DHT(US:DHT)2024-02-07 15:42Financial Data and Key Metrics Changes - The company reported a net income of $161.4 million for 2023, equating to $0.99 per share, marking the second-best year in its history [4] - For Q4 2023, revenues on a TCE basis were $94.5 million, with EBITDA of $73 million and net income of $35.3 million, or $0.22 per share [9] - Average TCE for 2023 was $47,500 per day, while Q4's average TCE was $42,800 per day [4][9] - Total liquidity at year-end was $268 million, with $75 million in cash and $193 million available under a revolving credit facility [3] Business Line Data and Key Metrics Changes - Vessels in the spot market earned $51,200 per day in 2023, while time-chartered vessels made $36,400 per day [4] - In Q4, spot market vessels earned $43,600 per day, and time-chartered vessels earned $39,600 per day, including profit sharing [9] Market Data and Key Metrics Changes - The average spot earnings from Q4 2022 to Q4 2023 were $53,700 per day, compared to the TD3c index average of $40,100 per day [12] - The outlook for Q1 2024 indicates an average rate of $55,900 per day booked to date [14] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet with low leverage and significant liquidity, focusing on disciplined execution of its strategy [24] - The company plans to continue paying out 100% of ordinary net income as quarterly cash dividends, marking the 56th consecutive quarterly dividend [12] - The company is exploring opportunities for growth, including secondhand vessels and potential M&A [43] Management's Comments on Operating Environment and Future Outlook - Management noted that the aging fleet and limited new shipping capacity could lead to a tightening supply-demand balance in the coming years [19][24] - There is a belief that the demand for oil will persist, and the need for shipping will remain strong despite current market challenges [61] - Management expressed confidence in the company's ability to navigate cyclical and volatile markets due to its solid balance sheet and liquidity [24] Other Important Information - The company has a P&L breakeven rate estimated at $27,400 per day for 2024, with a cash breakeven rate of $18,500 per day [13] - The company has pre-paid all installments for 2024 under the Nordea credit facility, amounting to $23.7 million [11] Q&A Session Summary Question: How does the company view investments in the current market? - Management indicated that while they are exploring various investment opportunities, they believe it is essential to maintain a balance between growth and shareholder returns [43] Question: What is the company's preferred financial leverage ratio? - Management stated that they could comfortably increase leverage to around 30% without impairing dividend capacity, as current leverage is just shy of 20% [44] Question: How does the Red Sea situation impact VLCCs? - Management noted that the Red Sea issue has had a limited impact on VLCC business, but if it persists, it could increase transportation costs for smaller ships, making VLCCs more favorable [55] Question: What is the company's strategy regarding fleet acquisitions? - Management is considering various options, including secondhand vessels and new builds, but emphasized the importance of ensuring any investment is accretive to earnings per share [43][74]