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The press release issued by DHT Holdings, Inc. (the “Company”) on August 9, 2021 related to its results for the second quarter of 2021 is attached hereto as Exhibit 99.1 and is incorporated herein 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initially filed with the Securities and Exchange Commission on June 25, 2020, as amended, to the extent not superseded by information subsequently filed or furnished (to the extent the Company expressly states that it incorporates such furnished information by reference) by the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.

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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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* 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

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 Tuesday August 10, 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 “9862427”.

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

https://edge.media-server.com/mmc/p/si5fhfd2 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 August 17, 2021 at 19:00 CET. 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 “9862427” as the confirmation 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 Norway. You shall recognize us by our business approach with an experienced organization with focus on first rate operations and customer service, quality ships, 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

E-mail: lch@dhtankers.com

DHT HOLDINGS, INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021

($ in thousands)

	Note		June 30, 2021 (Unaudited)		December 31, 2020 (Audited)
ASSETS
Current assets
Cash and cash equivalents		$	52,241		68,641
Accounts receivable and accrued revenues	7		17,031		30,060
Capitalized voyage expenses			431		1,039
Prepaid expenses			6,775		6,685
Bunkers, lube oils and consumables			20,577		11,854
Asset held for sale	5		28,035		-
Total current assets		$	125,090		118,279
Non-current assets
Vessels and time charter contracts	5	$	1,510,086		1,476,436
Advances for vessels and vessel upgrades	5		7,927		17,269
Other property, plant and equipment			4,324		4,772
Investment in associate company			5,858		5,233
Total non-current assets		$	1,528,195		1,503,710
TOTAL ASSETS		$	1,653,285		1,621,989
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses		$	14,102		18,503
Derivative financial liabilities	4		8,526		9,073
Current portion long-term debt	4		9,783		3,396
Other current liabilities			713		721
Deferred shipping revenues	8		4,474		16,236
Total current liabilities		$	37,598		47,929
Non-current liabilities
Long-term debt	4	$	516,399		446,562
Derivative financial liabilities	4		9,470		14,601
Other non-current liabilities			3,608		3,957
Total non-current liabilities		$	529,477		465,120
TOTAL LIABILITIES		$	567,076		513,049
Equity
Common stock at par value	6	$	1,679		1,708
Additional paid-in capital			1,273,691		1,291,505
Accumulated deficit			(191,695)		(188,709)
Translation differences			106		169
Other reserves			2,403		4,248
Total equity attributable to the Company			1,086,184		1,108,921
Non-controlling interest			25		19
Total equity		$	1,086,209		1,108,940
TOTAL LIABILITIES AND EQUITY		$	1,653,285		1,621,989

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED)

($ in thousands)

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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

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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 August 6, 2021 and authorized for issue on August 9, 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.

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:

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:

* The portion of time charter revenue related to technical management services, equaling $10.0 million in the second quarter of 2021, $6.8 million in the second quarter of 2020, $22.0 million in the first half of 2021 and $10.3 million in the first half 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 June 30, 2021, the Company had 27 vessels in operation; 12 vessels were on time charters and 15 vessels operating in the spot market.

For the period from April 1, 2020 to June 30, 2020 five customers represented $27.0 million, $25.4 million, $20.7 million, $20.5 million and $19.2 million, respectively, of the Company’s revenues. The five customers in aggregate represented $112.8 million, equal to 46 percent of the total revenue of $245.9 million for the period from April 1, 2020 to June 30, 2020.

For the period from January 1, 2020 to June 30, 2020 five customers represented $53.9 million, $46.3 million, $36.5 million, $27.0 million and $23.7 million, respectively, of the Company’s revenues. The five customers in aggregate represented $187.4 million, equal to 41 percent of the total revenue of $457.8 million for the period from January 1, 2020 to June 30, 2020.

Note 4 – Interest bearing debt

As of June 30, 2021, DHT had interest bearing debt totaling $526.2 million.

