[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) DHT achieved its second-best year in 2023 with strong financial and operational performance, solid balance sheet, and consistent dividends [Financial Highlights (Overall)](index=1&type=section&id=Financial%20Highlights%20(Overall)) DHT Holdings, Inc. reported its second-best year in company history with $161.4 million in net income for 2023, maintaining a strong balance sheet with interest-bearing debt to total assets at 19.7% and net debt per ship at $14.7 million as of December 31, 2023 | Million USD (except per share) | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | 2023 | 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shipping revenues | 142.3 | 130.3 | 152.0 | 131.5 | 166.5 | 556.1 | 450.4 | | Adjusted net revenues | 94.5 | 89.1 | 112.9 | 93.9 | 116.7 | 390.4 | 264.9 | | Adjusted EBITDA | 72.9 | 67.4 | 89.8 | 71.9 | 95.4 | 302.0 | 177.9 | | Profit/(loss) after tax | 35.3 | 31.0 | 57.1 | 38.0 | 61.8 | 161.4 | 62.0 | | EPS – basic | 0.22 | 0.19 | 0.35 | 0.23 | 0.38 | 0.99 | 0.37 | | EPS – diluted | 0.22 | 0.19 | 0.35 | 0.23 | 0.38 | 0.99 | 0.37 | | Dividend | 0.22 | 0.19 | 0.35 | 0.23 | 0.38 | 0.99 | 0.48 | | Interest bearing debt | 428.7 | 436.6 | 388.3 | 395.7 | 396.7 | 428.7 | 396.7 | | Cash and cash equivalents | 74.7 | 73.9 | 130.6 | 117.5 | 125.9 | 74.7 | 125.9 | | Net debt | 354.0 | 367.7 | 257.6 | 278.2 | 270.7 | 354.0 | 270.7 | - DHT achieved **$161.4 million** in net income in 2023, marking its **second-best year** in company history[2](index=2&type=chunk) - As of December 31, 2023, interest bearing debt to total assets marked-to-market was **19.7%**, and net debt per ship was **$14.7 million**[2](index=2&type=chunk) [Quarterly Highlights (Q4 2023)](index=1&type=section&id=Quarterly%20Highlights%20(Q4%202023)) In Q4 2023, DHT achieved strong time charter equivalent earnings and net profit, while proactively managing its debt obligations and maintaining its consistent dividend policy - Average combined time charter equivalent earnings reached **$42,800** per day in Q4 2023, with spot market VLCCs earning **$43,600** per day and time-charter VLCCs earning **$39,600** per day[4](index=4&type=chunk) - Adjusted EBITDA for Q4 2023 was **$72.9 million**, and net profit was **$35.3 million**, equating to **$0.22** per basic share[4](index=4&type=chunk) - The Company prepaid **$23.7 million** under the Nordea Credit Facility in December 2023, covering all regular installments for 2024, and subsequently repaid a **$24.0 million** draw-down from the ING Revolving Credit Facility in January 2024, improving the 2024 cash break-even level[4](index=4&type=chunk) - A cash dividend of **$0.22** per share was declared for Q4 2023, marking the **56th consecutive quarterly cash dividend** and aligning with the policy to pay out **100%** of net income[4](index=4&type=chunk) [Operational Highlights (Q4 2023)](index=2&type=section&id=Operational%20Highlights%20(Q4%202023)) DHT maintained high operating efficiency in Q4 2023 with minimal unscheduled off-hire, while increasing its spot market exposure, with VLCC spot rates remaining strong and contributing to overall revenue days | | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | 2023 | 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating days | 2,208.0 | 2,177.7 | 2,093.0 | 2,070.0 | 2,116.0 | 8,548.7 | 8,929.0 | | Scheduled off hire days | - | 79.1 | 60.9 | 111.8 | 63.5 | 251.8 | 150.3 | | Unscheduled off hire | 0.1% | 0.1% | 1.3%* | 2.2%* | 0.1% | 0.9% | 0.2% | | Revenue days | 2,206.7 | 2,096.0 | 2,005.6 | 1,912.8 | 2,051.5 | 8,221.0 | 8,721.7 | | Spot exposure | 81.2% | 77.3% | 70.4% | 72.9% | 74.7% | 75.6 % | 75.4 % | | VLCC time charter rate ($/day) | $ 39,600 | $ 35,500 | $ 36,200 | $ 35,000 | $ 36,100 | $ 36,400 | $ 34,600 | | VLCC spot rate ($/day) | $ 43,600 | $ 44,700 | $ 64,800 | $ 54,600 | $ 63,800 | $ 51,200 | $ 29,000 | - Unscheduled off-hire remained low at **0.1%** in Q4 2023, indicating **high operational reliability**[5](index=5&type=chunk) - Spot exposure increased to **81.2%** in Q4 2023 from **74.7%** in Q4 2022, reflecting a **strategic shift towards the spot market**[5](index=5&type=chunk) [Business Outlook & Strategy](index=2&type=section&id=Business%20Outlook%20%26%20Strategy) The company anticipates continued freight market strength and maintains a strategy focused on shareholder returns and operational excellence [Market Outlook](index=2&type=section&id=Market%20Outlook) DHT anticipates continued rewarding times in the freight market, driven by growing oil demand, longer transportation distances due to OPEC+ cuts and non-OPEC supply growth, and a limited supply of new ships entering a rapidly aging global fleet, with geopolitical complexities also expected to influence the business positively - The overall freight market shows encouraging behavior, supported by growth in oil demand, longer transportation distances, and a very limited supply of new ships into a rapidly aging global fleet[6](index=6&type=chunk) - OPEC+ cuts suggest an acceptance of growing non-OPEC supply, leading to adjusted market shares and expanded transportation distances[6](index=6&type=chunk) - Geopolitical complexities, including developments in the Red Sea, are expected to influence and potentially benefit the company's market[6](index=6&type=chunk) - Newbuilding capacity for 2026 is potentially sold out, with focus shifting to 2027 deliveries, and current newbuilding activity is not expected to significantly impair the favorable supply picture due to lack of past investment and scarce shipyard capacity[7](index=7&type=chunk) [Company Strategy](index=2&type=section&id=Company%20Strategy) DHT's strategy focuses on shareholder returns, high governance standards, premium revenue generation, competitive cost structure, a solid balance sheet, and a clear capital allocation policy, operating a fleet of 24 VLCCs - The company's strategy is tailored to