DHT Holdings - Revenue and profitability declining, but expected to improve in 2H21
Revenue and profitability declining, but expected to improve in 2H21DHT Holdings Inc (DHT) recently announced its 1Q21 results: the operating revenue plunged by 59.0% YoY to USD 87mn in 1Q21 from USD 211.9mn in 1Q20. DHT’s TCE revenue dropped by 53.3% to USD 71.3mn from USD 152.5mn in the same quarter a year ago as average time charter rates as well as spot TCE rates for VLCCs were on the decline. Average time charter rates for the company’s VLCCs declined by 27% from USD 54,000pd in 1Q20 to USD 39,400pd in 1Q21 and spot TCE rates fell by 72% from USD 66,400pd to USD 18,700pd over the same period. The operating expenses rose by 4.0% YoY to USD 56.6mn mainly on account of the expanded fleet and increased general and administrative expenses. The company’s EBITDA fell by 63.7% YoY to USD 46.7mn in 1Q21 from USD 128.4mn in the same quarter a year ago. DHT’s net profit plunged by 83.9% YoY from a net profit of USD 72.2mn in 1Q20 to USD 11.6mn in 1Q21. The company reported an EPS of USD 0.07 during the quarter compared with an EPS of USD 0.49 in 1Q20. Although the net profit is on the decline for the last four quarters, the company managed to remain profitable as nearly 62% of operating days were locked in at profitable time charter rates. We expect the revenue and net profit to decline over the next two quarters before improving in the latter part of 2021 and in 2022.
Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.
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