DHT - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the Q1 2024 DHT Holdings, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Laila Halvorsen, CFO. Please go ahead.

Laila Halvorsen

you. Thank good and everyone. afternoon, morning Good you Welcome, quarter DHT first joining earnings and Call. thank XXXX Holdings' for I'm DHT's some we will open joined Harfjeld.As for go Moxnes by up through President and financials questions. and your highlights we Svein before CEO, usual, slide today's The with found on get I following remarks. would like can our link deck be dhtankers.com.Before website, to we the the call, started to make our this website, call available dhtankers.com May of will conference replay at A until XX. be

maintain on on a our we balance face.We our leverage to read significant reports earnings financial EDGAR we leverage press low release this are available $XX.X was that the urge the that exhibit At will you In conference based strong represented by vessel. these and matters for information financial in on our as a and about addition, was SEC risks website and be quarter our We end, the We market based system, and debt in current regarding report. factors the for to our on our periodic net These EDGAR very liquidity. on more expectations these reminder, will forward-looking XX.X% reports values call, an may as website discuss including sheet ships, statements. expectations risk highlights. the million per system, with the financial Form our will events some Actual presentation X-K.As available start SEC on materially differ reflected statements forward-looking results nature. in from are on future in forward-looking detailed

million, with revolving achieved EBITDA $XX.X cash $XXX of of at million. over the credit total income million share. TCE $XXX.X ended available Net $XX.X and we of liquidity first $X.XX consisting in per our in $XXX and on of P&L, equal $XX came facilities.Now million to basis under to revenues million The million, quarter

for achieved the quarter cash the flow prepaid the cash per quarter resulting estimated this in the the Ordinary for good million full breakeven $XX,XXX million.We dividend The quarter was expenses cost ended as which is a as with $X,XXX and per the and in G&A XXX% $XX,XXX per capital. XX. highlights. the shareholders trade And we slide, market of control, average side EBITDA. the XX.On per $XX.X changes year per is while were $XX.X day interest, day, estimated for in million day in credit cash and rates per then estimated cash, while and to $XX to facility, dividend, $X.X pleased $XX,XXX was million on the revolving million for the to $XX quarterly repayment of income. be dividend, while cash share May We million marks net cash left $XX,XXX quarter discretionary was cash over DHT XX, cash $X.XX will day, quarterly pay after to and to with predictable ship generated record per ING the for is and charters consecutive shareholders breakeven The in to and started was and through million from in-line on $X.X made $X.X cash $XX.X the first flow maintenance This time TCE cash.Switching we to allocation, vessels in operating XXXX. dividend, in XXth million, equal spot $XX,XXX with our we allocated with dividends. vessels achieved to with quarter for robust per to debt an are a fleet, P&L day.And of continue May payable the breakeven show ordinary on and May We of allocation result for policy earnings, defined shares P&L day. $XX will will $XX.X on the present the a amounted the was policy, million working CapEx.We and capital used capital has to related ex-dividend update million and

the assuming in illustrate dividend slide, about breakeven, side P&L this discretionary in a So means returned we are total the quarterly with I the in over cash the call right per of the of share.And year.On the cash This amounts dividend to updated $XX policy second since that, will of flow for Svein. have vessels we we million shareholders turn the half 'XX. $X.XX to the to

Svein Moxnes Harfjeld

the XX This prominent performance index most index loading spot slide you, discharging market. TDXc spot period, representing lines reports the the in namely quoted a index Laila. the trade, for assessing in compares China. months market the green and index. The and DHT's ledgers VLCC lines illustrate numeric Saudi to largest is Arabia quarter the each our show the last VLCC Thank the when earnings.Several earnings with TDXc index over refer orange and the in The

represent is numbers, ship reference one the index vessel, whole in average from of inferior the could used but see clearly delta. for not earnings DHT's to the appropriate As our power spot an this does index the these earnings. calculation The not is