its market, focusing on rewarding shareholders, operating with high governance standards, premium revenue generation, maintaining a competitive cost structure, a solid balance sheet, and a clear capital allocation policy[8](index=8&type=chunk) - As of December 31, 2023, DHT operated a fleet of **24 VLCCs** with a total deadweight tonnage (dwt) of 7,479,177[9](index=9&type=chunk) [Subsequent Events & Q1 2024 Outlook](index=3&type=section&id=Subsequent%20Events%20%26%20Q1%202024%20Outlook) DHT has provided an encouraging outlook for Q1 2024, with a significant portion of spot days already booked at strong rates, alongside strategic debt management and a new board appointment | | Estimated Q1 2024 | | :--- | :--- | | Total term time charter days | 455 | | Average term time charter rate ($/day)* | $ 36,600 | | Total spot days for the quarter | 1,630 | | Spot days booked to date | 1,270 | | Average spot rate booked to date ($/day) | $ 55,900 | | Spot P&L break-even for the quarter | $ 25,900 | - As of early Q1 2024, **78% of available VLCC spot days** were booked at an average rate of **$55,900** per day, and **83% of combined VLCC days** (spot and time-charter) were booked at an average rate of **$50,800** per day[11](index=11&type=chunk) - In January 2024, the Company prepaid **$24.0 million** under the ING Credit Facility, which may be re-borrowed[14](index=14&type=chunk) - Ms. Ana Zambelli was appointed to the Board of Directors effective February 1, 2024, bringing over **20 years of energy sector experience**[14](index=14&type=chunk) [Financial Performance Analysis](index=4&type=section&id=Financial%20Performance%20Analysis) Q4 2023 saw decreased revenues and profit, while full year 2023 showed significant revenue and net income growth [Fourth Quarter 2023 Financials](index=4&type=section&id=Fourth%20Quarter%202023%20Financials) DHT's Q4 2023 financial performance saw a decline in shipping revenues and net profit compared to Q4 2022, primarily due to lower tanker rates, despite an increase in revenue days from an additional vessel, with operating expenses generally decreasing but financial expenses rising due to higher interest rates [Revenues and Expenses (Q4 2023)](index=4&type=section&id=Revenues%20and%20Expenses%20(Q4%202023)) Shipping revenues decreased in Q4 2023 compared to Q4 2022, mainly due to lower tanker rates, partially offset by increased revenue days, with most operating expenses, including voyage and vessel operating expenses, seeing decreases - Shipping revenues for Q4 2023 were **$142.3 million**, a decrease from **$166.5 million** in Q4 2022, primarily due to lower tanker rates (**$36.8 million** decrease) partially offset by an increase in revenue days (**$12.6 million** increase) from an additional vessel[15](index=15&type=chunk) - Voyage expenses decreased to **$47.8 million** in Q4 2023 from **$49.8 million** in Q4 2022, mainly due to lower bunker expenses (**$2.4 million** decrease)[17](index=17&type=chunk) - Vessel operating expenses decreased to **$18.7 million** in Q4 2023 from **$19.9 million** in Q4 2022, despite an additional vessel in the fleet[18](index=18&type=chunk) - General and administrative (G&A) expense increased to **$4.0 million** in Q4 2023 from **$2.8 million** in Q4 2022[20](index=20&type=chunk) [Net Profit and EPS (Q4 2023)](index=4&type=section&id=Net%20Profit%20and%20EPS%20(Q4%202023)) Net profit and EPS significantly declined in Q4 2023 compared to the prior year, primarily driven by lower tanker rates and increased net financial expenses - Net financial expenses increased to **$8.9 million** in Q4 2023 from **$5.8 million** in Q4 2022, mainly due to increased interest expense of **$2.7 million**[21](index=21&type=chunk) - Net profit for Q4 2023 was **$35.3 million** (**$0.22** per basic and diluted share), a decrease from **$61.8 million** (**$0.38** per basic and diluted share) in Q4 2022, mainly due to a year-over-year decline in tanker rates[22](index=22&type=chunk) [Cash Flow (Q4 2023)](index=4&type=section&id=Cash%20Flow%20(Q4%202023)) Cash flow from operating activities decreased substantially in Q4 2023, while cash used in financing activities increased due to higher dividend payments and debt prepayments - Net cash provided by operating activities decreased to **$42.3 million** in Q4 2023 from **$90.3 million** in Q4 2022, primarily due to lower profit and a negative change in operating assets and liabilities[23](index=23&type=chunk) - Net cash used in investing activities was **$2.2 million** in Q4 2023, related to investment in vessels[24](index=24&type=chunk) - Net cash used in financing activities increased to **$39.5 million** in Q4 2023 from **$29.0 million** in Q4 2022, driven by higher cash dividends paid (**$30.6 million**) and debt prepayments (**$23.7 million**)[25](index=25&type=chunk) - The cash balance as of December 31, 2023, was **$74.7 million**, down from **$125.9 million** as of December 31, 2022[26](index=26&type=chunk) [Shareholder Information (Q4 2023)](index=5&type=section&id=Shareholder%20Information%20(Q4%202023)) The company reported a slight decrease in outstanding common stock and declared a cash dividend for Q4 2023 - As of December 31, 2023, the Company had 160,999,542 shares of common stock outstanding, a decrease from 162,653,339 shares as of December 31, 2022[28](index=28&type=chunk) - A cash dividend of **$0.22** per common share was declared for Q4 2023, payable on February 28, 2024[28](index=28&type=chunk) [Full Year 2023 Financials](index=5&type=section&id=Full%20Year%202023%20Financials) For the full year 2023, DHT experienced a significant increase in shipping revenues and net income, primarily driven by higher tanker rates, with operating cash flow improving substantially, and investing activities shifting from proceeds from vessel sales in 2022 to investments in vessels in 2023 [Revenues and Expenses (FY 2023)](index=5&type=section&id=Revenues%20and%20Expenses%20(FY%202023)) Full