DHT Holdings, Inc. (DHT) Earnings

Management highlights

- Delivered first three of four new Antelope class buildings: DHT Antelope in Jan, DHT Addax and DHT Gazelle in Mar; fourth expected summer. - Sold three oldest ships built in 2007, last one (DSG Bahinia) sold for $51.5 million in Q1, expected to deliver in Jun-Jul, expecting capital gain of $34.2 million and cash proceeds of $50.5 million. - Secured numerous contracts: extended time charter for DSG Harrier, secured three new one-year time trackers, one new building into five to seven-year time tracker, subsequent to quarter end secured two additional one-year time charters for two ships with average rate $109,000 per day; five older ships on one-year time charters averaging $101,000 per day. - Board approved dividend of 64 cents per share for Q1 2026, 65th consecutive quarterly cash dividend. - Estimated P&L breakeven for last three quarters of 2026 at 29,700 per day, cash breakeven at 23,400 per day. - Expected 997 times charter days covered for Q2 2026 at avg $73,900 per day (including profit sharing), 1,025 spot days with 88% booked at avg $168,300 per day; spot P&L breakeven less than zero. - 2026 dry dock schedule: seven vessels scheduled; DHT Lion completed second special survey and dry dock in Q1 on time; four vessels scheduled for second special survey and dry dock, two for third; well-planned, doesn't change fleet availability or cash flow generation. - Current market pillars: basic supply-demand fundamentals support freight rates; strategic fleet consolidation; risk premiums from regional hostilities; near-term loss in crude oil available from Middle East Gulf. - Future catalysts: sanction relief and trade normalization; fleet modernization and demolition; energy security and inventory replenishment. - Strategic positioning: positioned fleet for first half of 2026 to seize spot market rewards and secure term employment; delivery of new buildings well-timed; disciplined capital allocation policy to pay 100% of ordinary net income as dividends.

Guidance

- Estimated P&L breakeven for last three quarters of 2026 at 29,700 per day, cash breakeven at 23,400 per day. - Expected 997 times charter days covered for Q2 2026 at avg $73,900 per day (including profit sharing), 1,025 spot days with 88% booked at avg $168,300 per day; spot P&L breakeven less than zero.

Segment performance

In Q1 2026, revenues on TCE basis were 157 million. Adjusted EBITDA was 133 million. Net income was 164.5 million ($1.02 per share). After adjustments, ordinary net income was 103.4 million (64 cents per share). Vessel operating expenses were 19.1 million (including ~2 million non-recurring costs), G&A was 5 million. Vessels trading in stock market earned avg $91,700 per day, on time charters $61,300 per day, average combined TCE for fleet $78,800 per day. Total liquidity at end of Q1 was 350 (126 million cash + 230 million available under RCFs; after repayment, availability was 285.8 million). Financial leverage was 16.8% based on market values for fleet, net debt was 16.5 million per vessel. Cash flow: began with 79 million cash, generated $133 million EBITDA from ops, repaid debt/cash interest $20 million, received $101 million from sale of DHC Europe and DHC China, distributed $66 million as dividend, invested 2.8 million in vessels, deployed 160 million in vessels under construction, issued 91.5 million in long-term debt, changes in working capital etc were 30 million, ended with 126 million cash.

Risks & headwinds

- Regional hostilities involving Iran introduce risk premiums on certain trade routes, causing earnings differences between routes. - Near-term loss in crude oil available for transportation from Middle East Gulf could be compensated by reduced vessel productivity but still a risk. - Uncertainty regarding resolution of conflicts in the region, including ships trapped in the Gulf and need for safe passage to demonstrate normalcy.

Analyst Q&A

• Q: Asked about Gazelle rate (explicit agreement not to disclose) and whether to keep remainder of fleet in spot.

  A: Gazelle rate can't be disclosed; for 2026, closing in on 50% cover on time charter, partly in spot with profit sharing, content with current positioning.

• Q: Asked about operational challenges/opportunities with headline rates, waiting time, ballast time, bunker fuels.

  A: TD3C route not widely operational, some derivative pricing on other routes; DHT kept fleet efficient, no excessive ballast/cost, done business from Atlantic.

• Q: Asked about continued fleet growth, on-the-water opportunities.

  A: Happy with current fleet, balance sheet able for growth but hard to find opportunities as sellers retain ships for earnings.

• Q: Asked about activity return to Gulf after Iran conflict, mariner risk, insurance coverage.

  A: Need credibility to conflict resolution, ships trapped in Gulf need to exit safely, process will take time.

• Q: Asked about risk premium across routes, willingness to transact in certain areas.

  A: Entertaining trades inside Strait of Ormus not discussed; risk premium on Jandu and Fujairah routes has normalized.

• Q: Asked about permanence of new routes, impact on market long term.

  A: Yandu route not new, similar duration; Fujairah's future depends on UAE's exit from OPEC, may have downward pressure on oil price.

• Q: Asked about profit sharing on long-term charters, how profit sharing number is determined.

  A: Don't disclose contract details, profit sharing calculated on ship's specs, index-based, no frustration in contracts due to recent changes.