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 November 2008
Commission
File Number 001-32640
DHT MARITIME,
INC.
(Translation
of registrant’s name into English)
26 New
Street
St.
Helier, Jersey JE23RA
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 if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1):
Yes o No þ
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):
Yes o No þ
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 DHT Maritime, Inc. on November 18, 2008 related to third
quarter 2008 results is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
|
Exhibit
|
Description
|
|
|
99.1
|
Press
Release dated November 18, 2008.
|
|
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.
| DHT Maritime, Inc. | |||
| (Registrant) | |||
|
Date:
November 18, 2008
|
By:
|
/s/ Eirik Ubøe | |
|
Eirik
Ubøe
|
|||
| Chief Financial Officer | |||
Exhibit
99.1
DHT
Maritime, Inc. Reports Third Quarter 2008 Results
ST.
HELIER, JERSEY, CHANNEL ISLANDS, November 18, 2008 – DHT Maritime, Inc.
(NYSE:DHT) today announced results for the period from July 1 to September 30,
2008. Total revenues for this period were $31.0 million and net income was $12.3
million, or $0.31 per share (diluted). The Board of Directors of DHT has
decided, after considering the strong operating results for the first three
quarters of the year and the Company’s current robust liquidity position, to
increase the dividend by $0.05 to $0.30 per share for the third quarter of 2008.
The dividend will be paid on December 11, 2008 to shareholders of record as of
the close of business on December 2, 2008.
DHT plans
to host a conference call at 8:30 am ET on November 18, 2008 to discuss the
results for the quarter. See below for further details.
Third
Quarter 2008 Results
Total
revenues for the third quarter were $31.0 million, an increase of $10.9 million
compared to third quarter of 2007. Total revenues for the quarter
consist of $23.0 million in base charter hire and $8.0 million in additional
hire under the company’s profit sharing arrangements with the charterer of the
vessels, Overseas Shipholding Group, Inc. (“OSG”). Of the total
base charter hire, $18.1 million relates to the seven vessels on time charter
and $4.9 million relates to the two vessels on bareboat charter. Of the
additional hire, $5.2 million relates to the three Very Large Crude Carriers
(“VLCCs”), $2.2 million relates to the four Aframax tankers and $0.6 million
relates to one of the Suezmax tankers, the Overseas Newcastle.
In the
quarter ended September 30, 2008, DHT’s VLCCs achieved average time charter
equivalent (“TCE”) earnings in the commercial pool of $113,000 per day (compared
to $96,000 per day in the second quarter of 2008 and $34,500 per day in the
third quarter of 2007) and the Aframax tankers achieved average TCE earnings of
$43,000 per day (compared to $48,800 per day in the second quarter of 2008 and
$22,100 per day in the third quarter of 2007), according to data from the
commercial pools. The Suezmax tanker Overseas Newcastle achieved average TCE
earnings for the quarter of $55,000 per day compared to $58,000 per day in the
second quarter.
In
general, through the profit sharing elements of the time charter agreements for
the VLCCs and the Aframax tankers, 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 Overseas Newcastle has a profit
sharing arrangement whereby DHT earns an additional amount equal to 33% of the
vessel’s TCE earnings above the TCE of $35,000 for the quarter calculated on a
four quarter rolling average.
2
In the
quarter ended September 30, 2008, revenue days were 276 for the VLCCs (compared
to 267 revenue days in the third quarter of 2007) and 351 for the Aframaxes
(compared to 359 revenue days in the third quarter of 2007). The Suezmax tankers
Overseas Newcastle and Overseas London which are on bareboat charters to OSG,
had a total of 184 revenue days in the quarter.
DHT’s
vessel expenses, including insurance costs for the quarter, were $5.7 million.
Depreciation and amortization expenses were $6.6 million, general and
administrative expenses were $1.4 million and net finance expenses were $5.0
million. DHT’s vessel expenses were negatively impacted by bunker consumption
claims by the charterers for two of the Company’s VLCCs and bunker costs related
to vessels off hire. General and administrative expenses include
about $0.3 million in one time expense related to a transaction which did not
materialize.
The
operating result, after payment of dividend, has through the first nine months
of 2008 enabled the Company to strengthen its balance sheet by an estimated $20
million from retention of operating cash flow and left the Company with
liquidity in excess of $40 million to assist the Company in funding additional
growth opportunities.
Market
Update
The third
quarter of 2008 benefited from the surge in the freight market that started at
the end of 2007. This was primarily a result of strong Far East demand and ample
supply of OPEC oil increasing the demand for long haul transportation of crude
oil.