year 2023 saw a notable increase in shipping revenues due to higher tanker rates, despite fewer revenue days, with voyage expenses decreasing, while vessel operating expenses and G&A slightly increased - Shipping revenues for 2023 increased to **$556.1 million** from **$450.4 million** in 2022, mainly due to higher tanker rates (**$131.5 million** increase) partially offset by decreased total revenue days (**$25.9 million** decrease)[29](index=29&type=chunk) - The Company did not record any gain or loss from vessel sales in 2023, compared to a **$19.5 million** gain in 2022[31](index=31&type=chunk) - Voyage expenses decreased to **$165.7 million** in 2023 from **$185.5 million** in 2022, primarily due to a **$19.1 million** decrease in bunker expenses[32](index=32&type=chunk) - Depreciation and amortization decreased to **$108.9 million** in 2023 from **$123.3 million** in 2022, mainly due to decreased depreciation of exhaust gas cleaning systems[34](index=34&type=chunk) [Net Profit and EPS (FY 2023)](index=5&type=section&id=Net%20Profit%20and%20EPS%20(FY%202023)) Net income and EPS for 2023 significantly increased year-over-year, primarily reflecting higher tanker rates, despite an increase in net financial expenses due to a shift from derivative gains to losses and higher interest rates - Net financial expenses increased to **$31.1 million** in 2023 from **$11.6 million** in 2022, largely due to a non-cash loss of **$0.5 million** on interest rate derivatives in 2023 (compared to a **$15.0 million** gain in 2022) and increased interest expense[36](index=36&type=chunk) - Net income for 2023 was **$161.4 million** (**$0.99** per basic and diluted share), a substantial increase from **$62.0 million** (**$0.37** per basic and diluted share) in 2022, mainly reflecting higher tanker rates[37](index=37&type=chunk) [Cash Flow (FY 2023)](index=5&type=section&id=Cash%20Flow%20(FY%202023)) Operating cash flow more than doubled in 2023, investing activities shifted from net cash provided by vessel sales in 2022 to net cash used for vessel investments in 2023, and financing activities saw increased debt repayments and dividend payments - Net cash provided by operating activities increased significantly to **$251.4 million** in 2023 from **$127.9 million** in 2022, driven by higher net income[38](index=38&type=chunk) - Net cash used in investing activities was **$128.2 million** in 2023 (related to vessel investments), a shift from net cash provided of **$110.5 million** in 2022 (primarily from vessel sales)[39](index=39&type=chunk) - Net cash used in financing activities was **$174.5 million** in 2023, including **$186.7 million** in cash dividends paid and **$68.7 million** in debt prepayments, partially offset by **$339.6 million** in issuance of long-term debt[40](index=40&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides a reconciliation of non-GAAP financial measures, including Adjusted Net Revenue, Adjusted EBITDA, and Adjusted spot time charter equivalent per day, to their most directly comparable IFRS measures, which are used by management and investors to better understand operational performance and trends | Thousands USD except time charter equivalent per day | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | 2023 | 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Reconciliation of adjusted net revenue** | | | | | | | | | Shipping revenues | 142,292 | 130,322 | 151,993 | 131,468 | 166,522 | 556,075 | 450,381 | | Voyage expenses | (47,771) | (41,235) | (39,092) | (37,569) | (49,781) | (165,667) | (185,502) | | **Adjusted net revenues** | **94,521** | **89,087** | **112,902** | **93,899** | **116,741** | **390,408** | **264,880** | | **Reconciliation of adjusted EBITDA** | | | | | | | | | Profit/(loss) after tax | 35,308 | 30,967 | 57,081 | 38,041 | 61,819 | 161,397 | 61,979 | | Income tax expense | 226 | 137 | 94 | 191 | 111 | 649 | 587 | | Other financial (income)/expenses | 599 | 413 | 606 | 366 | 272 | 1,984 | 2,826 | | Fair value (gain)/loss on derivative financial liabilities | - | - | 70 | 433 | (56) | 504 | (14,983) | | Interest expense | 9,194 | 8,789 | 7,492 | 7,586 | 6,462 | 33,061 | 26,197 | | Interest income | (908) | (1,213) | (1,966) | (398) | (886) | (4,485) | (1,076) | | Share of profit from associated companies | - | - | - | - | - | - | (1,327) | | (Gain)/loss, sale of vessel | - | - | - | - | - | - | (19,513) | | Depreciation and amortization | 28,475 | 28,326 | 26,376 | 25,726 | 27,692 | 108,902 | 123,255 | | **Adjusted EBITDA** | **72,894** | **67,419** | **89,753** | **71,946** | **95,414** | **302,012** | **177,946** | | **Reconciliation of adjusted spot time charter equivalent per day*** | | | | | | | | | Spot time charter equivalent per day | 43,600 | 44,700 | 64,800 | 54,600 | 63,800 | 51,200 | 29,000 | | IFRS 15 impact on spot time charter equivalent per day** | 2,700 | (2,400) | (3,000) | 3,900 | 100 | 300 | 1,200 | | **Adjusted spot time charter equivalent per day** | **46,300** | **42,300** | **61,800** | **58,500** | **63,900** | **51,500** | **30,200** | - The company uses non-GAAP measures like Adjusted Net Revenue, Adjusted EBITDA, and Adjusted spot time charter equivalent per day to provide supplemental information for investors and management, as they offer a more complete understanding of operational factors and trends[42](index=42&type=chunk) [Company Information & Disclosures](index=7&type=section&id=Company%20Information%20%26%20Disclosures) This section details the Q4 2023 earnings call, company profile, forward-looking statements, and investor contact [Earnings Conference Call & Webcast](index=7&type=section&id=Earnings%20Conference%20Call%20%26%20Webcast) DHT Holdings, Inc. hosted a conference call and webcast on February 7, 2024, to discuss its Q4 2023 results, with registration and access details provided for participants and a recording available for a limited time - A conference call and