DHT Holdings, Inc. First Quarter 2024 Results

HAMILTON, BERMUDA, May 14, 2024 – DHT Holdings, Inc. (NYSE: DHT) (“DHT” or the “Company”) today announced:

FINANCIAL HIGHLIGHTS:

QUARTERLY HIGHLIGHTS:

●	In the first quarter of 2024, the Company achieved average combined time charter equivalent earnings of $50,900 per day, comprised of $54,000 per day for the Company’s VLCCs operating in the spot market and $39,500 per day for the Company’s VLCCs on time-charter.

●	Adjusted EBITDA for the first quarter of 2024 was $83.7 million. Net profit for the quarter was $47.1 million, which equates to $0.29 per basic share.

●

In February 2024, the Company entered into agreements to build four large VLCCs with expected delivery between February and November 2026. Two will be constructed at each Hyundai Samho Heavy Industries Co., Ltd. and Hanwha Ocean Co., Ltd. (formerly known as Daewoo Shipbuilding and Marine Engineering), in South Korea. The vessels have been ordered to high specifications with new Super Eco-designs and premium earning power through improved fuel economics, reduced emissions and large carrying capacity of about 320,000 metric tons. The ships will be fitted with Exhaust Gas Cleaning Systems, be Tier III compliant, hold class ready notations for multiple fuels, and further improve the DHT fleet efficiencies.

●

For the first quarter of 2024, the Company declared a cash dividend of $0.29 per share of outstanding common stock, payable on May 31, 2024, to shareholders of record as of May 24, 2024. This marks the 57th consecutive quarterly cash dividend and is in line with the Company’s capital allocation policy to pay out 100% of net income. The shares will trade ex-dividend from May 23, 2024.

OPERATIONAL HIGHLIGHTS:

The freight market continues to show steady and reassuring conduct. The slumps of the market swings are grinding higher with recent lows leveling out above $40,000 per day for an Eco-design fitted with EGCS, signifying the gradually tightening and favorable balance between supply and demand for our services. We understand that VLCCs now represent more than 50% of the seaborne crude oil market, possibly signaling end-users attention to seek the most competitive and efficient mode of transportation.

The IMF has raised expectations of global economic growth, supporting constructive oil demand forecasts by leading agencies.  Further, Chinese GDP growth at the start of the year was somewhat higher than expected. We wonder if the extensive planned Chinese refinery maintenance taking place this quarter might be in preparation for increasing runs from the second half, mirroring oil demand forecasts? Continued OPEC cuts suggest acceptance that non-OPEC supply from the Atlantic is not going away and should be afforded market share to balance the market and support oil prices, resulting in expanding transportation distances. Add to the mix a rapidly aging fleet and geopolitical unrest causing trade disruptions, and we believe it’s credible to expect rewarding times ahead.  

The interest in contracting VLCC newbuildings that picked up over the last few months has receded as other ship categories seem to have attracted attention from shipowners. As previously stated, we expect that the global VLCC fleet could shrink in capacity over the coming years. Based on our market observations of the global VLCC fleet, this expectation assumes that ships will reduce their productivity by about 50% if they continue to trade once they turn 20 years of age, and if so, that they will retire once they turn 25 years of age.  

We always seek to reward our shareholders, operate with high governance standards, and execute what we believe to be an appropriate strategy tailored to our market. The whole DHT team continues to focus on premium revenue generation, maintaining a competitive cost structure, a solid balance sheet and a clear capital allocation policy.

As of March 31, 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/

SUBSEQUENT EVENT HIGHLIGHT:

●	In May, we paid the first instalment for two of the contracted newbuildings, totalling $25.8 million.

OUTLOOK:

^* The month of April includes profit-sharing. The months of May and June assumes only the base rate.

●	Thus far in the second quarter of 2024, 72% of the available VLCC spot days have been booked at an average rate of $51,000 per day on a discharge-to-discharge basis. 78% of the available VLCC days, combined spot and time-charter days, have been booked at an average rate of $47,000 per day.

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.

The Company reported shipping revenues for the first quarter of 2024 of $145.9 million compared to shipping revenues of $131.5 million in the first quarter of 2023. The increase from the 2023 period to the 2024 period includes $12.2 million attributable to an increase in revenue days, due to an additional vessel in the fleet and less off hire days, and $2.2 million attributable to higher time charter rates.

Other revenues for the first quarter of 2024 were $1.2 million compared to $1.1 million in the first quarter of 2023 and mainly relate to technical management services provided.

Voyage expenses for the first quarter of 2024 were $39.5 million, compared to voyage expenses of $37.6 million in the first quarter of 2023. The change was related to an increase in bunker expenses of $3.1 million, partially offset by a decrease in port expenses of $0.7 million and a decrease in other voyage-related costs of $0.6 million. The increased bunker expense in the first quarter of 2024 is mainly due to less off hire days and one additional vessel in the fleet compared to the first quarter of 2023.  Voyage expenses will in general vary depending on the actual trading patterns during a quarter.

Vessel operating expenses for the first quarter of 2024 were $19.2 million compared to $18.4 million in the first quarter of 2023. The increase was mainly related to an increase of $1.1 million related to insurance, partially offset by $0.4 million related to other operating expenses, despite an additional vessel in the fleet.

Depreciation and amortization, including depreciation of capitalized survey expenses, was $28.3 million for the first quarter of 2024, compared to $25.7 million in the first quarter of 2023. The increase was mainly due to increased depreciation of vessels and drydocking of $1.7 million due to an additional vessel in the fleet and an increase in depreciation of exhaust gas cleaning systems of $0.9 million.

