DHT Holdings sales its three oldest VLCCs

By Gemiler

DHT Holdings, Inc. (NYSE:DHT) (DHT) announced that it has entered into agreement to sell its three oldest VLCCs; DHT Utah and DHT Utik, both built 2001 and DHT Eagle built 2002 to one buyer for a total price of $66.5 million.

DHT Holdings sales its three oldest VLCCs
Caption: Crude Oil Tanker DHT Eagle - Image courtesy of Paul Barker

About $33.5 million of bank debt will be repaid in connection with the sale of the three vessels.

The Company expects to deliver the DHT Utah and DHT Eagle to its new owner before the end of 2017 and the DHT Utik in January 2018. The Company will record a book loss of about $3.5 million in the fourth quarter of 2017 in connection with the sale.  

The loss is primarily related to the DHT Eagle. Subsequent to the sale, the average age of DHT's fleet of VLCCs is 6.1 years.

The sale is in accordance with the company's fleet renewal strategy. DHT enjoys a strong position with its robust balance sheet, high-quality fleet, best-in-class cash break-even levels, competitive cost structure and attractive time charter contracts.

Source: DHT Holdings