The
recent cut in OPEC production and the highly uncertain global economic
conditions are expected to have a negative effect on the future demand for oil
and hence the demand for oil transportation. Longer voyages, slower steaming and
port delays assist in the better balancing of demand and supply
factors.
Additionally,
the supply factors are affected by increased commercial obsolescence of single
hull tankers and delay in deliveries of new buildings scheduled for delivery
next year as a consequence of the current turmoil in the financial
market.
Despite
the recent downward pressure on ship values resulting from the uncertain market
conditions, DHT maintains a strong balance sheet well within its financial
covenants. With its robust liquidity position and steady cash flow
from long term charters to a strong counterparty, the Company is well positioned
to withstand the current economic downturn.
With a
spot market above the base charter hire rates, there is the basis for the
vessels to continue to earn additional hire and generate cash flow over and
above the base hire under the profit sharing arrangement also in the fourth
quarter of the year.
3
For the
fourth quarter the pools in which DHT’s VLCCs and Aframax tankers operate report
booking of pool capacity as of October 17, 2008 at TCE rates averaging $70,500
per day for the VLCCs with about half of the fourth quarter revenue days booked
and $52,800 per day for the Aframax tankers with about one third of the third
quarter revenue days booked. Also, OSG has reported that about 50% of the fourth
quarter Suezmax days have been booked at an average TCE of $55,700 per
day.
Vessels’
Charter Arrangements and Vessel Operations
Of the
fleet of nine vessels, seven vessels are time chartered to OSG until the end of
2010 to early 2012. The two Suezmax tankers are bareboat chartered to OSG until
2014 and 2018, respectively.
We
believe that the base hire component of each of our charters will provide for
stable cash flows during any down turns in the market, as the charters provide
for fixed monthly base hire payments regardless of prevailing market rates, so
long as the vessel is not off hire. In addition, with respect to eight of the
nine charters, if market rates exceed the daily base hire rates set forth in
such charters, we will have the opportunity to participate in any such excess
under the profit sharing component of the applicable charter
arrangements.
DHT’s two
Suezmax tankers which are bareboat chartered to OSG, have their charter hire
payable 365 days per year, and no operating expenses for the account of DHT, the
vessels provide for stable earnings over the period of the charters. One of the
two Suezmax tankers, the Overseas Newcastle, has a profit sharing
arrangement.
Unlike
the vessels on bare boat charter, vessels on time charter can go off hire. The
seven vessels on time charter are subject to scheduled periodic dry docking for
the purpose of special survey and other interim inspections that result in off
hire. In addition to scheduled off hire, these vessels can be subject to
unscheduled off hire for ongoing maintenance purposes. Total days of
off hire for running repairs and mandatory inspections amounted to 17 days
during the third quarter.
Overseas Ania completed
certain repairs connected to the statutory class inspection in the third quarter
of 2008 and an additional inspection following touching of bottom. In
total the vessel incurred 5 days of off hire during the
quarter. Overseas
Sophie successfully completed the vessel’s scheduled first Class Special
Survey in the beginning of October resulting in 12 days off hire in the third
quarter (an additional 12 days of off hire were incurred in early
October).
Overseas Cathy is currently
undergoing the vessel’s scheduled first Class Special Survey with expected
completion in mid-November.
Five
vessels are scheduled for Class Special or Interim Surveys in
2009. The three VLCCs are scheduled to undergo interim surveys in the
second and third quarters of 2009, which are estimated to result in 5 days off
hire per vessel. Two of the Aframax tankers (Overseas Ania and Overseas Rebecca)
are scheduled to undergo
Class Special Surveys in the second quarter of 2009, which are estimated to
result in 20 days off hire per vessel. Additional off hire may apply for
deviation purposes.
4
Recent
Developments
In
October the Company prepaid $75 million due by year end 2008 under the credit
facility with Royal Bank of Scotland (“RBS”). The repayment of the remaining
outstanding balance of $344 million commences in the first quarter of 2011 by
way of 26 quarterly instalments of about $9.1 million followed by a final
payment of $108 million in July 2017.
Under the
credit facility with RBS, the Company is required at all times to maintain a
vessel collateral coverage in excess of 120% of the outstanding
loan. DHT is currently well within such collateral maintenance
coverage.
Tankers
Management Limited exercised its right to terminate the current fixed price
technical management contracts, affecting seven of the Company’s vessels. The
technical management contracts, which have been in place since the time of the
Company’s IPO in 2005, will terminate with effect from January 16,
2009.
