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]