DHT Holdings, Inc. reports first quarter 2013 results

 
 

HAMILTON, BERMUDA, April 29, 2013 - DHT Holdings, Inc. (NYSE:DHT) ("DHT" or the "Company") today announced:

Financial and operational highlights:
USD mill. (except per share)

Q1 2013 Q4 2012 Q3 2012 Q2 2012 2012 2011
Net Revenue 12.4 16.9 18.0 23.7 86.4 100.1
EBITDA* 4.2 9.8 7.3 11.0 43.1 52.7
Adjusted Net Income** (3.1) 0.6 (4.9) 3.5 6.0 14.8
Adjusted EPS** (0.20) 0.04 (0.32) 0.30 0.39 2.83
Interest bearing debt 203.7 212.7 216.7 219.8 212.7 280.6
Cash 75.5 71.3 72.2 70.9 71.3 42.6
Dividend*** 0.02 0.02 0.02 0.24 0.52 3.12
Fleet (dwt) 2,086,315 2,086,315 2,086,315 2,384,602 2,086,315 2,574,304
Spot days**** 61.6% 46.3% 41% 27% 31% 13%
Unscheduled off hire**** 1.32% 0.06% 0.32% 0.05% 0.19% 0.27%
Scheduled off hire**** 0 0 0 2.63% 0.88% 1.90%

*adjusted for impairment charges of $56 million in 2011, $92.5 million in Q3 2012 and $8.0 million in Q4 2012.
** adjusted for loss on sale of vessels in Q1 2012, Q2 2012 and Q1 2013, non-cash impairment charge in 2011, Q3 2012 and Q4 2012 and non-cash swap related items. EPS is calculated assuming all preferred shares issued on May 3, 2012 have been exchanged for common stock and applying the 12:1 reverse stock split which was effective as of close of business on July 16, 2012 retrospectively.
*** per common share. Historical dividend per share adjusted for 12:1 reverse split.
**** as % of total operating days in period.

Highlights of the quarter:

  • EBITDA for the quarter of $4.2 million and net loss for the quarter of $3.1 million ($0.20 per share) after adjusting for loss on sale of vessel of $0.6 million.  As of March 31, 2013 the cash balance was $75.5 equal to $4.90 per share. 

  • The Company will pay a dividend of $0.02 per common share and $0.25 per preferred share for the quarter payable on May 23, 2013 for shareholders of record as of May 14, 2013. When determining the dividend our Board has taken into account general business conditions and the continued weak tanker market. 

  • In April the Company amended its credit agreement with the Royal Bank of Scotland ("RBS") whereby the minimum value covenant has been removed in its entirety. Furthermore, the instalments scheduled to commence in 2016 have been changed from a fixed $9.1 million per quarter to a variable amount equal to free cash flow in the prior quarter - capped at $7.5 million per quarter. The next scheduled instalment would at the earliest take place in Q2 2016. In April the Company has made a prepayment of $25 million and has agreed to increase the margin to 1.75%.  The $25 million has been recorded as current portion of long term debt as of March 31, 2013. DHT Maritime's financial obligations under the credit agreement will be guaranteed by DHT Holdings. 

  • During the quarter, the Company filed a claim amounting to $51.8 million against the OSG estate in the U.S. Bankruptcy Court. On February 28, 2013 we sold the claim to Citigroup for a purchase price equal to 33.25% of the amount of the claim ultimately allowed by the Bankruptcy Court.  The Company received an initial payment of approximately $6.9 million and will receive a final payment plus interest from Citigroup when the claim is allowed by the Bankruptcy Court. Pending the claim being allowed by the U.S. Bankruptcy Court, the Company has not yet reflected the sale of the claim in its income statement. 

  • The VLCC DHT Regal has been sold for $23 million and the vessel was delivered to the buyers on April 29, 2013.  A loss of $0.6 million in connection with the sale has been recorded in the first quarter 2013. The net proceeds from the sale will be used to reduce the outstanding debt under the RBS credit facility and $22.3 million has been recorded as current portion of long term debt as of March 31, 2013. 

DHT management commented: "We made several significant achievements during the quarter.  Despite challenging markets, the company generated $7.4 from operations.  Additionally, the Company monetized its claim against the OSG estate and thereby further increased its cash position.  But even more significant, we have created a clear runway for the company through the renegotiated RBS loan facility. With no minimum value covenant and no installments through 2015 we will enjoy one of the most competitive cash break even levels in the industry.  This, combined with our cash balance, positions us well for the challenges and opportunities ahead".

The full report can be found on the link below.

EARNINGS CONFERENCE CALL INFORMATION

DHT will host a conference call at 8:00 a.m. EST on Tuesday April 30, 2013, to discuss the results for the quarter.  All shareholders and other interested parties are invited to join the conference call, which may be accessed by calling 1 646 254 3366 within the United States, 23500486 within Norway and +44 20 7784 1036 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.

An audio replay of the conference call will be available through May 6, 2013.  To access the replay, dial 1 347 366 9565 within the United States, 21000498 within Norway or +44 20 3427 0598 for international callers and enter 9745863# as the pass code.

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, Aframax and Suezmax segments. We operate out of Oslo, Norway, through our wholly owned management company. You shall recognize us by our business approach with an experienced organization with focus on first rate operations and customer service, quality ships built at quality shipyards, prudent capital structure with robust cash break even levels to accommodate staying power through the business cycles, a combination of market exposure and fixed income contracts for our fleet and a clean corporate structure maintaining a high level of integrity and good governance.  For further information: 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 April 29, 2013.

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:
Eirik Ub√łe, CFO
Phone: +1 441 299-4912 and +47 412 92 712
E-mail: eu@dhtankers.com


Q1 2013 financial statements