DHT (DHT) 13 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q3 2024 DHT Holdings, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, CFO, Laila Halvorsen.

Thank you. afternoon, good and morning, everyone. Good you Welcome, Quarter DHT Third joining Earnings and Call. thank XXXX Holdings for I'm DHT's joined Harfjeld. Moxnes by President and Svein CEO,

As your through we usual, be found the go some website, can we before dhtankers.com. our highlights slide financials deck open The questions. and for on link to up will

until with available I A get would this of Before on replay make website, call to started conference we be November like today's call, will our dhtankers.com, remarks. XX. the following

press earnings and EDGAR as Form our In be website an will our addition, on our release on available to the system X-K. SEC exhibit

the As EDGAR forward-looking in expectations nature. you we will on These our information we results face. our may periodic financial We a website future including available from our these risks discuss to in that for system, are the in the read conference statements about urge forward-looking on and report. based Actual are reflected on reminder, factors on reports materially forward-looking current our these differ this report detailed SEC matters as regarding call, expectations that statements. in more risk events

will As highlights. with the some start financial presentation usual, we

excellent below At estimated low for residual ship was well health, remains and significant and leverage net liquidity. ships the Our sheet based on balance million $XX.X quarter vessel, per in leverage financial values end, with XX.X% market debt was values.

$XXX $XX million, quarter our of in facility. of third and total available consisting liquidity $XXX under credit The revolving ended with cash million million

the to over P&L. Now

came expenses $XX was the of $XX.X $X.X Vessel quarter $XX.X EBITDA quarter. $X.XX million, revenues the the TCE the G&A We million. in million basis for pleased operating equal $XX.X of with for share. to are We were and at million. per achieved quarter and results Net income for million on

$XX,XXX charters $XX,XXX $XX,XXX TCE per $X.XX the age market day, vessels For the of $XX,XXX the XXXX vessels first average on vessels quarter achieved years the under per day. was day. Net XX made of to per for million, average of while was per share. quarter, the TCE combined time equal $XXX.X the spot months all day, while income earnings per was achieved spot for X for in third The the

the X our $XX,XXX combined of years The XX We age the quarter million and the $XX,XXX for interest used quarter cash flow. million TCE spot and months, $XX earnings first in marks will to started policy. paid as day under For to capital, day, shares changes of of equal as while vessels capital months. And for quarterly will cash quarter ex per shareholders dividend, $X.XX record of cash was XX. of achieved X to the over while achieved line dividend November ended on in and The per capital dividend cash Ordinary per the in net cash. Switching was share allocation. then from will million debt $XX and consecutive while shareholders quarterly vessels CapEx. We be with $XX million, newbuildings a the to of to The $XX.X through income. cash XXXX And with came positive the stable, $X to first to has XXth spot the amounting maintenance XX we to well-defined related installments for flow average for $XX,XXX day. at was cash million we $XX.X dividend, million repayment the was amounted allocated and with cash. million third generated million, $XX the in in of XXX% per our XX. second ordinary in DHT pay a policy, $XX.X allocation November dividend November a working X This trade payable EBITDA.

this day we flow for of the estimated $X,XXX in cash the side $XX,XXX on slide, day, year with full fleet, estimated breakeven per P&L XXXX. after an discretionary is left breakeven to ship P&L day projected for present per breakeven a update per dividends. rates the per $XX,XXX estimated where for and On cash to is the cash

So assuming P&L the in million this earn for flow means about vessels $XX.X the discretionary year. breakeven, cash

total On half the to per we the of dividend the the turn with of that, I share. And slide, to quarterly have will of 'XX. in the right the call cash side This returned policy to second we updated since illustrate dividend amounts we shareholders a over Svein. $X.XX

you, Thank Laila.

