Dht Holdings, Inc. · NYSE:DHT
Dht — Investor Presentation (June 2016)
21 slides from Dht's investor presentation, Jun 20, 2016
Slide 1: Company Presentation
Company Presentation June 20, 2016
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation 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 particul
Slide 3: DHT in a nutshell
DHT in a nutshell Dedicated crude oil tanker company • 20 ships in the water: 17 VLCCs and 2 Aframaxes • 3 VLCC newbuildings for delivery in 2016 • Average age of 7.2 years (including newbuildings) • Fully integrated shipowning company • 16 shore-side employees • Registered in the Marshall Islands
Slide 4: Publicly listed in New York
Publicly listed in New York Listed on New York Stock Exchange under ticker DHT Market Cap: ≈$500m 3-month average daily trading volume: 2.2m shares Quarterly cash dividends Open shareholder structure Source: NYSE June 20, 2016 4
Slide 5: Fully funded embedded growth
Fully funded embedded growth DHT VLCC fleet 25 Oct-16 Aug-16 Jul-16 20 Aug-16 Oct-16 18% increase Jul-16 in VLCC fleet 15 over the next 4 # of VLCCs months 10 20 17 5 0 Existing VLCC DHT Panther DHT Puma DHT Tiger Fully delivered fleet fleet June 20, 2016 5
Slide 6: Q1 Highlights
Q1 Highlights Took delivery of two newbuilds; • DHT Leopard (January 2016) • DHT Lion (March 2016) Entered into agreement to sell the 2001-built Suezmax DHT Target for $22.5m • Estimated delivery to buyers in May Prepaid $46.9m of mortgage debt Securities repurchase program • $4.0m of conver
Slide 7: P&L Highlights
P&L Highlights Q1 2016 Q1 2016 – Excluding Impairment USD Thousands, except per share amounts USD Thousands, except per share amounts Revenues on TC basis $ 90,249 Revenues on TC basis $ 90,249 Vessel operating expenses $ (14,288) Vessel operating expenses $ (14,288) Impairment charge vessel held fo
Slide 8: VLCC Earnings 2015-2016 YTD
VLCC Earnings 2015-2016 YTD USD/day Q1’15 Q2’15 Q3’15 Q4’15 FY’15 Q1’16 Spot Earnings $ 60,400 $ 52,300 $ 59,600 $ 62,200 $ 58,600 $ 62,600 TC Earnings $ 35,500 $ 38,500 $ 38,800 $ 43,700 $ 39,100 $ 44,800 Total $ 50,300 $ 46,300 $ 50,700 $ 54,500 $ 50,400 $ 56,900 Profit sharing from time-charter
Slide 9: Managing the cycles
Managing the cycles Counter cyclical investment philosophy TROUGH / INVESTMENT RECOVERY HIGH MARKET PHASE PHASE PHASE Sale & Purchase: • Aggressive growth • Selective • Divestment of older growth tonnage Chartering: • Spot • Spot Term • Time charters Capital • Nominal dividends • Increased • Formul
Slide 10: Executing on our strategy
Executing on our strategy Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 Q2 2016 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 Sold 2000- Sold 2001- S&P Acquired 16 VLCC’s built Suezmax built Suezmax Secured Extended and Extended and Extended and Secured time time repriced time repriced time repriced tim
Slide 11: Fleet Employment
Fleet Employment 2016 2017 2018 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DHT Phoenix VLCC DHT Ann VLCC DHT Chris VLCC DHT Eagle VLCC DHT Condor VLCC DHT Falcon VLCC Samco Scandinavia VLCC DHT Hawk VLCC Samco China VLCC Samco Europe VLCC DHT Amazon VLCC Samco Redwood VLCC Samco Sundarbans VLCC Samco Taiga VL
Slide 12: Fixed Income
Fixed Income 2016 2017 % of Days Average TC % of Days Average TC Fixed Income Fixed Income Fixed rate Fixed rate VLCC 32% $ 89.1m $ 44,500 20% $ 59.1m $ 44,400 Suezmax 100% $ 3.1m $ 30,000 Aframax 100% $ 15.9m $ 22,500 29% $ 4.6m $ 22,500 Total 38% $ 108.1m 20% $ 63.7m June 20, 2016 12
Slide 13: DHT Cash Break-Even
DHT Cash Break-Even USDm Estimated cash break-even H2 2016 USDm Estimated cash break-even 2017 $450 $450 $400 Estimated cash costs of approx. $400 Estimated cash costs of approx. $89 million $173 million If VLCC spot: $ 60,000 $350 If VLCC spot earnings: $60,000/day $350 If VLCC spot earnings: $60,0
Slide 14: G&A
G&A DHT 2017 cash G&A per ship per day ≈ $1,550 • Whereof commercial department cost ≈ $450 per ship per day • Pool A: $700 per ship per day* • Pool B: $770 per ship per day* • Pool C: $1,100 per ship per day* *Based on DHT in-house research DHT VLCC average spot earnings per day Q1’15-Q1’16 (+
Slide 15: Short term volatility…
Short term volatility… Clarksons VLCC Spot Earnings USD/day $120 000 $100 000 $80 000 $60 000 $40 000 $20 000 $- Q115 Q215 Q315 Q415 Q116 Q216 Source: Clarksons June 20, 2016 15
Slide 16: …influencing DHT share price…
…influencing DHT share price… Clarksons VLCC Spot Earnings DHT Share Price USD/day USD/share $120 000 $10,0 $100 000 $9,0 $80 000 $8,0 $60 000 $7,0 $40 000 $6,0 $20 000 $5,0 $- $4,0 Q115 Q215 Q315 Q415 Q116 Q216 Source: Clarksons June 20, 2016 16
Slide 17: …whilst actual, quarterly spot earnings have been remarkably steady
…whilst actual, quarterly spot earnings have been remarkably steady Clarksons VLCC Spot Earnings DHT VLCC Spot Earnings DHT Share Price USD/day USD/share $120 000 $10,0 $100 000 $9,0 $80 000 $8,0 $60 000 $7,0 $40 000 $6,0 $20 000 $5,0 $- $4,0 Q115 Q215 Q315 Q415 Q116 Q216 Source: Clarksons June 20,
Slide 18: DHT EPS vs. share price
DHT EPS vs. share price USD/share DHT Share Price (LHS) DHT EPS* USD/share $9,5 $0,45 $9,0 $0,40 $8,5 $8,0 $0,35 $7,5 $7,0 $0,30 $6,5 $6,0 $0,25 $5,5 $5,0 $0,20 Q115 Q215 Q315 Q415 Q116* * Adjusted EPS June 20, 2016 18
Slide 19: Key Customers
Key Customers June 20, 2016 19
Slide 20: Key Lending Banks
Key Lending Banks June 20, 2016 20
Slide 21: Summary
Summary DHT has become a significant shipowner in the large tanker market with 20 VLCCs and 2 Aframaxes We strive to be among the best in class – both hardware and software We don’t aim to be the biggest, but we shall strive to become one of the most respected tanker companies in the world Jun