DHT has
appointed V-Ships, Norway as new technical manager for the seven
vessels. Under the current market terms, the operating expenses for
the seven vessels will be substantially higher than the previous fixed price
contracts. The V-Ships organization is the world’s largest ship
management organization with over 500 ships under management through its global
network of offices. V-Ships is highly regarded, carries an excellent reputation
and brings experience through its global network that will enable DHT to
maintain a high quality of operation of the Company’s vessels.
FINANCIAL
INFORMATION
SUMMARY
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in
thousands except per share amounts)
|
3Q
2008
July
1 - Sept. 30, 2008
|
3Q
2007
July
1 - Sept. 30, 2007
|
9
months
Jan.
1 - Sept.
30,
2008
|
9
months
Jan.
1 - Sept.
30,
2007
|
|||||||||
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Shipping
revenues
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$
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31,007
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$
|
20,149
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$
|
83,732
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$
|
61,125
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||||
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Vessel
expenses
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5,712
|
4,751
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15,179
|
14,621
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||||||||
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Depreciation
and amortization
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6,609
|
4,263
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19,339
|
12,651
|
||||||||
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General
and administrative
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1,384
|
1,026
|
3,378
|
2,574
|
||||||||
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Total
operating expenses
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13,705
|
10,040
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37,896
|
29,846
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||||||||
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Income
from vessel operations
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17,302
|
10,109
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45,836
|
31,279
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||||||||
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Interest
income
|
691
|
291
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1,273
|
737
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||||||||
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Interest
expense and amortization of deferred debt issuance cost
|
5,678
|
3,508
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16,829
|
10,495
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||||||||
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Net
income
|
12,315
|
6,892
|
30,280
|
21,521
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||||||||
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Basic
net income per share
|
$
|
0.31
|
$
|
0.23
|
$
|
0.87
|
$
|
0.72
|
||||
|
Diluted
net income per share
|
$
|
0.31
|
$
|
0.23
|
$
|
0.87
|
$
|
0.72
|
||||
|
Weighted
average number of shares (basic)
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39,238,807
|
30,026,431
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34,982,633
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30,022,272
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||||||||
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Weighted
average number of shares (diluted)
|
39,238,807
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30,040,595
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34,982,633
|
30,037,357
|
||||||||
SUMMARY
CONSOLIDATED BALANCE SHEETS
($ in
thousands)
|
Sept.
30, 2008
|
Dec.
31, 2007
|
|||||
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Current
Assets
|
||||||
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Cash
and cash equivalents
|
$
|
127,614
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$
|
10,365
|
||
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Voyage
receivables from OSG
|
7,991
|
1,547
|
||||
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Unrealized
gain on interest rate swap
|
||||||
|
Prepaid
expenses
|
499
|
452
|
||||
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Prepaid
technical management fee to OSG
|
1,373
|
1,357
|
||||
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Total
current assets
|
137,477
|
13,721
|
||||
|
Vessels,
net
|
468,996
|
398,005
|
||||
|
Other
assets incl. deferred debt issuance cost
|
1,195
|
1,337
|
||||
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Vessel
acquisition deposits
|
9,145
|
|||||
|
Total
Assets
|
$
|
607,668
|
$
|
422,208
|
||
|
Current
Liabilities
|
||||||
|
Accounts
payable and accrued expenses
|
$
|
6,806
|
$
|
4,409
|
||
|
Unrealized
loss on interest rate swap
|
12,409
|
10,218
|
||||
|
Deferred
shipping revenues
|
7,843
|
7,006
|
||||
|
Current
portion of long term debt
|
75,000
|
75,000
|
||||
|
Total
Current liabilities
|
102,058
|
96,633
|
||||
|
Long
term debt
|
344,000
|
253,700
|
||||
|
Total
Stockholders equity
|
161,610
|
71,875
|
||||
|
Total
Liabilities and Stockholders' Equity
|
$
|
607,668
|
$
|
422,208
|
||
EARNINGS
CONFERENCE CALL INFORMATION
DHT plans
to host a conference call at 8:30 am ET on November 18, 2008 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 (866)
966-5335 within the United States and +1-646-843-4608 for international calls.
The passcode is “DHT Maritime”. A live webcast of the conference call will be
available in the Investor Relations section on DHT's website at http://www.dhtmaritime.com.
An audio
replay of the conference call will be available from 4:00 p.m. ET on November
18, 2008 through November 24, 2008 by calling toll free (866) 583-1035 within
the United States or +44 208 196 1998 for international callers. The
passcode for the replay is 4633764#. A webcast of the replay will be available
in the Investor Relations section on DHT's website at http://www.dhtmaritime.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 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 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@dhtmaritime.com
and eu@tankersservices.com