DHT Holdings, Inc. (NYSE:DHT) (DHT) today announced that it has entered into agreements to install exhaust gas cleaning systems, also know as scrubbers, on twelve of its VLCCs.
The Company has entered into agreement with Alfa Laval to supply the systems and has also secured shipyard capacity to install all systems within 2019. The systems will be installed on ships built between 2012 and 2004, the part of the fleet that stands to achieve the greatest economic benefit.
These twelve systems will come in addition to the two systems being installed on the newbuildings DHT Bronco and DHT Mustang set for delivery later this quarter from Hyundai Heavy Industries. As such, DHT will have a total of fourteen VLCCs fitted with scrubbers when the IMO Sulphur Cap will be implemented January 1, 2020.
The Company has received proposals to finance the majority of the project with debt and is confident to conclude this in the near future.
The Company stated: "We look at the upcoming IMO Sulphur Cap as an opportunity for DHT rather than a threat. We come well prepared and are very pleased with the timely project we have put in place. This project could potentially create a super-profit for the ships in question and boost the already significant operational leverage in DHT."
Alfa Laval is the leading supplier of shipboard exhaust gas cleaning systems with more than 100 scrubbers in operation. Alfa Laval's track record offers credibility with respects to timely project execution and reliable operations.
Source: DHT Holdings