DHT(DHT) - 2024 Q1 - Quarterly Report

Executive Summary & Highlights DHT achieved its second-best year in 2023 with strong financial and operational performance, solid balance sheet, and consistent dividends Financial Highlights (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] - 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] Quarterly Highlights (Q4 2023) 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] - Adjusted EBITDA for Q4 2023 was $72.9 million, and net profit was $35.3 million, equating to $0.22 per basic share[4] - 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] - A cash dividend of $0.22 per share was declared for Q4 2023, marking the 56th consecutive quarterly cash dividend and aligning with the policy to pay out 100% of net income[4] Operational Highlights (Q4 2023) DHT maintained high operating efficiency in Q4 2023 with minimal unscheduled off-hire, while increasing its spot market exposure, with VLCC spot rates remaining strong and contributing to overall revenue days | | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | 2023 | 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating days | 2,208.0 | 2,177.7 | 2,093.0 | 2,070.0 | 2,116.0 | 8,548.7 | 8,929.0 | | Scheduled off hire days | - | 79.1 | 60.9 | 111.8 | 63.5 | 251.8 | 150.3 | | Unscheduled off hire | 0.1% | 0.1% | 1.3%* | 2.2%* | 0.1% | 0.9% | 0.2% | | Revenue days | 2,206.7 | 2,096.0 | 2,005.6 | 1,912.8 | 2,051.5 | 8,221.0 | 8,721.7 | | Spot exposure | 81.2% | 77.3% | 70.4% | 72.9% | 74.7% | 75.6 % | 75.4 % | | VLCC time charter rate ($/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] - Spot exposure increased to 81.2% in Q4 2023 from 74.7% in Q4 2022, reflecting a strategic shift towards the spot market[5] Business Outlook & Strategy The company anticipates continued freight market strength and maintains a strategy focused on shareholder returns and operational excellence Market Outlook 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] - OPEC+ cuts suggest an acceptance of growing non-OPEC supply, leading to adjusted market shares and expanded transportation distances[6] - Geopolitical complexities, including developments in the Red Sea, are expected to influence and potentially benefit the company's market[6] - 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] Company Strategy 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] - As of December 31, 2023, DHT operated a fleet of 24 VLCCs with a total deadweight tonnage (dwt) of 7,479,177[9] Subsequent Events & Q1 2024 Outlook 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] - In January 2024, the Company prepaid $24.0 million under the ING Credit Facility, which may be re-borrowed[14] - Ms. Ana Zambelli was appointed to the Board of Directors effective February 1, 2024, bringing over 20 years of energy sector experience[14] Financial Performance Analysis Q4 2023 saw decreased revenues and profit, while full year 2023 showed significant revenue and net income growth Fourth Quarter 2023 Financials 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) 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] - 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] - 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] - General and administrative (G&A) expense increased to $4.0 million in Q4 2023 from $2.8 million in Q4 2022[20] Net Profit and EPS (Q4 2023) 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] - 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] Cash Flow (Q4 2023) 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] - Net cash used in investing activities was $2.2 million in Q4 2023, related to investment in vessels[24] - 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] - The cash balance as of December 31, 2023, was $74.7 million, down from $125.9 million as of December 31, 2022[26] Shareholder Information (Q4 2023) 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] - A cash dividend of $0.22 per common share was declared for Q4 2023, payable on February 28, 2024[28] Full Year 2023 Financials 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) 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] - The Company did not record any gain or loss from vessel sales in 2023, compared to a $19.5 million gain in 2022[31] - 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] - 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] Net Profit and EPS (FY 2023) 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] - 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] Cash Flow (FY 2023) 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] - 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] - 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] Non-GAAP Financial Measures Reconciliation 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] Company Information & Disclosures This section details the Q4 2023 earnings call, company profile, forward-looking statements, and investor contact Earnings Conference Call & Webcast 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] - Participants were required to register via a provided link to access dial-in numbers and a unique personal PIN[46] - 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] About DHT Holdings, Inc. 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] - The company operates through integrated management companies in Monaco, Norway, Singapore, and India[47] - 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] Forward-Looking Statements 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] - These statements are subject to risks and uncertainties, and actual results could differ materially from those anticipated[48][49] - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[49] Contact Information 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] Unaudited Interim Condensed Consolidated Financial Statements Presents the company's unaudited financial statements, including position, income, comprehensive income, cash flow, and equity changes Condensed Consolidated Statement of Financial Position 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 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 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 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 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 Detailed notes on general information, accounting principles, segment reporting, debt, vessels, equity, receivables, deferred revenues, risk management, and subsequent events Note 1 – General Information 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] - The unaudited interim condensed consolidated financial statements were approved by the Board of Directors on February 6, 2024[64] Note 2 – General Accounting Principles 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][67] - 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] - 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] Note 3 – Segment Reporting 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] | 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] - 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][74] Note 4 – Interest Bearing Debt 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] | 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] - 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] Note 5 – Vessels 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] | 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 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] - In 2023, the Company purchased 2,209,927 of its own shares for an aggregate of $18.7 million (average price $8.49), all retired upon receipt. No repurchases were made in Q4 2023 or Q1 2023[93] | Payment date | Total Payment (Thousands USD) | Per common share ($) | | :--- | :--- | :--- | | 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 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] Note 8 – Deferred Shipping Revenues 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] Note 9 – Financial Risk Management, Objectives, and Policies 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] - The Company's principal financial liability is long-term debt, and its financial assets mainly comprise cash[98] Note 10 – Subsequent Events 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] - On February 6, 2024, the Board approved a dividend of $0.22 per common share for Q4 2023, payable on February 28, 2024[100]