DHT Holdings, Inc. Q1 FY2025 earnings call

• Sold DHT Scandinavia for $43.4 million, recording a $19.8 million capital gain. • Entered two time charter contracts: DHT China (2007) fixed for one year at $40,000/day; DHT Tiger (2017) fixed for one year at $52,500/day. • Declared a $0.15 per share cash dividend, 61st consecutive. • Bookings for Q2 2025: 780 time charter days at $42,200/day; 1,245 spot days with 72% booked at $48,700/day. • Sold DHT Lotus and DHT Peony for $103 million, with gains to be recorded in Q2 and Q3. • Acquired remaining shares in Goodwood Ship Management for $6.1 million. • Entered a $30 million secured reducing revolving facility with Nordea. • Discussed favorable market dynamics with OPEC's impact on freight rates and VLCC fleet demographics.

In the first quarter of 2025, DHT Holdings achieved revenues on TCE basis of $79.3 million and adjusted EBITDA of $56.4 million. Net income was $44.1 million ($0.27 per share), and after adjusting for the $19.8 million gain on sale of vessel (DHT Scandinavia), net profit was $24.3 million ($0.15 per share). Vessel operating expenses were $17.8 million and G&A was $5.5 million. Average TCE for spot market vessels was $36,300 per day, time charters made $42,700 per day, with a combined average of $38,200 per day. The balance sheet was robust with total liquidity of $277 million, financial leverage at 16.9%, and net debt $12.3 million per vessel.

• Expectations for Q2 2025: 780 time charter days at $42,200/day (with profit sharing) and 1,245 spot days with 72% booked at $48,700/day. • Anticipation of favorable market trends due to aging VLCC fleet and OPEC's oil production strategy. • Plans to expand fleet with four new ships in H1 2026, providing additional earnings days.

• Uncertainties in OPEC's oil production impact on freight rates. • Potential impact of sanctions on vessel trading. • Market dynamics risks related to fleet aging and order book levels.

Q: Regarding vessel sales, thoughts on selling to Chinese buyers and Korean vs Chinese built ships?

A: Felt it was an opportune time to fine-tune fleet profile, aligned with customer preferences; investments in ships prioritized over buybacks due to market opportunities.

Q: Thoughts on the Appaloosa contract's duration and profit sharing structure?

A: Excited about the contract, seen as well-balanced with a quality counterparty; reflects customer desire for quality tonnage from DHT, open to similar structures if feasible.

Q: Views on OPEC's production shift and impact on VLCC market, including potential fuel spread and oil curve contango?

A: OPEC's production shift could support freight rates; fuel spread influenced by refining and demand factors; contango in oil curve could drive floating storage but currently too narrow for significant activity.

Q: Impact of potential Iran-U.S. agreement on VLCC market?

A: If sanctions lifted, Iranian barrels would move to compliant fleet; even without a deal, other Middle Eastern producers might step in, both scenarios positive for VLCC business.