DHT Holdings, Inc. Business Update

Rhea-AI Summary

DHT Holdings (NYSE:DHT) has released its Q4 2024 and full-year 2024 business performance estimates. For Q4 2024, the company reports estimated time charter equivalent earnings of $38,800 per day across its fleet, with spot market VLCCs earning $38,200 per day and time-chartered VLCCs at $40,500 per day. This covers 2,206 revenue days, including 1,619 spot days.

For the full year 2024, fleet earnings averaged $45,200 per day, with spot market VLCCs at $47,200 per day and time-chartered vessels at $38,900 per day, spanning 8,595 revenue days (6,520 spot days). Looking ahead to Q1 2025, 51% of available spot days are booked at $31,400 per day, while 65% of total revenue days are secured at $35,800 per day.

Positive

• Strong full-year 2024 fleet earnings at $45,200 per day
• Spot market VLCC earnings outperformed time-charter rates in 2024 ($47,200 vs $38,900 per day)
• High booking rate for Q1 2025 with 65% of available revenue days already secured

Negative

• Q1 2025 rates showing decline with spot bookings at $31,400 per day compared to Q4 2024's $38,200
• Q4 2024 earnings ($38,800/day) lower than full-year 2024 average ($45,200/day)

Insights

Shipping Market Analyst

DHT Holdings' Q4 2024 performance reveals robust charter rates, with fleet-wide earnings of $38,800 per day showcasing the continued strength in the VLCC market. The spot market performance of $38,200 per day, while lower than the full-year average of $47,200, remains historically strong. The time-charter portfolio at $40,500 per day demonstrates effective risk management through a balanced charter strategy.

The early Q1 2025 bookings present a strategic insight into market dynamics. With 51% of spot days secured at $31,400 per day and 65% of total revenue days at $35,800 per day, there's a notable rate moderation compared to Q4. This seasonal adjustment is typical for the tanker market post-winter period. The company's mix of spot and time-charter exposure provides a balanced approach to market volatility, with 6,520 spot days versus 2,075 time-charter days in 2024 showing a clear preference for spot market exposure to capitalize on market strength.

The full-year 2024 performance of $45,200 per day fleet-wide average positions DHT well among its VLCC peer group. The higher spot earnings versus time-charter rates validate the company's strategy of maintaining significant spot market exposure during a strong rate environment.

Financial Analyst

This earnings update signals strong financial performance for DHT Holdings. With 8,595 revenue days in 2024, the fleet-wide average of $45,200 per day translates to approximately $388.5 million in time charter equivalent revenue for the year. The Q4 performance, while showing some moderation, still indicates robust cash flow generation with 2,206 revenue days at $38,800 per day, approximating $85.6 million in quarterly TCE revenue.

The forward booking position for Q1 2025 suggests a calculated approach to revenue management. The blend of spot and time-charter coverage provides visibility into near-term earnings while maintaining upside potential on remaining open days. The secured rates, though lower than Q4, still represent healthy margins above operating costs typical for VLCCs.

For retail investors, these figures indicate strong cash generation potential, supporting DHT's ability to maintain shareholder returns through dividends and potential share buybacks. The company's strategic decision to maintain higher spot market exposure in 2024 (75.9% of total revenue days) proved advantageous in capturing market strength.

HAMILTON, BERMUDA, January 14, 2025 – DHT Holdings, Inc. (NYSE:DHT) (“DHT” or the “Company”) today provides the following business update:

For the fourth quarter of 2024, the Company estimates time charter equivalent earnings for its fleet at $38,800 per day, comprising of $38,200 per day for the Company’s VLCCs operating in the spot market and $40,500 per day for the Company’s VLCCs on time-charter. The estimated time charter equivalent earnings are based on 2,206 revenue days for the fourth quarter, of which 1,619 days are spot days.

For the full year of 2024, the Company estimates charter equivalent earnings for its fleet at $45,200 per day, comprising of $47,200 per day for the Company’s VLCCs operating in the spot market and $38,900 per day for the Company’s VLCCs on time-charter. The estimated time charter equivalent earnings are based on 8,595 revenue days for 2024, of which 6,520 days are spot days.

Thus far in the first quarter of 2025, 51% of the available spot days have been booked at an average rate of $31,400 per day on a discharge-to-discharge basis. 65% of the available revenue days, spot and time-charter days combined, have been booked at an average rate of $35,800 per day.

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

What were DHT Holdings' fleet earnings per day in Q4 2024?

DHT Holdings reported estimated time charter equivalent earnings of $38,800 per day for its fleet in Q4 2024.

How did DHT's spot market VLCCs perform compared to time-chartered vessels in 2024?

DHT's spot market VLCCs earned $47,200 per day, outperforming time-chartered vessels which earned $38,900 per day in 2024.

What are DHT's booking rates for Q1 2025?

For Q1 2025, DHT has booked 51% of available spot days at $31,400 per day and 65% of total revenue days at $35,800 per day.

How many revenue days did DHT Holdings report for full-year 2024?

DHT Holdings reported 8,595 total revenue days for 2024, of which 6,520 were spot days.

What was DHT Holdings' average fleet earnings for the full year 2024?

DHT Holdings' average fleet earnings for the full year 2024 were $45,200 per day.