webcast, including a slide presentation, was hosted on Wednesday, February 7, 2024, at 8:00 a.m. ET/14:00 CET to discuss the Q4 2023 results[46](index=46&type=chunk) - Participants were required to register via a provided link to access dial-in numbers and a unique personal PIN[46](index=46&type=chunk) - The webcast and a recording of the audio and slides were made available through specific links on the company's investor relations website until February 14, 2024[47](index=47&type=chunk) [About DHT Holdings, Inc.](index=7&type=section&id=About%20DHT%20Holdings,%20Inc.) DHT Holdings, Inc. is an independent crude oil tanker company specializing in the VLCC segment, known for its integrated management, focus on first-rate operations, prudent capital structure, and counter-cyclical investment philosophy - DHT is an independent crude oil tanker company with a fleet operating internationally in the VLCC segment[47](index=47&type=chunk) - The company operates through integrated management companies in Monaco, Norway, Singapore, and India[47](index=47&type=chunk) - DHT is recognized for its focus on first-rate operations, customer service, quality ships, prudent capital structure, combination of market exposure and fixed income contracts, counter-cyclical philosophy, and transparent corporate structure[47](index=47&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, indicating that the press release contains forward-looking statements based on management's beliefs and assumptions, which are subject to risks and uncertainties, with readers cautioned not to place undue reliance on these statements, and the company not undertaking to update them unless required by law - The press release contains forward-looking statements based on management's beliefs, assumptions, expectations, and projections about future events[48](index=48&type=chunk) - These statements are subject to risks and uncertainties, and actual results could differ materially from those anticipated[48](index=48&type=chunk)[49](index=49&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[49](index=49&type=chunk) [Contact Information](index=7&type=section&id=Contact%20Information) Contact details for investor inquiries are provided, listing the Chief Financial Officer - Contact for inquiries: Laila C. Halvorsen, CFO, via phone (+1 441 295 1422 and +47 984 39 935) or e-mail (lch@dhtankers.com)[50](index=50&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=8&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Presents the company's unaudited financial statements, including position, income, comprehensive income, cash flow, and equity changes [Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents DHT's financial position, detailing its assets, liabilities, and equity as of December 31, 2023, compared to December 31, 2022 | | | | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | | Note | | (Unaudited) | (Audited) | | **ASSETS** | | | | | | **Current assets** | | | | | | Cash and cash equivalents | | $ | 74,738 | 125,948 | | Accounts receivable and accrued revenues | 7 | | 75,848 | 59,465 | | Capitalized voyage expenses | | | 2,549 | 2,799 | | Prepaid expenses | | | 13,557 | 10,550 | | Derivative financial assets | | | - | 3,759 | | Bunker inventory | | | 33,806 | 33,069 | | **Total current assets** | | $ | **200,498** | **235,589** | | **Non-current assets** | | | | | | Vessels | 5 | $ | 1,283,710 | 1,261,998 | | Advances for vessel upgrades | 5 | | 10 | 4,583 | | Other property, plant and equipment | | | 6,649 | 4,949 | | Goodwill | | | 1,356 | 1,356 | | **Total non-current assets** | | $ | **1,291,725** | **1,272,885** | | **TOTAL ASSETS** | | $ | **1,492,223** | **1,508,474** | | **LIABILITIES AND EQUITY** | | | | | | **Current liabilities** | | | | | | Accounts payable and accrued expenses | | $ | 20,493 | 29,398 | | Current portion long-term debt | 4 | | 30,300 | 29,626 | | Other current liabilities | | | 1,418 | 1,178 | | Deferred shipping revenues | 8 | | 4,394 | 4,172 | | **Total current liabilities** | | $ | **56,605** | **64,374** | | **Non-current liabilities** | | | | | | Long-term debt | 4 | $ | 398,425 | 367,069 | | Other non-current liabilities | | | 5,527 | 3,545 | | **Total non-current liabilities** | | $ | **403,952** | **370,614** | | **TOTAL LIABILITIES** | | $ | **460,557** | **434,988** | | **Equity** | | | | | | Common stock at par value | 6 | $ | 1,610 | 1,627 | | Additional paid-in capital | | | 1,228,254 | 1,243,754 | | Accumulated deficit | | | (206,477) | (180,664) | | Translation differences | | | 201 | 138 | | Other reserves | | | 3,566 | 3,623 | | **Total equity attributable to the Company** | | | **1,027,153** | **1,068,478** | | Non-controlling interest | | | 4,513 | 5,008 | | **Total equity** | | $ | **1,031,667** | **1,073,486** | | **TOTAL LIABILITIES AND EQUITY** | | $ | **1,492,223** | **1,508,474** | [Condensed Consolidated Income Statement](index=10&type=section&id=Condensed%20Consolidated%20Income%20Statement) This statement outlines DHT's revenues, expenses, and net profit for Q4 2023 and the full year 2023, with comparative figures for the prior year | | | | Q4 2023 | Q4 2022 | 12 months 2023 | 12 months 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Note | | Oct. 1 - Dec. 31, 2023 | Oct. 1 - Dec. 31, 2022 | Jan. 1 - Dec. 31, 2023 | Jan. 1 - Dec. 31, 2022 | | Shipping revenues | | | 142,292 | 166,522 | 556,075 | 450,381 | | Other revenues | | | 1,084 | 1,373 | 4,481 | 3,764 | | **Total revenues** | 3 | | **143,376** | **167,894** | **560,556** | **454,146** | | Gain sale of vessels | | | | | | 19,513 | | **Operating expenses** | | | | | | | | Voyage expenses | | | (47,771) | (49,781) | (165,667) | (185,502) | | Vessel operating expenses | | | (18,718) | (19,936) | (75,429) | (73,809) | | Depreciation and amortization | 5 | | (28,475) | (27,692) | (108,902) | (123,255) | | General and administrative expenses | | | (3,993) | (2,764) | (17,448) | (16,889) | | **Total