Company presentation by Svein Moxnes Harfjeld, President & …This presentation contains certain...
16
Company Presentation August 15, 2017
Transcript of Company presentation by Svein Moxnes Harfjeld, President & …This presentation contains certain...
Company Presentation August 15, 2017
Disclaimer
August 15, 2017 2
This presentation contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company's management as well as assumptions, expectations, projections, intentions and beliefs about future events, in particular regarding dividends (including our dividend plans, timing and the amount and growth of any dividends), daily charter rates, vessel utilization, the future number of newbuilding deliveries, oil prices and seasonal fluctuations in vessel supply and demand. When used in this document, words such as "believe," "intend," "anticipate," "estimate," "project," "forecast," "plan," "potential," "will," "may," "should" and "expect" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These statements reflect the Company's current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent the Company's estimates and assumptions only as of the date of this presentation and are not intended to give any assurance as to future results. For a detailed discussion of the risk factors that might cause future results to differ, please refer to the Company's Annual Report on Form 20-F, filed with the Securities and Exchange Commission on March 23, 2017.
The Company undertakes no obligation to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this presentation might not occur, and the Company's actual results could differ materially from those anticipated in these forward-looking statements.
Forward Looking Statements
DHT in a nutshell
Dedicated crude oil tanker company
• Total 26 VLCCs and 2 Aframaxes on the water
• 4 VLCC newbuildings to be delivered during 2018
• VLCC average age of 6.8 years
• Fully integrated shipowning company
• 19 shore-side employees
• Registered in the Marshall Islands
DHT strives for excellence across the board:
• Quality ships
• Technical management and seafarers
• On-shore organization
• Vigilant operations
• Customer service
• Robust and prudent capital structure
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2Q 2017 Highlights
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EBITDA of $36.7 million
Spot VLCC earnings of $23,500 per day
Competitive OPEX - $7,600/day for VLCCs
Net income of $4.8 million equal to $0.04 per share
Fleet expansion of 50% during the quarter
2Q 2017 Highlights Cont’d.
• Secured $300 million bank facility for the BW fleet acquisition • ABN Amro, DNB, Nordea, Danish Ship Finance, SEB, ING and Swedbank
• Interest: LIBOR + 240 bps
• Profile: 20 years
• Tenor: 6 years
• Secured $82.5 million bank facility for the two Hyundai newbuildings • DNB and Nordea
• Interest: LIBOR + 250 bps
• Profile: 20 years
• Tenor: 5 years
August 15, 2017 5
Financing
USD/day FY 2016 1Q 2017 2Q 2017 1H 2017
Spot Earnings $ 42,600 $ 40,900 $ 23,500 $ 31,000
TC Earnings $ 44,800 $ 38,800 $ 37,000 $ 37,900
Average Earnings $ 43,400 $ 40,100 $ 27,700 $ 33,300
VLCC Earnings
DHT VLCC Spot Earnings Historical VLCC Spot Earnings
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
USD/day
5-year range 2014 2015 2016 2017
August 15, 2017 6
Source: Clarksons
As of August 9, we had booked 59% of our VLCC spot days in 3Q’17 at an average rate of
$20,100/day
P&L Highlights
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USD Thousands, except per share amounts 2Q 2017 1Q 2017 1H 2017
Revenues on TCE basis $ 59,634 $ 70,712 $ 130,346
Vessel operating expenses $ (17,535) $ (13,873) $ (31,408)
G&A $ (5,379) $ (6,280) $ (11,659)
EBITDA $ 36,720 $ 50,559 $ 87,279
Net Income $ 4,836 $ 14,346 $ 19,182
EPS $ 0.04 $ 0.15 $ 0.18
Capital Allocation
Paying cash dividend for the 30th consecutive quarter
For the second quarter, the Company will return $15.1 million to shareholders, equating to 315% of net income, comprised of
• $12.2 million of buy-back of convertible bond
• $2.9 million, or $0.02 per share, as cash dividends
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Robust Balance Sheet
Interest bearing debt to total assets
• Book values: 46.5%
• Marked to market: 51.9%
RCF with availability of $47.3 million
Debt repayment during 2Q:
• Ordinary debt repayment: $11.8 million
• Related to sale of vessel: $13.3 million
• Convertible bond buyback: $12.2 million
Outstanding convertible bond: $105.8 million
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USD Thousand As per 30.06.2017
Cash $ 104,005
Other Current Assets $ 50,524
Vessels $ 1,649,069
Other Assets $ 4,585
Total Assets $ 1,808,183
Current portion of long term debt $ 64,074
Other Liabilities $ 24,468
Long Term Debt $ 777,025
Equity $ 942,616
Total Equity and Liabilities $ 1,808,183
Managing the cycles Counter cyclical investment philosophy
RECOVERY
PHASE
HIGH MARKET PHASE
TROUGH / INVESTMENT
PHASE
• Aggressive growth
• Spot
• Nominal
• Selective growth
• Spot Term
• Increased
• Delevering
• Divestment of older tonnage
• Time charters
• Formula based
• Delevering
Sale & Purchase: Chartering: Capital allocation:
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0
20,000
40,000
60,000
80,000
100,000
120,000
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
USD/day
VLCC Spot TCE
Executing On Our Strategy
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Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
S&P Acquired 16 VLCC’s Sold 2000-
built Suezmax
Sold 2001-built
Suezmax
Sold 2001-built VLCC
Contracted 2 VLCC’s.
Sold 1999-built and 2001-built
VLCC.
