DHT remains in the red

Nov 03 2018

DHT Holdings has reported a net loss for the third quarter of this year of $21.5 mill.

The net result was affected by a non-cash finance expense of $3.6 mill related to the private exchange of convertible notes due 2019 and a non-cash impairment charge of $3.5 mill related to the planned sale of ‘DHT Cathy’ and ‘DHT Sophie’.

Adjusted EBITDA for the quarter was $25.1 mill.

DHT's VLCCs achieved TCE earnings of $19,600 per day in 3Q18 of which the company's VLCCs on timecharter earned $22,500 per day and the VLCCs operating in the spot market achieved $18,500 per day.

Thus far in the 4Q18, 66% of the available VLCC spot days were booked at an average rate of $32,700 per day.

On 8th October, 2018 DHT took delivery of ‘DHT Mustang’, the second of two VLCC newbuildings from HHI. A total of $51.4 mill of debt was drawn in connection with the delivery.

Following this, the company has no further newbuildings to come.

Also in October, the company entered into agreement to install scrubbers on four additional VLCCs. The systems will be installed on ships built between 2006 and 2011 and the fittings will be conducted during 2019.

DHT will have a total of 18 VLCCs fitted with scrubbers when the IMO sulfur cap will be implemented 1st January, 2020.

In the same month, DHT has agreed the main terms to sell ‘DHT Cathy’ and ‘DHT Sophie’ for $24.3 mill en bloc. They are expected to be delivered to the buyer in 4Q18.

DHT has recorded an impairment of $3.5 mill in 3Q18 in connection with the expected sale. The vessels carry combined debt of $8.7 mill and the company will net about $15.4 mill in cash from the expected sale. The outstanding debt will be repaid.  

Subsequent to the quarter end, DHT extended timecharters for two of its VLCCs to an oil major for periods of three to four years.  

The vessels are to be fitted with scrubbers and have been extended with fixed base rates plus market related profit sharing structures that include the commercial benefits of the scrubbers. 





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