DHT Holdings, Inc. (NYSE:DHT) Q1 2019 Earnings Conference Call Transcript

May 10, 2019 • 08:00 am ET

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DHT Holdings, Inc. (NYSE:DHT) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Laila Halvorsen

Good morning, and good afternoon everyone. Welcome and thank you for joining DHT Holdings' First Quarter 2019 Earnings Call. I'm joined by DHT's Co-CEOs, Svein Harfjeld and Trygve Munthe. As usual, we will go through 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 May 16, 2019. In addition, our earnings press release will be available on our website and on the 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; forecasts on the world economic activity; oil prices and oil trading patterns; anticipated levels of newbuilding and scrapping; and projected dry-dock 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.

Looking at the income statement. Our EBITDA came in at $64.2 million and a net income of $17.7 million or $0.12 per share. Adjusted for a noncash change in fair value related to interest rate derivatives of $4.4 million, the result would be $22.1 million or $0.16 per share. The average earnings of our VLCCs came in at $35,500 per day in the first quarter, with our ships on time charter earning $33,900 per day and the spot fleet earning $35,800 per day. This key fee number is the true number in our income statement as our ships are commercially managed in-house.

CapEx for the quarter was $17.9 million or $7,400 per day average for the VLCC, and G&A for the quarter was $3.7 million equal to $1,500 per ship per day. As of today, we have booked 61% of our second quarter at $29,800 per day. It should be noted that while this is a good start to the second quarter, the market has seen a decline. Hence, we expect the remainder of the quarter to come in below this number.

Moving on to the balance sheet. The quarter ended with $69.3 million in cash. This does not include $85 million available under our revolving credit facilities with ABN and Nordea. As previously disclosed, we have also secured further financing of $50 million where only $5 million is drawn. Financial leverage is moderate with interest-bearing debt to total assets just above 51% based on mark-to-market.

Finally, looking at the cash bridge. We would like to highlight that we generated $64.2 million in EBITDA. And