Dht Holdings, Inc. · NYSE:DHT
Dht — Investor Presentation (May 2018)
24 slides from Dht's investor presentation, May 8, 2018
Slide 1: Company Presentation
COMPANY PRESENTATION MAY 8, 2018
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: This is DHT
THIS IS DHT LARGE, MODERN, QUALITY STRONG VLCC FLEET BALANCE SHEET DHT WELL POSITIONED FOR THE NEXT UPCYCLE ROBUST DOWNSIDE VERY COMPETITIVE PROTECTION, YET PLENTY COST STRUCTURE UPSIDE POTENTIAL May 8, 2018 3
Slide 4: Large, Modern, Quality VLCC Fleet
LARGE, MODERN, QUALITY VLCC FLEET 27 VLCCs (incl. 3 newbuildings delivering 2Q-3Q’18) and 2 Aframaxes Avg. age of VLCC fleet: 6.5 years 14 VLCCs with Ballast Water Treatment System installed (incl. newbuildings) VLCC FLEET COMPOSITION Fleet Employment Age Distribution Vessel Classification Tim
Slide 5: Fleet Overview
FLEET OVERVIEW Technical Vessel Built Yard DWT Class P&I Club Flag Employment Ownership manager BWTS* Scrubber VLCC DHT Stallion 2018 Daewoo 318,000 ABS Skuld HK Spot 100 % Goodwood Yes DHT Tiger 2017 Hyundai 299,900 ABS Gard HK Spot 100 % Goodwood Yes DHT Puma 2016 Hyundai 299,900 ABS Skuld HK Spot
Slide 6: 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 allocation: • Nominal • Increased • Form
Slide 7: Following Our Strategy
FOLLOWING OUR STRATEGY USD/day 120,000 VLCC Spot TCE PAID QUARTERLY CASH DIVIDENDS TOTALLING $1.40/share 100,000 SOLD 8 OLDEST TANKERS SECURED AND EXTENDED 80,000 11 TC CONTRACTS EXTENDED 5 TC CONTRACTS 60,000 PREPAID TOTAL $121mill. IN BANK DEBT 40,000 REPURCHASED $44.2mill. OF CB AT A DISCOUNT ACQ
Slide 8: Downside Protection
LOW CASH BREAKEVEN PROVIDES DOWNSIDE PROTECTION Cash Breakeven for spot VLCCs; $19,900/day for 2018. USD/day VLCC Spot Earnings DHT Cash Breakeven Annual Averages DHT VLCC Spot Earnings 250,000 200,000 150,000 100,000 50,000 0 Source: Clarksons, Company May 8, 2018 8
Slide 9: ...Yet Plenty of Upside Participation
…YET PLENTY OF UPSIDE PARTICIPATION 2019 EBITDA Sensitivity to VLCC Rates USDm 700 +/- $10,000/DAY CHANGE IN VLCC SPOT RATES, EQUALS $96.6M CHANGE IN FY 2019 EBITDA 600 DHT’S CURRENT MARKET CAP 500 400 2019 FY EBITDA 300 200 20-YEAR 2015 RATES 100 AVERAGE RATES 0 $10,000 $20,000 $30,000 $40,000 $50,
Slide 10: ...Yet Plenty of Upside Participation
…YET PLENTY OF UPSIDE PARTICIPATION 2019 EPS Sensitivity to VLCC Rates 3.5 +/- $10,000/DAY CHANGE IN VLCC SPOT RATES, EQUALS $0.68 PER SHARE CHANGE IN FY 2019 EPS 3.0 2.5 2.0 EPS (USD per share) 1.5 1.0 0.5 0.0 -0.5 20-YEAR 2015 RATES AVERAGE RATES -1.0 -1.5 $10,000 $20,000 $30,000 $40,000 $50,000 $
Slide 11: Lean and Competent Organization
LEAN AND COMPETENT ORGANIZATION 18 shore-side employees Svein Moxnes Harfjeld & Trygve P. Munthe Co-CEOs Karin Berthels Erica Binde Executive Assistant Business Analyst Stephen Eglin Svenn Magne Edvardsen Eirik Ubøe Director Technical Management CFO Chartering & Operations and Newbuilding Laila Ceci
