DHT Holdings, Inc. Fourth Quarter 2023 Results
HAMILTON, BERMUDA, February 6, 2024 – DHT Holdings, Inc. (NYSE: DHT) (“DHT” or the “Company”) today announced:
FINANCIAL HIGHLIGHTS:
|
USD mill. (except per share)
|
Q4 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
Q4 2022
|
2023
|
2022
|
|
Shipping revenues
|
142.3
|
130.3
|
152.0
|
131.5
|
166.5
|
556.1
|
450.4
|
|
Adjusted net revenues1
|
94.5
|
89.1
|
112.9
|
93.9
|
116.7
|
390.4
|
264.9
|
|
Adjusted EBITDA2
|
72.9
|
67.4
|
89.8
|
71.9
|
95.4
|
302.0
|
177.9
|
|
Profit/(loss) after tax
|
35.3
|
31.0
|
57.1
|
38.0
|
61.8
|
161.4
|
62.0
|
|
EPS – basic
|
0.22
|
0.19
|
0.35
|
0.23
|
0.38
|
0.99
|
0.37
|
|
EPS – diluted3
|
0.22
|
0.19
|
0.35
|
0.23
|
0.38
|
0.99
|
0.37
|
|
Dividend4
|
0.22
|
0.19
|
0.35
|
0.23
|
0.38
|
0.99
|
0.48
|
|
Interest bearing debt
|
428.7
|
436.6
|
388.3
|
395.7
|
396.7
|
428.7
|
396.7
|
|
Cash and cash equivalents
|
74.7
|
73.9
|
130.6
|
117.5
|
125.9
|
74.7
|
125.9
|
|
Net debt
|
354.0
|
367.7
|
257.6
|
278.2
|
270.7
|
354.0
|
270.7
|
DHT made $161.4 million in net income in 2023 – the second-best year in the Company’s history. As of December 31, 2023, interest bearing debt to total assets marked-to-market was 19.7%, and net debt
per ship was $14.7 million.
QUARTERLY HIGHLIGHTS:
| ● |
In the fourth quarter of 2023, the Company achieved average combined time charter equivalent earnings of $42,800 per day, comprised of $43,600 per day for the Company’s VLCCs operating in the spot market and
$39,600 per day for the Company’s VLCCs on time-charter.
|
| ● |
Adjusted EBITDA for the fourth quarter of 2023 was $72.9 million. Net profit for the quarter was $35.3 million, which equates to $0.22 per basic share.
|
| ● |
In December 2023, the Company prepaid $23.7 million under the Nordea Credit Facility. The voluntary prepayment was made for all regular installments for 2024. In December 2023, the Company drew down $24.0 million under the ING Revolving
Credit Facility, which was subsequently repaid in January 2024. These transactions, in combination, improved the cash break-even level for 2024 which is estimated to be $18,600 per day for the fleet as a whole, and $13,800 per day for the
fleet trading in the spot market.
|
| ● |
For the fourth quarter of 2023, the Company declared a cash dividend of $0.22 per share of outstanding common stock, payable on February 28, 2024, to shareholders of record as of February 21, 2024. This marks the 56th
consecutive quarterly cash dividend and is in line with the Company’s capital allocation policy to pay out 100% of net income. The shares will trade ex-dividend from February 20, 2024.
|
OPERATIONAL HIGHLIGHTS:
| |
Q4 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
Q4 2022
|
2023
|
2022
|
|
Operating days5
|
2,208.0
|
2,177.7
|
2,093.0
|
2,070.0
|
2,116.0
|
8,548.7
|
8,929.0
|
|
Scheduled off hire days
|
-
|
79.1
|
60.9
|
111.8
|
63.5
|
251.8
|
150.3
|
|
Unscheduled off hire6
|
0.1%
|
0.1%
|
1.3%*
|
2.2%*
|
0.1%
|
0.9%
|
0.2%
|
|
Revenue days7
|
2,206.7
|
2,096.0
|
2,005.6
|
1,912.8
|
2,051.5
|
8,221.0
|
8,721.7
|
|
Spot exposure6
|
81.2%
|
77.3%
|
70.4%
|
72.9%
|
74.7%
|
75.6 %
|
75.4 %
|
|
VLCC time charter rate per day
|
$ 39,600
|
$ 35,500
|
$ 36,200
|
$ 35,000
|
$ 36,100
|
$ 36,400
|
$ 34,600
|
|
VLCC spot rate per day
|
$ 43,600
|
$ 44,700
|
$ 64,800
|
$ 54,600
|
$ 63,800
|
$ 51,200
|
$ 29,000
|
*In Q2 2023 one vessel underwent an unscheduled repair, accounting for the predominant part of the
unscheduled off hire for the quarter. In Q1 2023 one vessel encountered bad weather damage, accounting for the predominant part of the unscheduled off hire for the quarter.
The overall freight market shows encouraging behaviour for what is ahead of us. OPEC+ cuts suggest an acceptance that non-OPEC supply is growing with relative market shares being adjusted accordingly, expanding transportation distances. We expect
continued rewarding times ahead, supported by growth in oil demand, longer transportation distances and a very limited supply of new ships into a rapidly aging global fleet. As stated in our last earnings report, it is an increasingly complex
geopolitical environment, not least the latest developments in the Red Sea, with conflicts and risks on several fronts, many that will influence our business and could be beneficial for our market.
Interest and activity to contract newbuildings picked up at the end of last year with several respected and experienced owners either contracting or pursuing available newbuilding berths for as early delivery as possible. Delivery for 2026 is to
our understanding now potentially sold out hence focus is on 2027 deliveries, and we see continued activity with additional contracts expected to be signed. Due to lack of investment over the past several years, the supply of new ships is lagging
behind a rapidly aging fleet and we don’t think the current activity will significantly impair the favorable supply picture. Shipyard capacity for large tankers is scarce due to significant demand to build other types of ships. Further, trade and
economic disruptions do not help solve inflationary pressure on labour, materials, and equipment.
We always seek to reward our shareholders, operate with high governance standards, and execute what we believe to be an appropriate strategy tailored to our market. The whole DHT team continues to focus on premium revenue generation, maintaining a
competitive cost structure, a solid balance sheet and a clear capital allocation policy.
