SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 6-K
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
For
the month of November 2007
DOUBLE
HULL TANKERS, INC.
(Exact
name of Registrant as specified in its charter)
26
New
Street
St.
Helier, Jersey JE23A
Channel
Islands
(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
þ Form 40-F
o
(Indicate
by check mark whether by furnishing the information contained in this Form,
the
Registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2 (b) under the Securities Exchange Act of 1934.)
Yes
o
No
þ
(If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2 (b))
The
press
release issued by Double Hull Tankers, Inc. on November 19, 2007 related
to
third quarter 2007 results is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
EXHIBIT
LIST
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Exhibit
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Description
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99.1
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Press
Release dated November 19, 2007 of Double Hull Tankers,
Inc.
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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.
| Double Hull Tankers, Inc. | |||
| (Registrant) | |||
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Date:
November 20, 2007
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By:
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/s/ Eirik Ubøe | ||
|
Eirik
Ubøe
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||||
| Chief Financial Officer | ||||
Exhibit
99.1
Double
Hull Tankers, Inc. Reports Third Quarter 2007 Results
ST.
HELIER, JERSEY, CHANNEL ISLANDS, November 19, 2007 – Double Hull Tankers, Inc.
(NYSE:DHT) today announced results for the period from July 1 to September
30,
2007. Total revenues for this period were $20.1 million and net income was
$6.9
million, or $0.23 per share (diluted). The Board of Directors of DHT has
declared a dividend of $0.37 per share, which will be paid on December 12,
2007
to shareholders of record as of the close of business on December 3, 2007.
DHT
plans to host a conference call at 9 am ET on November 19, 2007 to discuss
the
results for the quarter. See below for further details.
Third
Quarter 2007 Results
Total
revenues for the third quarter of $20.1 million ($21.3 million in the third
quarter of 2006) consist of $17.8 million in base charter hire revenue and
$2.3
million in additional hire under the company’s profit sharing arrangements with
Overseas Shipholding Group, Inc. (“OSG”).
Of the
additional hire, $1.0 million relates to DHT’s Very Large Crude Carriers
(“VLCCs”) and $1.3 million relates to DHT’s Aframax tankers. In the quarter
ended September 30, 2007, DHT’s VLCCs achieved average time charter equivalent
(“TCE”) earnings in the commercial pool of $34,500 per day (compared to $64,200
per day in the third quarter of 2006 and $51,900 per day in the second quarter
of 2007) and the Aframax tankers achieved $22,100 per day (compared to $33,000
per day in the third quarter of 2006 and $30,100 per day in the second quarter
of 2007), according to data from the commercial pools.
In
general, through the profit sharing elements of the charter agreements, DHT
earns an additional amount equal to 40% of the excess of the vessels’ actual net
TCE earnings in the commercial pools over the base charter hire rates for
the
quarter, calculated on a fleet wide basis and on a four quarter rolling average.
The actual average TCE earnings that DHT received for its vessels during
the
quarter ended September 30, 2007 were $41,000 per day for the VLCCs (compared
to
$48,000 per day in the third quarter of 2006 and $44,200 per day in the second
quarter of 2007) and $25,600 per day for the Aframax vessels (compared to
$26,200 per day in the third quarter of 2006 and $26,600 per day in the second
quarter of 2007).
Actual
average TCE earnings are calculated by dividing the total revenue actually
earned by the vessels by the sum of the total days each vessel was on hire
during the relevant period, or “revenue days”. In the quarter ended
September 30, 2007, revenue days were 267 for the VLCCs (compared to 244
revenue
days in the third quarter of 2006) and 359 for the Aframaxes (compared to
368
revenue days in the third quarter of 2006).
2
For
the quarter ended September 30, 2007, DHT’s
vessel expenses, including insurance costs, were $4.8 million, depreciation
and
amortization expenses were $4.3 million and general and administrative expenses
were $1.0 million. General and administrative expenses include about $0.3
million in one time expense related to a transaction which did not materialize.
Net finance expenses, including amortization of deferred debt issuance costs,
were $3.2 million for the quarter ended September 30, 2007.
Market
Update
The
third
quarter is traditionally a quarter with soft freight market for tankers,
but
this year the third quarter turned out to be even weaker than
expected. The tanker market was affected by low refinery demand and
drawing on historically high inventory levels. OPEC’s policy of curtailment of
supplies to the market by reducing production was reversed by its commitment
in
September to increase production by 0.5 million bbls/day from
November.
