DHT NYSE: DHT reported record third-quarter earnings and said strong tanker bookings have positioned it for an even stronger fourth quarter, as logistical disruptions and shifting crude oil trade routes continue to support freight rates.
The tanker operator reported third-quarter revenue on a time-charter equivalent basis of $290 million and adjusted EBITDA of $269.5 million. Net income was $270.9 million, or $1.68 per share, Chief Financial Officer Laila Halvorsen said on the earnings call.
Excluding a $34.2 million gain on the sale of the DHT Bauhinia and a $2.2 million noncash fair-value gain on interest rate derivatives, ordinary net income was $234.5 million, or $1.45 per share. The results surpassed the company’s previous quarterly record, set in the second quarter of 2026.
Fourth-quarter bookings point to another record
Halvorsen said DHT had booked 630 of an anticipated 930 spot-market days in the fourth quarter at an average of $579,900 per day. None of those booked days related to voyages in the Persian Gulf, she said.
The company also expects 1,174 time-charter days at an average rate of $100,200 per day. That figure includes October profit sharing but only base rates for November and December on contracts with profit-sharing features.
For comparison, DHT’s vessels trading in the spot market earned an average of $167,100 per day in the third quarter, while those on time charters earned $114,200 per day. The fleet’s combined average was $141,300 per day.
Halvorsen said the first nine months of 2026 had already exceeded DHT’s previous full-year earnings record and that the fourth quarter was expected to surpass the third. She added that time-charter earnings were expected to more than cover forecast operating, financing and overhead costs in the fourth quarter.
Dividend and fleet investment
DHT’s board approved a third-quarter dividend of $1.45 per share, in line with its policy of distributing all ordinary net income as quarterly cash dividends. It will be the company’s 67th consecutive quarterly cash dividend. Shares are scheduled to trade ex-dividend on Nov. 23, with payment on Nov. 30 to shareholders of record as of Nov. 23.
The company ended the quarter with $555 million in liquidity, including $154.7 million in cash and $400.7 million available under revolving credit facilities, Halvorsen said. DHT estimates its 2027 profit-and-loss break-even rate at $29,200 per day and its cash break-even rate at $20,600 per day.
President and CEO Svein Moxnes Harfjeld said DHT sold the 2007-built Bauhinia in July for cash proceeds of $51 million. The company also took delivery of the DHT Impala on July 24, about five months ahead of the shipyard’s contractual commitment. The Impala was the fourth and final vessel in DHT’s 2026 newbuilding program.
DHT entered three-year time charters for the DHT Jaguar and DHT Panther at respective rates of $75,000 and $100,000 per day. The vessels began those charters in September and October, Harfjeld said.
After the quarter, DHT ordered another very large crude carrier, or VLCC, from Hanwha Ocean. The vessel, to be named DHT Sable, is scheduled for delivery in April 2029. DHT has two VLCCs on order, with the other due in August 2028. The company plans to finance them with internal resources, operating cash flow and projected new mortgage debt.
CEO sees sustained inefficiencies
Harfjeld said freight markets remain strong partly because logistical disruptions have reduced fleet efficiency and changing crude procurement patterns have lengthened transportation distances. He also pointed to an aging fleet and limited near-term newbuilding deliveries.
Asked how a possible agreement between the U.S. and Iran and a resumption of traffic through the Strait of Hormuz might affect the market, Harfjeld said the outcome was difficult to predict. He nevertheless said it would take time to unwind existing inefficiencies and that demand for available spot-market vessels remained strong.
“I think we have still good reasons to be very confident in our business,” Harfjeld said.
He confirmed that two vessels in DHT’s time-charter fleet have profit-sharing arrangements, with one, the DHT Puma, due to expire in the first quarter of 2027. Harfjeld said the current freight environment makes similar arrangements difficult to implement and that DHT was not discussing new structures of that nature at the time of the call. For now, he said, the focus is on operating available ships in the spot market.
About DHT (NYSE:DHT)
DHT Holdings, Inc. is an independent crude oil tanker company that owns and operates vessels used to transport crude oil by sea. Its fleet consists primarily of very large crude carriers (VLCCs), which move large volumes of oil between production regions, refineries and other destinations. DHT's vessels serve the global crude oil trade, operating on routes around the world. The company employs a mix of voyage and time charters, providing transportation services to oil companies, traders and other customers.
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