General and administrative (“G&A”) expense for the first quarter of 2024 was $4.7 million, consisting of $3.8 million cash and $0.9 million non-cash charge, compared to $4.6 million in the first quarter of 2023, consisting of $3.7 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 2024 were $8.1 million compared to $8.0 million in the first quarter of 2023. The increase was mainly due to increased interest expense of $0.8 million due to increased interest rates, partially offset by a $0.7 million increase in interest income.

As a result of the foregoing, the Company had a net profit in the first quarter of 2024 of $47.1 million, or income of $0.29 per basic share and $0.29 per diluted share, compared to a net profit in the first quarter of 2023 of $38.0 million, or income of $0.23 per basic share and $0.23 per diluted share. The increase from the first quarter of 2023 to the first quarter of 2024 was mainly due to an increase in revenue days due to an additional vessel in the fleet and less off hire days.

Net cash provided by operating activities for the first quarter of 2024 was $69.9 million compared to $66.5 million for the first quarter of 2023. The increase was due to a profit of $47.1 million in the first quarter of 2024 compared to a profit of $38.0 million in the first quarter of 2023, a $2.8 million increase in non-cash items included in net income, partially offset by a negative change in operating assets and liabilities of $8.4 million.

Net cash used in investing activities was $3.9 million in the first quarter of 2024 and was mainly related to investment in vessels. Net cash used in investing activities was $11.6 million in the first quarter of 2023, consisting of $14.8 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 quarter of 2024 was $67.5 million comprised of $74.0 million related to prepayment of long-term debt, $35.5 million related to cash dividend paid and $7.6 million related to scheduled repayment of long-term debt, partially offset by $50.0 million related to issuance of long-term debt. Net cash used in financing activities for the first quarter of 2023 was $63.3 million comprised of $216.8 million related to repayment of long-term debt in connection with refinancing, $61.9 million related to cash dividend paid, and $0.6 million related to scheduled repayment of long-term debt, partially offset by $216.4 million related to issuance of long-term debt.

As of March 31, 2024, the cash balance was $73.1 million, compared to $74.7 million as of December 31, 2023.

The Company monitors its covenant compliance on an ongoing basis. As of March 31, 2024, the Company was in compliance with its financial covenants.

As of March 31, 2024, the Company had 161,329,352 shares of common stock outstanding compared to 160,999,542 shares as of December 31, 2023.

The Company declared a cash dividend of $0.29 per common share for the first quarter of 2024 payable on May 31, 2024, for shareholders of record as of May 24, 2024.

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.

USD in thousands except time charter equivalent per day	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023	2023	2022
Reconciliation of adjusted net revenue
Shipping revenues	145,876	142,292	130,322	151,993	131,468	556,075	450,381
Voyage expenses	(39,537)	(47,771)	(41,235)	(39,092)	(37,569)	(165,667)	(185,502)
Adjusted net revenues	106,339	94,521	89,087	112,902	93,899	390,408	264,880
Reconciliation of adjusted EBITDA
Profit/(loss) after tax	47,072	35,308	30,967	57,081	38,041	161,397	61,979
Income tax expense	206	226	137	94	191	649	587
Other financial (income)/expenses	454	599	413	606	366	1,984	2,826
Fair value (gain)/loss on derivative financial liabilities	-	-	-	70	433	504	(14,983)
Interest expense	8,775	9,194	8,789	7,492	7,586	33,061	26,197
Interest income	(1,091)	(908)	(1,213)	(1,966)	(398)	(4,485)	(1,076)
Share of profit from associated companies	-	-	-	-	-	-	(1,327)
(Gain)/loss, sale of vessel	-	-	-	-	-	-	(19,513)
Depreciation and amortization	28,250	28,475	28,326	26,376	25,726	108,902	123,255
Adjusted EBITDA	83,666	72,894	67,419	89,753	71,946	302,012	177,946
Reconciliation of adjusted spot time charter equivalent per day*
Spot time charter equivalent per day	54,000	43,600	44,700	64,800	54,600	51,200	29,000
IFRS 15 impact on spot time charter equivalent per day**	400	2,700	(2,400)	(3,000)	3,900	300	1,200
Adjusted spot time charter equivalent per day	54,400	46,300	42,300	61,800	58,500	51,500	30,200

* 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. ET/14:00 CET on Wednesday, May 15, 2024, to discuss the results for the quarter.

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/ug3daske and can also be accessed in the Investor Relations section of DHT's website at http://www.dhtankers.com.

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, Norway, Singapore, and India. You may recognize us by our renowned business approach as an experienced organization with focus on first rate operations and customer service; our quality ships; our prudent capital structure that promotes staying power through the business cycles; our combination of market exposure and fixed income contracts for our fleet; our counter cyclical philosophy with respect to investments, employment of our fleet, and capital allocation; and our transparent corporate structure maintaining a high level of integrity and good governance. For further information please visit http://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. 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.

CONTACT:

Laila C. Halvorsen, CFO

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

	Common stock
Issued at March 31, 2024	161,329,352
Numbers of shares authorized for issue
at March 31, 2024	250,000,000
Par value	$ 0.01

Payment date	Total Payment	Per common share
$ in thousands, except per share amounts
February 28, 2024	$                                              35,492	$                             0.22
Total payments made year-to-date as of March 31, 2024	$                                              35,492	$                             0.22

Payment date	Total Payment	Per common share
$ in thousands, except per share amounts
November 28, 2023	$                                             30,590	$                             0.19
August 30, 2023	$                                             56,661	$                             0.35
May 25, 2023	$                                             37,487	$                             0.23
February 24, 2023	$                                             61,935	$                             0.38
Total payments made during 2023	$                                           186,672	$                             1.15