numbers the geographical this group report the first in of actually reference with trading is oil.One peer for delta X origin $XX,XXX areas get a about to The this in and year. additional the reflects quarter our and this policies is to and peer DHT group competitive that the earnings, related quarterly the illustrate of during what an of to spot average all yet now of respect coming We suspects listed when U.S., usual trading period to customer outlook peer out each top.And peers. is period with speak for with on the and have as we The slide, compared market. The producing part we day.On of other the patterns, similar base consists slide, the spot the the for earnings quarter. over themselves, and DHT second the out to same for previous

we update, on our second day. again. a quarter, but As the per estimated spot updates strengthening total into now path on per booked usual, XX The market days have we the our bit Of $XX,XXX at spot XX% business for is quarter. following days provided current the softened a

the behind relation and the out this higher, about to spot routes see quarter day.As per the close Gulf, with number users Gulf are for likely for should seaborne back systems. are the and cleaning currently stated fitted understand with average gas years, the increasing Far The cost show on VLCCs, trade This now is of The to at XX% North steady focus vessel market assess reassuring to a You spot periods in recent market time breakeven X transportation, slumps is of the per the P&L be lows in of market challenges, $XX,XXX result report, now in Arabian continues XXs is absent on but grinding a Sea average day to above estimated couple cargos with the the rise. to type about now in of excess second the Africa, the of $XX,XXX conduct. to moved to leveling ECO West sailing transported. underscoring is crude main in an America end Red the a market weighted a around VLCCs Sea that We limited the current Good DHT's oil mid-to-high the X of share, being to been exhaust on having month.We is X haul South freight also but parts from market in for in for East tad has year. the unit Hope.There's long Suezmaxes activity gaining but charter particular for Asia Cape Mediterranean with trades, for AG for per fleet.U.S.

there the repetitive. development owners per one about of sum, are than be However, the higher on is estimate increasingly X-year fleet asking charter a we we discussion market good in for And although field now what is market estimated ship of is currently for day. and a confident bids In demographics the $XX,XXX this. of And in mid us.The client on offering time ahead to might be markets. our this, there

presentation of have the with development somewhat illustration. a different We here a

market disappear largely ships calling of to over nominal this are ships due ports, fleet's in years XX% XX numerous over of of the productivity shadow some now we markets.Two, is than southern reach be ships is XX of when This estimated years the its delaying involving cargos trade from age assume rarely have these One, but We engaged the hence, key assumptions. and doing of capacity. applied age. the ships will cargo.And three, some transshipments XX% often they of observations delivery and to

size blue The it's XXX and in shrink ships. been with ships below fleet of of numerous occasions, sizable the peaked that fleet some on As XXX less estimate XXXX age.This shrink coming we markets, fleet we fleet had years the represent year over to When to than our by or the of years. the employed to a is expect we and observations the compliant sub-XX has the is assumptions, applying end its XXXX. -- in XX old part stated probably bars

at in you this in with shadow significant businesses.The trades productivity. haircut transportation of A know, expanding serving but growing a time in happens markets, most demand ships purpose the and well are of the As a oil its

with receded the limited following recent also from apparently in contracting large ship of We VLCCs, contracting interest that tankers activity has take owners the now. note

sailing view.On told other our We of at types the note, book markets The ship now and that fleet some directed we are classes. to interest being our will projects. supporting constructive stands discuss being order newbuilding that is X% VLCC

premium newbuilding additional few expected been have other have in the from of large announced, is contracted orders of DHT.For capacity engine be the different both to to we X This being that we for These is clarity, The economics our ships plan the the of that have VLCCs, are earnings in of quality related deem carrying other and orders better to the orders and deadweight is to again, vessels. newbuilding reported have what declare sake As what ships implying past have top the both for offer Eco-designs shipyards are and when be placed. terms, power to compared for larger of delivery contracted model will for They will reduced all been a most at over we options customers emissions. tankers. that adapted most Super new months.Further, cubic XXXX. no

identify style flow of new priority on from that mortgage projects. stated, DHT new will to operations, in policy net debt. structure.And we to importantly, a DHT.As up assumes is relation the be familiar, with about of last to base of intend financing XXX% And next these with newbuilding $XX support case in should attractive million that our place.This our to and round we debt, plan assumed consists strategy remain by albeit our we not With saying shall so dividend are project any and would new the improving. providing per mortgage robust, cash respect acquisitions good liquidity issue financing capital markets Our second able gradually, be available steadily, vessel opportunities our slide ordinary do are to income

of seems Our out the earnings to to we'll our first increasingly and over results focus and most receded, stick is a on on great new a delivering awarding financial team for supporting And premium meeting offer, to times outlook. have doing the supply ships ships.Contracting of that, markets constructive related job to with getting the you. our in ahead.And what anticipation operations operator, with in rate highly have

