DHT Holdings - Earnings in the red but well-positioned for potential recovery in crude tanker market
DHT Holdings Inc (DHT) recently announced its 4Q21 results: the operating revenue of the company slid by 2.8% YoY to USD 88.4mn from USD 91mn in 4Q20 even though average rates plunged by 36.4% YoY as the company received USD 4.6mn from the Norwegian Shipowner’s Mutual War Risk Insurance Association. Voyage expenses surged to USD 34.6mn from USD 13.3mn over the same period because of higher bunker prices. Accordingly, DHT’s TCE revenue dropped by 30.7% YoY to USD 53.9mn in 4Q21 (from USD 77.7mn) and EBITDA dropped by 37.3% YoY to USD 32mn in 4Q21 (from USD 51.1mn). DHT reported a net loss of USD 2.9mn compared to a net profit of USD 7.6mn in 4Q20. Accordingly the company reported a loss of USD 0.02 per share during the quarter compared to an EPS of USD 0.05 in 4Q20. The company managed to remain profitable in 1H21 despite a decline in day rates as nearly 57% of operating days were locked in at profitable time charter rates. However, the company was in the red in 2H21 and is expected to remain so in 1H22 because of weak spot rates. Thereafter, we expect it to return to the black in the latter part of the year which would improve further on the back of expected recovery in demand of crude carriers with improving consumption and trade of crude oil in 2023-24.
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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