DHT Holdings, Inc. Second Quarter 2017 Results
HAMILTON, BERMUDA, August 8, 2017 - DHT Holdings, Inc. (NYSE:DHT) ("DHT" or the "Company") today announced:
FINANCIAL AND OPERATIONAL HIGHLIGHTS:
|USD mill. (except per share)||Q2 2017||Q1 2017||Q4 2016||Q3 2016||Q2 2016||2016||2015|
|Adjusted Net Revenue1||59.6||70.7||67.0||50.3||83.2||290.7||296.3|
|EPS - basic||0.04||0.15||0.19||(0.81)||0.38||0.10||1.13|
|EPS - diluted3||0.04||0.15||0.18||(0.81)||0.34||0.10||1.04|
|Interest Bearing Debt||841.1||674.6||701.5||684.9||613.1||701.5||662.5|
|Unscheduled off hire7||0.2%||0.2%||5.5%||0.8%||0.3%||1.8%||0.2%|
|Scheduled off hire7||2.8%||2.4%||0.9%||5.1%||1.7%||1.7%||0.5%|
HIGHLIGHTS OF THE QUARTER:
- Adjusted EBITDA for the quarter of $36.7 million. Net income for the quarter of $4.8 million or $0.04 per basic share.
- The Company's VLCCs achieved time charter equivalent earnings of $27,700 per day in the second quarter of 2017 of which the Company's VLCCs on time-charter earned $37,000 per day and the Company's VLCCs operating in the spot market achieved $23,500 per day. For the first six months of 2017 the Company's VLCCs achieved time charter equivalent earnings of $33,300 per day of 2017 of which the Company's VLCCs on time-charter earned $37,900 per day and the Company's VLCCs operating in the spot market achieved $31,000 per day.
- For the second quarter of 2017, the Company will return $15.1 million to shareholders, equating to 315% of net income. The return of capital is comprised of $12.2 million of buy-back of convertible senior notes and $2.9 million, or $0.02 per share, as cash dividends payable on August 31, 2017 for shareholders of record as of August 24, 2017. Outstanding amount under the convertible senior notes is $105.8 million following the buy-backs.
- The Company entered into a six year term loan and revolving credit facility agreement totaling $300.0 million, of which $74.0 is a revolving credit facility, with ABN Amro, DNB, Nordea, Danish Ship Finance, SEB, ING and Swedbank for the financing of the cash portion of the acquisition of the VLCC fleet from BW Group Limited ("BW") as well as the remaining installments under the two newbuilding contracts. $204.0 million has been drawn in connection with the delivery of the nine vessels in the water and the remaining $96.0 million is expected to be drawn in connection with the delivery of the two newbuildings in the second quarter of 2018. Borrowings bear interest at a rate equal to Libor + 2.40% and are repayable with quarterly installments calculated based on the borrowings being repaid to zero assuming a 20 year economic life for the vessels.
- In June the Company completed the delivery of the nine VLCCs acquired from the BW and the contracts for the two newbuildings due for delivery in 2018 have been transferred to DHT. DHT has a fleet of 30 VLCCs, 26 in the water and four under construction scheduled for delivery in 2018, as well as two Aframaxes. The total dwt of the fleet is 9,502,995. The average age of the VLCC fleet is 6.8 years.
- Subsequent to the issuance of common shares upon the conversion of the Series D Junior Participating Preferred Stock issued to BW pursuant to the previously announced Vessel Acquisition Agreement between DHT and BW the Company has 142,347,298 common shares issued and outstanding.
- In June 2017, we entered into a financing with DNB and Nordea totaling $82.5 million to fund the acquisition of the two VLCC newbuildings ordered from HHI in January 2017. The five year credit facility is divided 50/50 between a term loan and a revolving credit facility and borrowings will bear interest at a rate equal to LIBOR plus a margin of 250 basis points. Borrowings are repayable with quarterly installments calculated based on the borrowings being repaid to zero assuming a 20 year economic life for the vessels.
- In June the legal action filed by Frontline Ltd. in the High Court of the Republic of the Marshall Islands, which challenged DHT's transaction with BW and DHT's Rights Plan, was dismissed, with prejudice. Frontline is precluded from bringing similar claims against DHT, its directors and BW in any other court. Under Marshall Islands' law, the dismissal also constitutes a ruling on the merits in favor of DHT.
- The DHT Ann and the DHT Phoenix were sold at $24.8 million and $19.1 million and delivered to the buyers in May and June 2017, respectively.
- Seven of the VLCCs and the two Aframaxes are on fixed rate time charters. For more details on the fleet, please refer to our web site: http://dhtankers.com/index.php?name=About_DHT%2FFleet.html.
The full report can be found on the link below
1Net of voyage expenses.
2Q1 2017 includes an impairment charge of $7.5 million related to the sale of DHT Ann and DHT Phoenix. Q3 2016 includes an impairment charge of $76.6 million. 2016 includes total impairment charges of $84.7 million. 2015 includes a loss of $0.8 million related to the sale of the DHT Trader.
3Diluted shares include the dilutive effect of the convertible senior notes and restricted shares granted to management and members of the board of directors.
4The cash balance as of December 31, 2016 includes $48.7 million relating to the financing for DHT Tiger which was drawn in 2016 in advance of the delivery of the DHT Tiger on January 16, 2017. The cash balance as of December 31, 2015 includes $50.0 million relating to the financing for DHT Leopard which was drawn on December 29, 2015 in advance of the delivery of the DHT Leopard on January 4, 2016.
5Per common share.
6Q1 2017 includes 11 VLCCs (incl. two newbuildings) acquired from BW Group of which 9 were delivered in Q2 2017. Q4 2016 includes three newbuildings totaling 937,900 dwt; one of which was delivered on January 16, 2017 and two scheduled to be delivered in Q3 2018. Q2 2016 includes three newbuildings totaling 899,700 dwt to be delivered in Q3-Q4 2016. 2015 includes five newbuildings totaling 1,499,500 dwt to be delivered in 2016.
7As % of total operating days in period.
EARNINGS CONFERENCE CALL AND WEBCAST INFORMATION
The company will host a conference call and webcast which will include a slide presentation at 8:00 a.m. EDT/14:00 CET on Wednesday August 9, 2017 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 3388 within the United States, 23162771 within Norway and +44 20 3427 1916 for international callers. The passcode is "DHT" or "5252127".
The webcast which will include a slide presentation will be available on the following link:
https://edge.media-server.com/m6/p/j87wynvm and can also be accessed 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 August 16, 2017. To access the replay, dial 1 719 457 0820 within the United States, 23500077 within Norway or +44 207 660 0134 for international callers and enter 5252127 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 and Aframax segments. We operate through our integrated management companies in Oslo, Norway and Singapore. 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 transparent corporate structure maintaining a high level of integrity and good governance. For further information: www.dhtankers.com.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company's management as well as assumptions, expectations, projections, intentions and beliefs about future events, in particular regarding dividends (including our dividend plans, timing and the amount and growth of any dividends), 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 23, 2017.
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.
Eirik Uboe, CFO
Phone: +1 441 299 4912 and +47 412 92 712
DHT Q2 2017 financial report