DHT has observed increased volatility in global markets due to recent tariff announcements. The lack of clarity regarding the objectives and potential outcomes of these tariffs results in uncertainty, making it difficult to gauge their full impact on global economic growth and trade. Despite this uncertainty, DHT maintains a positive outlook on its market environment, noting that the dynamics are increasingly favorable. This optimism is driven by an aging fleet, which outpaces the relatively low number of new ships on order.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for DHT Holdings Inc (DHT, Financial) is $13.99 with a high estimate of $16.00 and a low estimate of $11.00. The average target implies an upside of 24.57% from the current price of $11.23. More detailed estimate data can be found on the DHT Holdings Inc (DHT) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, DHT Holdings Inc's (DHT, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DHT Holdings Inc (DHT, Financial) in one year is $9.16, suggesting a downside of 18.43% from the current price of $11.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DHT Holdings Inc (DHT) Summary page.
DHT Key Business Developments
Release Date: February 06, 2025
- Total Liquidity: $258 million, including $78 million in cash and $180 million available under revolving credit facilities.
- Financial Leverage: 18% based on market values for the ships.
- Net Debt: $13.8 million per vessel.
- Revenue (TCE basis): $85.5 million for Q4 2024.
- EBITDA: $60.6 million for Q4 2024.
- Net Income: $54.7 million ($0.34 per share) for Q4 2024; adjusted net income $26.8 million ($0.17 per share).
- Vessel Operating Expenses: $20 million for Q4 2024.
- General & Administrative Expenses: $5.6 million for Q4 2024, including a non-recurring item of $0.7 million.
- Average TCE (Spot Market): $38,200 per day for Q4 2024.
- Average TCE (Spot Vessels under 15 years): $40,500 per day for Q4 2024.
- Average Combined TCE: $38,800 per day for Q4 2024.
- Net Income (Full Year 2024): $181.5 million ($1.12 per share); adjusted net income $153.6 million ($0.95 per share).
- Vessel Operating Expenses (Full Year 2024): $78.6 million.
- General & Administrative Expenses (Full Year 2024): $18.9 million.
- Depreciation (Full Year 2024): $111.9 million.
- Average TCE (Full Year 2024): $45,200 per day.
- Cash Flow Highlights (Q4 2024): Started with $74 million in cash, ended with $78 million in cash.
- Dividend: $0.17 per share for Q4 2024.
- Share Buybacks: 1.5 million shares repurchased at an average price of $8.89.
- Sale of DHT Scandinavia: Sold for $43.4 million, generating a book gain of $19.8 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DHT Holdings Inc (DHT, Financial) reported a strong balance sheet with low leverage and significant liquidity, ending the fourth quarter with $258 million in total liquidity.
- The company achieved revenues on a TCE basis of $85.5 million and an EBITDA of $60.6 million for the fourth quarter.
- DHT Holdings Inc (DHT) declared a dividend of $0.17 per share for the fourth quarter, marking its 60th consecutive quarterly cash dividend.
- The company successfully repurchased 1.5 million shares at an average price of $8.89, which was accretive to earnings per share and net asset value.
- DHT Holdings Inc (DHT) secured a one-year time charter for DHT China at $40,000 per day, indicating strong demand for its vessels.
Negative Points
- Net income for the fourth quarter was adjusted to $26.8 million, equal to $0.17 per share, after accounting for a non-cash reversal of prior impairment charges.
- Vessel operating expenses for the quarter were $20 million, which included a non-recurring insurance deductible.
- The average TCE for spot vessels was $38,200 per day, which is lower than the earnings for vessels under 15 years of age.
- The company faces challenges in selling older ships due to potential counterparty issues and market conditions.
- DHT Holdings Inc (DHT) noted that liquidity in the market for buying and selling ships is thin, making it difficult to find good investment opportunities.