As of December 31, 2023, DHT had a fleet of 24 VLCCs, with a total dwt of 7,479,177. For more details on the fleet, please refer to the web site: https://www.dhtankers.com/fleetlist/
SUBSEQUENT EVENT HIGHLIGHTS:
| ● |
In January 2024, the Company prepaid $24.0 million under the ING Credit Facility. The voluntary prepayment was made under the revolving credit facility tranche and may be re-borrowed.
|
| ● |
Ms. Ana Zambelli was appointed to the Board of Directors effective February 1, 2024. Ms. Zambelli has significant experience with more than 20 years in the energy sector in operational, commercial and finance
roles.
|
OUTLOOK:
|
|
Estimated
Q1 2024
|
|
Total term time charter days
|
455
|
|
Average term time charter rate ($/day)*
|
$ 36,600
|
|
Total spot days for the quarter
|
1,630
|
|
Spot days booked to date
|
1,270
|
|
Average spot rate booked to date ($/day)
|
$ 55,900
|
|
Spot P&L break-even for the quarter
|
$ 25,900
|
* The months of January and February includes profit-sharing. The month of March assumes only the base rate.
| ● |
Thus far in the first quarter of 2024, 78% of the available VLCC spot days have been booked at an average rate of $55,900 per day on a discharge-to-discharge basis. 83% of the available VLCC days, combined spot and time-charter days, have
been booked at an average rate of $50,800 per day.
|
Footnotes:
1Shipping revenues net of voyage expenses.
2 Shipping revenues net of voyage expenses, other revenues, vessel operating expenses and general and administrative expenses.
3Diluted shares include the dilutive effect of the restricted shares granted to management and members of the board of directors.
4Per common share.
5Operating days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or chartered by the Company.
6As % of total operating days in period.
7Revenue days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or chartered by the Company less days on which a vessel
is off hire or repositioning days in connection with sale.
FOURTH QUARTER 2023 FINANCIALS
The Company reported shipping revenues for the fourth quarter of 2023 of $142.3 million compared to shipping revenues of $166.5 million in the fourth quarter of 2022. The decrease from the 2022 period to the 2023 period includes $36.8 million attributable to lower tanker rates, partially offset by $12.6 million attributable to an increase in revenue days due to an additional vessel
in the fleet.
Other revenues for the fourth quarter of 2023 were $1.1 million compared to $1.4 million in the fourth quarter of 2022 and mainly relate to technical management services provided.
Voyage expenses for the fourth quarter of 2023 were $47.8 million, compared to voyage expenses of $49.8 million in the fourth quarter of 2022. The change was related to a decrease in bunker
expenses of $2.4 million, a decrease in other voyage-related costs of $0.6 million and a decrease in broker commission of $0.2 million, partially offset by an increase in port expenses of $1.2 million.
Vessel operating expenses for the fourth quarter of 2023 were $18.7 million compared to $19.9 million in the fourth quarter of 2022. The decrease was mainly related to a decrease of $0.6 million
related to spares and consumables and a decrease of $0.6 million related to other vessel operating expenses, despite an additional vessel in the fleet.
Depreciation and amortization, including depreciation of capitalized survey expenses, was $28.5 million for the fourth quarter of 2023, compared to $27.7 million in the fourth quarter of 2022. The
increase was due to increased depreciation of vessels and drydocking of $1.5 million due to an additional vessel in the fleet, partially offset by a decrease in depreciation of exhaust gas cleaning systems of $0.6 million.
General and administrative (“G&A”) expense for the fourth quarter of 2023 was $4.0 million, consisting of $3.3 million cash and $0.7 million non-cash charge, compared to $2.8 million in the fourth quarter of 2022,
consisting of $2.1 million cash and $0.7 million non-cash charge. Non-cash G&A includes accrual for social security tax.
Net financial expenses for the fourth quarter of 2023 were $8.9 million compared to $5.8 million in the fourth quarter of 2022. The increase was mainly due to increased interest expense of $2.7 million due
to increased interest rates and $0.3 million related to other financial expenses.
As a result of the foregoing, the Company had a net profit in the fourth quarter of 2023 of $35.3 million, or income of $0.22 per basic share and $0.22 per diluted share, compared to a net profit
in the fourth quarter of 2022 of $61.8 million, or income of $0.38 per basic share and $0.38 per diluted share. The decrease from the fourth quarter of 2022 to the fourth quarter of 2023 was mainly due to a year-over-year decline in tanker rates.
Net cash provided by operating activities for the fourth quarter of 2023 was $42.3 million compared to $90.3 million for the fourth quarter of 2022. The decrease was due to a profit of $35.3
million in the fourth quarter of 2023 compared to a profit of $61.8 million in the fourth quarter of 2022, a $23.2 million negative change in operating assets and liabilities, partially offset by a $1.7 million increase in non-cash items included in
net income.
Net cash used in investing activities was $2.2 million in the fourth quarter of 2023 and was related to investment in vessels. Net cash used in investing activities was $1.6 million in the fourth quarter of 2022 and
was comprised of $0.8 million related to the sale of a vessel and $0.8 million related to investment in vessels.
Net cash used in financing activities for the fourth quarter of 2023 was $39.5 million comprised of $30.6 million related to cash dividend paid, $23.7 million related to prepayment of long-term
debt, and $8.8 million related to scheduled repayment of long-term debt, partially offset by $24.0 million related to issuance of long-term debt. Net cash used in financing activities for the fourth quarter of 2022 was $29.0 million comprised of
$23.7 million related to prepayment of long-term debt, $6.5 million related to cash dividend paid, and $2.5 million related to scheduled repayment of long-term debt, partially offset by $4.0 million related to issuance of long-term debt.
As of December 31, 2023, the cash balance was $74.7 million, compared to $125.9 million as of December 31, 2022.
The Company monitors its covenant compliance on an ongoing basis. As of December 31, 2023, the Company was in compliance with its financial covenants.
As of December 31, 2023, the Company had 160,999,542 shares of common stock outstanding compared to 162,653,339 shares as of December 31, 2022.
The Company declared a cash dividend of $0.22 per common share for the fourth quarter of 2023 payable on February 28, 2024, for shareholders of record as
of February 21, 2024.
FULL YEAR 2023 FINANCIALS
The Company reported shipping revenues for 2023 of $556.1 million compared to $450.4 million in 2022. The increase from the 2022 period to the 2023 period includes $131.5 million attributable to
higher tanker rates partially offset by $25.9 million attributable to decreased total revenue days.
Other revenues for 2023 were $4.5 million compared to $3.8 million in 2022 and mainly relates to technical management services provided. In May 2022, the Company acquired an additional 3.2% of
Goodwood Ship Management Pte. Ltd. and increased its ownership to 53.2% through a step acquisition, which led to full consolidation of Goodwood from May 31, 2022. Other revenues for 2022 apply for the period from May 31 to December 31, 2022.
The Company did not record any gain or loss related to sale of vessels in 2023. In 2022, the Company recorded a gain of $19.5 million related to the sale of DHT Hawk, DHT Falcon and DHT Edelweiss.
Voyage expenses for 2023 were $165.7 million compared to voyage expenses of $185.5 million in 2022. The change was related to a decrease in bunker expenses of $19.1 million and a decrease in port
expenses and other voyage-related costs of $2.2 million, partially offset by an increase in broker commission of $1.4 million.