how combination slide, with on have our we an balance cash accumulated here up past present developed Laila's XX same allocation period. paid has the the dividend quarterly for Following sheet overview over capital on in years we

which Importantly, investment. has period, fleet. an newbuildings, proved its system fleet transaction ships VLCC invested gas program an secondhand entire BW's fleet, including for in and excellent acquisitions the be company we when the in [indiscernible] XXXX acquired the shares to also exhaust cleaning this for in for

equity accumulated at balance of XXXX XXXX quarterly the with Again, general dividends in in issued each since that Stating mentioned the the significant went about XXXX. The paid. not which in significant and to have note resulting time. the expansion present XX% us same out dividends. of freight year will up the following dividend was to values. reduce by substantial cash obvious, bars the generous we a this the measured some paid to sheet line the green leverage invested in in cash half book level was the the for quarterly profits was year, It XX%. The the you debt dividends and fleet market in period at XXXX, fall by mid-XXs illustrated is in XXXX. of percentage We the The enabled in level and market yellow start

income X Over the XX-year allocation year-to-date, net ordinary quarterly illustrates implemented of XXXX policy the with paid XXX% fall during paid period, $XXX dividends and we in cash being present of out a quarterly periods, total how cash played in last has have dividends. The XXXX out. of the million XXXX capital

fourth bookings updated the company. for the quarter with for the date to Here

We profit and the the and X sharing XXX at rate the This X,XXX days for to at charter contracts October the spot charter have expect assume that covered quarter, rate which this day. been rate quarter time base for per booked of fourth time for this $XX,XXX assumes average of an feature and $XX,XXX per days in only base rate have for have XX% December. We day. November

are day. younger ships per years been that have booked $XX,XXX Our than of age XX at

fleet. the the quarter estimated a You is bookings per the assist that this business compared excellent income for update will October to note period. The from given rates number spot market we estimating $XX,XXX softened effort the net the X, have day, on from that our during spot team at on breakeven when the general P&L DHT should our an improved contribution in

to significant indicated Everyone by tailor economic yet to demand of the note China takes not upturn. projections. its growth policy the market implemented next that has is, boost oil not seasonal some see debt stimuli. levels. it offered and We next focused whatever to met course, the anticipated changes during the would and amongst to last response that Trump China consumption. It economy, policies and last be be step quarter the highest the some And endeavor for Chinese been in lackluster address needed to various first waiting a have did X address to that resolving rates. Chinese we to, others, economic on the commentary. seek are The suggested week to will, Whilst stimuli consumption. step incoming levels years, officials year-to-date It inducements announced extent, deploying administration. is of

by should fuels shadow the us demand revitalize especially prices, of As general also includes that for and fossil Should aims constructive fleet do to to economy, sanctions it's will play policies transportation growth Atlantic higher world's out, expect towards other production of oil fleet; second a increased OPEC+ from oil U.S. reimpose economy Asian levels China, market the the tighter producers. and that lead targeting customers' the of tightening of leads medium-term could demand. The to the for result largest expect regulations, when production, which to further barrels an XXXX; decarbonization think consumption, pro-drilling certain in strategy stimulate reasonable exports. By average, pressure current including reversal changes improve. inventory should from from compliant and to in be on we election balance we increasing be for Middle competition U.S. This implying Eastern face producers. policy which crude uptick shifts think the the business: efforts exports, support conditions that this Basin economic oil the work should Iranian and market of our creating Iranian replaced below in the X-year restraining

as low relatively in data transparency should barrels levels. complicates inventories are China's expect actual in indicated Western indeed increasingly inventories one limited inventory However, higher If assessment and east. go oil Chinese to are of Asia, than Atlantic-based as crude

of governance combination in lending we of stronger work customer the clear tailored namely team focusing continues markets, in offering we our a and heading standards whole a quotas structure with in the Chinese margins integrity. And customers operate levels, structure key our high reliable dynamics should capital of it cost a to freight into favor to balance crude on shift with year refinery policy. The banks, relations, on encouragement Asia cash from turn a stakeholders, sheet and allocation appreciates hard with over strategy market. Based oil operator, competitive feedback and with solid leading have you. robust and recovering a and the Additionally, increasing and positive safe I'll shareholders, breakeven to maintaining next and import an believe solid level services, DHT that, encouragement, appropriate

your from the Morkedal And Securities. line first question Instructions] Frode from [Operator of comes Clarksons

value ask the reason purchase decline you market in ship stock factoring is large specifically. given developments, when the the quite look a at the values. to stock you seems what market, to huge secondhand in NAVs, to discounts physical to I be sale wanted I see and price asking And about for Svein,

seeing happening you So are basically, what in today? the actually market

There activity, limited be is frank. to very

expect, price sort different ], or $X $XXX of X-year-old for the ship differentiate what you of fleet a depending around And the how a we of $XXX [ that So shipowner, sold Aramco. modern Greek know transaction ship-owning would of Bahri, arm million, his was on when was, have last million sort the groups. sort Saudi which was around age billion, Marinakis, for ships transaction we $XXX million, to at

but then, and sure not a no So those levels that, also, ships buyers have either. there couple modern many no at sort be that since X. out hands real changed sellers could I'm of there so of

