DHT Holdings, Inc. Reports Fourth Quarter 2010 Results and Declares Quarterly Dividend of $0.10 Per Share

ST. HELIER, Channel Islands, Jan 13, 2011 (BUSINESS WIRE) --

DHT Holdings, Inc. (NYSE:DHT) ("DHT" or the "Company") today announced:

Highlights

  • The Company declared a cash dividend of $0.10 per share for the quarter payable on February 11, 2011 for shareholders of record as of February 4, 2011.
  • On December 14, 2010 DHT announced the acquisition of a 1999 built VLCC for $55.0 Million. The vessel will be delivered during the first quarter of 2011 and will be named DHT Phoenix. The company will finance the acquisition with cash at hand and bank debt and the vessel will be employed in the Tankers International Pool.
  • Revenue of $22.9 million is comprised of the base hire only for the nine vessels in operations in the quarter. These nine vessels are on charters until 2012 - 2018.
  • Net income for the fourth quarter was $7.0 million, or $0.14 per share. Adjusted for non-cash interest rate swap related items, net income for the quarter was $4.9 million, or $0.10 per share.
  • Vessel expenses for the quarter were $7.4 million.
  • G&A for the quarter was $1.6 million including non-cash cost related to restricted share agreements for management and board.
  • Net interest expense for the fourth quarter was $1.9 million.
  • Cash on hand at quarter-end was $58.6 million providing DHT with the flexibility to enter into acquisitions. This does not include $5.5 million in deposit paid towards the acquisition of the DHT Phoenix.

DHT will host a conference call at 8:00 a.m. EST Friday January 14, 2011 to present the results for the quarter. See below for further details.

Fourth Quarter Results

The Company today reported revenues for the period from October 1 to December 31, 2010, of $22.9 million, compared to revenues of $23.9 million for the prior-year period. Of the $22.9 million of revenues for the quarter, $18.1 million relates to the seven vessels on time charter and $4.8 million relates to the two vessels on bareboat charter. For the quarter there was no profit sharing under the Company's profit-sharing arrangements.

The Company's seven vessels on time charter contracts were on-hire 98.7 % for the quarter. Following the completion of two interim surveys in the first half of 2010, the next scheduled class surveys are special surveys for one VLCC in the second quarter of 2011 and one VLCC in the third quarter of 2011. In addition, two Aframax vessels are scheduled for interim surveys in the fourth quarter of 2011.

DHT's vessel expenses for the quarter, including insurance costs, were $7.4 million.

Depreciation and amortization expenses, including depreciation of capitalized dry docking costs, were $7.2 million. General and administrative expenses were $1.6 million including non-cash cost related to restricted share agreements for management and board.

Net financial income of $0.2 million included a net non-cash gain on interest rate swaps of $2.1 million.

The Company had net income for the quarter of $7.0 million or $0.14 per diluted share, compared to net income of $3.9 million, or $0.08 per diluted share, for the fourth quarter of 2009. After adjusting for non-cash financial items related to interest rate swaps, net income for the fourth quarter of 2010 was $4.9 million, or $0.10 per share. Free cash flow from operations was $12.0 million, or $0.25 per share1.

At the end of the fourth quarter, the Company's cash balance was $58.6 million not including $5.5 million in deposit paid towards the acquisition of the DHT Phoenix. The Company remains in compliance with its financial covenants.

Svein Moxnes Harfjeld, CEO, stated, "We continue to enjoy the charter coverage of our fleet allowing us to both build cash for investments and again declare a dividend of $0.10 per share. We are pleased with our recent vessel acquisition and believe 2011 will provide additional opportunities for growth."

EARNINGS CONFERENCE CALL INFORMATION

DHT will host a conference call at 8:00 a.m. EST Friday January 14, 2011 to discuss the results for the fourth quarter. All shareholders and other interested parties are invited to join the conference call, which may be accessed by calling 1 888 935 4577 within the United States and +44 207 806 1955 for international callers. The passcode is "DHT". A live webcast of the conference call will be available in the Investor Relations section on DHT's website at http://www.dhtankers.com.

1) Free cash flow from operations after contractual debt service represents the sum of net income, amortization of unrealized loss of interest rate swaps, fair value (gain)/loss on derivative financial instrument and depreciation and amortization. Please refer to the table on page 8 for reconciliation between net income and free cash flow from operations after contractual debt service.

An audio replay of the conference call will be available through January 20, 2011. To access the replay, dial 1 866 932 5017 within the United States or +44 207 111 1244 for international callers and enter 5884514#. 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 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, 2010.

