The following is a summary of the DHT Holdings, Inc. (DHT) Q3 2024 Earnings Call Transcript:
Financial Performance:
DHT Holdings reported a net income of $35.2 million for Q3 2024, equivalent to $0.22 per share.
Total liquidity at the end of Q3 stood at $264 million, comprising $74 million in cash and $190 million available under revolving credit facilities.
Revenue on a TCE basis for Q3 was $92.6 million with EBITDA at $70.4 million.For the first nine months, net income was $126.7 million, or $0.78 per share, with average TCE rates of $47,400 per day.
Business Progress:
DHT Holdings paid substantial dividends and simultaneously invested in the balance sheet over the past 10 years, including new buildings and an exhaust gas cleaning system for the entire fleet.
P&L break-even for 2025 is projected at $26,500 per day per vessel, with cash break-even estimated at $20,000 per day.
They have not issued equity since 2014 and showed a disciplined approach to capital allocation, announcing a quarterly dividend of $0.22 per share, consistent with their policy of distributing 100% of ordinary net income.
Opportunities:
Expected increase in Chinese oil consumption and economic stimulus may enhance market conditions beneficial for DHT.
Anticipated policy changes following the U.S. election could impose stricter sanctions on Iran; this could shift oil transportation to the compliant fleet, potentially benefiting compliant shippers like DHT.
Risks:
Market risks include potential fluctuations in oil demand and geopolitical tensions, particularly pertaining to Chinese economic performance and regulatory outcomes in oil-exporting nations.
Any negative shifts in the global economic climate or oil market could impact freight rates and vessel values.
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