operating expenses** | | | **(98,957)** | **(100,173)** | **(367,447)** | **(399,455)** | | **Operating (loss)/ income** | | | **44,419** | **67,721** | **193,110** | **74,204** | | Share of profit from associated companies | | | | | | 1,327 | | Interest income | | | 908 | 886 | 4,485 | 1,076 | | Interest expense | | | (9,194) | (6,462) | (33,061) | (26,197) | | Fair value gain/(loss) on derivative financial liabilities | | | - | | (504) | 14,983 | | Other financial (expense)/income | | | (28) | (272) | (1,984) | (2,826) | | **Profit/(loss) before tax** | | | **35,534** | **61,929** | **162,046** | **62,567** | | Income tax expense | | | (226) | (111) | (649) | (587) | | **Profit/(loss) after tax** | | | **35,308** | **61,819** | **161,397** | **61,979** | | Attributable to owners of non-controlling interest | | | (53) | (206) | 43 | 459 | | **Attributable to the owners of parent** | | | **35,361** | **62,025** | **161,353** | **61,520** | | **Attributable to the owners of parent** | | | | | | | | Basic earnings/(loss) per share | | | 0.22 | 0.38 | 0.99 | 0.37 | | Diluted earnings/(loss) per share | | | 0.22 | 0.38 | 0.99 | 0.37 | | Weighted average number of shares (basic) | | | 160,999,542 | 162,653,339 | 162,178,499 | 164,692,954 | | Weighted average number of shares (diluted) | | | 161,206,487 | 162,940,784 | 162,356,735 | 164,850,091 | [Condensed Consolidated Statement of Comprehensive Income](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the company's total comprehensive income, including profit after tax and other comprehensive income/loss items, for Q4 2023 and the full year 2023 | Thousands USD | Q4 2023 | Q4 2022 | 12 months 2023 | 12 months 2022 | | :--- | :--- | :--- | :--- | :--- | | | Oct. 1 - Dec. 31, 2023 | Oct. 1 - Dec. 31, 2022 | Jan. 1 - Dec. 31, 2023 | Jan. 1 - Dec. 31, 2022 | | Profit/(loss) after tax | 35,308 | 61,819 | 161,397 | 61,979 | | **Other comprehensive income/(loss):** | | | | | | **Items that will not be reclassified subsequently to income statement:** | | | | | | Remeasurement of defined benefit obligation (loss) | (494) | (101) | (494) | (101) | | **Total** | **(494)** | **(101)** | **(494)** | **(101)** | | **Items that may be reclassified subsequently to income statement:** | | | | | | Exchange gain/(loss) on translation of foreign currency denominated associate and subsidiary | 277 | 637 | 115 | 101 | | **Total** | **277** | **637** | **115** | **101** | | **Other comprehensive income/(loss)** | **(217)** | **535** | **(380)** | **(1)** | | **Total comprehensive income/(loss) for the period** | **35,090** | **62,354** | **161,017** | **61,979** | | Attributable to owners of non-controlling interest | 92 | 80 | 95 | 523 | | Attributable to the owners of parent | 34,999 | 62,274 | 160,922 | 61,456 | [Condensed Consolidated Statement of Cash Flow](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flow) This statement details the cash inflows and outflows from operating, investing, and financing activities for Q4 2023 and the full year 2023, providing insights into the company's liquidity and financial management | Thousands USD | Q4 2023 | Q4 2022 | 12 months 2023 | 12 months 2022 | | :--- | :--- | :--- | :--- | :--- | | | Oct. 1 - Dec. 31, 2023 | Oct. 1 - Dec. 31, 2022 | Jan. 1 - Dec. 31, 2023 | Jan. 1 - Dec. 31, 2022 | | **CASH FLOW FROM OPERATING ACTIVITIES** | | | | | | Profit/(loss) after tax | 35,308 | 61,819 | 161,397 | 61,979 | | Items included in net income not affecting cash flows | 29,853 | 28,158 | 114,903 | 94,363 | | Income adjusted for non-cash items | 65,161 | 89,977 | 276,300 | 156,342 | | Changes in operating assets and liabilities | (22,894) | 282 | (24,889) | (28,437) | | **Net cash provided by operating activities** | **42,267** | **90,259** | **251,411** | **127,906** | | **CASH FLOW FROM INVESTING ACTIVITIES** | | | | | | Investment in vessels | (2,185) | (725) | (128,081) | (9,902) | | Proceeds from sale of vessels | | (767) | | 112,399 | | Investment in subsidiaries | - | | - | (2) | | Acquisition of subsidiary, net of cash paid | - | - | - | 8,267 | | Investment in other property, plant and equipment | (17) | (146) | (152) | (243) | | **Net cash (used in)/provided by investing activities** | **(2,202)** | **(1,638)** | **(128,233)** | **110,518** | | **CASH FLOW FROM FINANCING ACTIVITIES** | | | | | | Cash dividends paid | (30,590) | (6,506) | (186,672) | (19,679) | | Dividends paid to non-controlling interest | | | (590) | | | Repayment principal element of lease liability | (342) | (359) | (1,424) | (1,090) | | Issuance of long-term debt | 23,950 | 4,008 | 339,633 | 4,008 | | Purchase of treasury shares | | | (18,808) | (24,758) | | Proceeds from sale of derivatives | - | - | 3,256 | | | Scheduled repayment of long-term debt | (8,838) | (2,463) | (24,427) | (9,454) | | Prepayment of long-term debt | (23,715) | (23,715) | (68,715) | (96,840) | | Repayment of long-term debt refinancing | | | (216,761) | | | Repayment of long-term debt, sale of vessels | - | | | (25,531) | | **Net cash used in financing activities** | **(39,535)** | **(29,035)** | **(174,507)** | **(173,343)** | | Net increase/(decrease) in cash and cash equivalents | 529 | 59,586 | (51,329) | 65,081 | | Net foreign exchange difference | 289 | 654 | 119 | 209 | | Cash and cash equivalents at beginning of period | 73,920 | 65,708 | 125,948 | 60,658 | | **Cash and cash equivalents at end of period** | **74,738** | **125,948** | **74,738** | **125,948** | | **Specification of items included in operating activities:** | | | | | | Interest paid | 8,919 | 7,026 | 29,480 | 23,450 | | Interest received | 1,855 | 1,290 | 5,076 | 1,481 | [Summary Consolidated Statement of Changes in Equity](index=13&type=section&id=Summary%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement provides a summary of the changes in each component of the company's equity for the years ended December 31, 2023, and December 31, 2022 | | | Additional | | Treasury | Accumulated | Translation | Other | Non | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Note Shares | Amount | Capital | Shares | Deficit | Differences | Reserves | Controlling Interest | Equity | | **Balance at January 1, 2022** | | 166,126,770 $ 1,661 | $ 1,264,000 | $ - | $ (222,405) | $ 101 | $ 3,968 | $ 34 | $ 1,047,359 | | Profit/(loss) after tax | | | | | 61,520 | | | 459 | 61,979 | | Other comprehensive income/(loss) | | | | | | (101) | 37 | 64 | (1) | | **Total comprehensive income/(loss)** | | | | | **61,419** | **(101)** | **37** | **523** | **61,979** | | Cash dividends declared and paid | | | | | (19,679) | | | | (19,679) | | Purchase of treasury shares | | | | (24,758) | | | | | (24,758) | | Adjustment related to non-controlling interest | | | | | | | | 4,452 | 4,452 | | Retirement of treasury shares | | (4,326,379) (43) | (24,715) | 24,758 | | | | | - | | Compensation related to options and restricted stock | 852,948 | 9 | 4,469 | | | | (345) | | 4,133 | | **Balance at December 31, 2022** | 6 | **162,653,339 $ 1,627** | **$ 1,243,754** | **$ -** | **$ (180,664)** | **$ 138** | **$ 3,623** | **$ 5,008** | **$ 1,073,486** | | **Balance at January 1, 2023** | | **162,653,339 $ 1,627** | **$ 1,243,754** | **$ -** | **$ (180,664)** | **$ 138** | **$ 3,623** | **$ 5,008** | **$ 1,073,486** | | Profit/(loss) after tax | | | | | 161,353 | | | 43 | 161,397 | | Other comprehensive income/(loss) | | | | | (494) | 63 | | 52 | (380) | | **Total comprehensive income/(loss)** | | | | | **160,859** | **63** | | **95** | **161,017** | | Cash dividends declared and paid | | | | | (186,672) | | | (590) | (187,262) | | Purchase of treasury shares | 6 | | | (18,808) | | | | | (18,808) | | Retirement of treasury shares | 6 | (2,209,927) | (22) | (18,786) | 18,808 | | | | - | | Compensation related to options and restricted stock | | 556,130 | 6 | 3,285 | | | | (57) | 3,233 | | **Balance at December 31, 2023** | 6 | **160,999,542 $ 1,610** | **$ 1,228,254** | **$ -** | **$ (206,477)** | **$ 201** | **$ 3,566** | **$ 4,513** | **$ 1,031,667** | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes on general information, accounting principles, segment reporting, debt, vessels, equity, receivables, deferred revenues, risk management, and subsequent events [Note 1 – General Information](index=14&type=section&id=Note%201%20%E2%80%93%20General%20Information) This note provides foundational information about DHT Holdings, Inc., including its incorporation, stock exchange listing, primary business, and the approval date of the interim financial statements - DHT Holdings, Inc. is a Marshall Islands-incorporated company listed on the NYSE, primarily engaged in owning and operating crude oil carriers[63](index=63&type=chunk) - The unaudited interim condensed consolidated financial statements were approved by the Board of Directors on February 6, 2024[64](index=64&type=chunk) [Note 2 – General Accounting Principles](index=14&type=section&id=Note%202%20%E2%80%93%20General%20Accounting%20Principles) This note details the accounting principles applied, confirming adherence to IAS 34 for interim reporting, consistency with prior annual statements, and the going concern basis, also mentioning the adoption and expected impact of new IFRS amendments - The interim condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and are consistent with the accounting policies presented in the 2022 audited consolidated financial statements[66](index=66&type=chunk)[67](index=67&type=chunk) - The statements are prepared on a historical cost basis, except for derivative financial instruments measured at fair value, and on a going concern basis[67](index=67&type=chunk) - Amendments to IAS 8 (effective Jan 1, 2023) and IAS 1/IFRS Practice Statement 2 (effective Jan 1, 2023) have been adopted or will be adopted, with no expected impact on the interim condensed consolidated financial statements[69](index=69&type=chunk) [Note 3 – Segment Reporting](index=15&type=section&id=Note%203%20%E2%80%93%20Segment%20Reporting) DHT operates as a single operating segment focused on crude oil tanker ownership and operation, with a secondary activity of technical management services, and the note provides a breakdown of total revenues by charter type and highlights significant customer concentration - DHT's primary business is owning and operating a fleet of crude oil tankers, with a secondary activity of providing technical management services, managed as one operating segment[70](index=70&type=chunk) | Thousands USD | Q4 2023 | Q4 2022 | 2023 | 2022 | | :--- | :--- | :--- | :--- | :--- | | Time charter revenues | 16,650 | 18,582 | 74,989 | 75,790 | | Voyage charter revenues | 125,643 | 147,940 | 481,087 | 374,592 | | **Shipping revenues** | **142,292** | **166,522** | **556,075** | **450,381** | | Other revenues | 1,084 | 1,373 | 4,481 | 3,764 | | **Total revenues** | **143,376** | **167,894** | **560,556** | **454,146** | - As of December 31, 2023, the fleet consisted of **24 vessels**, with 5 on time charters and 19 in the spot market[72](index=72&type=chunk) - For Q4 2023, five major customers accounted for **63% ($89.2 million)** of shipping revenues, and for the full year 2023, five major customers represented **61% ($340.5 million)** of total revenues[73](index=73&type=chunk)[74](index=74&type=chunk) [Note 4 – Interest Bearing Debt](index=16&type=section&id=Note%204%20%E2%80%93%20Interest%20Bearing%20Debt) This note details DHT's interest-bearing debt, totaling $428.7 million as of December 31, 2023, including scheduled repayments and specific credit facility terms, with the company confirming compliance with all financial covenants - As of December 31, 2023, DHT had total interest-bearing debt of **$428.7 million**[77](index=77&type=chunk) | Thousands USD | rate | Maturity | Q1 2024 | Q2-Q4 2024 | 2025 | 2026 | Thereafter | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Credit