Vessel operating expenses for 2023 were $75.4 million compared to $73.8 million in 2022. The increase was mainly due to an increase of $0.9 million related to insurance and an increase of $0.9
million related to lubes.
Depreciation and amortization, including depreciation of capitalized survey expenses, was $108.9 million for 2023, compared to $123.3 million in 2022. The decrease was mainly due to decreased
depreciation of exhaust gas cleaning systems of $12.2 million and decreased depreciation of $2.6 million related to vessels and drydocking.
G&A for 2023 was $17.4 million, consisting of $14.1 million cash and $3.3 million non-cash charge, compared to $16.9 million, consisting of $12.7 million cash and $4.2 million non-cash charge
for 2022.
Net financial expenses for 2023 were $31.1 million, compared to $11.6 million in 2022. The increase was due to a non-cash gain of $15.0 million related to
interest rate derivatives in 2022 compared to a non-cash loss of $0.5 million in 2023 and increased interest expense of $6.9 million due to increased interest rates, partially offset by interest income of $4.5 million in 2023 compared to $1.1 million
in 2022.
The Company had net income for 2023 of $161.4 million, or income of $0.99 per basic share and $0.99 per diluted share compared to net income of $62.0 million, or income of $0.37 per
basic share and $0.37 per diluted share in 2022. The difference between the two periods mainly reflects higher tanker rates.
Net cash provided by operating activities for 2023 was $251.4 million compared to $127.9 million for 2022. The increase was mainly due to net income of $161.4 million in 2023 compared to net income of $62.0 million in 2022, a $20.5 million increase in non-cash items included in net income and a $3.5 million positive change in operating assets
and liabilities.
Net cash used in investing activities for 2023 was $128.2 million and was related to investment in vessels. Net cash provided by investing activities for 2022 was $110.5 million comprising $112.4
million related to sale of vessels and $8.3 million related to acquisition of subsidiary, net of cash paid, partially offset by $9.9 million related to investment in vessels.
Net cash used in financing activities for 2023 was $174.5 million comprising $216.8 million related to repayment of long-term debt in connection with refinancing, $186.7 million related to cash
dividends paid, $68.7 million related to prepayment of long-term debt, $24.4 million related to scheduled repayment of long-term debt, and $18.8 million related to purchase of treasury shares, partially offset by $339.6 million related to issuance of
long-term debt and $3.3 million related to proceeds from sale of derivatives. Net cash used in financing activities for 2022 was $173.3 million comprising $96.8 million related to prepayment of long-term debt, $25.5 million related to repayment of
long-term debt in connection with sale of vessels, $24.8 million related to purchase of treasury shares, $19.7 million related to cash dividends paid, and $9.5 million related to scheduled repayment of long-term debt, partially offset by $4.0 million
related to issuance of long-term debt.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The Company assesses the financial performance of its business using a variety of measures. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that are included in, or include amounts
that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. These non-GAAP measures include “Adjusted Net
Revenue”, “Adjusted EBITDA” and “Adjusted spot time charter equivalent per day”. The Company believes that these non-GAAP measures provide useful supplemental information for its investors and, when considered together with the Company’s IFRS
financial measures and the reconciliation to the most directly comparable IFRS financial measure, provide a more complete understanding of the factors and trends affecting the Company’s operations. In addition, DHT’s management measures the financial
performance of the Company, in part, by using these non-GAAP measures, along with other performance metrics. The Company does not regard these non-GAAP measures as a substitute for, or as superior to, the equivalent measures calculated and presented
in accordance with IFRS. Additionally, these non-GAAP measures may not be comparable to other similarly titled measures used by other companies and should not be considered in isolation or as a substitute for analysis of the Company’s operating
results as reported under IFRS.
|
USD in thousands except time charter equivalent per day
|
Q4 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
Q4 2022
|
2023
|
2022
|
|
Reconciliation of adjusted net revenue
|
|
|
|
|
|
|
|
|
Shipping revenues
|
142,292
|
130,322
|
151,993
|
131,468
|
166,522
|
556,075
|
450,381
|
|
Voyage expenses
|
(47,771)
|
(41,235)
|
(39,092)
|
(37,569)
|
(49,781)
|
(165,667)
|
(185,502)
|
|
Adjusted net revenues
|
94,521
|
89,087
|
112,902
|
93,899
|
116,741
|
390,408
|
264,880
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA
|
|
|
|
|
|
|
|
|
Profit/(loss) after tax
|
35,308
|
30,967
|
57,081
|
38,041
|
61,819
|
161,397
|
61,979
|
|
Income tax expense
|
226
|
137
|
94
|
191
|
111
|
649
|
587
|
|
Other financial (income)/expenses
|
599
|
413
|
606
|
366
|
272
|
1,984
|
2,826
|
|
Fair value (gain)/loss on derivative financial liabilities
|
-
|
-
|
70
|
433
|
(56)
|
504
|
(14,983)
|
|
Interest expense
|
9,194
|
8,789
|
7,492
|
7,586
|
6,462
|
33,061
|
26,197
|
|
Interest income
|
(908)
|
(1,213)
|
(1,966)
|
(398)
|
(886)
|
(4,485)
|
(1,076)
|
|
Share of profit from associated companies
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,327)
|
|
(Gain)/loss, sale of vessel
|
-
|
-
|
-
|
-
|
-
|
-
|
(19,513)
|
|
Depreciation and amortization
|
28,475
|
28,326
|
26,376
|
25,726
|
27,692
|
108,902
|
123,255
|
|
Adjusted EBITDA
|
72,894
|
67,419
|
89,753
|
71,946
|
95,414
|
302,012
|
177,946
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted spot time charter equivalent per day*
|
|
|
|
|
|
|
|
|
Spot time charter equivalent per day
|
43,600
|
44,700
|
64,800
|
54,600
|
63,800
|
51,200
|
29,000
|
|
IFRS 15 impact on spot time charter equivalent per day**
|
2,700
|
(2,400)
|
(3,000)
|
3,900
|
100
|
300
|
1,200
|
|
Adjusted spot time charter equivalent per day
|
46,300
|
42,300
|
61,800
|
58,500
|
63,900
|
51,500
|
30,200
|
* Per revenue days. Revenue days are the aggregate number of calendar days in the period in which the vessels are owned by the Company or
chartered by the Company less days on which a vessel is off hire.
** For vessels operating on spot charters, voyage revenues are calculated on a discharge-to-discharge basis. Under IFRS 15, spot charter voyage revenues are calculated on a
load-to-discharge basis. IFRS 15 impact refers to the timing difference between discharge-to-discharge and load-to-discharge basis.
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. ET/14:00 CET on Wednesday, February 7, 2024, to discuss the results for the quarter.
