DHT benefits from improved rates

May 02 2014

Large tanker owner DHT Holdings reported shipping revenues of $24.5 mill for the first quarter of 2014, compared to revenues of $19.2 mill in the first quarter of last year. This increase was mainly due to an improvement in rates.

EBITDA came in at $7.6 mill while the company reported a net loss of $0.5 mill in 1Q14, compared with $12.4 mill and a negative $3.1 mill, respectively for the same period of 2013.

Net revenue amounted to $17.9 mill, compared to $12.4 mill in 1Q13.

During 1Q14, the company entered into agreements with Hyundai Heavy Industries for the construction of four VLCCs, including the declaration of an option entered into in 2013.

As a result, the company's orderbook consists of six VLCCs at an average contract price of $95.5 mill each, which includes $2.3 mill per vessel for certain additions and upgrades to the standard specification. The VLCCs are scheduled for delivery in November 2015 and January, April, July, September and October 2016.

DHT currently has a fleet of six VLCCs, two Suezmaxes and two Aframaxes in operation plus the six VLCC newbuildings

On 5th February, 2014 the company completed a registered direct offering of 30,300,000 shares generating net proceeds of around $215.9 mill.

Voyage expenses for 1Q14 were $6.6 mill, compared to voyage expenses of $6.9 mill in 1Q13. Vessel operating expenses were $7.5 mill, compared to $5.4 mill in 1Q13. This increase was mainly due to certain non-recurring positive items in 1Q13 related to the redelivery of vessels from OSG and startup cost related to the delivery of ‘DHT Hawk’ and ‘DHT Falcon’ in 1Q14.

Net cash provided by operating activities for 1Q14 was $10.1 mill, compared to $14.3 mill for the previous-year period. The decline was mainly related to $6.9 mill in deferred income in 1Q13 in connection with the sale of the OSG claim and increase in bunkers inventory in 1Q14 offset by a lower loss and an increase in accounts payable.

At the end of 1Q14, DHT’s cash balance was $220 mill, compared to $75.5 mill at the end of 1Q13.

*Broking sources have reported that DHT is the buyer of Euronav’s VLCCs ‘Antarctica’ and ‘Olympia’, built in 2008 and 2009, respectively.

Euronav had said that the aggregate price for the two vessels was $178 mill without naming the buyer. 

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