Acquired a fleet of 11 VLCC’s incl. 2 NBs
Chartering
Secured time
charters for 5 vessels
Extended time
charter for 1 vessel
Extended time
charters for 3 vessel
Secured time
charter for 1 vessel
Extended time
charter for 1 vessel
Extended time charter for 1 vessel
Extended time charter for 1
vessel
Capital allocation
Div
ide
nd
s
$0.02 $0.02 $0.02 $0.02 $0.02 $0.05 $0.15 $0.15 $0.18 $0.21 $0.25 $0.23 $0.02 $0.08 $0.08 $0.02
De
bt
pre
pay
men
t
Prepaid $20m of
bank debt
Prepaid $38m of
bank debt
Prepaid $46.9m of bank debt
Prepaid $16.1m of bank debt
Secu
riti
es
re
-pu
rch
ase
s $3m of convertible
bond. $2m of
common stock
$1m of convertible
bond
$23m of convertible
bond
$5.0m of convertible bond
$12.2m of convertible
bond
Fleet Overview
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Vessel Built Yard DWT Class P&I Club Flag Employment Ownership Technical manager BWTS*
VLCC DHT Tiger 2017 Hyundai 299,900 ABS Gard HK Spot 100 % Goodwood Yes
DHT Puma 2016 Hyundai 299,900 ABS Skuld HK Spot 100 % Goodwood Yes
DHT Panther 2016 Hyundai 299,900 ABS Skuld HK Spot 100 % Goodwood Yes
DHT Lion 2016 Hyundai 299,900 ABS Gard HK Spot 100 % Goodwood Yes
DHT Leopard 2016 Hyundai 299,900 ABS Gard HK Spot 100 % Goodwood Yes
DHT Jaguar 2015 Hyundai 299,900 ABS Skuld HK Spot 100 % Goodwood Yes
DHT Taiga 2012 Hyundai 314,249 ABS Gard HK TC 100 % Goodwood Yes
DHT Opal 2012 Daewoo 320,105 LR Skuld IOM Spot 100 % Goodwood
DHT Sundarbans 2012 Hyundai 314,249 ABS Gard HK Spot 100 % Goodwood Yes
DHT Redwood 2011 Hyundai 314,249 DNV Gard HK TC 100 % Goodwood Yes
DHT Amazon 2011 Hyundai 318,129 DNV Gard RIF TC 100 % V-Ships France Yes
BW Peony* 2011 Bohai 320,142 DNV Gard IOM TC 100 % Goodwood
DHT Lotus 2011 Bohai 320,142 DNV Gard IOM Spot 100 % Goodwood
DHT Edelweiss 2008 Daewoo 301,021 LR Gard HK Spot 100 % Goodwood
DHT Hawk 2007 NACKS 298,923 LR Gard HK Spot 100 % Goodwood
DHT China 2007 Hyundai 317,794 ABS Gard RIF TC 100 % V-Ships France
DHT Europe 2007 Hyundai 317,713 DNV Gard RIF TC 100 % V-Ships France
DHT Bauhinia 2007 Daewoo 301,019 LR Gard IOM Spot 100 % Goodwood
DHT Falcon 2006 NACKS 298,971 LR Gard HK Spot 100 % Goodwood
DHT Scandinavia 2006 Hyundai 317,826 ABS Gard HK Spot 100 % Goodwood
DHT Condor 2004 Daewoo 320,050 ABS Skuld HK Spot 100 % Goodwood
DHT Raven 2004 Daewoo 298,563 DNV Skuld IOM Spot 100 % Goodwood
DHT Lake 2004 Daewoo 298,564 DNV Skuld IOM Spot 100 % Goodwood
DHT Eagle 2002 Samsung 309,064 ABS Gard HK Spot 100 % Goodwood
DHT Utik 2001 Daewoo 299,450 LR Skuld IOM Spot 100 % Goodwood
DHT Utah 2001 Daewoo 299,498 LR Skuld IOM Spot 100 % Goodwood
VLCC Newbuildings NB DHT Colt 2018-04 Daewoo 318,000 HK 100 % Goodwood Yes
NB DHT Stallion 2018-05 Daewoo 318,000 HK 100 % Goodwood Yes
NB DHT Bronco 2018-07 Hyundai 319,000 HK 100 % Goodwood Yes
NB DHT Mustang 2018-09 Hyundai 319,000 HK 100 % Goodwood Yes
Aframax DHT Cathy 2004 Hyundai 115,000 ABS Gard MI TC 100 % Goodwood
DHT Sophie 2003 Hyundai 115,000 ABS Skuld MI TC 100 % Goodwood
Total 9,503,121
Fixed TC
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Cash costs Cash break-even cost Required rates forspot ships
USDm
OPEX Interest Debt repayment Cash G&A Maintenance CAPEX
VLCC: $21,200
Aframax: $12,700
VLCC: $17,300
Aframax: $10,400
Estimated Cash Breakeven
$17,300 for 2H 2017 and $19,400 for 2018
2H 2017 FY 2018
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Fixed TC $-
$50
$100
$150
$200
$250
$300
$350
$400
Cash costs Cash break-even cost Required rates forspot ships
USDm
VLCC: $20,000
Aframax: $12,000
VLCC: $19,400
Aframax: $11,600
Key Customers
June 2017 14
JX Nippon Oil & Energy
Key Lending Banks
June 2017 15
Delivering Value in 2017 and Beyond
Executing clearly-stated strategy of investing in our fleet, keeping leverage
down and returning significant capital to shareholders
DHT is delivering competitive numbers on the key metrics of TCE and OPEX
DHT has the lowest-in-class cash break-even levels protecting the downside
DHT has net income break-even levels offering substantial upside
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