DHT Holdings, Inc. announces sale of the DHT Scandinavia

Rhea-AI Summary

DHT Holdings announced the sale of its 2006-built VLCC vessel, DHT Scandinavia, for $43.4 million. The delivery to the new owner is expected in January 2025. The vessel has no outstanding bank debt, and the proceeds will be used for general corporate purposes, including vessel investments, share buy-backs, or debt prepayment. The transaction will benefit the company by reducing the fleet's average age and improving its AER, EEOI, and CII metrics.

Positive

• Sale price of $43.4 million for an aging vessel
• No outstanding debt on the vessel
• Improvement in fleet age profile and environmental metrics
• Flexible use of proceeds including potential shareholder returns through buybacks

Negative

• Reduction in fleet capacity

Insights

Financial Analyst

The sale of DHT Scandinavia for $43.4 million represents a strategic move to optimize DHT Holdings' fleet composition and balance sheet. For a 17-year-old VLCC, this is a strong price realization in the current market. With no outstanding debt on the vessel, the full proceeds provide significant financial flexibility for the company. The strategic options for fund allocation - whether through fleet renewal, share repurchases, or debt reduction - all support shareholder value creation. The transaction will also improve the company's environmental metrics and fleet age profile, which is increasingly important for charterers and investors. This asset optimization aligns with industry trends toward newer, more efficient vessels while capitalizing on strong second-hand vessel values.

Market Research Analyst

This transaction reflects the robust secondhand market for VLCCs, particularly noteworthy given the vessel's age. The timing appears opportune as tanker values remain elevated due to strong freight rates and vessel availability. The sale strengthens DHT's position to potentially acquire younger vessels or return capital to shareholders, depending on market conditions. The improvement in environmental metrics (AER, EEOI and CII) is particularly significant as regulatory pressures and charterer preferences increasingly favor more efficient vessels. This strategic move could enhance DHT's competitive position in securing premium charter rates and maintaining strong relationships with quality charterers.

HAMILTON, BERMUDA, December 12, 2024 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) has entered into agreement to sell the DHT Scandinavia, a 2006 built VLCC, for $43.4 million. The Company expects to deliver the vessel to its new owner in January 2025. The vessel has no outstanding bank debt and the sale proceeds will be allocated to general corporate purpose, hereunder investments in vessels, share buy-backs or prepayment of debt. The sale will reduce the average age of the Company’s fleet and improve its AER, EEOI and CII metrics. 

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, Singapore, and India. 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 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 20, 2024.

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

How much is DHT selling the DHT Scandinavia vessel for?

DHT Holdings is selling the DHT Scandinavia vessel for $43.4 million.

When will DHT Holdings deliver the DHT Scandinavia to its new owner?

DHT Holdings expects to deliver the DHT Scandinavia to its new owner in January 2025.

What will DHT do with the proceeds from the DHT Scandinavia sale?

The proceeds will be used for general corporate purposes, including vessel investments, share buy-backs, or debt prepayment.

How will the sale of DHT Scandinavia affect DHT's fleet metrics?

The sale will reduce the average age of DHT's fleet and improve its AER, EEOI, and CII environmental metrics.

What is the build year of the DHT Scandinavia VLCC vessel?

The DHT Scandinavia is a 2006-built VLCC vessel.