DHT (DHT) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 net income of $35.2 million ($0.22/share) and EBITDA of $70.4 million, supported by robust revenue, strong liquidity, and disciplined capital allocation.

• Declared a $0.22 per share dividend for Q3 2024, marking the 59th consecutive quarterly payout.

• Maintained a healthy balance sheet with $264 million in liquidity and net debt per vessel at $13.9 million as of September 30, 2024.

• Q3 2024 shipping revenues rose to $141.1 million, up from $130.3 million in Q3 2023, driven by more revenue days and higher time charter rates.

• Fleet comprised 24 VLCCs as of September 30, 2024, with 7 on time charters and 17 in the spot market.

Financial highlights

• Q3 2024 revenues on TCE basis: $92.6 million; adjusted EBITDA: $70.4 million; net income: $35.2 million ($0.22/share); YTD revenues: $302.7 million; YTD net income: $126.7 million ($0.78/share).

• Vessel operating expenses: $19 million; G&A: $4.2 million.

• Average fleet TCE for Q3: $42,400/day; spot vessels under 15 years: $47,600/day; time charters: $38,800/day.

• Net cash from operating activities in Q3 2024 was $80.1 million, up from $55.7 million in Q3 2023.

• Ended Q3 with $74 million in cash and $264 million in total liquidity.

Outlook and guidance

• For Q4 2024, 64% of spot days booked at $41,000/day; sub-15-year vessels at $44,800/day; 596 time charter days booked at $40,000/day.

• Q4 term time-charter rate estimated at $40,000/day; spot P&L break-even for Q4 is $21,500/day.

• P&L break-even for 2025 estimated at $26,500/day; cash break-even at $20,000/day; projected $6,500/day/ship in discretionary cash flow after dividends.

• Management expects Chinese economic stimulus and OPEC+ production restraint to support future demand and freight rates.

• Freight market softened recently, but bookings improved since October update.