Dht Holdings, Inc. · NYSE:DHT
Dht — Investor Presentation (January 2017)
19 slides from Dht's investor presentation, Jan 31, 2017
Slide 1: Company Presentation
Company Presentation January 31, 2017
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 • 21 ships in the water: 19 VLCCs and 2 Aframaxes • 2 VLCC newbuildings for delivery in 2018 • Average age of 6.8 years • Fully integrated shipowning company • 15 shore-side employees • Registered in the Marshall Islands DHT strives for excell
Slide 4: Publicly listed in New York
Publicly listed in New York Listed on New York Stock Exchange under ticker DHT 3-month average daily trading volume: 2.5m shares Defined capital allocation policy Open shareholder structure Source: NYSE January 31, 2017 4
Slide 5: Highlights
Highlights Extended the time-charter for DHT Europe for 12 months from January 2017 at $31,250/day. Repurchased $23.0m of convertible senior note at an average price of 90.4%. Took delivery of the DHT Tiger on January 16. The vessel is trading in the spot market. DHT Chris was delivered to t
Slide 6: P&L Highlights
P&L Highlights Q4 2016 USD Thousands, except per share amounts Revenues on TCE basis $ 66,962 Vessel operating expenses $ 15,988 G&A $ 4,309 EBITDA $ 46,665 Net Income $ 17,830 EPS $ 0.19 DHT will pay a cash dividend of $0.08 per share on February 22, 2017 to shareholders of record as of February 14
Slide 7: Robust Balance Sheet
Robust Balance Sheet USD Thousand 31.12.2016 Cash $ 109,295 Cash reflects $48.6m bank loan Other Current Assets $ 45,994 drawn down during Q4’16 to finance DHT Tiger delivered on Vessels $ 1,221,159 January 16, 2017. Asset held for sale $ 23,216 Other Assets $ 4,073 Interest bearing debt to tota
Slide 8: VLCC Earnings
VLCC Earnings USD/day Q1’16 Q2’16 Q3’16 Q4’16 FY’16 Spot Earnings $ 62,600 $ 53,300 $ 20,300 $ 34,300 $ 42,600 TC Earnings $ 44,800 $ 46,700 $ 46,700 $ 41,400 $ 44,800 Average $ 56,900 $ 51,000 $ 29,700 $ 37,100 $ 43,400 As per January 31, we have booked 60% of our VLCC spot days in Q1’17 at an aver
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 • Increased • Formula based al
Slide 10: Executing On Our Strategy
Executing On Our Strategy USD/day 120,000 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Sold 2000- Sold 2001- Sold 2001- Contracted S&P Acquired 16 VLCC’s built built built VLCC 2 VLCC’s 100,000 Suezmax Suezmax Extended Secure
Slide 11: Capital Allocation
Capital Allocation Capital Allocation Policy DHT intends to return at least 60% of its ordinary net income (adjusted for non-recurring items) to shareholders in the form of quarterly cash dividends and/or through buybacks of its own securities. Further, DHT intends to allocate surplus cash flow, aft
Slide 12: 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 TC 100 % Goodwood DHT Ann 2001 Hyundai 309,327 LR Gard HK Spot 100 % Goodwood DHT Eagle 2002 Samsung 309,064 ABS Gard HK Spot 100 % Goodwood DHT Condor 200
Slide 13: Valuable Fleet Employment
Valuable Fleet Employment Time Charter Cover 2017 26% of available days in 2017 are 100 % fixed. 75 % Total time charter income of $76.0m Spot 50 % for 2017. 25 % 44% of total cash cost covered by Time Charter time charter income. 0% Q117 Q217 Q317 Q417 January 31, 2017 13
Slide 14: 2017 Cash Break-Even: $18,000/day for spot VLCCs
2017 Cash Break-Even: $18,000/day for spot VLCCs USDm $450 $400 If VLCC spot: $350 $ 60,000 $300 If VLCC spot: $ 45,000 $250 $200 If VLCC spot: $150 $ 30,000 Maintenance CAPEX V: $ 18,000 Cash G&A V: $ 23,400 A: $ 11,500 $100 Debt repayment A: $ 14,000 Interest $50 Fixed TC Fixed TC OPEX $- Cash cos
Slide 15: Attractive downside protection…
Attractive downside protection… VLCC spot TCE vs. DHT cash break-even USD/day 110,000 100,000 90,000 80,000 70,000 60,000 VLCC Spot Earnings 50,000 DHT cash B/E 2017 40,000 30,000 20,000 10,000 Source: Clarkson January 31, 2017 15
Slide 16: … yet plenty of upside participation
… yet plenty of upside participation VLCC spot rates vs. Free cash flow 2017 $4.0 $3.5 $3.0 Free cash flow 2017 (per share) $2.5 $2.0 $1.5 $1.0 $0.5 $- $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 VLCC spot rates Source: Clarkson, company January 31, 2017 16
Slide 17: Key Customers
Key Customers January 31, 2017 17
Slide 18: Key Lending Banks
Key Lending Banks January 31, 2017 18
Slide 19: Summary
Summary DHT has become a significant shipowner in the large tanker market with 21 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 Jan