DHT Holdings (DHT, Financial) has shared a business update for its second quarter of 2025. The company projects its fleet's time charter equivalent earnings to be $46,300 per day. This breaks down to $48,700 per day for its Very Large Crude Carriers (VLCCs) operating in the spot market and $42,800 per day for those under time charter. These estimates are derived from 2,003 revenue days in the quarter, of which 1,193 are spot days.
Looking ahead to the third quarter of 2025, DHT has already secured 53% of its available spot days at an average rate of $40,100 per day on a discharge-to-discharge basis. Moreover, 73% of the total available revenue days, which include both spot and time-charter days, have been booked at an average rate of $40,300 per day.
Additionally, in May, DHT signed a one-year time charter agreement for the vessel DHT Bauhinia, constructed in 2007, with a major global energy firm. This contract offers a rate of $41,500 per day, with the vessel entering service under this agreement at the end of May.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for DHT Holdings Inc (DHT, Financial) is $14.31 with a high estimate of $16.00 and a low estimate of $13.30. The average target implies an upside of 28.49% from the current price of $11.14. More detailed estimate data can be found on the DHT Holdings Inc (DHT) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, DHT Holdings Inc's (DHT, Financial) average brokerage recommendation is currently 1.6, 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 $8.87, suggesting a downside of 20.38% from the current price of $11.14. 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: May 07, 2025
- Revenue on TCE Basis: $79.3 million.
- Adjusted EBITDA: $56.4 million.
- Net Income: $44.1 million, equal to $0.27 per share.
- Net Profit (after vessel sale adjustment): $24.3 million, equal to $0.15 per share.
- Net Operating Expenses: $17.8 million.
- General and Administrative Expenses: $5.5 million.
- Average Daily Charter Rate: $36,300 per day for spot market vessels; $42,700 per day for time charters; $38,200 per day combined.
- Total Liquidity: $277 million, including $80.5 million in cash and $196.2 million available under credit facilities.
- Financial Leverage: 16.9% based on market values for ships.
- Net Debt: $12.3 million per vessel.
- Cash Dividend: $0.15 per share for the first quarter of 2025.
- Cash Flow from Vessel Sale: $42.5 million net proceeds from the sale of DHT Scandinavia.
- Debt Financing: $30 million secured reducing revolving facility with Nordea.
- Fleet Updates: Sale of DHT Lotus and DHT Peony for a combined $103 million; DHT Appaloosa entered a seven-year time charter at $41,000 per day.
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 financial performance with revenues on a TCE basis of $79.3 million and adjusted EBITDA of $56.4 million for the first quarter of 2025.
- The company achieved a net income of $44.1 million, equal to $0.27 per share, and declared a quarterly cash dividend of $0.15 per share, marking the 61st consecutive quarterly dividend.
- DHT Holdings Inc (DHT) has a robust balance sheet with low leverage and significant liquidity, ending the quarter with total liquidity of $277 million.
- The company successfully entered into two-time charter contracts with leading commodity traders and oil majors, securing favorable rates and long-term visibility on earnings.
- DHT Holdings Inc (DHT) completed the sale of older vessels, generating significant capital gains and proceeds that will be allocated to corporate purposes, including investments and potential share buybacks.
Negative Points
- The net profit for the quarter, after adjusting for the gain on the sale of a vessel, was $24.3 million, which is lower than the initial net income reported.
- The company faces potential risks from forward-looking statements and market uncertainties, as highlighted in their financial report.
- Despite a strong balance sheet, the company acknowledges challenges in finding new investment opportunities in the current market.
- The spread between very low sulfur fuel oil and heavier fuel oil has been thinner than expected, impacting the profitability of scrubber projects.
- The market dynamics, including OPEC's production decisions and potential geopolitical developments, could impact future earnings and market conditions for DHT Holdings Inc (DHT).
