DHT Holdings, Inc. Q4 FY2024 earnings call

• In December, repurchased 1.5 million shares at an average price of $8.89, accretive to earnings and NAV. - Sold older ship DHT Scandinavia for $43.4 million, generating book gain of ~$19.8 million. - Paid $12.8 million in installments under newbuilding program in 2024. - Secured one-year time charter for DHT China at $40,000 per day. - Dividend for Q4 2024 declared at $0.17 per share, 60th consecutive quarterly cash dividend. - Updated estimated P&L and cash breakeven levels for 2025, with discretionary cash flow for general corporate purposes. - Market commentary on tight VLCC fleet, impact of sanctions on trade, and improving refining margins in China.

For the fourth quarter ended, DHT Holdings achieved TCE revenues of $85.5 million and EBITDA of $60.6 million. Net income was $54.7 million ($0.34 per share), adjusting for a non-cash reversal of prior impairment charges to $26.8 million ($0.17 per share). Vessel operating expenses were $20 million and G&A was $5.6 million. For the full year 2024, net income was $181.5 million ($1.12 per share), adjusting for non-cash reversal to $153.6 million ($0.95 per share). Cash flow highlights for Q4 included $60.6 million EBITDA, $35.5 million cash dividend, $13.2 million share buybacks, and ended with $78 million in cash.

• Estimated annual depreciation for 2025 to be about $110 million. - Booked 604 time charter days for Q1 2025 at $41,700 per day, 1,475 spot days with 74% booked at average $36,400. - Spot terminal breakeven for Q1 estimated at $21,700 per day. - Order book for new VLCCs benign, with deliveries in subsequent years.

• Market risks due to fluctuations in freight rates and capital markets. - Impact of sanctions on trade and vessel operations. - Uncertainties related to the shadow fleet and sanctioned vessels affecting market dynamics. - Risks associated with the sale and monetization of older vessels.

Q: About derisking older vessels, thoughts on monetizing vs time charter?

A: Two 2007 ships on time charter, third in spot market; might divest others depending on time and price.

Q: Financing plan for new builds and interest in time charters?

A: Base financing $60 million per vessel, negotiations ongoing; significant interest in time charters.

Q: Recent jump in VLCC rates, drivers?

A: Sentiment, inventory changes in China, tightening fleet.

Q: Capital allocation, buybacks vs other opportunities?

A: Buybacks in Dec due to market dislocation; proceeds from ship sale for investment, buybacks, or debt prepayment.

Q: Effect of sanctions on VLCC rates and shadow fleet?

A: Sanctions affecting port access, changing oil procurement; shadow fleet inefficient.

Q: Impact of Russian oil availability on VLCC market?

A: Russian oil restrictions affected VLCC usage; potential redirection could impact market.

Q: Impact of Chinese shipyards blacklist?

A: Uncertain, no clear impact seen