DHT NYSE: DHT reported a sharply profitable first quarter of 2026, aided by strong VLCC spot rates, gains from vessel sales and the first deliveries from its newbuilding program, while management said the company has positioned the fleet to balance elevated spot-market exposure with new term charters.
Chief Financial Officer Laila Cecilie Halvorsen said DHT generated revenues on a time-charter-equivalent basis of $157 million in the quarter and adjusted EBITDA of $133 million. Net income was $164.5 million, or $1.02 per share. Excluding a $60 million gain on the sale of DHT Europe and DHT China and a $1.1 million non-cash fair value gain related to interest rate derivatives, ordinary net income was $103.4 million, or $0.64 per share.
Vessels trading in the spot market earned an average of $91,700 per day during the quarter, while vessels on time charters earned $61,300 per day. The combined fleet average TCE was $78,800 per day.
Dividend Set at 100% of Ordinary Net Income
Halvorsen said DHT’s board approved a first-quarter cash dividend of $0.64 per share, in line with the company’s policy of paying out 100% of ordinary net income as quarterly cash dividends. She said the payment marks the company’s 65th consecutive quarterly cash dividend. The shares are scheduled to trade ex-dividend on May 21, with payment on May 28 to shareholders of record as of May 21.
DHT ended the quarter with total liquidity of $350 million, including $126 million of cash and $230 million available under two revolving credit facilities. Following a $56 million repayment in April under its Nordea revolving credit facility, current availability under the two facilities stands at $285.8 million. Halvorsen said financial leverage was 16.8% based on market values for the fleet at quarter-end, with net debt of $16.5 million per vessel.
The company began the quarter with $79 million in cash. During the period, it generated $133 million in EBITDA, received $101 million from the sale of DHT Europe and DHT China, distributed $66 million to shareholders, invested $160 million in vessels under construction and issued $91.5 million in long-term debt.
Fleet Renewal Continues With Newbuild Deliveries
President and CEO Svein Moxnes Harfjeld said DHT was “very pleased” with the timing of the first three deliveries in its four-vessel Antelope-class newbuilding program. DHT Antelope was delivered in January, while DHT Addax and DHT Gazelle were delivered in March. The fourth vessel, DHT Impala, is expected this summer.
The newbuildings are part of a fleet renewal program tied to the planned divestment of the company’s three oldest ships, all built in 2007. Two have already been delivered to buyers. The remaining vessel, DHT Bauhinia, was sold during the quarter for $51.5 million and is expected to be delivered in June or July. DHT expects a capital gain of $34.2 million and cash proceeds of $51.5 million from that sale.
Management also detailed several time-charter fixtures. The 2016-built DHT Harrier extended its contract for five years from Jan. 26 at $47,500 per day, with two optional years priced at $49,000 and $50,000 per day. DHT also secured one-year charters for DHT Opal at $90,000 per day, DHT Taiga at $94,000 per day and DHT Redwood at $105,000 per day. One newbuilding began a five- to seven-year time charter with what Harfjeld described as a key customer.
After quarter-end, DHT secured two additional one-year charters for DHT Sundarbans and DHT Amazon at an average rate of $109,000 per day. Harfjeld said the company’s five older ships are now on one-year time-charter contracts averaging $101,000 per day.
Second-Quarter Spot Bookings Reflect Elevated Rates
For the second quarter, Halvorsen said DHT expects 997 time-charter days covered at an average rate of $73,900 per day. That figure includes April profit sharing and base rates only for May and June for contracts that include profit-sharing structures.
The company anticipates 1,025 spot days in the quarter, of which 88% have been booked at an average rate of $168,300 per day. Halvorsen said the spot profit-and-loss break-even for the quarter is estimated at less than zero because time-charter earnings are expected to exceed forecasted costs.
DHT also provided estimated break-even levels for the final three quarters of 2026. The company’s P&L break-even is estimated at $29,700 per day, while cash break-even is estimated at $23,400 per day.
Management Cites Market Support and Geopolitical Risk
Harfjeld said the VLCC market remains supported by supply-demand fundamentals, noting that freight markets strengthened in the second half of 2025 “without any special events taking place.” He also pointed to strategic fleet consolidation by a private aggregator during the first quarter as a factor that could positively influence the market.
At the same time, Harfjeld said hostilities involving Iran have introduced risk premiums on certain routes and exposed the industry’s vulnerability to disruptions. He said DHT had no ships inside the Gulf when the conflict broke out, has none there currently and its fleet is fully operational.
In response to analyst questions, Harfjeld said trading inside the Strait of Hormuz was “a non-starter” for DHT, citing the company’s responsibility to crew members aboard its vessels. He said activity in the Gulf would require a credible and durable resolution before the company and others could consider a return to normal operations.
Harfjeld also said potential sanctions relief for Venezuelan and Iranian crude exports could shift cargoes from the shadow fleet to compliant operators, expanding the market for companies such as DHT. He said a move toward compliant trade could accelerate retirement of older non-compliant tonnage and potentially shrink the working fleet by 10% to 15% of capacity.
Dry Docking Program Remains on Plan
DHT has seven vessels scheduled for dry docking in 2026. Halvorsen said DHT Lion completed its second special survey and dry dock in the first quarter on time and within expectations. DHT Osprey, DHT Panther, DHT Puma and DHT Harrier are scheduled for second special surveys and dry docks, while DHT Amazon and DHT Redwood are scheduled for third special surveys and dry docks.
Halvorsen said the dry dock schedule is already incorporated into the company’s operating and capital expenditure outlook and does not alter management’s view of fleet availability or cash flow generation.
Asked about fleet growth, Harfjeld said DHT is satisfied with its current fleet and has no planned additional divestments. He said the balance sheet could support growth, but opportunities have been difficult to find because potential sellers are retaining vessels in a strong freight market.
About DHT NYSE: DHT
DHT Holdings, Inc NYSE: DHT is a Bermuda-based independent crude oil tanker company that provides seaborne transportation of crude oil on a worldwide basis. The company's core business involves the ownership and operation of a modern fleet of Very Large Crude Carriers (VLCCs) and Suezmax tankers, which are chartered to oil producers, trading houses and national oil companies. Through spot charters, time-charters and tanker pooling arrangements, DHT connects crude oil exporters with refining hubs in Asia, Europe, North America and other global markets.
Founded in 2005 and listed on the New York Stock Exchange later that year, DHT has grown its presence in the maritime sector by focusing on operational efficiency and disciplined capital management.
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