DHT Holdings announces robust Q1 2024 financials By Investing.com

DHT Holdings, Inc. (NYSE:) announced strong financial results in its first-quarter 2024 earnings call, with revenues reaching $106.3 million on a Time Charter Equivalent (TCE) basis and net income totaling $47.1 million, or $0.29 per share. The company boasts a solid balance sheet, low leverage, and significant liquidity, ending the quarter with $289 million in total liquidity.

A quarterly cash dividend of $0.29 per share is set to be paid out on May 31. DHT Holdings highlighted its upcoming VLCC newbuilding projects and its strategy to finance them without issuing new capital. The company remains committed to delivering first-rate operations and financial results.

Key Takeaways

• DHT Holdings reported Q1 2024 revenues of $106.3 million on a TCE basis.
• Net income for the quarter was $47.1 million, or $0.29 per share.
• The company declared a quarterly cash dividend of $0.29 per share.
• Total liquidity stood at $289 million, including $73 million in cash.
• DHT plans to finance four new VLCCs through operations, liquidity, and mortgage debt.
• The company maintains a 100% ordinary net income dividend policy.
• DHT Holdings has a positive outlook on the robust and improving market.
• No new capital will be issued for financing newbuilding projects.

Company Outlook

• DHT Holdings is focused on maintaining strong financial performance and operational excellence.
• The company expects a shrinking fleet size in the coming years but remains optimistic about market conditions.
• DHT Holdings projects a discretionary cash flow of $79 million for 2024.

Bearish Highlights

• The spot market for VLCCs has softened recently, though it is beginning to strengthen again.

Bullish Highlights

• DHT Holdings is optimistic about the market, which is robust and gradually improving.
• The company has seen a shift in VLCC trade patterns that could benefit operations.

Misses

• DHT Holdings decided not to exercise four options for new orders due to other priorities and the long delivery timeline.

Q&A Highlights

• There was discussion about the change in VLCC trade patterns, including diversions around Africa and new trade projects from Vancouver, Canada.
• Ship owner sentiment has improved, with some focusing on newbuilds and others on LNG ships.
• The charter market is thin, but DHT Holdings expects more end users to enter as the market evolves.
• DHT Holdings prefers longer-term charters to build more fixed income for the company.
• Prices…