Loading...
01/11 15:13
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A indicate strong financial performance with a positive outlook. The company has a well-defined capital allocation policy, strong cash flow, and strategic fleet investments. The Q&A highlights management's confidence in the market, despite uncertainties around sanctions and the shadow fleet. The strong financial metrics, optimistic guidance, and shareholder returns suggest a positive sentiment. With a market cap of $1.9 billion, the stock is likely to react positively, leading to a 2% to 8% increase in stock price.
Total Liquidity $258 million, consisting of $78 million in cash and $180 million available under revolving credit facilities.
Financial Leverage 18% based on market values of the ships.
Net Debt per Vessel $13.8 million per vessel, significantly below estimated residual ship values.
Revenues (TCE basis) $85.5 million for Q4 2024.
EBITDA $60.6 million for Q4 2024.
Net Income $54.7 million for Q4 2024, equal to $0.34 per share; adjusted net income after non-cash reversal of prior impairment charges was $26.8 million, equal to $0.17 per share.
Vessel Operating Expenses $20 million for Q4 2024.
G&A Expenses $5.6 million for Q4 2024, including a non-recurring item of $0.7 million.
Average TCE for all vessels in spot market $38,200 per day for Q4 2024.
Spot Vessels Earnings (under 15 years) $40,500 per day for Q4 2024.
Time Charter Earnings $40,500 per day for Q4 2024.
Average Combined TCE $38,800 per day for Q4 2024.
Net Income for Full Year 2024 $181.5 million, equal to $1.12 per share; adjusted net income after non-cash reversal of prior impairment charges was $153.6 million, equal to $0.95 per share.
Special Operating Expenses for 2024 $78.6 million, which includes a non-current insurance deductible.
G&A for 2024 $18.9 million.
Depreciation for 2024 $111.9 million.
Spot Vessels Earnings (full year) $47,200 per day for 2024.
Average Combined TCE (full year) $45,200 per day for 2024.
Spot Vessels Earnings (under 15 years, full year) $49,800 per day for 2024.
Cash Flow from Operations (Q4) Started with $74 million in cash, generated $60.6 million in EBITDA, allocated $35.5 million to shareholders through dividends, and $13.2 million for share buybacks.
Cash at Quarter End $78 million.
Dividend for Q4 2024 Declared at $0.17 per share, marking the sixtieth consecutive quarterly cash dividend.
Share Buybacks $32 million equal to 2.3% of the company.
Sale of DHT Scandinavia Sold for $43.4 million, expected to generate a book gain of about $19.8 million.
Newbuilding Program Installments (2024) $90.1 million total installments.
Time Charter Days Covered for Q1 2025 604 days at $41,700 per day.
Spot Days for Q1 2025 1,475 days, with 74% booked at an average rate of $36,400.
Breakeven for Q1 2025 Estimated at $21,700 per day.
Newbuilding Program Installments: Paid $12.8 million in installments under the newbuilding program, totaling $90.1 million for 2024.
Time Charter Agreement: Secured a one-year time charter for DHT China at $40,000 per day, commencing end of January.
Spot Market Rates: Current spot market for modern VLCCs with exhaust gas cleaning systems is in the $55,000 to $60,000 range.
Demand Growth: Estimated increase in demand for 2025 due to new refining capacity and supportive fiscal policies in China, resulting in 300,000 barrels per day.
VLCC Fleet Demographics: By the end of 2026, 444 VLCCs will be older than fifteen years, indicating a shrinking fleet amidst growing demand.
Liquidity Position: Total liquidity of $258 million, consisting of $78 million in cash and $180 million available under revolving credit facilities.
Financial Leverage: Financial leverage at 18% based on market values of ships, with net debt at $13.8 million per vessel.
Share Buyback Program: Repurchased 1.5 million shares at an average price of $8.89, enhancing earnings per share and net asset value.
Capital Allocation Policy: Declared a dividend of $0.17 per share, marking the sixtieth consecutive quarterly cash dividend.
Competitive Pressures: The market for modern VLCCs is becoming tighter as the fleet is set to shrink, which could lead to increased demand for DHT's services. However, the presence of a shadow fleet and sanctions may disrupt trade and impact freight rates.