To access the conference call the participants are required to register using this link:
https://register.vevent.com/register/BI98e4d8da0f86429baf7e11fd789c5440
Upon registering, each participant will be provided with participant dial-in numbers, and a unique personal PIN. Participants will need to use the conference access information provided in the e-mail received at the point of registering.
Participants may also use the Call Me feature instead of dialing the nearest dial-in number.
The webcast, which will include a slide presentation, will be available on the following link:
https://edge.media-server.com/mmc/p/ftsed3ht and can also be accessed in the Investor Relations section of DHT's website at http://www.dhtankers.com.
A recording of the audio and slides presented will be available until February 14, 2024, at 14:00 CET. The recording can be accessed through the following link: https://edge.media-server.com/mmc/p/ftsed3ht
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 segment. We operate through our integrated
management companies in Monaco, Norway, Singapore, and India. You may recognize us by our renowned business approach as an experienced organization with focus on first rate operations and customer service; our quality ships; our prudent capital
structure that promotes staying power through the business cycles; our combination of market exposure and fixed income contracts for our fleet; our counter cyclical philosophy with respect to investments, employment of our fleet, and capital
allocation; and our transparent corporate structure maintaining a high level of integrity and good governance. For further information please visit http://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. 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, 2023.
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:
Laila C. Halvorsen, CFO
Phone: +1 441 295 1422 and +47 984 39 935
E-mail: lch@dhtankers.com
DHT HOLDINGS, INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2023
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
($ in thousands)
|
|
Note
|
|
December 31, 2023 (Unaudited)
|
|
December 31, 2022 (Audited)
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
74,738
|
|
125,948
|
|
Accounts receivable and accrued revenues
|
7
|
|
75,848
|
|
59,465
|
|
Capitalized voyage expenses
|
|
|
2,549
|
|
2,799
|
|
Prepaid expenses
|
|
|
13,557
|
|
10,550
|
|
Derivative financial assets
|
|
|
-
|
|
3,759
|
|
Bunker inventory
|
|
|
33,806
|
|
33,069
|
|
Total current assets
|
|
$
|
200,498
|
|
235,589
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Vessels
|
5
|
$
|
1,283,710
|
|
1,261,998
|
|
Advances for vessel upgrades
|
5
|
|
10
|
|
4,583
|
|
Other property, plant and equipment
|
|
|
6,649
|
|
4,949
|
|
Goodwill
|
|
|
1,356
|
|
1,356
|
|
Total non-current assets
|
|
$
|
1,291,725
|
|
1,272,885
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
1,492,223
|
|
1,508,474
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
20,493
|
|
29,398
|
|
Current portion long-term debt
|
4
|
|
30,300
|
|
29,626
|
|
Other current liabilities
|
|
|
1,418
|
|
1,178
|
|
Deferred shipping revenues
|
8
|
|
4,394
|
|
4,172
|
|
Total current liabilities
|
|
$
|
56,605
|
|
64,374
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Long-term debt
|
4
|
$
|
398,425
|
|
367,069
|
|
Other non-current liabilities
|
|
|
5,527
|
|
3,545
|
|
Total non-current liabilities
|
|
$
|
403,952
|
|
370,614
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
$
|
460,557
|
|
434,988
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common stock at par value
|
6
|
$
|
1,610
|
|
1,627
|
|
Additional paid-in capital
|
|
|
1,228,254
|
|
1,243,754
|
|
Accumulated deficit
|
|
|
(206,477)
|
|
(180,664)
|
|
Translation differences
|
|
|
201
|
|
138
|
|
Other reserves
|
|
|
3,566
|
|
3,623
|
|
Total equity attributable to the Company
|
|
|
1,027,153
|
|
1,068,478
|
|
Non-controlling interest
|
|
|
4,513
|
|
5,008
|
|
Total equity
|
|
$
|
1,031,667
|
|
1,073,486
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
1,492,223
|
|
1,508,474
|
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
($ in thousands, except shares and per share amounts)
|
|
|
|
Q4 2023
|
Q4 2022
|
12 months 2023
|
12 months 2022
|
|
|
Note
|
|
Oct. 1 - Dec. 31, 2023
|
Oct. 1 - Dec. 31, 2022
|
Jan. 1 - Dec. 31, 2023
|
Jan. 1 - Dec. 31, 2022
|
|
Shipping revenues
|
|
$
|
142,292
|
166,522
|
556,075
|
450,381
|
|
|
|
|
|
|
|
|
|
Other revenues
|
|
|
1,084
|
1,373
|
4,481
|
3,764
|
|
|
|
|
|
|
|
|
|
Total revenues
|
3
|
$
|
143,376
|
167,894
|
560,556
|
454,146
|
|
|
|
|
|
|
|
|
|
Gain sale of vessels
|
|
|
-
|
-
|
-
|
19,513
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
Voyage expenses
|
|
|
(47,771)
|
(49,781)
|
(165,667)
|
(185,502)
|
|
Vessel operating expenses
|
|
|
(18,718)
|
(19,936)
|
(75,429)
|
(73,809)
|
|
Depreciation and amortization
|
5
|
|
(28,475)
|
(27,692)
|
(108,902)
|
(123,255)
|
|
General and administrative expenses
|
|
|
(3,993)
|
(2,764)
|
(17,448)
|
(16,889)
|
|
Total operating expenses
|
|
$
|
(98,957)
|
(100,173)
|
(367,447)
|
(399,455)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)/ income
|
|
$
|
44,419
|
67,721
|
193,110
|
74,204
|
|
|
|
|
|
|
|
|
|
Share of profit from associated companies
|
|
|
-
|
-
|
-
|
1,327
|
|
Interest income
|
|
|
908
|
886
|
4,485
|
1,076
|
|
Interest expense
|
|
|
(9,194)
|
(6,462)
|
(33,061)
|
(26,197)
|
|
Fair value gain/(loss) on derivative financial liabilities
|
|
|
-
|
56
|
(504)
|
14,983
|
|
Other financial (expense)/income
|
|
|
(599)
|
(272)
|
(1,984)
|
(2,826)
|
|
Profit/(loss) before tax
|
|
$
|
35,534
|
61,929
|
162,046
|
62,567
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(226)
|
(111)
|
