
2,427
|
2,427
|
29,120
|
36,400
|
|
Nordea Credit Facility **
|
2.40%
|
-
|
-
|
-
|
175,933
|
-
|
175,933
|
|
Total
|
1,889
|
2,565
|
38,507
|
244,170
|
291,870
|
579,001
|
|
|
Unamortized upfront fees bank loans
|
(4,283)
|
||||||
|
Total interest bearing debt
|
574,718
|
* $40.0 mill. undrawn as of March 31, 2021.
** $5.3 mill. undrawn as of March 31, 2021.
ABN Amro Credit Facility
In April 2018 the Company entered into a credit facility with ABN Amro, Nordea, Credit Agricole, DNB, ING, Danish Ship Finance, SEB, DVB and Swedbank as lenders for the financing of eleven VLCCs and two
newbuildings. The credit facility is guaranteed by DHT Holdings, Inc. and borrowings bear interest at a rate equal to Libor + 2.40%. In March 2020 and September 2020, the Company prepaid $57.8 million and $42.2 million, respectively, under the
revolving credit facility tranche. In March 2021, the Company drew down $60 million under the revolving credit facility tranche in relation to the delivery of DHT Osprey. The current outstanding is repayable in quarterly installments of $8.3
million through Q2 2024 with a final payment of $246.1 with the last installment.
14
In June 2020, the Company prepaid $33.4 million under the ABN Amro Credit Facility. The voluntary prepayment was made for all regular installments for 2021.
The credit facility contains a covenant requiring that at all times the charter-free market value of the vessels that secure the credit facility be no less than 135% of borrowings. Also, DHT covenants that,
throughout the term of the credit facility, DHT, on a consolidated basis, shall maintain:
| ● |
Value adjusted* tangible net worth of $300 million
|
| ● |
Value adjusted* tangible net worth shall be at least 25% of value adjusted total assets
|
| ● |
Unencumbered consolidated cash of at least the higher of (i) $30 million and (ii) 6% of our gross interest-bearing debt
|
* Value adjusted defined as an adjustment to reflect the difference between the carrying amount and the market valuations of the Company’s vessels (as determined quarterly by an
approved broker).
Credit Agricole Credit Facility
In June 2015, the Company entered into a credit agreement with Credit Agricole for the financing of the DHT Scandinavia and the newbuilding DHT Tiger that was delivered in January 2017. In June
2016, the Company made a voluntary prepayment of $5.0 million and in September 2020, the Company prepaid the outstanding loan totaling $12.7 million on DHT Scandinavia.
The $48.7 million financing of DHT Tiger was drawn in 2016 in advance of the delivery of the DHT Tiger which took place in January 2017 and is repayable in quarterly
installments of $0.7 million with a final payment of $29.7 in December 2023. The loan bears interest at Libor plus a margin of 2.1875%.
The credit agreement is guaranteed by DHT and contains a covenant requiring that at all times the charter-free market value of the vessels that secure the credit facility be no less than 135% of borrowings. Also,
DHT covenants that, throughout the term of the credit facility, DHT, on a consolidated basis, shall maintain:
| ● |
Value adjusted* tangible net worth of $200 million
|
| ● |
Value adjusted* tangible net worth shall be at least 25% of value adjusted total assets
|
| ● |
Unencumbered consolidated cash of at least the higher of (i) $20 million and (ii) 6% of our gross interest-bearing debt
|
* Value adjusted defined as an adjustment to reflect the difference between the carrying amount and the market valuations of the Company’s vessels (as determined quarterly by an
approved broker).
Danish Ship Finance Credit Facility
In November 2014 the Company entered into a credit facility totaling $49.4 million with Danish Ship Finance (“DSF”) as lender and DHT Holdings, Inc. as guarantor for the financing of the VLCC newbuilding DHT Jaguar
delivered in Q4 2015. The full amount of the credit facility was drawn in November 2015. Borrowings bear interest at a rate equal to Libor + 2.25% and are repayable in 10 semiannual installments of $1.3 million each from May 2016 to November
2020.