Agricole Credit Facility | SOFR + 2.05% | 2028 | 625 | 1,875 | 2,500 | 2,500 | 27,500 | 35,000 | | Danish Ship Finance Credit Facility | SOFR + CAS5 + 2.00% | 2025 | - | 2,427 | 26,693 | - | - | 29,120 | | ING Credit Facility | SOFR + 1.90% | 2029 | 6,250 | 18,750 | 25,000 | 25,000 | 160,150 | 235,150 | | ING Credit Facility | SOFR + 1.80% | 2029 | 750 | 2,250 | 3,000 | 3,000 | 35,250 | 44,250 | | Nordea Credit Facility | SOFR + CAS4 + 1.90% | 2027 | - | - | 23,715 | 23,715 | 46,091 | 93,521 | | **Total** | | | **7,625** | **25,302** | **80,908** | **54,215** | **268,991** | **437,041** | | Unamortized upfront fees bank loans | | | | | | | | (8,315) | | **Total interest bearing debt** | | | | | | | | **428,726** | - In Q4 2023, the Company prepaid **$23.7 million** under the Nordea Credit Facility, covering all regular installments for 2024[84](index=84&type=chunk) - As of December 31, 2023, the Company was in compliance with all its financial covenants across its credit facilities (ING, Credit Agricole, Danish Ship Finance, Nordea)[85](index=85&type=chunk) [Note 5 – Vessels](index=17&type=section&id=Note%205%20%E2%80%93%20Vessels) This note provides details on the carrying values of DHT's vessels, including cost, depreciation, and advances for upgrades, acknowledging the cyclical nature of vessel market values | Cost of Vessels | | | :--- | :--- | | Thousands USD | | | At January 1, 2023 | 1,933,258 | | Transferred from vessels upgrades | 128,660 | | Retirement1 | (9,040) | | At December 31, 2023 | 2,052,878 | | **Depreciation and amortization** | | | Thousands USD | | | At January 1, 2023 | 671,260 | | Depreciation and amortization2 | 106,948 | | Retirement1 | (9,040) | | At December 31, 2023 | 769,168 | | **Carrying Amount** | | | Thousands USD | | | At January 1, 2023 | 1,261,998 | | At December 31, 2023 | 1,283,710 | - The carrying values of vessels may not reflect their fair market value due to fluctuations in charter rates and new vessel construction costs, which are cyclical[86](index=86&type=chunk) | Cost of advances of vessel and vessel upgrades | | | :--- | :--- | | Thousands USD | | | At January 1, 2023 | 4,583 | | Additions | 124,088 | | Transferred to vessels | (128,660) | | At December 31, 2023 | 10 | [Note 6 – Stockholders' Equity and Dividend Payment](index=18&type=section&id=Note%206%20%E2%80%93%20Stockholders'%20Equity%20and%20Dividend%20Payment) This note outlines the company's common stock details, stock repurchase activities in 2023 and 2022, and the total cash dividends paid during those years - As of December 31, 2023, DHT had 160,999,542 common shares issued, with 250,000,000 shares authorized for issue, each with a par value of **$0.01**[91](index=91&type=chunk) - In 2023, the Company purchased 2,209,927 of its own shares for an aggregate of **$18.7 million** (average price **$8.49**), all retired upon receipt. No repurchases were made in Q4 2023 or Q1 2023[93](index=93&type=chunk) | Payment date | Total Payment (Thousands USD) | Per common share ($) | | :--- | :--- | :--- | | **Total payments made during 2023** | **186,672** | **1.15** | | **Total payments made during 2022** | **19,679** | **0.12** | [Note 7 – Accounts Receivable and Accrued Revenues](index=18&type=section&id=Note%207%20%E2%80%93%20Accounts%20Receivable%20and%20Accrued%20Revenues) This note reports the balance of accounts receivable and accrued revenues, which primarily consists of current amounts, as of December 31, 2023, and December 31, 2022 - Accounts receivable and accrued revenues totaled **$75.8 million** as of December 31, 2023, mainly consisting of current amounts with no material overdue amounts, compared to **$59.5 million** as of December 31, 2022[96](index=96&type=chunk) [Note 8 – Deferred Shipping Revenues](index=18&type=section&id=Note%208%20%E2%80%93%20Deferred%20Shipping%20Revenues) This note details the amount of deferred shipping revenues, which represents charter hire payments received in advance, as of December 31, 2023, and December 31, 2022 - Deferred shipping revenues, relating to charter hire payments paid in advance, were **$4.4 million** as of December 31, 2023, compared to **$4.2 million** as of December 31, 2022[97](index=97&type=chunk) [Note 9 – Financial Risk Management, Objectives, and Policies](index=19&type=section&id=Note%209%20%E2%80%93%20Financial%20Risk%20Management,%20Objectives,%20and%20Policies) This note briefly states that DHT is exposed to market, credit, and liquidity risks, with senior management responsible for overseeing the management of these risks - The Company is exposed to market risk, credit risk, and liquidity risk, with senior management overseeing the management of these risks[99](index=99&type=chunk) - The Company's principal financial liability is long-term debt, and its financial assets mainly comprise cash[98](index=98&type=chunk) [Note 10 – Subsequent Events](index=19&type=section&id=Note%2010%20%E2%80%93%20Subsequent%20Events) This note discloses significant events that occurred after the reporting period, including a debt prepayment in January 2024 and the Board's approval of the Q4 2023 dividend - In January 2024, the Company prepaid **$24.0 million** under the ING Credit Facility, a voluntary prepayment that may be re-borrowed[100](index=100&type=chunk) - On February 6, 2024, the Board approved a dividend of **$0.22** per common share for Q4 2023, payable on February 28, 2024[100](index=100&type=chunk)

HAMILTON, BERMUDA, February 1, 2024 – DHT Holdings, Inc. (NYSE:DHT) (the "Company") today announced the appointment of Ms. Ana Zambelli to the Board of Directors, effective February 1, 2024. Ms. Ana Zambelli brings significant experience with more than 20 years in the energy sector in operational, commercial and finance roles. Ms. Zambelli served as a Managing Director in Brookfield's Private Equity Group, responsible for business operations in Brazil, as Chief Commercial Officer at Maersk Drilling, Managin ...