(649)
|
(587)
|
|
Profit/(loss) after tax
|
|
$
|
35,308
|
61,819
|
161,397
|
61,979
|
|
Attributable to owners of non-controlling interest
|
|
|
(53)
|
(206)
|
43
|
459
|
|
Attributable to the owners of parent
|
|
$
|
35,361
|
62,025
|
161,353
|
61,520
|
|
|
|
|
|
|
|
|
|
Attributable to the owners of parent
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share
|
|
|
0.22
|
0.38
|
0.99
|
0.37
|
|
Diluted earnings/(loss) per share
|
|
|
0.22
|
0.38
|
0.99
|
0.37
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares (basic)
|
|
|
160,999,542
|
162,653,339
|
162,178,499
|
164,692,954
|
|
Weighted average number of shares (diluted)
|
|
|
161,206,487
|
162,940,784
|
162,356,735
|
164,850,091
|
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
($ in thousands)
|
|
|
|
Q4 2023
|
Q4 2022
|
12 months 2023
|
12 months 2022
|
|
|
Note
|
|
Oct. 1 - Dec. 31, 2023
|
Oct. 1 - Dec. 31, 2022
|
Jan. 1 - Dec. 31, 2023
|
Jan. 1 - Dec. 31, 2022
|
|
Profit/(loss) after tax
|
|
$
|
35,308
|
61,819
|
161,397
|
61,979
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to income statement:
|
|
|
|
|
|
|
|
Remeasurement of defined benefit obligation (loss)
|
|
|
(494)
|
(101)
|
(494)
|
(101)
|
|
Total
|
|
$
|
(494)
|
(101)
|
(494)
|
(101)
|
|
Items that may be reclassified subsequently to income statement:
|
|
|
|
|
|
|
|
Exchange gain/(loss) on translation of foreign currency
|
|
|
|
|
|
|
|
denominated associate and subsidiary
|
|
|
277
|
637
|
115
|
101
|
|
Total
|
|
$
|
277
|
637
|
115
|
101
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(loss)
|
|
$
|
(217)
|
535
|
(380)
|
(1)
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) for the period
|
|
$
|
35,090
|
62,354
|
161,017
|
61,979
|
|
|
|
|
|
|
|
|
|
Attributable to owners of non-controlling interest
|
|
$
|
92
|
80
|
95
|
523
|
|
Attributable to the owners of parent
|
|
$
|
34,999
|
62,274
|
160,922
|
61,456
|
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED)
($ in thousands)
|
|
|
|
Q4 2023
|
Q4 2022
|
12 months 2023
|
12 months 2022
|
|
|
Note
|
|
Oct. 1 - Dec. 31, 2023
|
Oct. 1 - Dec. 31, 2022
|
Jan. 1 - Dec. 31, 2023
|
Jan. 1 - Dec. 31, 2022
|
|
CASH FLOW FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Profit/(loss) after tax
|
|
$
|
35,308
|
61,819
|
161,397
|
61,979
|
|
|
|
|
|
|
|
|
|
Items included in net income not affecting cash flows
|
|
|
29,853
|
28,158
|
114,903
|
94,363
|
|
Depreciation and amortization
|
5
|
|
28,475
|
27,692
|
108,902
|
123,255
|
|
Amortization of deferred debt issuance cost
|
|
|
749
|
624
|
2,972
|
2,902
|
|
(Gain) / loss, disposal of property, plant and equipment
|
|
|
-
|
-
|
18
|
-
|
|
(Gain) / loss, sale of vessels
|
|
|
-
|
-
|
-
|
(19,513)
|
|
Fair value (gain)/loss on derivative financial instruments
|
|
|
-
|
(56)
|
504
|
(14,983)
|
|
Impairment of equity accounted investment
|
|
|
-
|
-
|
-
|
637
|
|
Compensation related to options and restricted stock
|
|
|
650
|
608
|
3,233
|
4,133
|
|
Net foreign exchange differences
|
|
|
(21)
|
(41)
|
(32)
|
(73)
|
|
(Gain) / loss modification of debt
|
|
|
-
|
(669)
|
(693)
|
(669)
|
|
Share of profit in associated companies
|
|
|
-
|
-
|
-
|
(1,327)
|
|
Income adjusted for non-cash items
|
|
$
|
65,161
|
89,977
|
276,300
|
156,342
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities
|
|
|
(22,894)
|
282
|
(24,889)
|
(28,437)
|
|
Accounts receivable and accrued revenues
|
|
|
(20,164)
|
(9,028)
|
(16,383)
|
(28,703)
|
|
Capitalized voyage expenses
|
|
|
268
|
924
|
250
|
(1,403)
|
|
Prepaid expenses
|
|
|
(4,535)
|
(44)
|
(3,007)
|
(3,537)
|
|
Accounts payable and accrued expenses
|
|
|
(2,298)
|
4,135
|
(4,937)
|
5,641
|
|
Deferred shipping revenues
|
|
|
-
|
1,116
|
222
|
(693)
|
|
Bunker inventory
|
|
|
3,977
|
3,282
|
(738)
|
327
|
|
Pension liability
|
|
|
(143)
|
(104)
|
(295)
|
(68)
|
|
Net cash provided by operating activities
|
|
$
|
42,267
|
90,259
|
251,411
|
127,906
|
|
|
|
|
|
|
|
|
|
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Investment in vessels
|
|
|
(2,185)
|
(725)
|
(128,081)
|
(9,902)
|
|
Proceeds from sale of vessels
|
|
|
-
|
(767)
|
-
|
112,399
|
|
Investment in subsidiaries
|
|
|
-
|
-
|
-
|
(2)
|
|
Acquisition of subsidiary, net of cash paid
|
|
|
-
|
-
|
-
|
8,267
|
|
Investment in other property, plant and equipment
|
|
|
(17)
|
(146)
|
(152)
|
(243)
|
|
Net cash (used in)/provided by investing activities
|
|
$
|
(2,202)
|
(1,638)
|
(128,233)
|
110,518
|
|
|
|
|
|
|
|
|
|
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Cash dividends paid
|
6
|
|
(30,590)
|
(6,506)
|
(186,672)
|
(19,679)
|
|
Dividends paid to non-controlling interest
|
|
|
-
|
-
|
(590)
|
-
|
|
Repayment principal element of lease liability
|
|
|
(342)
|
(359)
|
(1,424)
|
(1,090)
|
|
Issuance of long-term debt
|
4
|
|
23,950
|
4,008
|
339,633
|
4,008
|
|
Purchase of treasury shares
|
6
|
|
-
|
-
|
(18,808)
|
(24,758)
|
|
Proceeds from sale of derivatives
|
|
|
-
|
-
|
3,256
|
-
|
|
Scheduled repayment of long-term debt
|
|
|
(8,838)
|
(2,463)
|
(24,427)
|
(9,454)
|
|
Prepayment of long-term debt
|
4
|
|
(23,715)
|
(23,715)
|
(68,715)
|
(96,840)
|
|
Repayment of long-term debt refinancing
|
|
|
-
|
-
|
(216,761)
|
-
|
|
Repayment of long-term debt, sale of vessels
|
|
|
-
|
-
|
-
|
(25,531)
|
|
Net cash used in financing activities
|
|
$
|
(39,535)
|
(29,035)
|
(174,507)
|
(173,343)
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
529
|
59,586
|
(51,329)
|
65,081
|
|
Net foreign exchange difference
|
|
|
289
|
654
|
119
|
209
|
|
Cash and cash equivalents at beginning of period
|
|
|
73,920
|
65,708
|
125,948
|
60,658
|
|
Cash and cash equivalents at end of period
|
|
$
|
74,738
|
125,948
|
74,738
|
125,948
|
|
|
|
|
|
|
|
|
|
Specification of items included in operating activities:
