Company Overview - DHT Holdings, Inc. was incorporated in 2010 in the Marshall Islands and operates a fleet of crude oil tankers from locations including Monaco, Norway, Singapore, and India [1] - The company currently has 23 VLCC (Very Large Crude Carrier) crude oil tankers, all of which are wholly owned [1] Industry Context - The company is part of the crude oil transportation industry, which is critical for global oil supply chains and is influenced by various factors including geopolitical events, oil prices, and shipping regulations [1]

Core Viewpoint - DHT Holdings, Inc. has announced the acquisition of a VLCC built in 2018 for $107 million, aimed at enhancing the efficiency and age profile of its fleet [1][2]. Company Overview - DHT is an independent crude oil tanker company operating internationally with a fleet focused on the VLCC segment [3]. - The company emphasizes a strong operational approach, quality ships, prudent capital structure, and disciplined capital allocation strategies [3]. Acquisition Details - The acquired vessel is scheduled for delivery towards the end of Q3 2025 and will be financed through available liquidity and projected mortgage debt [1]. - The vessel features an exhaust gas cleaning system and is expected to improve DHT's fleet efficiency metrics [1]. Strategic Intent - The acquisition is part of DHT's strategy to improve earnings per share for shareholders and replace earnings capacity that has been divested earlier in the year [2]. - The new vessel is designed for large carrying capacity and premium earning capabilities, aligning with the trading patterns of key customers [2].

Group 1 - The article discusses DHT Holdings (DHT) and its previous analysis conducted in early 2021, highlighting a clear oversupply in the oil market [1] - The chief investment analyst, Daniel Sereda, emphasizes the importance of filtering vast amounts of data to extract critical investment ideas [1] - The investing group Beyond the Wall Investing provides access to high-quality analysis similar to that prioritized by institutional market participants [1] Group 2 - There is a mention of a potential beneficial long position in DHT that may be initiated within the next 72 hours [1]

Core Points - DHT Holdings, Inc. held its 2025 Annual Meeting of Shareholders on June 11, 2025, with approximately 69.44% of the issued and outstanding common shares represented [1] - The shareholders approved the 2025 Incentive Compensation Plan with 98.13% of the votes in favor [2] - The selection of Ernst & Young AS as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified with 99.82% of the votes in favor [3] Company Overview - DHT is an independent crude oil tanker company operating internationally with a fleet primarily in the VLCC segment [4] - The company emphasizes a strong operational focus, quality ships, a prudent capital structure, and disciplined capital allocation strategies [4] - DHT maintains a transparent corporate structure with high levels of integrity and corporate governance [4]

Group 1 - The oil market experiences volatility and is influenced by macroeconomic news and geopolitical events, such as tensions in the Red Sea [1] Group 2 - The focus is on uncovering undervalued opportunities in the stock market, emphasizing strong financials, competitive advantages, and long-term growth potential [2] - The investment philosophy aligns with notable investors like Warren Buffett and Peter Lynch, focusing on businesses with durable moats and solid management teams [2]

Company Overview - DHT Holdings is a Bermuda-based company that operates a large fleet of oil tankers, positioning itself as a potential value play in the market [1]. Investment Potential - The article suggests that DHT Holdings could be an interesting investment opportunity due to its strong market position compared to competitors [1]. Analyst Background - The author has a background in algorithmic trading and macroeconomic topics, with a focus on China, and has experience in managing investments through platforms like Etoro [1]. Performance History - The author's investment track record includes a 17.5% yield in 2020, a nearly flat performance in 2022 with a loss of only 0.16%, and a modest gain of 0.8% during a market surge [1]. - Recently, the portfolio yielded 12.84% with a beta of less than 0.6, indicating a conservative risk approach [1]. Future Plans - The author plans to increase risk to achieve higher yields on investments moving forward [1].

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved revenues on a TCE basis of $79.3 million and adjusted EBITDA of $56.4 million. Net income was reported at $44.1 million, equating to $0.27 per share. After adjusting for a $19.8 million gain on the sale of a vessel, the net profit for the quarter was $24.3 million, or $0.15 per share [6][7][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 [6][10] - 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. Financial leverage was reported at 16.9% based on market values for the ships [7][10] Business Line Data and Key Metrics Changes - The company sold the DHT Scandinavia for $43.4 million, recording a capital gain of $19.8 million during the quarter. The proceeds will be allocated to general corporate purposes, including investments in vessels and share buybacks [10][17] - Two time charter contracts were entered into: DHT China at $40,000 per day for one year and DHT Tiger at $52,500 per day for one year [10][11] 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 compared to the prior quarter. The current spot market is strong, with an estimated spot P&L breakeven of $17,500 per day for Q2 [14][15] - The VLCC fleet is projected to shrink as demand for services grows, with an estimated 441 VLCCs older than 15 years by the end of 2026 [21][22] Company Strategy and Development Direction - The company aims to fine-tune its fleet profile based on customer feedback and market conditions, focusing on investing in ships rather than share buybacks or further strengthening the balance sheet [29] - The company plans to expand its fleet with four new ships in the first half of 2026, which will provide additional earnings days [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market, noting that OPEC's strategy could lead to a robust summer market, which is atypical for the season [55] - The company believes that both scenarios regarding Iranian sanctions could positively impact the VLCC business, whether sanctions are lifted or maintained [60][61] Other Important Information - The company declared a quarterly cash dividend of $0.15 per share, marking the 61st consecutive quarterly cash dividend [12] - The company acquired the remaining shares in Goodwood Ship Management for $6.1 million, fully integrating it into DHT's operations [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. The allocation of cash for corporate purposes, investments, share buybacks, and debt prepayment is not in a specific order but depends on market opportunities [27][29] Question: Appetite for extended contracts and profit-sharing structures - Management expressed excitement about the long-term time charter contract with DHT Appaloosa, indicating a potential shift towards more extended contracts and profit-sharing arrangements [33][35] Question: Impact of OPEC's production increase on the market - Management noted that while it is early to predict the exact impact of OPEC's production increases, they expect to see more cargo in the market, which could positively affect VLCC demand [39][40] Question: Fuel spreads and macroeconomic impacts - Management discussed the current state of fuel spreads and indicated that while the market is dynamic, the relationship between demand for different fuel types could influence spreads [44][46] Question: Future of the VLCC market with potential Iranian oil re-entry - Management outlined two scenarios regarding Iranian oil sanctions, both of which could be positive for the VLCC market, depending on whether sanctions are lifted or maintained [60][61]

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 ...