DHT Holdings, Inc. announces sale of DHT Edelweiss

Rhea-AI Summary

DHT Holdings (NYSE: DHT) announced the sale of its VLCC, the DHT Edelweiss, for $37 million. This sale will reduce the fleet's average age and improve operational efficiency metrics. With outstanding bank debt of approximately $12.2 million being repaid, the company expects to record a gain of around $6.8 million in Q3 2022. The vessel is not equipped with an Exhaust Gas Cleaning System and is scheduled for a retrofit program, ensuring that 100% of the fleet will have these systems by Q1 2023.

Positive

• Sale of DHT Edelweiss for $37 million will improve fleet age and efficiency.
• Expected gain of $6.8 million in Q3 2022 from the sale.
• 100% of the fleet to have Exhaust Gas Cleaning Systems by Q1 2023.

Negative

• The VLCC is not fitted with an Exhaust Gas Cleaning System, which may impact compliance.

HAMILTON, BERMUDA, August 29, 2022 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) announces that it has entered into agreement to sell the DHT Edelweiss, a 2008 built VLCC, for $37.0 million. The vessel is not fitted with an Exhaust Gas Cleaning System and is due for its 3^rd Special Survey and installation of a Ballast Water Treatment System in the first quarter of 2023. The Company expects to deliver the vessel to its new owner during the third quarter. The sale will reduce the average age of the Company’s fleet and improve its AER and EEOI metrics. The vessel’s outstanding bank debt of about $12.2 million will be repaid in connection with the sale and the Company expects to record a gain of about $6.8 million in the third quarter of 2022. Following the abovementioned sale and the recently announced retrofit program, 100% of the Company’s fleet will be fitted with Exhaust Gas Cleaning Systems by the first quarter of 2023.  

About DHT Holdings, Inc.
DHT is an independent crude oil tanker company. Our fleet trades internationally and consists of crude oil tankers in the VLCC segment. We operate through our integrated management companies in Monaco, Norway and Singapore. You may recognize us by our renowned business approach as an experienced organization with focus on first rate operations and customer service; our quality ships; our prudent capital structure that promotes staying power through the business cycles; our combination of market exposure and fixed income contracts for our fleet; our counter cyclical philosophy with respect to investments, employment of our fleet, and capital allocation; and our transparent corporate structure maintaining a high level of integrity and good governance. For further information please visit www.dhtankers.com.

Forward Looking Statements
This press release contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company’s management as well as assumptions, expectations, projections, intentions and beliefs about future events. When used in this document, words such as “believe,” “intend,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “potential,” “will,” “may,” “should” and “expect” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These statements reflect DHT’s current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These statements reflect the Company’s current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent the Company’s estimates and assumptions only as of the date of this press release and are not intended to give any assurance as to future results. For a detailed discussion of the risk factors that might cause future results to differ, please refer to the Company’s Annual Report on Form 20-F, filed with the SEC on March 25, 2022.
The Company undertakes no obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and the Company’s actual results could differ materially from those anticipated in these forward-looking statements.

Contact:
Laila C. Halvorsen, CFO
Phone: +1 441 295 1422 and +47 984 39 935
E-mail: lch@dhtankers.com

 

FAQ

What was the sale price of the DHT Edelweiss?

The DHT Edelweiss was sold for $37 million.

How will the sale of the DHT Edelweiss affect the company's fleet?

The sale will reduce the average age of the fleet and improve operational efficiency metrics.

What gain is DHT Holdings expecting from the sale of the DHT Edelweiss?

DHT Holdings expects to record a gain of about $6.8 million in Q3 2022.

What is the status of the DHT fleet's Exhaust Gas Cleaning Systems?

Following the sale and retrofit program, 100% of DHT's fleet will be fitted with Exhaust Gas Cleaning Systems by Q1 2023.

What was the outstanding bank debt on the DHT Edelweiss?

The outstanding bank debt on the DHT Edelweiss was approximately $12.2 million.