DHT (DHT) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with net income of $44.5 million ($0.27 per share), supported by robust liquidity and disciplined capital allocation, including a 58th consecutive quarterly dividend payout.

• Q2 2024 shipping revenues were $150.1 million, with adjusted EBITDA of $80.0 million and TCE revenues of $133.7 million.

• Paid $51.4 million in Q2 2024 as installments for four newbuild VLCCs, with deliveries expedited to 2026; options for four additional vessels expired.

• Benefited from attractive market fundamentals: oil demand growth, longer transport distances, and limited new vessel supply.

Financial highlights

• Q2 2024 adjusted EBITDA was $80.0 million; net income for H1 2024 totaled $91.6 million ($0.57 per share).

• Q2 vessel operating expenses were $20.4 million; net cash from operating activities in Q2 2024 was $82.9 million.

• Total liquidity as of June 30, 2024, was $263 million, with $72.6 million in cash.

• Interest-bearing debt to total assets was 18.6%; net debt per vessel at $14.2 million.

• Q2 cash flow supported $46.8 million in dividends, $0.8 million in maintenance CapEx, and $51.5 million in newbuilding installments.

Outlook and guidance

• For Q3 2024, 75% of spot days booked at $42,100/day; 552 time charter days at $37,700/day; spot P&L break-even at $23,600/day.

• Full-year 2024 P&L break-even estimated at $27,700/day; cash breakeven at $18,500/day.

• Newbuilding delivery schedule advanced to 2026, increasing expected revenue days by 550–600 for the year.

• Freight market started Q3 weaker than H1 2024; Asian oil demand and Chinese growth slower than expected, but inventory drawdown and petrochemical growth may boost demand.