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Dec 31, 2024
DHT Holdings Q4 2024 Earnings Report
DHT Holdings, Inc. reported strong fourth quarter 2024 results with significant net profit growth and strategic fleet management.
Key Takeaways
DHT Holdings, Inc. announced a net profit of $54.7 million for the fourth quarter of 2024, a substantial increase from $35.3 million in the same period last year. The company achieved average combined time charter equivalent earnings of $38,800 per day and strategically sold a VLCC, expecting a significant gain in the next quarter. Share repurchases and consistent dividend payments underscore a strong financial position.
Net profit for Q4 2024 increased to $54.7 million ($0.34 per basic share) from $35.3 million ($0.22 per basic share) in Q4 2023.
Average combined time charter equivalent earnings were $38,800 per day in Q4 2024.
The company agreed to sell DHT Scandinavia, a 2006 built VLCC, for $43.4 million, expecting a gain of about $19.8 million in Q1 2025.
DHT repurchased 1,481,383 of its own shares (0.9% of outstanding shares) at an average price of $8.89 in Q4 2024, and declared a cash dividend of $0.17 per share.
DHT Holdings
DHT Holdings
DHT Holdings Revenue by Segment
Revenue by Segment
Shipping Revenues Revenue
CapyFin.com Forward Guidance
The company anticipates continued geopolitical volatility but expects constructive changes in trade flows for the VLCC sector, driven by a benign orderbook, aging fleet, and sanctions. They project strong demand for their quality fleet and services, with a significant portion of Q1 2025 VLCC spot days already booked at favorable rates.
Positive Outlook
- Geopolitical volatility is expected to lead to constructive changes in trade flows for the VLCC sector.
- The market dynamics, including a benign orderbook and aging fleet, are shifting in favor of ship-owning companies.
- Strong demand for the company's quality fleet and services is anticipated.
- 74% of available VLCC spot days for Q1 2025 are booked at an average rate of $36,400 per day.
- 81% of available VLCC days (combined spot and time charter) for Q1 2025 are booked at an average rate of $38,300 per day.
Challenges Ahead
- The month of January 2025 includes profit-sharing, while February and March assume only the base rate, which could imply lower earnings for those months.
- The company's outlook is based on estimates and subject to change as construction progresses for vessels under construction.
- The sale of DHT Scandinavia, while generating a gain, reduces the fleet size.
- The company is exposed to market, credit, and liquidity risks.
- No specific negative financial impacts were highlighted for the forward guidance period, but general market volatility remains a factor.