DHT

Business Context and Reporting Period

DHT Holdings, Inc. (DHT) is a Marshall Islands-incorporated company operating a fleet of Very Large Crude Carriers (VLCCs). This Form 20-F covers the fiscal year ended December 31, 2024. As of the reporting date, the fleet consisted of 24 VLCCs (one classified as held for sale), with an average age of 10.9 years. The company operates globally, with vessels employed on both time charters and the spot market. DHT prepares its financial statements in accordance with International Financial Reporting Standards (IFRS).

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Shipping revenues increased by $11.8 million (2.1%) to $567.8 million. This was driven by $25.3 million in increased revenue days, partially offset by a $13.5 million decrease due to lower tanker rates.
• Expense Increases: Voyage expenses rose $13.9 million to $179.6 million, primarily due to a $17.3 million increase in bunker costs. Vessel operating expenses increased $3.2 million to $78.6 million due to an additional vessel in the fleet and insurance deductibles.
• Impairment Reversal: A significant non-cash item was the reversal of prior impairment charges totaling $27.9 million in 2024 (compared to $nil in 2023). This was triggered by strong market values and the agreement to sell the vessel DHT Scandinavia.
• Dividends: Total dividends paid in 2024 were $161.4 million ($1.00 per share), compared to $186.7 million ($1.15 per share) in 2023.
• Share Repurchases: The company repurchased 1,481,383 shares (0.9% of outstanding) in 2024 at an average price of $8.89 per share, totaling $13.2 million.

Guidance, Outlook, and Risks

Market Outlook: Management views the 2025 market as supportive due to geopolitical tensions affecting energy security and oil flows, an aging global fleet, and a benign newbuilding orderbook (approx. 10% of capacity). The company expects continued growth in non-OPEC production to fill supply voids.

Capital Allocation: DHT maintains a disciplined strategy including cash dividends, vessel investments, debt prepayments, and share buybacks. A new $100 million share repurchase program was approved in March 2025.

Key Risks and Contingencies:

• Geopolitical Instability: Conflicts in the Middle East (Red Sea, Gulf of Aden) and Russia-Ukraine tensions impact trading patterns, insurance costs, and potential rerouting.
• Regulatory Compliance: Increasing costs related to environmental regulations, including the EU Emissions Trading System (EU ETS) and FuelEU Maritime, which impose carbon intensity requirements and allowance purchases.
• Debt Covenants: The company is subject to value-to-loan covenants (requiring vessel value to be at least 135% of borrowings). Declines in vessel values could trigger mandatory prepayments.
• Customer Concentration: Five customers represented 61% of shipping revenues in 2024.

Investor Verification Checklist

• Impairment Reversal Validity: Verify the broker valuations and market comparables used to justify the $27.9 million reversal of prior impairment charges.
• Debt Covenant Compliance: Confirm current vessel valuations relative to the 135% loan-to-value covenants across all secured credit facilities (ING, Nordea, Credit Agricole, Danish Ship Finance).
• Environmental Cost Exposure: Assess the financial impact of EU ETS and FuelEU Maritime regulations on future operating margins and capital expenditure requirements.
• Charter Rate Exposure: Monitor the mix of spot vs. time-chartered vessels, as 16 of 23 vessels were on the spot market as of March 2025, exposing revenue to rate volatility.
• Newbuilding Progress: Track the delivery schedule and payment milestones for the four new VLCCs under construction (delivery expected in 2026), which represent a significant future capital commitment of approximately $430 million.