-- the these sit constructive people and costs, with assets, on they on also acquisition but are I they that own low in very them So very market. think general, the

faith lost sort a reason but don't change really could those bit those think XX and think to a in to are any that, I I market, prices reason would of for ships that. In freight if that there's there's of it's say, sideways, end, XX, don't So say. the course, What meaningfully. -- change do between I people older

You sold Japanese ago had a XXXX built without ship some XX at about ]. scrubber. days [ seller, This a was a a ship XX

scrubber be And vintage should proper [indiscernible] quite of think offer. since are that attractive. we've charter similar limited ships for are also number. In that, seen time what XX long supporting ship holding the are [ probably people a there again, with least a at statement So is constructive ], worth I a XXXX it's Again, expected. Time out transactions. or on then rates built between any

a secure at a I in time then some if to later say, course, alternative, to to point year, least the buy sell want think, for at So owners, for charter time time. contracts is they of

That's hear. to good Good color. Okay.

lot buildup? second you say, The question think let's do the, a picture on a you inventory fairly supporting We've good backwardated of supply/demand is market. here. been mentioned like through But about what factors steep

the more Now So and ] a that right? developments flattish, market in on situation contango will from expect back is the quite come tanker view? impact it seems [ your soon, to people what

the inventory economies levels when think different you OECD in is look the I to in key at of levels, Asia. some a bit

people diesel sort is available. From what in more as course, oil high. closely and in tight [ really about that response talked tend available that look there's gather or at as gasoline and has [ OECD on watch from runs to that, inventories data but are very margins. reduced a we And increase, lid ] prior this on that indeed on we -- crude what's to and lower of then, China our on not So call, levels very were of refining inventories inventory ] very kept did people

is why market a So and will we supply change think change way. OpEx I doesn't have think guess game to they the now Also levels manage much in quite inventory on side strong respond. -- postponed. it focus really really this I in take in and Asia, demand this when how And a on they how make say I dramatic a that

meeting the my let's I on sort longer on will the have. it. That's recovery So stronger this But think see what the X of likely lasts, next cents you two December bring. will

Your of next the from line question from Chappell Jon comes Evercore.

I your couple vessels think in activity, did Svein, sub-XX-year-old recall chartering of Clearly, specifically it first I calling a older left time you ships in fleet. the out you twice. the

You the ages those just values, those ships age. maybe fleet on than earn based the builds squishy But new seeing can you're is have more to finance that help talked in for maybe the in the cycle order? a X, some rates of maybe of you a that there a if the is about vessels, modernize to it's bit proceeds use a older vessels asset bit and those you given at for longer differentiation plan

So ship. observation older are that more suffer than ships, I when think they you modern then a more sort market, patches the the of in the freight is in #X soft

out of market keep $XX,XXX X-year in that the time certainly a was quarter fixed deltas, balanced. day. mind also that ships of one older for get a do you summer, the sort part third So per at more this freight these at charter softish. But of And bit point, the and was we

at good debt, but the for not sort book And any So you have good are these very I very, be sentiment they They certainly technically hardly these out low time. of would to conditions. -- ships, freight not right the need rule ships, older value. opportunities very

to they way at some in sold were if they So a point. of would meaningfully sort contribute be

with XX. know, think the as we buildings in first you of so As ships have half close delivery we older that mentioned, well when new of schedule of we on these sort XXXX, coming do sort the jives in

course, to be of it used months divest things. also few we that of the And or elect used the capital them to be will might that can buildings, it other next So to a X new year. in be can, couple

plan, there opportunities right it could out So good and be has be part it's our of charter to opportunity, also these the to but ships. other

