DHT Holdings ( NYSE: DHT ) is a Bermuda company that operates a large fleet of oil tankers. This article will show why DHT Holdings could be an interesting value play, due to its strong position compared to itsMy main area of interest is algorithmic trading and trading strategies. However, I am also very interested in macroeconomic topics, especially since I lived and studied in Shanghai for half a year. That is why I plan to write about those topics with a focus on China. I am one semester away from finish ...

DHT (DHT) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants Laila Halvorsen - CFOSvein Moxnes Harfjeld - President & CEOJonathan Chappell - Senior Managing DirectorGregory Lewis - Managing DirectorOmar Nokta - Managing Director Conference Call Participants Frode Morkedal - Analyst Operator day, and thank you for standing by. Welcome to the Q1 twenty twenty five DHT Holdings, Inc. Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' present ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenues on a TCE basis of $79.3 million and adjusted EBITDA of $56.4 million, with net income of $44.1 million or $0.27 per share. After adjusting for a $19.8 million gain on the sale of a vessel, the net profit was $24.3 million or $0.15 per share [5][6][10] - The average TCE for vessels in the spot market was $36,300 per day, while vessels on time charters earned $42,700 per day, resulting in a combined average TCE of $38,200 per day for the quarter [5][12] - The company ended the quarter with total liquidity of $277 million, consisting of $80.5 million in cash and $196.2 million available under revolving credit facilities [6] Business Line Data and Key Metrics Changes - The company sold the DHT Scandinavia for $43.4 million, realizing a capital gain of $19.8 million, and plans to allocate proceeds to general corporate purposes, including investments in vessels and share buybacks [8][15] - Two time charter contracts were entered into, with DHT China fixed at $40,000 per day and DHT Tiger at $52,500 per day [8] Market Data and Key Metrics Changes - The company expects to have 780 time charter days covered for Q2 2025 at $42,200 per day, an improvement from the previous quarter [12] - The spot P&L breakeven for Q2 is estimated at $17,500 per day, which can be used to estimate net income contributions from the spot fleet [13] Company Strategy and Development Direction - The company is focusing on fine-tuning its fleet profile based on customer feedback and market conditions, indicating a strategic shift towards optimizing asset quality [27] - The company plans to expand its fleet with four new ships in the first half of 2026, which will provide additional earnings days [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market dynamics, noting that the VLCC fleet is expected to shrink while demand for services is growing, which could lead to favorable conditions for the company [20][22] - The company anticipates a robust summer market due to OPEC's increased production, which may offset potential declines in the Atlantic Basin [52] Other Important Information - The company has acquired the remaining shares in Goodwood Ship Management for $6.1 million, fully integrating it into DHT's operations [17] - The company has entered into a $30 million secured revolving facility to refinance existing debt, indicating a proactive approach to managing its financial obligations [19] Q&A Session Summary Question: Decision on vessel sales and cash allocation priorities - Management indicated that the decision to sell older ships was based on market conditions and customer preferences, and cash allocation priorities include investments in ships, share buybacks, and debt prepayment, depending on market opportunities [25][28] Question: Appetite for extended contracts and profit-sharing - Management expressed excitement about a long-term time charter contract, indicating a potential shift towards more extended contracts and profit-sharing arrangements as customers seek quality tonnage [32][34] Question: Impact of OPEC's production strategy on the market - Management noted that while it is difficult to predict the exact impact of OPEC's production increases, they believe it could lead to a robust summer market, countering seasonal declines [52] Question: Potential effects of Iranian oil returning to the market - Management discussed two scenarios regarding Iranian oil sanctions, indicating that both scenarios could positively impact the VLCC business, either through increased compliant market activity or by other Middle Eastern producers stepping in to fill supply gaps [58][60]

Core Viewpoint - DHT Holdings is recognized as an attractive operator in the VLCC tanker sector, noted for its modern fleet and effective balance between long-term lease contracts and operational flexibility [1]. Company Overview - DHT Holdings operates a modern fleet of Very Large Crude Carriers (VLCCs), which positions the company favorably within the tanker industry [1]. - The company employs a strategic operating model that combines long-term charter contracts with operational flexibility, enhancing its competitive edge [1]. Investment Considerations - The company is currently under observation for potential investment opportunities, particularly focusing on identifying a favorable technical entry point [2].

Forward Looking Statements May 7, 2025 DISCLAIMER This presentation contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company's management as well as assumptions, expectations, projections, intentions and beliefs about future events, in particular regarding dividends (including our dividend plans, timing and the amount and growth of any dividends), daily charter rates, vessel utilization, the future number of newbuilding deliveries, oil pric ...

