DHT(US:DHT)2023-02-14 14:25Financial Data and Key Metrics Changes - In Q4 2022, the average TCE (Time Charter Equivalent) was $56,900 per day, with vessels in the spot market earning $63,800 per day and those on time charter earning $36,100 per day [3] - The net income for the full year was $62 million, equating to $0.37 per share, while Q4 net income was $61.8 million, or $0.38 per share [3][11] - EBITDA for Q4 was reported at $95.4 million, with operating expenses (OpEx) for the year totaling $73.8 million, averaging $8,250 per day for the fleet [3][11] Business Line Data and Key Metrics Changes - The company expects a P&L breakeven for the fleet of approximately $27,200 per day for 2023, with cash breakeven estimated at $18,100 per day [7] - The company has completed 2 retrofits of exhaust gas cleaning systems and has plans for the remaining vessels, indicating a focus on environmental compliance and operational efficiency [16] Market Data and Key Metrics Changes - The reopening of China is expected to drive demand for crude oil, with significant import quotas suggesting increased refinery runs [8] - The VLCC (Very Large Crude Carrier) order book is at 2.2% of the sailing fleet, with a growing number of older vessels, indicating potential supply constraints in the future [17] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet and has adopted a new dividend policy to distribute 100% of net income to shareholders, reflecting confidence in its financial stability [6][14] - The management emphasizes a disciplined approach to business execution, focusing on delivering reliable services and strong results for shareholders [38] Management's Comments on Operating Environment and Future Outlook - Management noted favorable market fundamentals and expects continued strong earnings from the tanker sector, driven by geopolitical disruptions and limited new supply of vessels [8] - The company anticipates that the current disruptions in the market will not resolve quickly, suggesting a prolonged period of favorable conditions for VLCCs [21] Other Important Information - The company ended the quarter with $126 million in cash and $234 million available under revolving credit facilities, indicating strong liquidity [31] - The company has a strategy to build fixed income gradually, responding to increasing demand for term contracts while ensuring the right conditions for investments [52] Q&A Session Summary Question: What is the company's leverage position and willingness to increase debt for investments? - The company has built a strong balance sheet to maintain investment capacity when the timing is right, focusing on organic growth without relying on external capital [39] Question: How does the company view its older vessels in the current market? - Management believes the older vessels are high-quality assets that continue to generate good earnings and are not candidates for divestment at this time [41] Question: What is the company's stance on fleet expansion and modernization? - The company is cautious about current asset prices and does not see an immediate need for expansion, preferring to wait for more favorable conditions [43] Question: How does the company perceive the shadow fleet and its implications? - Management acknowledges the existence of a shadow fleet and its potential impact on the market, emphasizing the need for regulatory oversight [63][64] Question: Will the company consider changing its dividend policy? - Any changes to the dividend policy would be contingent on significant strategic shifts or market conditions, with prior notice to shareholders [76]