DHT — DHT Holdings, Inc.

DHT Holdings Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total Revenues: $157 million on a TCE basis.
• Adjusted EBITDA: $133 million.
• Net Income: $164.5 million ($1.02 per share), with ordinary net income at $103.4 million ($0.64 per share) after adjustments for a $60 million gain on asset sales and a $1.1 million fair value gain on derivatives.
• Operating Expenses: Vessel operating expenses totaled $19.1 million, including $2 million in non-recurring costs; G&A expenses were $5 million.
• Average Daily Earnings: Spot market vessels earned $91,700/day; time charters earned $61,300/day, leading to an average combined TCE of $78,800/day.
• Liquidity: Total liquidity at quarter-end was $350 million, with $126 million in cash and $230 million available under revolving credit facilities.
• Debt Position: Financial leverage was at 16.8%, with net debt at $16.5 million per vessel.

2. Strategic Updates and Business Highlights:

• Successful delivery of three new VLCCs (DHT Antelope, DHT Addax, DHT Gazelle) with a fourth (DHT Empower) expected in summer 2026.
• Divestment of older vessels, including the sale of DHT Bauhinia for $51.5 million, expected to yield a capital gain of $34.2 million.
• Secured multiple time charters, including extensions and new contracts, with average rates for older ships at $101,000/day.
• Continued commitment to a capital allocation policy of paying out 100% of ordinary net income as dividends, with a declared dividend of $0.64 per share.

3. Forward Guidance and Outlook:

• Estimated P&L breakeven for the next three quarters is $29,700/day, with a cash breakeven of $23,400/day.
• For Q2 2026, 997 time charter days are covered at an average rate of $73,900/day, with 1,025 spot days expected, 88% already booked at an average rate of $168,300/day.
• The company maintains a positive outlook on market fundamentals, driven by supply-demand dynamics and strategic fleet consolidation.

4. Bad News, Challenges, or Points of Concern:

• The ongoing geopolitical tensions, particularly related to Iran, create uncertainty and risk premiums in the market.
• Potential operational challenges due to vessel availability and safety concerns in volatile regions, particularly the Gulf.
• The competitive landscape remains challenging, with healthy freight markets leading to potential sellers retaining their vessels instead of selling to DHT.

5. Notable Q&A Insights:

• Management indicated that while they are satisfied with their current fleet positioning, they are open to future fleet growth but face challenges in finding suitable acquisition opportunities.
• The risk premium associated with routes near the Gulf has influenced operational decisions, with DHT avoiding trades in high-risk areas.
• The company is maintaining efficiency in operations without incurring excessive costs, despite fluctuating market conditions.
• Profit-sharing contracts are based on specific vessel specifications and market indices, with no current operational disruptions affecting these agreements.

Overall, DHT Holdings reported strong financial results for Q1 2026, with strategic fleet updates and a positive market outlook, while navigating geopolitical risks and competitive pressures.