Scheduled debt repayments (USD thousands) and margin above Libor

* $100.0 mill. undrawn as of June 30, 2021.

** $82.4 mill. undrawn as of June 30, 2021.

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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. In June 2021, DVB’s part of the facility was transferred to SEB. 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 and $60 million was repaid in June 2021. The current outstanding is repayable in quarterly installments of $7.7 million through Q2 2024 with a final payment of $183.9 with the last installment.

In June 2020 and June 2021, the Company prepaid $33.4 million and $33.4 million, under the ABN Amro Credit Facility. The voluntary prepayment was made for all regular installments for 2021 and 2022, respectively. In addition, in June 2021, $6.1 million was repaid in connection with the sale of DHT Condor.

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 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 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 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 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 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 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).

$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 was guaranteed by DHT Holdings, Inc. and the Company paid 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.

In September 2018, the Company secured commitment to a $50 million scrubber financing structured through an increase of the $300 million secured credit facility entered into in the second quarter of 2017. In connection with the prepayment of DHT Lake and DHT Raven in November 2019, the facility was reduced to $45.0 million.

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.

In June 2021, the Company repaid the total outstanding of $175.9 million related to the 2017 Nordea Credit Facility in connection with the drawdown of the 2021 Nordea Credit Facility.

In May 2021, the Company entered into a $316.2 million credit facility with Nordea, ING, ABN Amro, Danish Ship Finance, DNB, Credit Agricole and SEB as lenders for the financing of twelve VLCCs. In June 2021, the Company drew down $119.8 million related to the term loan tranche and $114.0 million related to the revolving credit facility tranche. The credit facility is guaranteed by DHT Holdings, Inc. and borrowings bear interest at a rate equal to Libor + 1.90%. The credit facility is repayable in quarterly installments of $1.25 million from the third quarter of 2021 through the fourth quarter of 2022, and with quarterly installments of $6.65 million from the first quarter of 2023 with a final payment of $5.9 million in the first quarter of 2027. Additionally, the facility includes an uncommitted “accordion” of $250 million.

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 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).

Measurement of fair value

Only derivatives are classified 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 June 30, 2021, the Company has nine amortizing interest rate swaps totaling $345.8 million with maturity ranging from the second quarter 2023 to the third quarter 2023. The average fixed interest rate is 2.95%. As of June 30, 2021, the fair value of the derivative financial liability related to the swaps amounted to $18.0 million.

$ in thousands	Expires	Notional amount Q2 2021	Current liability Q2 2021	Non-current liability Q2 2021	Fair value Q2 2021
Swap pays 2.987%, receive floating	Apr. 20, 2023	40,800	1,059	853	1,913
Swap pays 3.012%, receive floating	Apr. 20, 2023	40,800	1,069	861	1,931
Swap pays 3.019%, receive floating	Sep. 29, 2023	29,459	719	898	1,618
Swap pays 3.019%, receive floating	Sep. 29, 2023	28,545	695	868	1,563
Swap pays 2.8665%, receive floating	Sep. 29, 2023	44,975	1,067	1,334	2,401
Swap pays 2.8785%, receive floating	Jun. 30, 2023	39,389	962	962	1,925
Swap pays 2.885%, receive floating	Sep. 29, 2023	44,333	1,063	1,328	2,390
Swap pays 2.897%, receive floating	Sep. 30, 2023	39,568	944	1,182	2,127
Swap pays 3.020%, receive floating	Sep. 29, 2023	37,883	947	1,183	2,130
Total carrying amount		345,753	8,526	9,470	17,996

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	68,038
Transferred from vessels upgrades	101,225
Transferred to asset held for sale	(54,875)
Retirement*	(94,464)
At June 30, 2021	2,141,379

Depreciation, impairment and amortization $ in thousands
At January 1, 2021	645,020
Depreciation and amortization	63,703
Transferred to asset held for sale	(26,840)
Retirement*	(50,590)
At June 30, 2021	631,293

Carrying Amount $ in thousands
At January 1, 2021	1,476,436
At June 30, 2021	1,510,086