|
|
|
|
|
|
|
|
Interest paid
|
|
|
8,919
|
7,026
|
29,480
|
23,450
|
|
Interest received
|
|
|
1,855
|
1,290
|
5,076
|
1,481
|
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
($ in thousands, except shares)
|
|
|
|
|
|
|
Paid-in
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Treasury
|
|
Accumulated
|
|
Translation
|
|
Other
|
|
Controlling
|
|
Total
|
|
|
Note
|
Shares
|
|
Amount
|
|
Capital
|
|
Shares
|
|
Deficit
|
|
Differences
|
|
Reserves
|
|
Interest
|
|
Equity
|
|
Balance at January 1, 2022
|
|
166,126,770
|
$
|
1,661
|
$
|
1,264,000
|
$
|
-
|
$
|
(222,405)
|
$
|
101
|
$
|
3,968
|
$
|
34
|
$
|
1,047,359
|
|
Profit/(loss) after tax
|
|
|
|
|
|
|
|
|
|
61,520
|
|
|
|
|
|
459
|
|
61,979
|
|
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
(101)
|
|
37
|
|
|
|
64
|
|
(1)
|
|
Total comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
61,419
|
|
37
|
|
|
|
523
|
|
61,979
|
|
Cash dividends declared and paid
|
|
|
|
|
|
|
|
|
|
(19,679)
|
|
|
|
|
|
|
|
(19,679)
|
|
Purchase of treasury shares
|
|
|
|
|
|
|
|
(24,758)
|
|
|
|
|
|
|
|
|
|
(24,758)
|
|
Adjustment related to non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,452
|
|
4,452
|
|
Retirement of treasury shares
|
|
(4,326,379)
|
|
(43)
|
|
(24,715)
|
|
24,758
|
|
|
|
|
|
|
|
|
|
-
|
|
Compensation related to options and restricted stock
|
|
852,948
|
|
9
|
|
4,469
|
|
|
|
|
|
|
|
(345)
|
|
|
|
4,133
|
|
Balance at December 31, 2022
|
6
|
162,653,339
|
$
|
1,627
|
$
|
1,243,754
|
$
|
-
|
$
|
(180,664)
|
$
|
138
|
$
|
3,623
|
$
|
5,008
|
$
|
1,073,486
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2023
|
|
162,653,339
|
$
|
1,627
|
$
|
1,243,754
|
$
|
-
|
$
|
(180,664)
|
$
|
138
|
$
|
3,623
|
$
|
5,008
|
$
|
1,073,486
|
|
Profit/(loss) after tax
|
|
|
|
|
|
|
|
|
|
161,353
|
|
|
|
|
|
43
|
|
161,397
|
|
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
(494)
|
|
63
|
|
|
|
52
|
|
(380)
|
|
Total comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
160,859
|
|
63
|
|
|
|
95
|
|
161,017
|
|
Cash dividends declared and paid
|
|
|
|
|
|
|
|
|
|
(186,672)
|
|
|
|
|
|
(590)
|
|
(187,262)
|
|
Purchase of treasury shares
|
6
|
|
|
|
|
|
|
(18,808)
|
|
|
|
|
|
|
|
|
|
(18,808)
|
|
Retirement of treasury shares
|
6
|
(2,209,927)
|
|
(22)
|
|
(18,786)
|
|
18,808
|
|
|
|
|
|
|
|
|
|
-
|
|
Compensation related to options and restricted stock
|
|
556,130
|
|
6
|
|
3,285
|
|
|
|
|
|
|
|
(57)
|
|
|
|
3,233
|
|
Balance at December 31, 2023
|
6
|
160,999,542
|
$
|
1,610
|
$
|
1,228,254
|
$
|
-
|
$
|
(206,477)
|
$
|
201
|
$
|
3,566
|
$
|
4,513
|
$
|
1,031,667
|
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 2023
Note 1 – General information
DHT Holdings, Inc. (“DHT” or the “Company”) is a company incorporated under the laws of the Marshall Islands whose shares are listed on the New York Stock Exchange. The Company’s principal
executive office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The Company is engaged in the ownership and operation of a fleet of crude oil carriers.
The unaudited interim condensed consolidated financial statements were approved by the Company’s Board of Directors (the “Board”) on February 6, 2024, and authorized for issue on February 6, 2024.
Note 2 – General accounting principles
The interim condensed consolidated financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with DHT’s
audited consolidated financial statements included in its Annual Report on Form 20-F for 2022. The interim results are not necessarily indicative of the results for the entire year or for any future periods.
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board
(“IASB”).
The interim condensed consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments that have been measured at fair value. The
accounting policies applied in these condensed consolidated interim financial statements are consistent with those presented in the 2022 audited consolidated financial statements.
These interim condensed consolidated financial statements have been prepared on a going concern basis.
Application of new and revised International Financial Reporting Standards (“IFRSs”)
New and amended standards and interpretations that are issued are disclosed below.
|
o |
Amendments to IAS 1 Classification of Liabilities as Current or Non-current
|
These amendments are effective for annual periods beginning on or after January 1, 2024. The Company has not early adopted the amendments and the Company does not expect the amendments to have any
impact on the presentation of the Company’s consolidated financial statements and disclosures when the amendments become effective.
|
o |
Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
|
The Company has adopted the amendments to IAS 8, effective for annual periods beginning on or after January 1, 2023. These amendments have no impact on the interim condensed consolidated financial
statements.
|
o |
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
|
The Company will adopt the amendments to IAS 1 and IFRS Practice Statement 2, effective for annual periods beginning on or after January 1, 2023. These amendments have no impact on the interim
condensed consolidated financial statements.
Note 3 – Segment reporting
DHT’s primary business is owning and operating a fleet of crude oil tankers, with a secondary activity of providing technical management services. Management organizes and manages the entity as one
segment based upon the magnitude of services provided. The Company’s Chief Operating Decision Maker (“CODM”), being the President & Chief Executive Officer, reviews the Company’s operating results on a consolidated basis as one operating segment
as defined in IFRS 8 Operating Segments.