Group 1: Earnings Performance - DHT Holdings reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.29 per share a year ago, representing an earnings surprise of 80% [1] - The company posted revenues of $79.75 million for the quarter, surpassing the Zacks Consensus Estimate by 2.29%, but down from $106.34 million year-over-year [2] - Over the last four quarters, DHT Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - DHT Holdings shares have increased approximately 21% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $72.63 million, and for the current fiscal year, it is $0.84 on revenues of $359.27 million [7] Group 3: Industry Context - The Transportation - Shipping industry, to which DHT Holdings belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact DHT Holdings' stock performance [5][6]

Core Viewpoint - DHT Holdings, Inc. announced its financial results for the first quarter of 2025, highlighting its operational performance and strategic focus in the crude oil tanker industry [1]. Company Overview - DHT is an independent crude oil tanker company with a fleet that operates internationally, specifically in the VLCC segment [2]. - The company emphasizes its experienced management, quality operations, and customer service, alongside a prudent capital structure that supports resilience through business cycles [2]. - DHT employs a disciplined capital allocation strategy, which includes cash dividends, vessel investments, debt prepayments, and share buybacks [2]. - The company maintains a transparent corporate structure with a strong commitment to integrity and corporate governance [2]. Financial Reporting - The financial report for Q1 2025 is available for review, providing detailed insights into the company's performance during this period [1][5].

Company Overview - DHT Holdings (DHT) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.15, reflecting a -48.3% change [3][12] - Revenues are anticipated to be $77.96 million, down 26.7% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 6, 2025, and could influence the stock price depending on whether the actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 12.82% lower in the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates a positive Earnings ESP of +10.35% for DHT Holdings, suggesting recent bullish sentiment among analysts [10][11] - However, the stock currently holds a Zacks Rank of 4 (Sell), complicating predictions of an earnings beat [11] Historical Performance - In the last reported quarter, DHT Holdings had an earnings surprise of +88.89%, posting earnings of $0.34 per share against an expectation of $0.18 [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Context - In the Zacks Transportation - Shipping industry, Scorpio Tankers (STNG) is expected to report earnings of $0.85 per share for the same quarter, reflecting a year-over-year decline of -78.6% [17] - Scorpio Tankers' revenue is projected to be $197.19 million, down 49.4% from the previous year [17] - The consensus EPS estimate for Scorpio Tankers has been revised 11.6% lower, resulting in a negative Earnings ESP of -28.37% [18]

Core Viewpoint - DHT Holdings, Inc. will release its first quarter 2025 results on May 6, 2025, followed by a conference call on May 7, 2025, to discuss the results [1] Group 1: Upcoming Financial Results - The company will announce its Q1 2025 results after market close on May 6, 2025 [1] - A conference call and webcast will take place on May 7, 2025, at 8:00 a.m. EDT/14:00 CEST to discuss the quarterly results [1] - Participants must register in advance to access the conference call, receiving dial-in numbers and a unique personal PIN upon registration [1] Group 2: Webcast and Recording - The webcast will include a slide presentation and can be accessed via a specific link [2] - A recording of the audio and slides will be available until May 14, 2025, at 14:00 CEST [2] Group 3: Company Overview - DHT Holdings, Inc. is an independent crude oil tanker company operating internationally with a fleet in the VLCC segment [2] - The company emphasizes a strong operational focus, quality ships, and a prudent capital structure to navigate business cycles [2] - DHT employs a disciplined capital allocation strategy, including cash dividends, vessel investments, debt prepayments, and share buybacks [2]

Core Insights - DHT Holdings has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 46.83% [1] - In the most recent quarter, DHT reported earnings of $0.34 per share, surpassing the expected $0.18 per share by 88.89% [2] - The previous quarter also saw a positive surprise, with actual earnings of $0.22 per share against an estimate of $0.21 per share, resulting in a 4.76% surprise [2] Earnings Estimates and Predictions - Recent estimates for DHT Holdings have been revised upward, indicating growing analyst confidence in the company's earnings potential [5] - The Zacks Earnings ESP for DHT is currently +10.35%, suggesting a favorable outlook for upcoming earnings [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of beating consensus estimates [6] Earnings ESP and Market Behavior - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - A positive Earnings ESP combined with a Zacks Rank of 3 indicates a strong possibility of another earnings beat for DHT [8] - It is crucial for investors to check a company's Earnings ESP prior to quarterly releases to enhance the likelihood of successful investment decisions [9]