Financial Data and Key Metrics Changes - In Q2 2025, the company achieved revenues on a TCE basis of $92.8 million and adjusted EBITDA of $69 million, with net income of $56 million, equating to $0.35 per share [5][6] - After adjusting for a $17.5 million gain on the sale of vessels, the net profit for the quarter was $38.6 million, or $0.24 per share [6] - Vessel operating expenses for the quarter were $19.6 million, and G&A expenses were $4.6 million [6] - The average TCE for vessels in the spot market was $48,700 per day, while vessels on time charters made $42,800 per day, resulting in a combined average TCE of $46,300 per day [6] Business Line Data and Key Metrics Changes - The DHT Appaloosa entered a seven to nine-year time charter contract with a global energy major at a fixed base rate of $41,000 per day, plus a profit-sharing structure [11] - The company sold two vessels, DHT Lotus and DHT Pony, for a combined price of $103 million, with a capital gain of $17.5 million recorded during the quarter [13][14] Market Data and Key Metrics Changes - India’s imports of Russian oil decreased by 20% in July, impacting chartering activity and favoring larger ships [27][28] - The company noted that OPEC's announcement to finish unwinding cuts earlier than expected could lead to increased interest in VLCC capacity [37][40] Company Strategy and Development Direction - The company continues to focus on maintaining a robust balance sheet with low leverage and significant liquidity, ending the quarter with total liquidity of $299 million [6][7] - A new building financing update revealed a secured credit facility of $308.4 million to finance four new buildings, indicating confidence from lenders in the company's financial position [16][17] - The company aims to pay out 100% of ordinary net income as quarterly cash dividends, declaring a dividend of $0.24 per share for Q2 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the VLCC market dynamics, citing a favorable supply story with an aging fleet and a benign order book of new ships [22] - The company anticipates a potential turnaround in the market despite a disappointing start to Q3, with several positive catalysts expected to influence VLCC performance [46][50] Other Important Information - The company has a fleet renewal strategy focused on creating shareholder value, with recent sales of older vessels being part of this strategy [41][43] - The company is exploring financing options for the acquisition of a modern secondhand vessel, indicating a conservative approach to leverage [57] Q&A Session Summary Question: Impact of tariffs from India on chartering activity - Management noted a 20% decrease in Russian oil imports to India, which could favor larger ships moving forward [27][28] Question: Repeatability of strong fixture rates for older ships - Management indicated success in securing time charters for older vessels, with rates starting in the low $40,000s, suggesting potential for repeat fixtures [30][32] Question: Changes in conversations with charters due to OPEC's actions - Management observed increased interest from customers in securing VLCC capacity, indicating a bullish signal for the market [39][40] Question: Fleet renewal strategy and maintaining fleet size - Management emphasized a case-by-case approach to fleet renewal, focusing on value creation and earnings per share [41][43] Question: Reasons for recent disappointment in VLCC performance - Management attributed the recent downturn to inventory building in China and a tapering of production, but expressed confidence in a temporary nature of these issues [46][49] Question: Update on dry dock schedule - Management confirmed only one ship is scheduled for dry dock in the second half of the year [52] Question: Utilization rates of sanctioned vessels - Management indicated limited ability to track the utilization of sanctioned vessels but estimated their productivity to be around 50% compared to compliant vessels [68][70] Question: Competitive financing rates and company’s attractiveness to banks - Management highlighted the company's strong balance sheet and stable banking relationships as factors contributing to competitive financing rates [72][74]

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]