The below table details the Company’s total revenues:
|
$ in thousands
|
|
Q4 2023
|
Q4 2022
|
2023
|
2022
|
|
Time charter revenues1
|
|
16,650
|
18,582
|
74,989
|
75,790
|
|
Voyage charter revenues
|
|
125,643
|
147,940
|
481,087
|
374,592
|
|
Shipping revenues
|
|
142,292
|
166,522
|
556,075
|
450,381
|
|
Other revenues2
|
|
1,084
|
1,373
|
4,481
|
3,764
|
|
Total revenues
|
|
143,376
|
167,894
|
560,556
|
454,146
|
1Time charter revenues is presented in accordance with IFRS 16 Leases, while the portion of time charter revenues related to technical management
services, equaling $3.9 million in the fourth quarter of 2023, $4.9 million in the fourth quarter of 2022, $19.0 million in 2023 and $19.1 million in 2022 is recognized in accordance with IFRS 15 Revenue from Contracts with Customers.
2Other revenues mainly relate to technical management services provided.
As of December 31, 2023, the Company had 24 vessels in operation; five vessels were on time charters and 19 vessels operating in the spot market.
Information about major customers:
For the period from October 1, 2023, to December 31, 2023, five customers represented $26.6 million, $24.6 million, $19.4 million, $10.2 million, and $8.4 million, respectively, of the Company’s
shipping revenues. The five customers in aggregate represented $89.2 million, equal to 63 percent of the shipping revenues of $142.3 million for the period from October 1, 2023, to December 31, 2023.
For the period from January 1, 2023, to December 31, 2023, five customers represented $87.4 million, $84.5 million, $71.3 million, $57.6 million, and $39.7 million, respectively, of the Company’s
total revenues. The five customers in aggregate represented $340.5 million, equal to 61 percent of the total revenue of $556.1 million for the period from January 1, 2023, to December 31, 2023.
For the period from October 1, 2022, to December 31, 2022, five customers represented $37.8 million, $29.9 million, $18.6 million, $10.4 million, and $6.6 million, respectively, of the Company’s
total revenues. The five customers in aggregate represented $103.2 million, equal to 62 percent of the total revenue of $166.5 million for the period from October 1, 2022, to December 31, 2022.
For the period from January 1, 2022, to December 31, 2022, five customers represented $80.2 million, $68.8 million, $27.4 million, $26.9 million, and $19.8 million, respectively, of the Company’s
total revenues. The five customers in aggregate represented $223.1 million, equal to 50 percent of the total revenue of $450.4 million for the period from January 1, 2022, to December 31, 2022.
Note 4 – Interest bearing debt
As of December 31, 2023, DHT had interest bearing debt totaling $428.7 million.
Scheduled debt repayments
|
|
|
Interest
|
|
Q1
|
Q2-Q4
|
|
|
|
|
|
$ in thousands
|
|
rate
|
Maturity |
2024
|
2024
|
2025
|
2026
|
Thereafter
|
Total
|
|
Credit Agricole Credit Facility
|
SOFR +
|
2.05%
|
2028 |
625
|
1,875
|
2,500
|
2,500
|
27,500
|
35,000
|
|
Danish Ship Finance Credit Facility1
|
SOFR + CAS5 +
|
2.00%
|
2025 |
-
|
2,427
|
26,693
|
-
|
-
|
29,120
|
|
ING Credit Facility2
|
SOFR +
|
1.90%
|
2029 |
6,250
|
18,750
|
25,000
|
25,000
|
160,150
|
235,150
|
ING Credit Facility
|
SOFR +
|
1.80% |
2029
|
750 |
2,250 |
3,000 |
3,000 |
35,250 |
44,250 |
|
Nordea Credit Facility3
|
SOFR + CAS4 +
|
1.90%
|
2027 |
-
|
-
|
23,715
|
23,715
|
46,091
|
93,521
|
|
Total
|
|
|
|
7,625
|
25,302
|
80,908
|
54,215
|
268,991
|
437,041
|
|
Unamortized upfront fees bank loans
|
|
|
|
|
|
|
|
|
(8,315)
|
|
Total interest bearing debt
|
|
|
|
|
|
|
|
|
428,726
|
1 Semiannual installment
2 $51.1 mill. undrawn as of December 31, 2023.
3 $141.9 mill. undrawn as of December 31, 2023.
4 Credit Adjustment Spread (CAS) of 0.26%.
5 Credit Adjustment Spread (CAS) of 0.48%.
ING Credit Facility
In January 2023, the Company entered into a new $405 million secured credit facility, including a $100 million uncommitted incremental facility, with ING, Nordea, ABN AMRO, Credit Agricole, Danish Ship Finance and SEB, as lenders, ten wholly owned
special-purpose vessel-owning subsidiaries as borrowers, and DHT Holdings, Inc., as guarantor. Borrowings bear interest at a rate equal to SOFR plus a margin of 1.90% and is repayable in quarterly installments of $6.3 million with maturity in January
2029.
In the third quarter of 2023, the Company drew down $55 million under the revolving credit facility, which was applied towards the delivery of DHT Appaloosa and general corporate purposes. Further, the Company entered into a $45 million senior
secured credit facility under the incremental facility, with ING, Nordea, ABN AMRO, Danish Ship Finance and SEB, as lenders, one wholly owned special-purpose vessel-owning subsidiary as borrower, and DHT Holdings, Inc., as guarantor. Borrowings bear
interest at a rate equal to SOFR plus a margin of 1.80% and is repayable in quarterly installments of $0.75 million with maturity in January 2029. The draw down of the $45 million senior secured credit facility was applied to repay the revolving
credit facility. In the fourth quarter of 2023, the Company drew down $24 million under the revolving credit facility which was subsequently repaid in January 2024.
Credit Agricole Credit Facility
The credit facility is repayable in quarterly installments of $0.6 million with final payment of $22.5 million in addition to the last installment in December 2028.
Danish Ship Finance Credit Facility
The credit facility is repayable in semiannual installments of $1.2 million and a final payment of $24.3 million in addition to the last installment in November 2025. In October 2023, we entered into an amended and
restatement agreement in relation with the LIBOR cessation. The credit facility bear interest at a rate equal to SOFR plus CAS plus a margin of 2.00%.
Nordea Credit Facility
The credit facility is repayable in quarterly installments of $5.9 million from the first quarter of 2025, with the final payment of $40.9 million in addition to the last installment of $5.2 million due in the first
quarter of 2027. Additionally, the facility includes an uncommitted “accordion” of $250 million. In June 2023, we entered into an amended and restatement agreement in relation to the LIBOR cessation. The credit facility bear interest at a rate equal
to SOFR plus CAS plus a margin of 1.90%. In the fourth quarter of 2023, the Company prepaid $23.7 million under the Nordea Credit Facility. The voluntary prepayment was made for all regular installments for 2024.