Slide 12: Key Customers
KEY CUSTOMERS JX Nippon Oil & Energy May 8, 2018 12
Slide 13: Key Lending Banks
KEY LENDING BANKS May 8, 2018 13
Slide 14: Tanker Market
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Slide 15: Tanker Market
TANKER MARKET Growth in Global Oil Consumption US Crude Exports mb/d Global Oil Demand, YoY Growth # VLCC loadings US crude exports 2.0 14 2.5 China India Others 1.8 12 12 1.6 2.0 0.72 1.4 10 9 9 9 US Crude Exports (mb/d) # of VLCC Loadings 1.2 8 1.5 0.81 8 7 1.0 0.51 0.40 0.73 6 6 0.8 5 5 5 5 5 1.0
Slide 16: Tanker Market
TANKER MARKET Million Barrels OECD Commercial Oil Stocks USD/day 3,200 120,000 OPEC PRODUCTION CUT 3,100 100,000 3,000 OPEC “MARKET 80,000 SHARE CAMPAIGN” 2,900 VLCC Earnings OECD Stocks 60,000 2,800 40,000 2,700 20,000 2,600 2,500 - OECD Commercial Oil Stocks 5-year average stocks VLCC Earnings (RH
Slide 17: Tanker Market
TANKER MARKET Increased Scrapping Activity Orderbook at 15% is manageable VLCC Spot Rates vs. Number of VLCC's Scrapped and VLCC Age Distribution 70 USD/day Average Scrapping Age Trading Fleet 120,000 35 60 Non-trading fleet Under Construction 30 100,000 On Order/Not Commenced 50 25 8 80,000 Number
Slide 18: 1Q 2018 Financials
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Slide 19: Operational and Financial Highlights
OPERATIONAL AND FINANCIAL HIGHLIGHTS 1Q 2018 DHT VLCC Spot Earnings EBITDA of $24.0 million 2Q 2018 USD/day FY 2017 1Q 2018 Bookings Net loss of $9.2 million or $0.06 per share 55% @ Spot Earnings $ 23,800 $ 20,200* $14,225 In April, the Company: • Refinanced 13 of the Company’s VLCCs. TC Earn
Slide 20: P&L Highlights
P&L HIGHLIGHTS USD Thousands, except per share amounts 1Q 2018 2017 Revenues on TCE basis $ 46,191 $ 241,751 VLCC OPEX of Vessel Operating Expenses $ (17,238) $ (72,431) $7,575/day for 1Q 2018 G&A $ (4,963) $ (17,180) Impairment Charge $ (8,540) Profit/(loss) Sale of Vessel $ (46) $ (3,540) EBITDA $
Slide 21: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS USD Thousand As per 31.03.2018 CASH $ 69,761 RCF with availability of $57 million (undrawn) OTHER CURRENT ASSETS $ 64,084 VESSELS $ 1,554,498 Interest bearing debt to total assets OTHER ASSETS $ 4,753 • Book values: 45.2% • Marked to market: 49.8% TOTAL ASSETS $ 1,693,09
Slide 22: 1Q Cash Flow Highlights
1Q CASH FLOW HIGHLIGHTS USDm 120 Positive Cash Flow from Operations 100 14.8 24.0 6.7 12.0 80 1.7 17.5 2.9 0.1 60 40 77.3 69.8 20 0 May 8, 2018 22
Slide 23: Refinancing
REFINANCING $485 mill. loan against 13 VLCCs: • 59% loan to value • L+240bps • 20-year repayment profile • 6-year tenor • Standard DHT covenants Increased Revolving Credit Facility to $57 mill. (from $43.4 mill) Benefits to DHT: a) Taking out refinancing uncertainty b) Increasing liquidity c)
Slide 24: Slide 24