DHT(US:DHT)2025-10-30 14:00Financial Data and Key Metrics Changes - In Q3 2025, the company achieved revenues on a TCE basis of $79.1 million and adjusted EBITDA of $57.7 million, with net income at $44.8 million, equating to $0.28 per share [3][4] - After adjustments, the net profit for the quarter was $29.5 million, or $0.18 per share [4] - The average TCE for vessels in the spot market was $38,700 per day, while vessels on time charters earned $42,800 per day, leading to an average combined TCE of $40,500 per day [4] Business Line Data and Key Metrics Changes - Vessel operating expenses for the quarter were $18.4 million, and G&A expenses were $4.1 million [4] - The company reported total liquidity of $298 million, consisting of $81.2 million in cash and $216.5 million available under revolving credit facilities [4][5] Market Data and Key Metrics Changes - The company expects to have 901 time charter days covered for Q4 2025 at $42,200 per day, including profit sharing for October [9] - For contracts with profit sharing, 1,070 spot days are anticipated in Q4, with 68% already booked at an average rate of $64,900 per day [10] Company Strategy and Development Direction - The company has entered into a $308.4 million secured credit facility to finance four newbuildings, indicating a focus on expanding its fleet [6] - The capital allocation policy includes paying out 100% of ordinary net income as quarterly cash dividends, with a dividend of $0.18 per share approved for Q3 2025 [8] Management's Comments on Operating Environment and Future Outlook - The VLCC market is showing significant strength, driven by growing demand for seaborne transportation of crude oil and an aging fleet [11] - Geopolitical factors and trade dynamics are creating disruptions, impacting supply security and market conditions [12] - Management remains optimistic about future opportunities, citing strong customer demand and potential for fleet expansion [13] Other Important Information - The company has a robust balance sheet with low leverage, and net debt is below $9 million per vessel, well below estimated residual ship values [5] - The company has entered into eight three-year amortizing interest rate swap agreements totaling $200.6 million, with an average fixed interest rate of 3.32% [7] Q&A Session Summary Question: Is the postponement of port fees a good thing for the market? - Management indicated that the market may experience a temporary pause, but strong demand and a fragmented fleet should continue to support rates [22][23] Question: What is the impact of tariffs on U.S. crude oil exports to China? - Management noted that U.S. crude oil exports to China are modest and that any tariffs would likely be out of the equation following recent discussions [28] Question: With high spot rates, how is the time charter market responding? - Management observed increased interest in shorter-term charters at improved rates, but noted the difficulty in pricing due to the premium in the spot market [29][30] Question: Will major charters accept older ships as prices rise? - Management stated that in a stronger market, customers are more pragmatic about accepting older ships, with some accepting vessels up to 17-18 years old [38][39]