The credit facility contains a covenant requiring that at all times the charter-free market value of the vessel that secure the credit facility be no less than 135% of borrowings. Also, DHT covenants that,
throughout the term of the credit facility, DHT, on a consolidated basis, shall maintain:
| ● |
Value adjusted* tangible net worth of $300 million
|
| ● |
Value adjusted* tangible net worth shall be at least 25% of value adjusted total assets
|
| ● |
Unencumbered consolidated cash of at least the higher of (i) $30 million and (ii) 6% of our gross interest-bearing debt
|
* Value adjusted defined as an adjustment to reflect the difference between the carrying amount and the market valuations of the Company’s vessels (as determined quarterly by
an approved broker).
In April 2020 the Company agreed to a $36.4 million refinancing with Danish Ship Finance. The new loan will be in direct continuation of the existing loan and the new facility will bear interest at a rate equal to Libor + 2.00%. The facility
is repayable in 10 semiannual installments of $1.2 million each from November 2020 and a final payment of $24.3 million in November 2025. The credit facility contains a covenant requiring that at all times the charter-free market value of the
vessel that secure the credit facility be no less than 135% of borrowings. Also, DHT covenants that, throughout the term of the credit facility, DHT, on a consolidated basis, shall maintain:
| ● |
Value adjusted* tangible net worth of $300 million
|
15
|
|
● |
Value adjusted* tangible net worth shall be at least 25% of value adjusted total assets
|
| ● |
Unencumbered consolidated cash of at least the higher of (i) $30 million and (ii) 6% of our gross interest-bearing debt
|
* Value adjusted defined as an adjustment to reflect the difference between the carrying amount and the market valuations of the Company’s vessels (as determined quarterly by
an approved broker).
Nordea Credit Facility
$204 million of the $300 million credit facility was borrowed during the second quarter of 2017 in connection with delivery of the nine VLCCs in water from BW. The final $96 million was borrowed
in connection with the delivery of the two VLCC newbuildings from DSME in the second quarter of 2018. The credit facility is guaranteed by DHT Holdings, Inc. and borrowings bear interest at a rate equal to Libor + 2.40%. In March 2019, the Company
prepaid $35 million under the revolving credit facility tranche and in November 2019, the Company prepaid the outstanding amounts on DHT Lake and DHT Raven, totaling $22.3 million. In August 2020, the Company prepaid $37.0 million under the
revolving credit facility tranche and in January 2021 and February 2021, the Company drew down $15 million and $50 million, respectively, under the revolving credit facility tranche in relation to the delivery of DHT Harrier. The current
outstanding is repayable in quarterly installments of $4.2 million with a final payment of $147.3 million in the second quarter of 2023.
In September 2018 the Company secured commitment to 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 bears the same interest rate equal to Libor + 2.40%. In connection with the prepayment of DHT Lake and DHT Raven in November 2019, the facility was reduced to $45.0 million. Borrowings are repayable in
quarterly installments of $2.25 million with a final payment of $18 million in the second quarter of 2023. Reference is made to note 17 for events after the reporting date.
In May and November 2020, the Company prepaid $25.8 million and $25.8 million under the Nordea Credit Facility. The voluntary prepayments were made for all regular installments for 2021 and 2022,
respectively.
The credit facility contains a covenant requiring that at all times the charter-free market value of the vessels that secure the credit facility be no less than 135% of borrowings. Also, DHT
covenants that, throughout the term of the credit facility, DHT, on a consolidated basis, shall maintain:
| ● |
Value adjusted* tangible net worth of $300 million
|
| ● |
Value adjusted* tangible net worth shall be at least 25% of value adjusted total assets
|
| ● |
Unencumbered consolidated cash of at least the higher of (i) $30 million and (ii) 6% of our gross interest-bearing debt
|
* Value adjusted defined as an adjustment to reflect the difference between the carrying amount and the market valuations of the Company’s vessels (as
determined quarterly by an approved broker).