HAMILTON, BERMUDA, January 30, 2024 - DHT Holdings, Inc. (NYSE: DHT or the “Company”) will release its fourth quarter 2023 results after market close on Tuesday, February 6, 2024. The Company will host a conference call and webcast, which will include a slide presentation, at 8:00 a.m. EST/14:00 CET on Wednesday, February 7, 2024, to discuss the results for the quarter. To access the conference call the participants are required to register in advance of the conference using this link:  https://edge.media-s ...

HAMILTON, BERMUDA, January 30, 2024 - DHT Holdings, Inc. (NYSE:DHT) will release its fourth quarter 2023 results after market close on Tuesday, February 6, 2024. The Company will host a conference call and webcast, which will include a slide presentation, at 8:00 a.m. EST/14:00 CET on Wednesday, February 7, 2024, to discuss the results for the quarter. To access the conference call the participants are required to register in advance of the conference using this link:  https://edge.media-server.com/mmc/p/ft ...

SHansche Introduction The tanker industry is genuinely diverse. Large companies like International Seaways (INSW) own crude and product tankers of various sizes. Small enterprises with concentrated fleets carrying only crude oil or petrochemical products are on the other side of the spectrum. DHT Holdings (NYSE:DHT) is such an example. The company is VLCC pure play with its fleet of 24 VLCCs (very large crude carriers). The fleet's average age is ten years, and 100% of the ships are equipped with scrubbers. ...

DISCLAIMER 2 | --- | --- | --- | |-----------------------------------|-------|-------------| | | | | | Current portion of long-term debt | | $ 47,933 | | Other liabilities | | $ 34,378 | | Long-term debt | | $ 388,647 | | Equity | | $ 1,026,516 | | Total equity and liabilities | | $ 1,497,474 | November 7, 2023 November 7, 2023 BALANCE SHEET HIGHLIGHTS Total liquidity of $292 million Cash $ 73.9 million Marked to market: 21.0% $15.1 million November 7, 2023 Q3'23 Financials | --- | --- | --- | |------------ ...

Laila Halvorsen - CFO Frode Morkedal - Clarksons Securities Company Participants Conference Call Participants Operator I would now like to hand the conference over to your speaker today, Laila Halvorsen, CFO. Please go ahead. Thank you. Good morning and good afternoon, everyone. Welcome, and thank you for joining DHT Holdings third quarter 2023 earnings call. I'm joined by DHT's President and CEO, Svein Moxnes Harfjeld. As usual, we will go through financials and some highlights before we open up for your q ...

DISCLAIMER Forward Looking Statements 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 prices and seaso ...

Financial Data and Key Metrics Changes - The company reported revenues on a TCE basis of $113 million and EBITDA of $90 million for the quarter, with net income at $57 million, equating to $0.35 per share [10] - The weighted average TCE achieved for the quarter was $56,300 per day, with spot market vessels earning $64,800 per day and time charter vessels earning $36,200 per day [3][10] - The quarter ended with $130.6 million in cash, and total liquidity was $359 million, consisting of $131 million in cash and SEK 228 million available under a revolving credit facility [4][34] Business Line Data and Key Metrics Changes - The company allocated $9 million to shareholders through share buybacks during the quarter and invested $20 million in fleet enhancements, including $1.8 million in maintenance CapEx and $8.6 million for exhaust gas cleaning systems [4][10] - The company took delivery of the newly acquired vessel, DHT Appaloosa, which is expected to be accretive to earnings and improve fleet efficiencies [5][37] Market Data and Key Metrics Changes - The current market is described as balanced to tight, with increased transportation distances due to higher seaborne crude volumes [7] - The estimated P&L breakeven for the second half of the year for the fleet is about $27,000 per day, with the spot fleet requiring about $25,900 per day [15][39] Company Strategy and Development Direction - The company aims to maintain a solid balance sheet with low leverage and significant liquidity, focusing on capital allocation towards dividends and share buybacks [34][36] - The company has no plans for new building orders, preferring to invest in existing assets that can generate immediate returns [56] Management's Comments on Operating Environment and Future Outlook - Management noted that OPEC+ production cuts are typically not favorable for tanker markets, but the current supply picture is constructive due to a low order book for new VLCCs [41] - The company anticipates a potential stock rebuilding and increased refinery runs, which could drive demand for tanker services [42] Other Important Information - The company has completed all retrofit projects for exhaust gas cleaning systems, ensuring all ships are now fitted with these systems [37] - The company has a 10b5 program in place for share buybacks, allowing for opportunistic purchases based on market conditions [13][50] Q&A Session Summary Question: Thoughts on the VLCC spot market and future demand - Management indicated that demand for VLCCs is influenced by trade flows and pricing dynamics, particularly in relation to U.S. crude exports to Europe and Asia [20][21] Question: Impact of Saudi cuts on market weakness - Management acknowledged the complexity of estimating the impact of Saudi cuts but noted that maintaining higher prices could support demand in the fourth quarter [27][28] Question: Clarification on the buyback program - The buyback program is opportunistic, with management deciding on purchases based on market conditions and stock valuation [29][50] Question: VLCC supply side and shadow markets - Management confirmed that a significant portion of the VLCC fleet is trading in shadow markets, which has reduced fleet productivity but may support higher realized averages [30][54] Question: Future fuels and new building plans - Management expressed no plans for new buildings, citing high costs and the need for immediate revenue-generating assets [56][70]

IÂ'd say liquidity in sort of term business is thinner now than it was, say, in the fall and that in the winter, but very few things got executed and the bid-ask spread was quite significant during the first quarter hence basically nothing got out. Jonathan Chappell China is, for sure, reopening, and weÂ've seen the latest numbers that refinery runs are higher than what they were on prior months and prior quarters. But we do think that these runs are primarily tuned to increase in domestic consumption. Grea ...