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 February 2008.
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 February 7, 2008 related
to fourth quarter 2007 results is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
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Exhibit
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Description
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99.1
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Press
Release dated February 7, 2008 of Double Hull Tankers,
Inc.
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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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(Registrant)
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Date:
February 8, 2008
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By:
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/s/
Eirik Ubøe
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Eirik
Ubøe
Chief
Financial Officer
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Exhibit
99.1
Double
Hull Tankers, Inc. Reports Fourth Quarter 2007 Results
ST.
HELIER, JERSEY, CHANNEL ISLANDS, February 7, 2008– Double Hull Tankers, Inc.
(“DHT”)
(NYSE:DHT)
today announced results for the period from October 1 to December 31, 2007.
Total revenues for this period were $20.3 million and net income was $5.9
million, or $0.20 per share (diluted). The Board of Directors of DHT has
declared a dividend of $0.35 per share, which will be paid on March 11, 2008
to
shareholders of record as of the close of business on February 26, 2008. DHT
plans to host a conference call at 9 am ET on February 7, 2008 to discuss the
results for the quarter (see below for further details).
Fourth
Quarter 2007 Results
Total
revenues for the fourth quarter of $20.3 million (compared to $20.1 million
in
the third quarter of 2007 and $21.9 million in the fourth quarter of 2006)
consist of $18.8 million in base charter hire revenue and $1.5 million in
additional hire under the company’s profit sharing arrangements with Overseas
Shipholding Group Inc. (“OSG”). Of the additional hire, $0.5 million relates to
DHT’s Very Large Crude Carriers (“VLCCs”) and $1.0 million relates to DHT’s
Aframax tankers. In the quarter ended December 31, 2007, DHT’s VLCCs achieved
average time charter equivalent (“TCE”) earnings in the commercial pool of
$34,900 per day (compared to $34,500 per day in the third quarter of 2007 and
$52,900 per day in the fourth quarter of 2006) and the Aframax tankers achieved
$25,800 per day (compared to $22,100 per day in the third quarter of 2007 and
$34,100 per day in the fourth quarter of 2006), 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 December 31, 2007 were $38,500 per day for the VLCCs (compared
to
$41,000 per day in the third quarter of 2007 and $46,100 per day in the fourth
quarter of 2006) and $24,600 per day for the Aframax vessels (compared to
$25,600 per day in the third quarter of 2007 and $26,200 per day in
the fourth quarter of 2006).
The
Suezmax Overseas Newcastle, delivered on December 4, 2007, had actual
earnings during the period from December 4 to December 31 of $27,400 per day
including profit sharing of 33% of the vessel’s earnings above the time charter
equivalent of $35,000 per day.
2
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
December 31, 2007, revenue days were 274 for the VLCCs (compared to 267 revenue
days in the fourth quarter of 2006) and 364 for the Aframaxes (compared to
367
revenue days in the fourth quarter of 2006). In addition, the Suezmax
Overseas Newcastle had 27 earning days in the quarter.
For
the
quarter ended December 31, 2007, DHT’s vessel expenses, including insurance
costs, were $4.8 million, depreciation and amortization expenses were $4.6
million and general and administrative expenses were $1.2 million. Net finance
expenses, including amortization of deferred debt issuance costs, were $3.7
million for the quarter.
Market
Update
The
fourth quarter is traditionally a quarter with strong freight market for
tankers, and this year the market improvement came late in the quarter but
very
strong and exceeded the highs of 2004. This was a result of increased
oil production and the need to replenish inventories at the time of a tight
balance in the spot market. China’s demand for oil imports remains
the key driver for the growth in demand and import by seaborne
transportation.
Newbuilding
and second hand prices of tankers rose some 5 – 10 % during 2007 and for dry
cargo vessels much more. The supply and demand balance of tanker
tonnage is positively affected by the strong dry cargo market experienced.
Conversion of older, single hull VLCCs to Very Large Ore Carriers and conversion
of newbuilding contracts from tankers to dry cargo ships are having a positive
effect on the supply and demand balance of tankers.
The
market fundamentals for oil transportation by sea remain solid, based on
continued and stronger growth than expected, in the world economy and demand
for
oil. Additionally, the increase in distances between oil producers
and consumers results in increased tonne-mile demand. Tankers with
double hull design continue to trade at a premium to single hull vessels and
the
difference appears to be widening since the recent oil spill by a single hull
tanker outside South Korea. Double hull vessels also experience
shorter waiting periods between cargos.
Vessels’
Charter Arrangements and Vessel Operations
Of
our
fleet of nine vessels, seven vessels are time chartered to OSG until end 2010
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early 2012. The two recently delivered Suezmax tankers are bareboat chartered
to
OSG until 2014 and 2018, respectively. We believe that the charter hire will
provide us with stable cash flows during the down turns in a volatile market,
as
our charters provide for fixed monthly hire payments regardless of prevailing
market rates. If market rates exceed the daily base hire rates set forth in
the
charters we have for eight of our vessels the opportunity to participate in
any
excess under the profit sharing component of the charter
arrangements.