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.

         
         
FINANCIAL INFORMATION
         
CONDENSED CONSOLIDATED INCOME STATEMENT
($ in thousands except per share amounts)
          
    4Q 2010   4Q 2009   Year   Year
    Oct. 1 - Dec.   Oct. 1 - Dec.   Jan. 1 - Dec.   Jan. 1 - Dec.
    31, 2010   31, 2010   31, 2010   31, 2009
    Unaudited   Unaudited   Unaudited   Audited
          
Shipping revenues    $22,879   $23,882   $89,681   $102,576
          
Operating expenses          
Vessel expenses    7,351   7,702   30,221   30,034
Depreciation and amortization    7,152   6,952   28,392   26,762
General and administrative expenses    1,578   1,518   7,869   4,588
Total operating expenses    16,081   16,172   66,482   61,384
          
Income from vessel operations    6,798   7,710   23,199   41,192
          
Interest income    30   28   131   298
Interest expense    (1,904)   (4,011)   (13,478)   (18,130)
Fair value gain/(loss) on derivative instruments    2,144   167   268   (4,062)
Other financial income/(expenses)    -   -   (3,710)   (2,452)
Taxation    (33)   -   (33)   -
Net income / (loss) for the period    7,035   3,894   6,377   16,846
          
Basic net income per share    0.14   0.08   0.13   0.36
Diluted net income per share    0.14   0.08   0.13   0.36
          
Weighted average number of shares (basic)    48,921,961   48,675,897   48,776,270   46,321,404
Weighted average number of shares (diluted)    48,935,305   48,675,897   48,779,606   46,321,404
          
          
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
          
Profit for the period    $7,035   $3,894   6,377   16,846
Other comprehensive income:          
Cash flow hedges    776   2,406   11,868   12,055
          
Total comprehensive income for the period    $7,811   $6,300   18,245   28,901
          

   
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
($ in thousands)
     
   Dec. 31, 2010   Dec. 31, 2009
   Unaudited   Audited
     
ASSETS     
Current assets     
Cash and cash equivalents   58,569    72,664  
Voyage receivables from OSG   -    -  
Prepaid expenses and accrued charter hire   1,199    1,329  
Prepaid technical management fee to OSG   1,978    1,958  
Total current assets   61,746    75,951  
     
Vessels, net of accumulated depreciation   412,744    441,036  
Other assets   21    -  
Vessel acquisition deposits   5,500    -  
Other long-term receivables   844    984  
Total assets   480,855    517,971  
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities     
Accounts payable and accrued expenses   4,449    6,250  
Derivative financial instruments   3,065    11,779  
Deferred shipping revenues   8,088    7,898  
Total current liabilities   15,602    25,927  
     
Long term liabilities     
Long-term debt   265,231    293,041  
Derivative financial instruments   3,224    6,646  
Other long term-liabilities   457    433  
Total long-term liabilities   268,912    300,120  
     
Total liabilities   284,514    326,047  
     
Stockholders' equity     
Common stock   487    487  
Paid-in additional capital   240,537    239,624  
Retained earnings/(deficit)   (42,188 )   (33,824 )
Accumulated other comprehensive income/(loss)   (2,495 )   (14,363 )
Total stockholders' equity   196,341    191,924  
     
Total liabilities and stockholders' equity   480,855    517,971  
     

       
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)
          
    4Q 2010   4Q 2009   Year   Year
    Oct. 1 - Dec.   Oct. 1 - Dec.   Jan. 1 - Dec.   Jan. 1 - Dec.
    31, 2010   31, 2010   31, 2010   31, 2009
    Unaudited   Unaudited   Unaudited   Audited
          
Cash Flows from Operating Activities:         
Net income / (loss)    $7,035    $3,894    $6,377    $16,846  
Items Included in net income not effecting cash flow:        
Depreciation and amortization   7,152    6,999    28,391    26,762  
Amortization related to interest and swap expense   (2,097 )   (166 )   (78 )   4,251  
Deferred compensation related to options and restricted stock         
   162    149    913    749  
Changes in operating assets and liabilities:         
Receivables    -    560    -    8,791  
Prepaid expenses    (498 )   (1,958 )   250    (3,121 )
Accounts payable, accrued expenses and deferred revenue         
   (716 )   1,730    (1,587 )   326  
Net cash provided by operating activities   11,038    11,208    34,266    54,604  
          
