Dht Holdings, Inc. · NYSE:DHT

Dht — Investor Presentation (November 2015)

22 slides from Dht's investor presentation, November 2015

  1. Slide 1: Company Presentation

    Company Presentation November 2015

  2. Slide 2: Disclaimer

    Disclaimer Forward Looking Statements This press release contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company's management as well as assumptions, expectations, projections, intentions and beliefs about future events, in particu

  3. Slide 3: Agenda

    Agenda 1. Who We Are 2. Our Strategy 3. Key Investment Considerations November, 2015 3

  4. Slide 4: DHT in a nutshell

    DHT in a nutshell  Dedicated crude oil tanker company • 18 ships in the water: 14 VLCCs, 2 Suezmaxes, 2 Aframaxes • 6 VLCC newbuildings for delivery 2015 and 2016 • Average age of about 7 years (including newbuildings) • Fully integrated shipowning company • 16 shore-side employees • Registered in

  5. Slide 5: Fleet overview

    Fleet overview Vessel Built Yard DWT Class P&I Club Flag Employment Ownership Technical manager VLCC DHT Phoenix 1999 Daewoo 307 151 LR Skuld HK Spot 100 % Goodwood DHT Ann 2001 Hyundai 309 327 LR Gard HK Spot 100 % Goodwood DHT Chris 2001 Hyundai 309 285 LR Skuld MI TC 100 % Goodwood DHT Eagle 2002

  6. Slide 6: Tanker owners by VLCC fleet

    Tanker owners by VLCC fleet - Including VLCCs on order 50 45 40 35 30 # of VLCCs 25 20 15 10 5 0 Source: Clarksons November, 2015 6

  7. Slide 7: Goodwood Ship Management

    Goodwood Ship Management  50% owned by DHT • Acquired through the Samco transaction  Specialized in management of large tankers  High quality operations to service the most demanding customers  Time charter approved by: • Exxon, BP, Shell, P-66, Vela, Koch  Accredited with ISO 9001, 14001, 1800

  8. Slide 8: Key customers

    Key customers ST Shipping & Trading A Glencore Company November, 2015 8

  9. Slide 9: Key lending banks

    Key lending banks November, 2015 9

  10. Slide 10: Agenda

    Agenda 1. Who We Are 2. Our Strategy 3. Key Investment Considerations November, 2015 10

  11. Slide 11: Managing the cycles

    Managing the cycles TROUGH / INVESTMENT RECOVERY HIGH MARKET PHASE PHASE PHASE Sale & Purchase: • Aggressive growth • Selective • Divestment of older growth tonnage Chartering: • Spot • Spot Term • Secure long-term charters Capital • Nominal dividends • Increased • Potential allocation: dividends e

  12. Slide 12: Executing on our strategy

    Executing on our strategy 5 year old VLCC asset value 4Q ‘13: Contracted 2+1 VLCCs from Hyundai 5-yrs old VLCC VLCC Spot Raised US$ 110m of equity 180 200 000 160 180 000 1Q ‘14: Raised US$ 227m of equity 160 000 140 Declared optional N/B + contracted 3 more (Hyundai)  6 VLCC NBs 140 000 120  3 2N

  13. Slide 13: Executing on our strategy

    Executing on our strategy Quarterly spot earnings vs. DHT dividends DHT Dividend (RHS) Average VLCC Spot Earnings (LHS) 1 Year TC VLCC (LHS) USD/day USD/share 90 000 0,5 Secured time charter 0,45 80 000 for 6 vessels 0,4 70 000 0,35 60 000 0,3 50 000 0,25 40 000 0,2 30 000 0,15 20 000 0,1 10 000 0,0

  14. Slide 14: Agenda

    Agenda 1. Who We Are 2. Our Strategy 3. Key Investment Considerations November, 2015 14

  15. Slide 15: Key investment considerations

    Key investment considerations  Strong balance sheet  Embedded growth – fully funded  Low cash break-even  Protected downside – substantial upside  Liquid stock  Transparent corporate governance November, 2015 15

  16. Slide 16: Balance sheet highlights

    Balance sheet highlights As per 30.09.15  Debt/total assets: 46% (45% after debt prepayment of $26.8 m in Cash $ 158 October 2015 Other Assets $ 50  DHT NB program fully funded • $219.2m paid in to shipyard (a further Vessels $ 930 $18.5m paid in October 2015 thereby increasing NB installments to

  17. Slide 17: Strong fleet growth built in

    Strong fleet growth built in DHT VLCC fleet 25 20 43% increase 15 in VLCC fleet over the next # of VLCCs 11 months 10 5 0 Existing DHT DHT DHT Lion DHT DHT DHT Fully VLCC Jaguar Leopard Panther Puma Tiger delivered fleet fleet November, 2015 17

  18. Slide 18: Estimated cash break-even 2016

    Estimated cash break-even 2016 USD million $450 $400 If VLCC spot: $350 60,000 CAPEX $300 Cash G&A $250 Debt repayment Amortization Interest $200 If VLCC spot: OPEX $150 42,500 V: 21,500 V: 25,200 S: 17,200 $100 S: 15,500 A: 11,300 $50 Fixed TC Fixed TC $- Cash cost Cash break-even Required rates fo

  19. Slide 19: Downside Protection – Upside Participation

    Downside Protection – Upside Participation  18% of available tanker days are fixed on time charters for 2016. We estimate that revenues from time charters will cover approximately 24% of cash costs in 2016, resulting in a cash break-even rate of $21,500/day for VLCC and $17,200/day for Suezmax in 2

  20. Slide 20: DHT has good liquidity and research analyst coverage

    DHT has good liquidity and research analyst coverage Comparison of peer group stock liquidity and research coverage Average Daily Traded Volume Market cap 3-month ADTV % of market Total firms ($mm) ($mm) cap Exchange covering Nordic American Tankers 1,438 32.1 2.2% NYSE 10 DHT Holdings 757 12.8 1.7%

  21. Slide 21: Governance

    Governance  DHT maintains a transparent corporate structure through wholly owned management companies  No related party transactions  No fees to management  DHT maintains a high level of integrity and good governance • Compliant with NYSE listing rules for Foreign Private Issuers • Sarbanes-Oxle

  22. Slide 22: Summary

    Summary  DHT has become a significant shipowner in the large tanker market with 20 VLCCs, 2 Suezmaxes and 2 Aframaxes.  We will actively manage the cycles – both in terms of buying/selling and chartering  We endeavor to be best in class – both “hardware” and “software”  We do not aim to be the b

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