HAMILTON, BERMUDA - DHT Holdings, Inc. (NYSE:DHT), an independent crude oil tanker company, has announced its performance metrics for the second quarter of 2024, with average time charter equivalent earnings of $49,100 per day. The company's very large crude carriers (VLCCs) operating in the spot market earned an average of $52,700 per day, while those on time-charter contracts brought in $36,400 per day.
During the second quarter, DHT Holdings secured a one-year time charter contract for the DHT Europe, a vessel built in 2007, at a daily rate of $49,500. The contract, with an unnamed refining company, will see the vessel operating in the Atlantic basin to service a European refinery.
Looking ahead to the third quarter of 2024, the company has already booked 48% of its available spot days at an average rate of $45,600 per day. Additionally, 61% of the combined spot and time-charter days are booked at an average of $42,300 per day.
In a strategic move to increase its revenue days, DHT Holdings has expedited the delivery of four new VLCCs, originally scheduled between April and December 2026. The updated timeline anticipates the first vessel's arrival in February 2026, followed by deliveries in April, May, and the final vessel in July of the same year.
DHT Holdings operates a fleet of VLCCs internationally, managing its operations through integrated management companies located in Monaco, Norway, Singapore, and India. The company emphasizes a business approach focused on first-rate operations, customer service, and maintaining a prudent capital structure to navigate business cycles.
In other recent news, DHT Holdings Inc . has announced its Q1 2024 financial results, showing robust earnings and revenue growth. The company's revenues reached $106.3 million on a Time Charter Equivalent basis, and net income totaled $47.1 million, translating to $0.29 per share. Additionally, a quarterly cash dividend of $0.29 per share has been declared.
DHT Holdings ended the quarter with substantial liquidity, amounting to $289 million while maintaining a low leverage and a solid balance sheet. The company plans to finance its upcoming VLCC newbuilding projects without issuing new capital, demonstrating a strategic approach to its financial management.
DHT Holdings has a positive outlook on the market conditions and remains committed to delivering strong financial performance. The company also maintains a 100% ordinary net income dividend policy, reflecting its commitment to shareholder value. These recent developments indicate DHT Holdings' focus on maintaining operational excellence and financial strength.
InvestingPro Insights
DHT Holdings, Inc. (NYSE:DHT) has recently shared its earnings for the second quarter of 2024, highlighting a robust average time charter equivalent of $49,100 per day. Investors may be particularly interested in the company's financial health and market performance. According to InvestingPro data, DHT Holdings boasts a market capitalization of $1.74 billion, which reflects the company's substantial presence in the industry.
An InvestingPro Tip suggests that management's aggressive share buyback strategy could be a vote of confidence in the company's valuation and future prospects. Additionally, DHT Holdings is noted for trading at a low P/E ratio of 10.24 relative to near-term earnings growth, which might appeal to value investors looking for potentially undervalued opportunities.
On the dividends front, the company offers a significant yield, with a current dividend yield of 10.7%, which is particularly attractive for income-focused investors. Moreover, DHT Holdings has a track record of maintaining dividend payments for 17 consecutive years, underscoring its commitment to shareholder returns.
For those considering adding DHT Holdings to their portfolio, there are 11 additional InvestingPro Tips available, offering deeper insights into the company's performance and outlook. To explore these further, investors can visit Investing.com/pro/DHT and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
It is important to note that while the company expects a sales decline in the current year, analysts predict DHT Holdings will remain profitable, as evidenced by a strong return over the last five years. This balance between short-term challenges and long-term performance may be a crucial consideration for potential investors.
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