The
seven
vessels on time charter are subject to scheduled periodic dry docking for the
purpose of special survey and other interim inspections. In addition to
scheduled off hire, these vessels can be subject to unscheduled off hire for
ongoing maintenance purposes. Vessels on time charter are not paid
hire when off hire. Total days of offhire for running repairs and
mandatory inspections amounted to 6 days during the quarter.
3
The
Aframax tanker Overseas Ania is scheduled for statutory class
inspection in the first or second quarter 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 (special surveys for the
Aframaxes Overseas Sophie and Overseas Cathy).
Recent
Development
The
company’s previously announced acquisitions of the two Suezmax vessels are
completed. The Overseas Newcastle was delivered on December 4, 2007 and
the Overseas London was delivered on January 28, 2008.
On
January 4, 2008, DHT announced a
dividend policy to provide the shareholders with a fixed quarterly dividend
of $
0.25 per common share commencing with the first dividend payment attributable
to
the 2008 fiscal year. The dividend policy is intended to provide the
shareholders with a stable distribution, and position the company to use its
incremental cash flow to fund future growth opportunities consistent with the
company’s long term strategy of increasing shareholders
value.
FINANCIAL
INFORMATION
SUMMARY
CONSOLIDATED STATEMENTS OF OPERATIONS
($
in
thousands except per share amounts)
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4Q
2007
Oct.
1 - Dec. 31, 2007
Unaudited
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4Q
2006
Oct.
1 - Dec. 31, 2006
Unaudited
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12
months
Jan.
1 - Dec.
31,
2007
Unaudited
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12
months
Jan.
1 - Dec.
31,
2006
Audited
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Shipping
revenues
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$ |
20,303
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$ |
21,933
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$ |
81,427
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$ |
86,793
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Vessel
expenses
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4,802
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4,648
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19,423
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18,690
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Depreciation
and amortization
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4,620
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4,264
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17,271
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16,915
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General
and administrative
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1,201
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721
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3,775
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2,389
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Total
operating expenses
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10,623
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9,633
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40,469
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37,994
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Income
from vessel operations
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9,680
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12,300
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40,958
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48,799
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Interest
income
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224
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227
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962
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908
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Interest
expense and amortization of deferred debt issuance cost
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3,961
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3,494
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14,457
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13,957
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Net
income
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5,943
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9,033
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27,463
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35,750
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Basic
net income per share
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$ |
0.20
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$ |
0.30
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$ |
0.91
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$ |
1.19
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Diluted
net income per share
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$ |
0.20
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$ |
0.30
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$ |
0.91
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$ |
1.19
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Weighted
average number of shares (basic)
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30,030,811
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30,009,250
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30,024,407
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30,007,000
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Weighted
average number of shares (diluted)
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30,034,022
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30,023,522
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30,036,523
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30,016,352
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SUMMARY
CONSOLIDATED BALANCE SHEETS
($
in
thousands)
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Dec.
31, 2007
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Dec.
31, 2006
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Unaudited
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Audited
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Current
Assets
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Cash
and Cash Equivalents
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$ |
10,365
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$ |
17,680
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Voyage
receivables from OSG
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1,547
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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
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452
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331
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Prepaid
Technical Management Fee to OSG
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1,357
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1,324
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Total
Current Assets
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13,721
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25,056
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Vessels,
net
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398,005
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322,577
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Other
assets incl. deferred debt issuance cost
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1,337
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1,407
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Vessel
acquisition deposits
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9,145
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Total
Assets
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$ |
422,208
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$ |
349,040
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Current
Liabilities
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Accounts
payable and accrued expenses
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$ |
4,409
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$ |
3,456
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Unrealized
loss on interest rate swap
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10,218
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Deferred
Shipping Revenues
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7,006
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6,169
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Total
Current liabilities
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21,633
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9,625
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Long
term debt
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328,700
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236,000
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Total
Stockholders equity
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71,875
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103,415
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Total
Liabilities and Stockholders' Equity
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$ |
422,208
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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 February 7, 2008 to discuss the results
for the fourth quarter. All shareholders and other interested parties are
invited to call into the conference call, which may be accessed by calling
(866)
825-1692 within the United States and +1-617-213-8059 for international calls.
The passcode is “66620483”. 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 February
7, 2008 through 1 p.m. ET on February 14, 2008 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 11245482. 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.
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CONTACT:
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Eirik
Ubøe
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Phone:
+44 1534 639 759 and +47 412 92 712
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E-mail:
info@dhtankers.com
and eu@tankersservices.com
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