Q2 2024 DHT Holdings Inc Earnings Call Transcript
Key Points
- DHT Holdings Inc (DHT) maintains a very strong balance sheet with low leverage and significant liquidity, ending the quarter with $263 million in total liquidity.
- The company achieved robust financial results for the quarter, with revenues on a TCE basis of $103.7 million, EBITDA of $80 million, and net income of $44.5 million.
- DHT Holdings Inc (DHT) has a defined and predictable capital allocation policy, paying a quarterly cash dividend of $0.27 per share, marking the 58th consecutive quarterly cash dividend.
- The company has made meaningful improvements in the delivery schedules for all four newbuildings, resulting in a significant increase in revenue days for the year.
- DHT Holdings Inc (DHT) has strong customer relations and offers safe and reliable services, supported by a solid balance sheet, strong liquidity, and robust breakeven levels.
- The spot market is currently in a seasonally weak period, which may impact the average rate for the quarter.
- There is some concern about the potential weakness in China, which could affect the demand for crude oil transportation.
- The decision to not exercise options for additional ships was influenced by the potential impact on the company's ability to pay 100% of earnings in dividends.
- The company faces risks related to the timing and financing of payments for newbuildings, with $89.9 million expected within the next 12 months.
- There are uncertainties regarding the future interest and negotiations for long-term charters for the newbuildings, which may affect the company's revenue stability.
Good morning and good afternoon, everyone. Welcome, and thank you for joining DHT Holdings second quarter 2024 earnings call. I'm joined by DHT's President and CEO, Svein Moxnes Harfjeld. As usual, we will go through financials and some highlights before we open up for your questions. The link to the slide deck can be found on our website at dhtankers.com.
Before we get started with today's call, I would like to make the following my opening remarks. A replay of this conference call will be available on our website, dhtankers.com until August 20. In addition, our earnings press release will be available on our website and on the SEC EDGAR system as an exhibit to our Form 6-K.
As a reminder on this conference call, we will discuss matters that are forward-looking in nature. These forward-looking statements are based on our current expectations about future events as detailed in our financial report. Actual results may differ materially from the expectations reflected in these forward-looking statements.
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