DHT hit by impairment charge_

Nov 04 2016


DHT Holdings reported an adjusted EBITDA and an adjusted net income for the third quarter of this year of $29.5 mill and $0.9 mill, respectively, after adjusting for a non-cash impairment charge of $76.6 mill.

Following the impairment charge, DHT reported a net loss for the quarter of $75.7 mill.

The company's VLCCs achieved TCE earnings of $29,700 per day in 3Q16 of which the VLCCs on timecharter achieved $46,700 per day and those operating in the spot market achieved $20,300 per day.

In October, 2016, DHT agreed to sell the ‘DHT Chris’, a 2001 built VLCC for $23.7 mill. The sale was in support of the company's fleet renewal programme. About $11.9 mill of the net proceeds will go to repay debt and has been recorded as current portion of long term debt as of 30th September, 2016.

On 5th Augus, 2016 and 31st August, 2016, respectively, DHT took delivery of two of the last three of its six VLCC newbuildings from Hyundai Heavy Industries (HHI). The vessels - ‘DHT Panther’ and ‘DHT Puma’ - are trading in the spot market. 

A total of $87 mill of debt was drawn in connection with the two vessels. 

During the quarter, the company also refinanced the RBS credit facility totalling $40 mill, which had final maturity in July, 2017. 

The new financing for the ‘DHT Ann’ (2001/VLCC), ‘DHT Chris’ (2001/VLCC), ‘DHT Cathy’ (2004/Aframax) and ‘DHT Sophie’ (2003/Aframax) totalled $40 mill, bears interest at a rate equal to Libor + 2.75% and is repayable in quarterly instalments of $2.1 mill, commencing in December, 2016 with a final payment of $17.3 mill in August, 2019.

The refinancing is structured as a separate tranche of the ‘DHT Leopard’ financing entered into in December, 2015. Subsequent to the sale of ‘DHT Chris’, the credit facility is repayable in quarterly instalments of $1.3 mill with a final payment of $13.6 mill in August, 2019.

In October, 2016, DH entered into a firm commitment for a five-year revolving credit facility with ABN Amro totalling $50 mill to be used for general corporate purposes, including security repurchases and acquisition of ships. The financing bears interest at a rate equal to Libor + 2.50%. 



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