Regulatory Issues: The US is actively announcing sanctions and tariffs, which could have varying impacts on the market. Some sanctions may support freight rates, while others could disrupt trade.
Supply Chain Challenges: Sanctions and fiscal issues in the teapot refinery industry in China are changing procurement behavior for crude oil, potentially reducing the role of the shadow fleet.
Economic Factors: China's supportive fiscal policy measures and stimulus are expected to drive increased economic activity and consumption, leading to an estimated increase in demand for crude oil by 300,000 barrels per day in 2025.
Market Volatility: The ongoing geopolitical tensions, particularly related to the Russia-Ukraine conflict, may continue to create volatility in the market, affecting demand and operational stability.
Share Repurchase: Repurchased 1.5 million shares at an average price of $8.89, enhancing earnings per share and net asset value.
Vessel Sale: Sold DHT Scandinavia for $43.4 million, expecting a book gain of $19.8 million, with proceeds allocated to corporate purposes.
Newbuilding Program: Paid $12.8 million in installments under the newbuilding program, totaling $90.1 million for 2024.
Dividend Policy: Declared a dividend of $0.17 per share for Q4 2024, consistent with the policy of paying out 100% of ordinary net income.
Market Strategy: Focus on solid customer relations, safe services, competitive cost structure, and maintaining a strong balance sheet.
2025 G&A Estimate: Estimated G&A for 2025 to be about $18 million, averaging $4.5 million quarterly.
2025 Depreciation Estimate: Estimated annual depreciation for 2025 to be about $110 million.
Q1 2025 Time Charter Days: Expecting 604 time charter days covered at $41,700 per day.
Spot Market Rates: Current spot market for modern vessels is in the $55,000 to $60,000 range.
VLCC Fleet Outlook: Expecting a shrinking VLCC fleet with increasing demand for services, particularly due to sanctions and aging vessels.
Dividend for Q4 2024: Declared at $0.17 per share, marking the sixtieth consecutive quarterly cash dividend.
Total dividends paid in Q4 2024: $35.5 million allocated to shareholders through cash dividends.
Cumulative dividends since policy update: Accumulated amount is $2.36 per share since the capital allocation policy update from Q3 2022.
Share buyback program: Repurchased 1.5 million shares (approximately 1% of the company) at an average price of $8.89, totaling $13.2 million.
Total share buybacks since policy update: Totaling $32 million, equivalent to 2.3% of the company.
The earnings call reveals stable financial performance with no significant year-over-year changes, and a consistent dividend payout policy. However, the lack of growth in revenues and EBITDA, coupled with uncertainties around Chinese port fees and tariffs, tempers optimism. The Q&A section highlights management's cautious outlook and lack of clear guidance on some issues. Despite a potential market turnaround in 2025, the immediate outlook remains uncertain. Given the market cap, the stock is unlikely to show strong movement, resulting in a neutral sentiment.
The earnings call and Q&A reflect a positive outlook: strong financial metrics, strategic fleet management, and optimistic market conditions. Despite some unclear management responses, the company's strategic moves, such as securing time charters and focusing on value creation, indicate resilience. The dividend declaration and favorable financing terms further bolster investor confidence. The market cap suggests moderate sensitivity, aligning with a positive stock price reaction.
The earnings call reflects strong financial performance with increased net income, stable operating expenses, and improved liquidity. The company has a positive outlook with a shrinking VLCC fleet and increased demand. The Q&A highlighted strategic fleet management and market opportunities. While some management responses lacked clarity, the overall sentiment is bolstered by strong financial metrics, favorable market conditions, and a consistent dividend policy. Given the market cap of $1.9 billion, the stock is likely to see a positive movement (2% to 8%) over the next two weeks.
The earnings call summary and Q&A indicate strong financial performance with a positive outlook. The company has a well-defined capital allocation policy, strong cash flow, and strategic fleet investments. The Q&A highlights management's confidence in the market, despite uncertainties around sanctions and the shadow fleet. The strong financial metrics, optimistic guidance, and shareholder returns suggest a positive sentiment. With a market cap of $1.9 billion, the stock is likely to react positively, leading to a 2% to 8% increase in stock price.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
