DHT Holdings, Inc. (NYSE:DHT) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 08:00 am ET


DHT Holdings, Inc. (NYSE:DHT) Q4 2018 Earnings Conference Call Transcript


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Good afternoon, ladies and gentlemen, and welcome to today's DHT Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in the listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advise everyone that the call is recorded today Thursday, the 7th of February 2019.

I would like now to hand over the conference to your speaker, Ms. Laila Halvorsen, CFO. Thank you, go ahead please.

Laila C. Halvorsen

Thank you. Good morning and good afternoon, everyone. Welcome and thank you for joining DHT Holdings fourth quarter 2018 earnings call. I'm joined by DHT's Co-CEO, Svein Moxnes Harfjeld and Trygve Munthe. As usual, we will go through the financials and some highlights before we open up for your questions. The link to the slide deck can be found on our website, dhtankers.com.

Before, we get started with today's call, I would like to make the following remarks. A replay of this conference call will be available at our website, dhtankers.com, through February 13, 2019. In addition, our earnings press release will be available on our website and on SEC EDGAR system as an exhibit to our Form 6-K.

As a reminder, on this conference call, we will discuss matters that are forward-looking in nature. These forward-looking statements are based on our current expectations about future events, including DHT's prospects, dividends, share repurchases, and debt repayment, the outlook for the tanker market in general, daily charter hire rates and vessel utilization, forecast of world's economic activity, oil prices and oil trading patterns, anticipated levels of newbuilding and scrapping and projected drydock schedules.

Actual results may differ materially from the expectations reflected in these forward-looking statements. We urge you to read our periodic reports available on our website and on the SEC EDGAR system, including the risk factors in these reports for more information regarding risks that we face.

Agenda for today's call is Q4 financials, business update and market update. Looking at the income statement, our EBITDA came in at $61 million and a net income of $12 million or $0.08 per share. Adjusted for non-cash change in fair value related to interest rate derivatives of $6.2 million, the result would be $18.2 million or $0.13 per share.

OpEx for the quarter was $8,100 per day for the VLCC and $7,700 per day for the whole year. Our Board has elected to pay a dividend of $0.05 per share. This marks the 36th consecutive quarterly dividend, and will be paid on 26th of February to shareholders of record as of February 19th.

In December 2018, the Company also purchased 1.2 million of its own shares for an aggregate consideration of $5 million. Combined with the cash dividend, the Company will return $12.1 million to shareholders, equal to 67% of net income adjusted for the non-cash change in fair value related to interest rate derivatives. The average earnings for our VLCC came in at $34,900 per day in the fourth quarter with a shift time-charter earning $35,000