Impairment charge and sales losses hit DHT’s bottom line

Feb 09 2018


DHT Holdings reported a net loss of $7.5 mill for the fourth quarter of last year, compared with net income of $17.8 mill for 4Q16.

However, after adjusting for a non-cash impairment charge of $1.1 mill and a net loss of $3.3 mill related to the sale of the VLCCs ‘DHT Eagle’ and ‘DHT Utah’, the company recorded a net loss for 4Q17 of $3.2 mill.
 
For the full year, the net income was $6.6 mill, compared with $9.3 mill in 2016. After adjusting for a non-cash impairment charge of $8.5 mill and a net loss of $3.5 mill related to the sale of the vessels, DHT reported net income for the year of $18.7 mill.
 
Adjusted EBITDA for the quarter was $33.5 mill, compared with $46.7 mill in 4Q16. Adjusted EBITDA for the full year was $152.1 mill, compared with $209.4 mill for 2016. 
 
DHT’s VLCCs achieved TCE earnings of $23,200 per day in 4Q17 of which the timechartered VLCCs earned $35,800 per day and those operating in the spot market achieved $19,600 per day, the company said. 
 
For the 12 month period, the company’s VLCCs achieved TCE earnings of $27,500 per day of which the timechartered vessels earned $36,800 per day and the VLCCs operating in the spot market achieved $23,800 per day.
 
Thus far in 1Q18, 60% of the available VLCC spot days have been booked at an average rate of $20,000 per day.
 
In November 2017, DHT agreed to sell the three oldest VLCCs - ‘DHT Utah’ and ‘DHT Utik’, both built 2001 and ‘DHT Eagle’ built 2002 to one buyer for $66.5 mill in total. The ‘DHT Utah’ and ‘DHT Eagle’ were delivered to the buyer during 4Q17, while the ‘DHT Utik’ was delivered in January, 2018. 
 
During 4Q17, the company entered into a one year timecharter for the ‘DHT Lotus’ and ‘DHT Edelweiss’ at base rates in line with DHT’s cash breakeven levels, plus profit sharing structures. The two contracts take DHT’s number of VLCCs on timecharters to six for this year.
 
As at 31st December, 2017, the cash balance was $77.3 mill, compared to $109.3 mill as the corresponding date in 2016 .



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