DHT Holdings profits increase due to strong VLCC market

By Finance

Bermuda-based crude oil tanker owner and operator DHT Holdings reported annual net income of USD 105.3 million for 2015, compared to net income of USD 12.9 million in 2014.

According to the company, the increase comes as a result of strong fourth quarter results due to a stronger market as well as the delivery of the VLCC DHT Jaguar in November 2015.

DHT Holdings profits increase due to strong VLCC market

Image: DHT Holdings

Net cash provided by operating activities for 2015 was USD 174.0 million compared to USD 30.6 million for 2014. The increase is mainly due to an increase in the fleet and higher freight rates in the 2015 period offset by increases in accounts receivables and reduction in accounts payables in 2015, DHT said.

Net cash used by investing activities for 2014 was USD 551.3 million mainly related to the net investment in Samco of USD 256.3 million, the acquisition of three VLCCs totaling USD 148.0 million, pre-delivery installments of USD 133.9 million related to VLCC newbuildings ordered and capital expenses related to dry-dockings totaling USD 8.9 million.

DHT has a fleet of 20 VLCCs, including four VLCCs under construction at HHI to be delivered fairly evenly spread between March and October 2016, one Suezmax and two Aframaxes as well as a 50% ownership in Goodwood Ship Management.

Of the 19 vessels in operation, six of the VLCCs, the Suezmax and the two Aframaxes are on fixed rate time charters and 10 VLCCs have spot market exposure.

Source: worldmaritimenews.com