Operator

first from Securities. comes of the from Morkedal Frode Clarksons question line Instructions] [Operator Our

Frode Morkedal

mentioned benefiting smaller had diversion Africa we and longer the any VLCCs like I a seeing the from are the on you the know I can see patterns. other And you But elaborate think Suezmax you ton pattern? around do and miles. on been briefly cargos. changes? what question I are taking tankers, VLCC have all that? VLCC trade trading Maybe feel that on you

Svein Moxnes Harfjeld

related to Yes. Sea. Red It's the really

on VLCCs the went As around now Mediterranean I Canal into stated that through large are on of trade the and put typically sort thereby together that being sailing that Suez Africa. ships South -- Suezmax some of

the nevertheless it's adding but So a of you if part of this distances, market, like. smallish is sort

owned head project have -- of the crude where one state would for environment.We it's us transshipments the we others, is the of is in trade current in X -- they head or TMX the have project, this this that to Asia, we is partly expect one West of So to to discussing that companies, say, one Chinese the a been and Canada, on sure the and meaningful sort big that portion fact to of change I'm China, to Coast, south a I this and on particular.And evolve. with VLCCs X/X primary to of of oil base and the this of expect and trade evolving, doorstep equity out over own the Vancouver, oil that that they with then in the further

an that, beyond will is Atlantic. get trend more some interesting that it's addition Guyana in also, So the just at from of really there's the increasing production. point, general coming is barrels market.But a VLCCs. to VLCC more involved -- Petrobras

stimulate So -- sort month, to in some be trade the understand maybe of We mentioned, that grow. couple cargos potentially Korea, as of to in and a a particular. I but although only Sea that, seem with new North will there's back, that incentives

Frode Morkedal

Okay. That's good That's interesting. color.

versus are consumption existing there Can that On quantify fuel Super you Eco. the you the fleet you have? newbuilds, mentioned

Svein Moxnes Harfjeld

no. I answer think is simple the

So with these these of XXXX, our it that we large that are the obviously, But is which be the customers we is, and it sort detailed were class in marked on of last those some a what built features. in vessel interested of ships have, of we sort that will know improvement key ships. discussion all X from is particular in ships

marked it's So a improvement.

these So we're assets and can they deliver. the about see getting what very excited get to water into

Frode Morkedal

those lot I is the improved this arrives. feel say, my market, least, It know sentiment last stock at in sentiment. will the interesting question investor when basically facts on, like shipowners a the we be at as see fair cautious to has recently, say, so among the to Well, see do how speak? mood from fundamentals reflecting now? right let's you least. sentiment But to physical basically the in approach What's world the let's switching

Svein Moxnes Harfjeld

traditional actors, oil an And from Saudi Aramco's one encouraging they a quite elevated, couple being in there around, which they oil what of medium the a secondhand market, so not the of the so their our are be of to ships. plays sort and are. the sort the are ships are a on of bets be tankers role content made of think age seem I'm spectrum I of a state might that company interest and should on market, owned sign have I side all with owners on sort people that's least that the Bahri, of be have them, but in significant think some X state think interest -- done. to still who couple for indication if prices is some the owned have focusing tanker very course, are, are particular, because arm. at their very important newbuilding I they They in on large so expectations general.So seem they to asking There product not need modern shipbuilding side, quite that.The of older ships, -- close authority an market in on the what to are more in modern on you maybe it's or challenge of

Operator

question from of line Nokta Jefferies. the comes from Our Omar next

Omar Nokta

wanted just about VLCCs. ask the just I to

the You other is orders mentioned and market we've seen for from shipowners. kind that of new cooled

has the -- not general or not wanted decided You you And that along in maybe in Why options? cooling exercise exercise a I perhaps option. been there's really maybe of big orders? ask plan call cooling all I on it of, also, to is And to in do then the was just DHT sentiment, towards those terms new think transitioned guess, to terms just but picture. just