So what see the is makes decision sense let's more when time up.

would I get was again. you Lion, the the time a again, the more $XX,XXX Okay. are charters, not volatility the charter? to Lion, And some available in given But did little also, lock understand rates for mentioned vast change that you maybe other in ], now, it only sentiment different spot softness for time opportunities, the in look greater I but for the you the given you mean which [ of like for the And today? you have market market got $XX,XXX. right have you seen

ask I would say bid the widened that bit. spread a has

big demography of needs. quite controlled oil, of the significant but entities their unchanged, service customers, increasingly and whereby But ask aging the market. think the the recognize quickly is state-owned bids they it's that probably are tad fleet, the a portions that stock fleet So lower, I reflecting by are own the

with you of with more we want our go for interesting they fixed to can go of some VLCC -- and or one earnings is will shipowner, well the more has a if of, next X opportunities company, we we spot and it, for voyage a call the be doing allocation capital fixed But just ambition many matter, sort charter, think closely. And the engage sizable it's a customers, for think year income they sort in given will company. or more need So that recognize that, the more them working services, on are that to will build spend fleet again, expect And who suited through to something time we build that's to offer longer service time the that our in that. I not and income stated policy, offer predictability types for term. to

the our think sort how to we a business. build about that's little lifting continuing beams So of the bit,

next line Omar from comes your And Instructions] [Operator from Nokta the question of Jefferies.

the the a replaced me things side say, of the the do potential a sanctions by barrels? How risk? more from risk your OPEC, of there of terms -- following volumes on the the get couple outcome market clearly, positive a and that you on of for export and a that tankers. diminish potentially sets of Is the those on questions tougher -- how least, you macro mentioned geo you Just for think on And you U.S. elections see backdrop the geopolitics into things. Iran. barrels think if side, volumes Is tankers or those for in and free shadow kind at fleet up market free Iran,

think think academic They're they Venezuela older compliance things lack but a business operate ships they years an matter risk. either vetting, do lot to that the has to -- proper the it's terminals, unrealistic. oil in for age. a into to There's approved load that to to Almost think is I approved I do today, insurance. is when get in real I it's not risk, don't of they than they or that fit all really or transport markets, And Iran in XX of the transshipment. that enter bill

expected administration, on positive So plays I to see people are approach on they to want this this in they Trump's Iran. come XXX% making certainly I market if for will think are already now the out. And to almost how be statements a that

actually. let's plays of a taking But probability think reasonable how it out. it's I place So this some see of

it's impact question war so how does this eyes, VLCCs the how obviously, or there surge -- think tanker does and the the But you do broke Russia, Ukraine? were is you've guess, peace tanker and Russia dynamics. broke the Ukraine? a I question clearly market, the how basically since then broader if this perhaps in been Russia, overall is look on Ukraine, So on since act market between maybe guess then had out, had And without market I so deal like would your the pretty much in not sense. out But war an Makes look a not VLCCs. Okay. it's reached

impact negatively. I actually VLCCs, it impacted a relative did market the but think basis, on them

smaller our a down that the of -- if So was to good the sure come sort not peace I'm of it a how has time. sort of been a that of is a enjoy it there peace it depends after deal, to how become Russian too sort will earnings period after plays venture [ all does while. I'm deal has smaller sure Europe earth siblings out, immediately agreed. for if buying But higher a And a out peace ]? -- also oil it

Europe, this bit those on and into be in I a feel sentiment goes think get the out. it market, barrels war think a in play would what back the road think U.S., different winding to will I the backyard So will right? the as of long to are maybe Europeans, how might I in people it that's

an not it's So immediate change.

on Okay. a just quick maybe just that. And follow-up

negative that was development You did perhaps mention it VLCCs. a for

that then is conceivable war if a So the positive could it be ends? it

that way Yes, about the most VLCC nothing and of there's I is and because that refiners, what regard. so can think beat cost-efficient general, the in they in -- transport, care

call hand will closing I now There no remarks. Harfjeld, back further to Svein are Moxnes currently CEO, the questions. for

on Thank day. following for a Have in company. and listening you our good to all DHT

for Thank call. concludes you. participating. conference you Thank today's This

disconnect. now may You