HAMILTON, BERMUDA - DHT Holdings, Inc. (NYSE:DHT), an independent crude oil tanker company with a market capitalization of $1.43 billion, has announced the sale of one of its very large crude carriers (VLCC), the DHT Scandinavia. The 2006-built vessel has been sold for $43.4 million and is expected to be delivered to the new owner in January 2025. According to InvestingPro analysis, DHT Holdings is currently trading below its Fair Value, with strong financial health indicators and an attractive P/E ratio of 8.9x.
The company stated that the DHT Scandinavia is free of any outstanding bank debt, and the proceeds from the sale will be directed towards general corporate purposes. These include potential investments in new vessels, share buy-backs, or prepayment of existing debt. The company maintains a healthy financial position with a current ratio of 2.41, indicating strong liquidity, while offering shareholders a substantial dividend yield of 9.68%.
This strategic move is aimed at reducing the average age of DHT Holdings' fleet and improving its environmental footprint. The sale is expected to enhance the company's Annual Efficiency Ratio (AER), Energy Efficiency Operational Indicator (EEOI), and Carbon Intensity Indicator (CII) metrics. These measures are important in the shipping industry as they reflect the environmental efficiency of the fleet.
DHT Holdings operates a fleet of VLCCs that trade internationally. The company manages its operations through integrated management companies located in Monaco, Norway, Singapore, and India.
The information regarding the vessel sale is based on a press release statement from the company. DHT Holdings has not provided any assurance as to future results and cautions that forward-looking statements are subject to risks and uncertainties. The actual results may differ materially from those anticipated.
Investors and interested parties are advised that the company's forward-looking statements, including those regarding the vessel sale and anticipated benefits, are based on current expectations and are not guarantees of future performance. The company's actual results may vary due to a variety of factors.
In other recent news, DHT Holdings has reported strong Q3 2024 results, with revenues of $92.6 million and a net income of $35.2 million. The company's CFO, Laila Halvorsen, also highlighted a robust balance sheet and a steady dividend of $0.22 per share, marking the 59th consecutive quarterly cash dividend. These recent developments reflect the company's solid financial performance.
DHT Holdings has maintained a positive outlook, with plans to modernize its fleet by 2026 and expectations of a market recovery driven by potential economic policy changes in China and the U.S. The company's President and CEO, Svein Moxnes Harfjeld, also addressed the limited risk posed by the shadow fleet and the potential positive effects of geopolitical developments.
However, the company noted limited activity in the tanker sale and purchase market and the negative impact of the Russia-Ukraine conflict on Very Large Crude Carriers. Despite these challenges, DHT Holdings expressed confidence in the resilience and future prospects of the tanker market.
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