Derivatives - interest rate swaps
Measurement of fair value
It is only derivatives that are classified within a fair value measurement category and measured at fair value in the statement of financial position. Fair value measurement is based on Level 2 in
the fair value hierarchy as defined in IFRS 13 Fair Value Measurement. Such measurement is based on techniques for which all inputs that have a significant effect on the recorded fair value are observable.
Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties.
As of March 31, 2021, the Company has nine amortizing interest rate swaps totaling $351.4 million with maturity ranging from the second quarter 2023 to the third quarter 2023. The average fixed
interest rate is 2.95%. As of March 31, 2021, the fair value of the derivative financial liability related to the swaps amounted to $20.2 million.
16
| Notional amount |
Current liability |
Non-current liability
|
Fair value
|
||
|
$ in thousands
|
Expires
|
Q1 2021 |
Q1 2021 |
Q1 2021
|
Q1 2021
|
|
Swap pays 2.987%, receive floating
|
Apr. 20, 2023
|
41,400 |
(1,064) |
(1,122)
|
(2,187)
|
|
Swap pays 3.012%, receive floating
|
Apr. 20, 2023
|
41,400 | (1,074) |
(1,133)
|
(2,207)
|
|
Swap pays 3.019%, receive floating
|
Sep. 29, 2023
|
30,101 | (727) |
(1,089)
|
(1,816)
|
|
Swap pays 3.019%, receive floating
|
Sep. 29, 2023
|
29,187 | (703) |
(1,053)
|
(1,756)
|
|
Swap pays 2.8665%, receive floating
|
Sep. 29, 2023
|
45,618 | (1,070) |
(1,604)
|
(2,674)
|
|
Swap pays 2.8785%, receive floating
|
Jun. 30, 2023
|
40,031 | (959) |
(1,198)
|
(2,158)
|
|
Swap pays 2.885%, receive floating
|
Sep. 29, 2023
|
44,975 | (1,074) |
(1,609)
|
(2,683)
|
|
Swap pays 2.897%, receive floating
|
Sep. 30, 2023
|
40,210 | (950) |
(1,426)
|
(2,375)
|
|
Swap pays 3.020%, receive floating
|
Sep. 29, 2023
|
38,525 | (956) |
(1,432)
|
(2,388)
|
|
Total carrying amount
|
351,447 | (8,576) |
(11,667)
|
(20,243)
|
Covenant compliance
As of the date of the most recent compliance certificates submitted to the banks, the Company is in compliance with its financial covenants.
Note 5 – Vessels
The carrying values of the vessels may not represent their fair market value at any point in time since the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the cost of
constructing new vessels. Historically, both charter rates and vessel values have been cyclical. The carrying amounts of vessels held and used by us are reviewed for potential impairment or reversal of prior impairment charges whenever events or
changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount of a particular vessel.
|
Cost of Vessels
$ in thousands
|
|
|
At January 1, 2021
|
2,121,455
|
|
Additions
|
70,018
|
|
Transferred from vessels upgrades
|
9,435
|
|
Retirement *
|
(6,902)
|
|
At March 31, 2021
|
2,194,007
|
|
Depreciation, impairment and amortization
$ in thousands
|
|
|
At January 1, 2021
|
645,020
|
|
Depreciation and amortization
|
31,770
|
|
Retirement *
|
(6,902)
|
|
At March 31, 2021
|
669,888
|
|
Carrying Amount
$ in thousands
|
|
|
At January 1, 2021
|
1,476,436
|
|
At March 31, 2021
|
1,524,119
|
*Relates to completed depreciation of drydocking for DHT Amazon, DHT Lion, DHT Peony and DHT Puma.
|
Cost of advances of vessels and vessel upgrades
$ in thousands
|
|
|
At January 1, 2021
|
17,269
|
|
Additions
|
78,171
|
|
Transferred to vessels
|
(9,435)
|
|
At March 31, 2021
|
86,005
|
|
Carrying Amount
$ in thousands
|
|
|
At January 1, 2021
|
17,269
|
|
At March 31, 2021
|
86,005
|
Cost of advances of vessels and vessel upgrades relates to prepaid scrubbers, drydockings and ballast water treatment systems, in addition to $68 million prepaid at March 31, 2021 for DHT Osprey which was subsequently delivered in April
2021.
