DHT — DHT Holdings, Inc.

DHT Holdings Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2025 Financials:
  • Revenues (TCE basis): $118 million
  • Adjusted EBITDA: $95 million
  • Net Income: $66 million ($0.41 per share)
  • Vessel Operating Expenses: $17.1 million
  • General & Administrative Expenses: $5.6 million (including $0.6 million in nonrecurring costs)
  • Average TCE for the fleet: $60,300 per day
• Full Year 2025 Financials:
  • Revenues (TCE basis): $369 million
  • Adjusted EBITDA: $278 million
  • Net Income: $211 million ($1.31 per share), adjusted net income (excluding vessel sale gains): $158 million ($0.99 per share)
• Liquidity: Total liquidity at quarter-end was $189 million, with $79 million in cash and $110.5 million available under revolving credit facilities.

2. Strategic Updates and Business Highlights

• DHT took delivery of the DHT Nokota (2018-built VLCC) in November 2025 and plans to modernize its fleet by selling three older vessels built in 2007, with sales expected to generate a combined gain of approximately $60 million in Q1 2026.
• The company has initiated a newbuilding program with four state-of-the-art VLCCs, with the first, DHT Antelope, delivered in January 2026.
• A five-year time-charter for DHT Harrier was extended at $47,500 per day, with options for further extensions at higher rates.
• DHT plans to pay a quarterly cash dividend of $0.41 per share, marking its 64th consecutive dividend.

3. Forward Guidance and Outlook

• Estimated cash breakeven for 2026 is projected at $17,500 per day, with a discretionary cash flow delta of $6,700 per day.
• For Q1 2026, DHT expects to cover 797 time-charter days at an average rate of $43,300 per day and 1,195 spot days at an average rate of $78,900 per day.
• The company anticipates that its spot market exposure will increase to 75% of its capacity by Q2 2026, allowing for greater participation in potentially lucrative spot markets.

4. Bad News, Challenges, or Points of Concern

• The global oil demand growth is stabilizing around 1%, raising concerns about potential oversupply, particularly with OPEC production levels and reliance on China as a key buyer.
• The aging VLCC fleet poses risks, with a significant portion expected to be over 15 years old by year-end 2026, potentially impacting market dynamics.
• The company faces uncertainties regarding the resolution of protocols for the demolition of noncompliant vessels, which could affect market supply and pricing.

5. Notable Q&A Insights

• Management discussed the impact of fleet consolidation, noting that aggregators are expected to control a significant portion of the compliant tramping fleet, which could shift market dynamics and pricing behavior.
• There was a consensus that the demand for seaborne crude oil transportation remains robust, with expectations of continued growth despite broader economic concerns.
• Management confirmed that while they are not currently looking to sell their modern vessels, they are open to future acquisitions if opportunities arise, particularly in the context of rising vessel values.
• The discussion highlighted the importance of maintaining a strong balance sheet and liquidity to capitalize on future investment opportunities without issuing new shares.

Overall, DHT Holdings demonstrated strong financial performance in Q4 2025, with a clear strategy focused on fleet modernization and shareholder returns, while also navigating challenges related to market dynamics and global oil demand.