Svein Moxnes Harfjeld

DHT. with Cooling has nothing to do

I our think decisions. stand in making we independently

sort So this is event. coinciding of a

this attractive maybe is sort so that falling now looking reason couple not markets some a another. there's maybe are are think market or that much. of for other a of And I

there all reasons. So I seems the that, ships but think to of at now, the details were get can't be give that owners not hoard big also variety of on a a case.But I of order sort you to ready for the go

as all projects to the ships VLCC.So and of maybe had mix as so to capital, of then or they least up it's reasons. still lot those as they when suck industry. a a know yes, from think a seems of And much twice cost at priorities I you are other ship-owning LNG allocation capital ambitions probably came

I out, X least. are no no, deliveries think years, years at lastly, X now really

So 'XX. you're looking into

quickly of is people. to deliver. first that less get be our we ships most for deliveries, done keen that And could deal I we is than think They sort which which also bit X a like turnoff of a -- years a to is ships had have to bit earlier -- the why delivery. would because now -- were

So that attractive. we found

things. of mix a probably it's So

Omar Nokta

Okay. That very was helpful.

Svein Moxnes Harfjeld

But just to add.

will decision know would like yard, ships, a probably several to you go a is options. we of have them. $X.X have but when of so the already you course, -- of you not that, stick in newbuilding And long-term billion, And project maybe one several typically big is or north our so with for So gone -- we this short these of are ahead We've time. for if is them, project financially the really had that offered to company. more been commitment you then it's

a double too So we think of to can on it's would a the big if given. be it. priority a big we find a on this be sort would that, secondhand because that, Hence, point. it commitment if not And up on there's

Omar Nokta

And Clearly, quick Yes. maybe just follow-up. makes sense. one it

is maybe also XX% an the XX XX with over discussion making of there anything that is Just you of over actually something perhaps for -- years age in you're I which vessels -- that? interesting, And you're on line mentioned seeing the vessels productivity. Or that is having assumption future? that thought are the was that similar now? Is

Svein Moxnes Harfjeld

of is this over discharge and not the and load in because happening of This being those XX, fit ships ports the are go trade, are the into now. ships shadow what used. of is over as is we ships For we see XX% these many mentioned, many to that

So lot a into time. takes lot transshipment smaller inefficient. there's all ships. a of this smaller of from It's very And and

the very would utilization sort fleet, between comes its for XX, is that younger it suggest.When productive of, XX to as ships quickly as is So and the capacity as not ships. nominal same

a you is X rate a achieve. this utilization marginal there The productivity. category, is, the modern to the and the is productivity then We difference offered are that and in for at ships and in between change time-to-time, would no XX that XX, have mostly is only discount thing in from no ship efficiency. more freight ship or But there's what

Operator

Instructions] from the [Operator Stifel. from comes Nolan Our question of line next Ben

Benjamin Nolan

I on still about was the about. options actually, to was have or question wanted outstanding. curious Yes, how you the that those follow-up I that just Omar options assuming talking they're long

trying should money think be long Or Just duration possibilities about would place possible get to potentially to to any enough? you those, the and order the at maybe they sort just probably is the it way higher there option not monetize can is if becoming Or resell then price? flip of as that? the and it

Svein Moxnes Harfjeld

No, we did a not communicate had staggered options, times sort they various the of time line of and so those declaration schedule.

will it that. at we leave So

the say would if I think that. today, the be options you money in

those of get, realistically resell to possible.So that to in really you be would I sort declare can between. million or think realistically, paper berths, and a sort of few you it's and a of sell hard have that firm make to for them contract sort them to contracts think

meant if now were I I to have forward, contract than the this an right? avenue, if invest it are priorities of newbuildings as that's at pursue had that to first, mentioned, So And going add to we to additional we going money sort an unrealistic case. think not commit point other And we we to