Covenant compliance
The Company's financial covenants as of December 31, 2023, are summarized as follows:
|
|
ING
|
Credit Agricole
|
Danish Ship Finance
|
Nordea
|
|
|
Credit Facility
|
Credit Facility
|
Credit Facility
|
Credit Facility
|
|
Security
|
11 VLCCs
|
1 VLCC
|
1 VLCC
|
11 VLCCs
|
|
Charter free market value of vessels that secure facility must be no less than
|
135% of borrowings
|
135% of borrowings
|
135% of borrowings
|
135% of borrowings
|
|
Value adjusted* tangible net worth
|
$300 million and 25% of value adjusted total assets
|
$300 million and 25% of value adjusted total assets
|
$300 million and 25% of value adjusted total assets
|
$300 million and 25% of value adjusted total assets
|
|
Unencumbered cash of at least
|
Higher of $30 million or 6% of gross interest bearing debt
|
Higher of $30 million or 6% of gross interest bearing debt
|
Higher of $30 million or 6% of gross interest bearing debt
|
Higher of $30 million or 6% of gross interest bearing debt
|
|
Guarantor
|
DHT Holdings, Inc.
|
DHT Holdings, Inc.
|
DHT Holdings, Inc.
|
DHT Holdings, Inc.
|
*Value adjusted is defined as an adjustment to reflect the difference between the carrying amount and the market valuations of the Company's vessels (as determined quarterly by a
broker approved by the financial institution)
As of December 31, 2023, the Company was in compliance with its financial covenants.
Note 5 – Vessels
The carrying values of the vessels may not represent their fair market value at any point in time since the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the cost of
constructing new vessels. Historically, both charter rates and vessel values have been cyclical. The carrying amounts of vessels held and used by us are reviewed for potential impairment or reversal of prior impairment charges whenever events or
changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount of a particular vessel.
Vessels
|
Cost of Vessels
|
|
|
$ in thousands
|
|
|
At January 1, 2023
|
1,933,258
|
|
Transferred from vessels upgrades
|
128,660
|
|
Retirement1
|
(9,040)
|
|
At December 31, 2023
|
2,052,878
|
|
|
|
|
Depreciation and amortization
|
|
|
$ in thousands
|
|
|
At January 1, 2023
|
671,260
|
|
Depreciation and amortization2
|
106,948
|
|
Retirement1
|
(9,040)
|
|
At December 31, 2023
|
769,168
|
|
|
|
|
Carrying Amount
|
|
|
$ in thousands
|
|
|
At January 1, 2023
|
1,261,998
|
|
At December 31, 2023
|
1,283,710
|
1Relates to completed depreciation of drydocking for DHT Bronco, DHT Colt, DHT Mustang, DHT Scandinavia and DHT Stallion.
2 Relates solely to depreciation of vessels, drydocking, and EGCS. Depreciation of office leases and other property, plant, and equipment represents an additional $1,954
thousand, which combined with the depreciation of vessels, drydocking, and EGCS comprises $108,902 thousand in depreciation and amortization.
Advances for vessel and vessel upgrades
Cost of advances for vessel and vessel upgrades relates to acquisition of DHT Appaloosa and prepaid drydocking.
|
Cost of advances of vessel and vessel upgrades
|
|
|
$ in thousands
|
|
|
At January 1, 2023
|
4,583
|
|
Additions
|
124,088
|
|
Transferred to vessels
|
(128,660)
|
|
At December 31, 2023
|
10
|
Note 6 – Stockholders’ equity and dividend payment
|
|
Common stock
|
|
Issued at December 31, 2023
|
160,999,542
|
|
Numbers of shares authorized for issue
|
|
|
at December 31, 2023
|
250,000,000
|
|
Par value
|
$ 0.01
|
Common stock
Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders.
Stock repurchases
No stock repurchases were made in the fourth quarter of 2023. In the third quarter of 2023, the Company purchased 1,137,583 of its own shares in the open market for an aggregate consideration of $9.9 million, at an
average price of $8.72. In the second quarter of 2023, the Company purchased 1,072,344 of its own shares in the open market for an aggregate consideration of $8.8 million, at an average price of $8.25 per share. All
shares were retired upon receipt. No stock repurchases were made in the first quarter of 2023.
No stock repurchases were made in the fourth quarter of 2022. In the third quarter of 2022, the Company purchased 1,499,608 of its own shares in the open market for an aggregate consideration of $8.8 million, at an average price of $5.87. In the
second quarter of 2022, the Company purchased 2,826,771 of its own shares in the open market for an aggregate consideration of $15.9 million, at an average price of $5.63 per share. All shares were retired upon receipt. No stock repurchases were made
in the first quarter of 2022.
Dividend payments
Dividend payment made during 2023:
|
Payment date
|
Total Payment
|
Per common share
|
|
$ in thousands, except per share amounts
|
|
|
|
November 28, 2023
|
$ 30,590
|
$ 0.19
|
|
August 30, 2023
|
$ 56,661
|
$ 0.35
|
|
May 25, 2023
|
$ 37,487
|
$ 0.23
|
|
February 24, 2023
|
$ 61,935
|
$ 0.38
|
|
Total payments made during 2023
|
$ 186,672
|
$ 1.15
|
Dividend payments made during 2022:
|
Payment date
|
Total Payment
|
Per common share
|
|
$ in thousands, except per share amounts
|
|
|
|
November 29, 2022
|
$ 6,506
|
$ 0.04
|
|
August 30, 2022
|
$ 6,506
|
$ 0.04
|
|
May 26, 2022
|
$ 3,336
|
$ 0.02
|
|
February 24, 2022
|
$ 3,330
|
$ 0.02
|
|
Total payments made during 2022
|
$ 19,679
|
$ 0.12
|
Note 7 – Accounts receivable and accrued revenues
As of December 31, 2023, $75.8 million, consisting mainly of accounts receivable with no material amounts overdue, was recognized as accounts receivable and accrued revenues in the interim
condensed consolidated statement of financial position, compared to $59.5 million as of December 31, 2022.
Note 8 – Deferred shipping revenues
Deferred shipping revenues relate to charter hire payments paid in advance. As of December 31, 2023, $4.4 million was recognized as deferred shipping revenues in the interim condensed consolidated statement of
financial position, compared to $4.2 million as of December 31, 2022.
Note 9 - Financial risk management, objectives, and policies
Note 9 in the 2022 annual report on Form 20-F provides for details of financial risk management objectives and policies.
The Company’s principal financial liability consists of long-term debt with the main purpose being to partly finance the Company’s assets and operations. The Company’s financial assets mainly
comprise cash.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks.
Note 10 – Subsequent events
In January 2024, the Company prepaid $24.0 million under the ING Credit Facility. The voluntary prepayment was made under the revolving credit facility tranche and may be re-borrowed.
On February 6, 2024, the Board approved a dividend of $0.22 per common share related to the fourth quarter of 2023 to be paid on February 28, 2024, for shareholders of record as of February 21,
2024.