China’s
demand for oil imports remains the key driver for the growth in demand and
import by seaborne transportation.
The
strong dry cargo market continue to attract conversion of older, single hull
VLCCs to Very Large Ore Carriers and conversion of newbuilding contracts
from
tankers to dry cargo ships. Additionally, delays in deliveries of
newbuild vessels are having a positive impact on the supply-demand balance
of
tankers.
The
market fundamentals for oil transportation by sea remain solid, based on
continued growth in the world economy and demand for oil, and the increase
in
distances between oil producers and consumers leading to increased tonne-mile
demand. Additionally, the high oil price is encouraging increased oil production
world wide.
Judging
from the current tanker rate environment, the “Winter market” that traditionally
takes effect in the fourth quarter, with substantial increase in freight
rates
compared to the weaker second and third quarters, is still to show its
effect.
Vessels’
Charter Arrangements and Vessel Operations
Our
current fleet of seven vessels are chartered to OSG from October 2005 for
periods of 5-6 ½ years. We believe that the base hire component of each of our
time charters will provide us with stable cash flows during market downturns,
as
our charters provide for fixed monthly base hire payments regardless of
prevailing market rates so long as the vessel is not off hire. If market
rates
exceed the daily base hire rates set forth in our charters, we have the
opportunity to participate in any such excess under the profit sharing component
of our charter arrangements.
All
our
vessels are subject to scheduled periodic dry docking for the purpose of
special
survey and other interim inspections. Additionally, our vessels can be subject
to unscheduled off hire for ongoing maintenance purposes.
Overseas
Rebecca, one of our Aframaxes underwent a scheduled interim survey by Class
in the period June – July, which resulted in 9 days of offhire in the third
quarter.
3
Overseas
Ania, another of our Aframaxes was expected to undergo a scheduled interim
survey by Class in the third quarter, but this is now rescheduled for the
second
quarter of 2008. This vessel is employed in the U.S. lightering trade
and it is expected that the scheduled interim survey will result in about
20
days off hire.
There
are
no scheduled drydockings after this until the end of 2008 or early 2009 (the
Aframaxes Overseas Sophie and Overseas Cathy).
Recent
Developments
On
September 19, 2007, DHT announced an agreement to acquire a 2000 built 153,000
dwt. Suezmax tanker for $90.3 million scheduled for delivery in January /
February 2008. At delivery, the vessel will be bareboat chartered to
OSG for a term of ten years at a rate of $26,600 per day. With the
agreement to acquire another Suezmax tanker, announced on July 27, with expected
delivery in December 2007, the DHT fleet will consist of nine ships with
an
average remaining charter period of 5 years. All nine ships are
chartered to OSG.
The
acquisition of the two Suezmax vessels is consistent with DHT’s strategy of
having a fleet of modern, high quality vessels providing for stable
earnings. Also, the addition of Suezmax tankers is in line with DHT’s
strategy to diversify its fleet and to charter its vessels to first rate
charterers. The completion of the acquisition is subject to customary closing
conditions.
Both
vessel acquisitions will initially be financed through DHT’s current credit
facility with The Royal Bank of Scotland (RBS) which has been increased to
accommodate the acquisition of these vessels.
On
October 29, 2007, DHT filed a shelf registration statement with the SEC for
a
total of $200 million. We intend to use proceeds from sale of any securities
under the shelf registration statement for general corporate purposes, which
may
include, vessel acquisitions, business acquisitions or other strategic
alliances, reduction of outstanding borrowings, capital expenditures and
working
capital.
FINANCIAL
INFORMATION
SUMMARY
CONSOLIDATED STATEMENTS OF OPERATIONS
($
in
thousands except per share amounts)
|
3Q
2007
July
1 - Sept.
30,
2007
|
3Q
2006
July
1 - Sept.
30,
2006
|
9
months
Jan.
1 - Sept.
30,
2007
|
9
months
Jan.
1 - Sept.