Cash Flows from Investing Activities:         
Investments in vessels    (99 )   (3,929 )   (99 )   (5,411 )
Investments in fixtures and fittings   (21 )   -    (21 )   -  
Decrease/(increase) in vessel acquisition deposits   (5,500 )   -    (5,500 )   -  
Net cash used in investing activities   (5,620 )   (3,929 )   (5,620 )   (5,411 )
          
Cash flows from Financing Activities         
Issuance/(buy back) of common stock   -    -    -    38,400  
Cash dividends paid    (4,892 )   -    (14,741 )   (23,949 )
Repayment of long-term debt   -    -    (28,000 )   (50,000 )
Net cash provided by / (used in) financing activities   (4,892 )   -    (42,741 )   (35,549 )
          
Net increase/(decrease) in cash and cash equivalents   526    7,279    (14,095 )   13,644  
Cash and cash equivalents at beginning of period   58,043    65,385    72,664    59,020  
Cash and cash equivalents at end of period   58,569    72,664    58,569    72,664  
          
Interest paid    $3,667    $4,157    $15,348    $18,238  
              

  
CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN SHAREHOLDERS EQUITY
($ in thousands except shares)
Unaudited
              
    Common Stock   Paid-in     Cash   
    Shares   Amount   Additional   Retained   Flow   Total
        Capital   Earnings   Hedges   equity
              
              
Balance at January 1, 2009    39,238,807   $392   $200,570   ($26,721 )   ($26,418 )   $147,823  
Total comprehensive income         16,846    12,055    28,901  
Cash dividends declared and paid         (23,949 )     (23,949 )
Issue of common stock    9,408,481   95   38,305       38,400  
Compensation related to options and restricted stock   28,609     749       749  
Balance at December 31, 2009   48,675,897   $487   $239,624   ($33,824 )   ($14,363 )   $191,924  
              
              
Balance at January 1, 2010    48,675,897   $487   $239,624   ($33,824 )   ($14,363 )   $191,924  
Total comprehensive income         6,377    11,868    18,245  
Cash dividends declared and paid         (14,741 )     (14,741 )
Issue of common stock              -  
Compensation related to options and restricted stock   246,064     913       913  
Balance at December 31, 2010   48,921,961   $487   $240,537   ($42,188 )   ($2,495 )   $196,341  
                
                

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 2010

Basis for preparation

The condensed financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

Significant accounting policies

The condensed financial statements have been prepared in accordance with historical cost convention, except for the revaluation of certain financial instruments. The accounting policies that have been followed in these condensed financial statements are the same as presented in the 2009 audited financial statements.

Reconciliation between IFRS and U.S. GAAP

Effective January 1, 2009, DHT changed the basis on which it prepares its financial statements from U.S. Generally Accepted Accounting Principles ("U.S. GAAP") to IFRS. There are no differences in the statements of operations and equity between IFRS and U.S. GAAP.

Reconciliation of non-IFRS financial measures ($ in thousands except shares and per share amounts)

          
    4Q 2010   4Q 2010   Year   Year
    Oct. 1 - Dec.   Oct. 1 - Dec.   Jan. 1 - Dec.   Jan. 1 - Dec.
    31, 2010   31, 2009   31, 2010   31, 2009
    Unaudited   Unaudited   Unaudited   Audited
          
Net Income    7,035    3,894    6,377    16,846  
Amortization of unrealized loss of interest rate swaps   776    2,406    11,868    12,055  
Fair value (gain)/loss on derivative financial instrument   (2,920 )   (2,573 )   (12,136 )   (7,993 )
Net Income adjusted for non-cash financial items   4,891    3,727    6,109    20,908  
          
Weighted average number of shares (diluted)   48,935,305    48,675,897    48,779,606    46,321,404  
Net Income adjusted for non-cash financial items         
per share    0.10    0.08    0.13    0.45  
          
          
Net income    $7,035    $3,894    6,377    16,846  
Amortization of unrealized loss of interest rate swaps   776    2,406    11,868    12,055  
Fair value (gain)/loss on derivative financial instruments   (2,920 )   (2,573 )   (12,136 )   (7,993 )
Depreciation and amortization    7,152    6,952    28,392    26,762  
Free cash flow from operations after contractual debt service    $12,043    $10,679    $34,501    $47,670  
          
Free cash flow from operations after contractual         
debt service per share    0.25    0.22    0.71    1.03  

SOURCE: DHT Holdings, Inc.

DHT Holdings, Inc.
Eirik Ub√łe, +44 1534 639 759 and +47 412 92 712
eu@dhtankers.com