Benjamin Nolan

I the helpful. And Okay. on it. then That's time-charter just appreciate contracts. secondly,

to of the was been for kind that at mentioned of or standpoint? thin, me, get a And of discount about that there. it -- expect put trading the market a which and that it's something tighter? into a the the the while especially move how margin you rate seems narrow spot are You especially between we the to bit positioned normally spot year the charter versus to like things has surprising back from contracted least, given fleet as out that -- where market the and thinking you would be sort Is just little you -- half you where

Svein Moxnes Harfjeld

solid that think of are, expectations sort that is shipowners future. the quality in-house these aspect they one here businesses, with eligible so term quite for operations, ships to I say, for have

we So X-year quite spread the came project where is for average, company looking oil bid at charter in that believe, think where asking for bids, in of ships. an call is wide.There one project might currently All although That's let's is more one the probably or have details. market it believe, clear a But around ask we I market prices. we the in the the mid-XXs. XX, don't so is. the like sort And a

market be but that for X as a them for to to market ships So bit bid would upcycle let's I evolve. see early it's to ask, to so, if think happen.So will more secure coming attractive this this think it's truly I years, secure will but in result the because for think end a try I of it X will eventually tonnage, years also project users be to evolves, there

Benjamin Nolan

how from percentage be where your of would you you you fleet? -- positioned are do where sort And like thinking of about a to

Svein Moxnes Harfjeld

that So income the clear prefer to building we a as income but it's of stated we fixed term company, ambition -- longer be we have before, for more of fixed nature.

-- right inquiries X-year we charters. for are X-year -- to the not the charters. for our are typically money so entertaining, so there there we looking customer right that customers involves base look finer also, will do for for So, details for things.But but course, of And ship, say, us term or charters

right in put should market to us to try you this bet. evolving, work to that hard So assuming expect then are some to of we that

Operator

Collier. comes from of Haugen the from question Instructions] ABG next [Operator Sundal line Our Petter

Petter Haugen

from question quick prices here. me A on

between a been could We've yard told that, also mean Svein, options, to obviously. it quantify expect? fresh coming of for deliveries would VLCC. us you but And with But newbuilding actually now markets, please, ask there help discrepancies you the to what what in then timing were if geographies, should not are So the

Svein Moxnes Harfjeld

and Those of the ships asking of be $XXX As ton Korea, if are for that yards for you XXX,XXX will is north go essentially designs. delivery. to 'XX million,

smaller i.e. ships ordered. we sort excludes headline than So the of have the scrubber. the also And price

call of So course, the for I you right? yards be negotiations. would this basis they excludes XXX-ish to price that for the those I ship. X in smaller negotiation, it be it with also would yards, also is China, China, 'XX think, I think delivery. is, X down have X, of start handle all for will But but asking top to of, the typically, And asking happen.If go sort the it today, -- will also again, I to scrubber, to a to make it That

out yards that are for China the running delta of So top 'XX. is delivery.Some space of their the and in price

not tighter whereby a that least the than be have other content at so. the entertaining more their seem Korean actually yards, to inquiries and they backlog X of So all any Korean and backlog with really one excitement, to yards

Petter Haugen

illicit black equivalents were ] retrieve [ do Okay. in gray would the TCE if you fleets, as fleets That's And follow-up, quick sort what trading will, business? helpful. you to a just very of or you if

Svein Moxnes Harfjeld

into We're not venturing that.

not we're it. smell even to So trying

lump-sum paid being markets. that sort here bit but it, being compliant the is, there it So of a and -- in -- done are, call the some are twice told and we of it's time are then what what what we freights course, is big in those little public of And capital, are the are sort running. it's rigs invested and the very forth? leading companies deliver down But ships how of to of to take it cargo does long different of the and to sort course, so being

guess, returns quite it. doing they're are So which I is attractive, why the

Operator

further this at time. no are There questions

I'll the closing back So to remarks. call hand for Svein

Svein Moxnes Harfjeld

a day you the tuned everyone much to wishing to good staying listening very and for DHT, who's ahead. thank and thank Bye-bye. been all to us, you Well, call on

Operator

conference This for participating. concludes today's call. you Thank

may You Speakers disconnect. standby. now please

DHT (DHT) 15 May 242024 Q1 Earnings call transcript