17
Note 6 – Stockholders equity and dividend payment
|
|
Common stock
|
Preferred stock
|
|
|
Issued at March 31, 2021
|
171,499,004
|
-
|
|
|
Numbers of shares authorized for issue
|
|||
|
at March 31, 2021
|
250,000,000
|
1,000,000
|
|
|
Par value
|
$ 0.01
|
|
$ 0.01
|
Common stock:
Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders.
Dividend payment
Dividend payment as of March 31, 2021:
|
Payment date
|
Total Payment
|
Per common share
|
|
February 25, 2021
|
$ 8.6 million
|
$ 0.05
|
|
Total payment as of March 31, 2021
|
$ 8.6 million
|
$ 0.05
|
Dividend payment as of December 31, 2020:
|
Payment date
|
Total Payment
|
Per common share
|
|
November 25, 2020
|
$ 34.2 million
|
$ 0.20
|
|
September 2, 2020
|
$ 82.0 million
|
$ 0.48
|
|
May 26, 2020
|
$ 51.5 million
|
$ 0.35
|
|
February 25, 2020
|
$ 47.0 million
|
$ 0.32
|
|
Total payment as of December 31, 2020
|
$ 214.7 million
|
$ 1.35
|
Note 7 – Accounts receivable and accrued revenues
Accounts receivable and accrued revenues totaling $29.8 million as of March 31, 2021 consists of mainly accounts receivable with no material amounts overdue.
Note 8 – Deferred shipping revenues
Deferred shipping revenues relates to charter hire payments paid in advance. As of March 31, 2021, $2.7 million was recognized as deferred shipping revenues in the condensed consolidated statement of
financial position.
Note 9 - Financial risk management, objectives and policies
Note 9 in the 2020 annual report on Form 20-F provides for details of financial risk management objectives and policies.
The Company’s principal financial liability consists of long-term debt with the main purpose being to partly finance the Company’s assets and operations. The Company’s financial assets mainly comprise cash.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks.
Note 10 – Subsequent events
On May 4, 2021, the Board approved a dividend of $0.04 per common share related to the first quarter 2021 to be paid on May 26, 2021 for shareholders of record as of May
19, 2021.
On April 12, 2021, the Company took delivery of DHT Osprey, the second of the two VLCCs acquired in January 2021. The first vessel, DHT Harrier, was delivered on February
18, 2021.
18
In April, the Company received binding commitments from seven banks for a new $316.2 million credit facility. The facility serves three purposes for DHT:
| o |
It contains “DHT-style” mortgage financing ($37.5 million per vessel with $2.5 million in annual amortization reflecting a 20-year repayment profile) for the two newly acquired 2016 built VLCCs,
|
| o |
An extension of final maturity of the current Nordea Credit Facility from April 2023 to January 2027, and,
|
| o |
A new (undrawn) revolving credit line of $60 million collateralized by three currently unencumbered ships (DHT Amazon, DHT Europe and DHT Scandinavia).
|
Additionally, the facility will include an uncommitted “accordion” of $250.0 million. The new facility will have an interest rate of LIBOR + 1.90% and have final maturity in January 2027.
After the quarter end, the Company has entered into three separate agreements to sell its three 2004 built VLCCs, DHT Lake, DHT Raven and DHT Condor, for an aggregate of $88.75 million. The
Company expects to book a profit from the sales of about $15 million in Q2 2021. Net proceeds after repayment of mortgage debt is estimated to be about $78.0 million.
19