30,
2006
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Shipping
revenues
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$20,149
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$21,299
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$61,125
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$64,860
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Vessel
expenses
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4,751
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4,866
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14,621
|
14,041
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Depreciation
and amortization
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4,263
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4,263
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12,651
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12,651
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General
and administrative
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1,026
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487
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2,574
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1,668
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Total
operating expenses
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10,040
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9,616
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29,846
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28,360
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Income
from vessel operations
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10,108
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11,683
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31,278
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36,500
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Interest
income
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291
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217
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737
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680
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Interest
expense and amortization
of
deferred debt issuance cost
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3,508
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3,499
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10,495
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10,463
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Net
income
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6,892
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8,401
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21,521
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26,717
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Basic
net income per share
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$0.23
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$0.28
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$0.72
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$0.89
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Diluted
net income per share
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$0.23
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$0.28
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$0.72
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$0.89
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Weighted
average number of shares (basic)
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30,026,431
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30,006,250
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30,022,272
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30,006,250
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Weighted
average number of shares (diluted)
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30,040,595
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30,017,448
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30,037,357
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30,014,089
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SUMMARY
CONSOLIDATED BALANCE SHEETS
($
in
thousands)
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Sept.
30, 2007
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Dec.
31, 2006
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Current
Assets
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Cash
and Cash Equivalents
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$6,294
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$17,680
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Voyage
receivables from OSG
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2,326
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4,009
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Unrealized
gain on interest rate swap
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1,712
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Prepaid
Expenses
|
455
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331
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Prepaid
Technical Management Fee to OSG
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1,340
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1,324
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Total
Current Assets
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10,415
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25,056
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Vessels,
net
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309,925
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322,577
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Other
assets incl. deferred debt issuance cost
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1,287
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1,407
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Vessel
acquisition deposits
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18,303
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Total
Assets
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$339,930
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$349,040
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Current
Liabilities
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||
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Accounts
payable and accrued expenses
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$3,589
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$3,456
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Unrealized
loss on interest rate swap
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1,141
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-
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Deferred
Shipping Revenues
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6,180
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6,169
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Total
Current liabilities
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10,910
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9,625
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Long
term debt
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243,000
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236,000
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Total
Stockholders equity
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86,020
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103,415
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Total
Liabilities and Stockholders' Equity
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$339,930
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$349,040
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EARNINGS
CONFERENCE CALL INFORMATION
DHT
plans
to host a conference call at 9 am ET on November 19, 2007 to discuss the
results
for the third quarter. All shareholders and other interested parties are
invited
to call into the conference call, which may be accessed by calling (800)
260-8140 within the United States and +1-617-614-3672 for international calls.
The passcode is “Double Hull”. A live webcast of the conference call will be
available in the Investor Relations section on DHT's website at
http://www.dhtankers.com.
An
audio
replay of the conference call will be available from 11:00 a.m. ET on November
19, 2007 through 1 p.m. ET on November 26, 2007 by calling toll free (888)
286-8010 within the United States or +1-617-801-6888 for international callers.
The passcode for the replay is 27834706. A webcast of the replay will be
available in the Investor Relations section on DHT's website at
http://www.dhtankers.com.
Forward
Looking Statements
This
press release contains assumptions, expectations, projections, intentions
and
beliefs about future events, in particular regarding daily charter rates,
vessel
utilization, the future number of newbuildings, 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
are
intended as “forward-looking statements.” All statements in this
document that are not statements of historical fact are forward-looking
statements.
The
forward-looking statements included in this press release reflect DHT’s current
views with respect to future events and are subject to certain risks,
uncertainties and assumptions. We caution that assumptions,
expectations, projections, intentions and beliefs about future events may
and
often do vary from actual results and the differences can be material. The
reasons for this include the risks, uncertainties and factors described under
the section of our latest annual report on Form 20-F entitled “Risk Factors,” a
copy of which is available on the SEC’s website at www.sec.gov. These
include the risk that DHT may not be able to pay dividends; the highly cyclical
nature of the tanker industry; global demand for oil and oil products; the
number of newbuilding deliveries and the scrapping rate of older vessels;
the
risks associated with acquiring additional vessels; changes in trading patterns
for particular commodities significantly impacting overall tonnage requirements;
risks related to terrorist attacks and international hostilities; expectations
about the availability of insurance; our ability to repay our credit facility
or
obtain additional financing; our ability to find replacement charters for
our
vessels when their current charters expire; compliance costs with environmental
laws and regulations; risks incident to vessel operation, including discharge
of
pollutants; and unanticipated changes in laws and regulations.
Should
one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described in the forward-looking statements included in this press release.
DHT
does not intend, and does not assume any obligation, to update these
forward-looking statements.
CONTACT: Eirik
Ubøe
Phone:
+44 1534 639 759 and +47 412 92 712
E-mail:
info@dhtankers.com and eu@tankersservices.com