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DHT Holdings (DHT)
NYSE:DHT
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DHT Holdings
(NYSE:DHT)
84Outperform
Positive Factors
Dividend Strategy
DHT's 100% payout of net income dividend strategy and low leverage position it to payout higher dividends as VLCC rates move higher.
Market Positioning
DHT's fleet primarily trades in the spot market, positioning it to take advantage of increasing rates and rate spikes.
Revenue Enhancement
DHT's fleet is fully scrubber fitted, which provides an advantage by adding $6-10k per day to VLCC rates.
Negative Factors
DHT Holdings (DHT) vs. S&P 500 (SPY)
Market Cap
$1.80B
Dividend Yield8.61%
Average Volume (3M)1.96M
Price to Earnings (P/E)10.0
Beta (1Y)0.36
Revenue Growth-5.32%
EPS Growth5.51%
CountryUS
Employees924
SectorEnergy
Sector Strength49
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.27
Shares Outstanding160,557,980
10 Day Avg. Volume1,424,245
30 Day Avg. Volume1,961,478
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.02
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.86
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.33Price Target Upside20.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
DHT Holdings Business Overview & Revenue Model
Company DescriptionDHT Holdings, Inc. is a leading independent crude oil tanker company primarily engaged in the transportation of crude oil across the globe. The company operates through a fleet of Very Large Crude Carriers (VLCCs), which are one of the largest types of oil tankers used for transporting large quantities of crude oil. DHT Holdings is headquartered in Hamilton, Bermuda, and focuses on providing reliable and efficient maritime logistics services to its clients, including major oil companies and oil trading companies.
How the Company Makes MoneyDHT Holdings makes money primarily through the chartering of its VLCC fleet to customers on the spot market and through fixed-rate contracts. The company earns revenue by leasing its vessels to oil companies and traders who need to transport crude oil from production sites to refineries and other destinations. The spot market involves short-term charters where rates can vary based on global oil demand and supply dynamics, while fixed-rate contracts offer more predictable income over longer periods. DHT Holdings' earnings are influenced by factors such as global oil production levels, the demand for oil transportation, and fluctuations in charter rates. Strategic partnerships with major oil corporations and efficient fleet management also contribute to the company's revenue generation.
DHT Holdings Financial Statement Overview
Summary
DHT Holdings exhibits strong profitability with stable leverage and efficient cash flow management. The company showed improvement in key profitability metrics and maintains a healthy balance sheet. Cash flow metrics underscore strong liquidity and operational efficiency, though revenue growth has stabilized.Income Statement
DHT Holdings has demonstrated strong improvements in profitability metrics. The gross profit margin for 2024 stood at 54.82%, up from 37.56% in 2023, indicating efficient cost management. The net profit margin improved to 31.72% in 2024 from 28.79% in 2023, reflecting enhanced bottom-line profitability. Revenue growth was modest at 2.00%, showing stability compared to a significant 23.43% growth the previous year. The EBIT margin increased to 36.84% from 34.44%, while the EBITDA margin slightly decreased to 51.52% from 54.23%. Overall, DHT Holdings shows strong profitability with slight growth in revenue.78
Positive
Balance Sheet
DHT Holdings maintains a stable financial position with a debt-to-equity ratio of 0.39, indicating moderate leverage. The return on equity improved to 17.47% in 2024, up from 15.71% in 2023, demonstrating efficient utilization of equity. The equity ratio stands at 69.86%, slightly up from 68.83%, reflecting a strong capital structure. While the company has managed its debt well, the overall asset base has slightly decreased, requiring attention to future asset management strategies.70
Positive
Cash Flow
Cash flow analysis reveals strong operational cash generation with a 18.78% increase in operating cash flow from 2023 to 2024. Free cash flow also grew significantly by 63.70%, indicating strong cash conversion capabilities. The operating cash flow to net income ratio was 1.65, showcasing robust operational efficiency. The free cash flow to net income ratio improved to 1.11, signaling effective management of capital expenditures and debt obligations. Overall, the cash flow metrics underscore strong liquidity and operational efficiency.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 571.77M | 560.56M | 454.14M | 295.85M | 691.04M | Gross Profit |
| 313.56M | 210.56M | 71.58M | -3.00M | 344.04M | EBIT |
| 210.64M | 193.11M | 54.27M | -13.02M | 313.59M | EBITDA |
| 324.35M | 304.01M | 210.69M | 124.23M | 450.40M | Net Income Common Stockholders |
| 181.38M | 161.35M | 61.52M | -11.51M | 266.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 78.14M | 74.74M | 125.95M | 60.66M | 68.64M | Total Assets |
| 1.49B | 1.49B | 1.51B | 1.61B | 1.62B | Total Debt |
| 409.42M | 430.14M | 396.69M | 522.30M | 449.96M | Net Debt |
| 331.28M | 355.40M | 270.75M | 461.64M | 381.32M | Total Liabilities |
| 443.89M | 460.56M | 434.99M | 562.00M | 513.05M | Stockholders Equity |
| 1.04B | 1.03B | 1.07B | 1.05B | 1.11B |
| Cash Flow | Free Cash Flow | |||
| 201.62M | 123.18M | 117.76M | -114.04M | 502.32M | Operating Cash Flow |
| 298.65M | 251.41M | 127.91M | 60.56M | 529.87M | Investing Cash Flow |
| -97.03M | -124.98M | 110.52M | -86.51M | -26.72M | Financing Cash Flow |
| -197.91M | -177.76M | -173.34M | 17.97M | -501.87M |
DHT Holdings Technical Analysis
Positive
11.08
Price Trends
10.50
Positive
10.41
Positive
10.37
Positive
Market Momentum
0.21
Negative
58.62
Neutral
67.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHT, the sentiment is Positive. The current price of 11.08 is above the 20-day moving average (MA) of 10.58, above the 50-day MA of 10.50, and above the 200-day MA of 10.37, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 67.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHT.
DHT Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.80B | 10.00 | 17.04% | 8.61% | -5.32% | 5.51% | |
81 Outperform | $1.59B | 3.97 | 18.57% | 2.17% | -21.27% | -34.25% | |
78 Outperform | $2.08B | 2.95 | 24.68% | 3.93% | -7.25% | 31.85% | |
75 Outperform | $3.81B | 7.70 | 21.46% | 10.40% | 13.77% | -24.50% | |
75 Outperform | $1.80B | 4.34 | 17.57% | 14.07% | -18.74% | -39.64% | |
72 Outperform | $35.11B | 29.74 | 46.37% | 2.03% | 6.05% | 11.64% | |
56 Neutral | $6.99B | 3.67 | -4.87% | 5.88% | 0.18% | -49.70% |
* Energy Sector Average
Performance Comparison
DHT
DHT Holdings
11.08
-0.03
-0.27%
FRO
Frontline
17.35
-6.63
-27.65%
STNG
Scorpio Tankers
41.12
-34.54
-45.65%
TRGP
Targa Resources
159.56
48.54
43.72%
TNK
Teekay Tankers
45.30
-20.18
-30.82%
INSW
International Seaways
37.68
-17.00
-31.09%
DHT Holdings Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -1.34%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook for DHT Holdings, highlighting strong financial performance, a robust balance sheet, and successful strategic actions like vessel sales and long-term charters. While there were some moderate operational expenses and potential market challenges, the positive aspects significantly outweighed the negatives.Q1-2025 Updates
Positive Updates
Strong Financial Performance
DHT reported TCE revenues of $79.3 million and adjusted EBITDA of $56.4 million in Q1 2025. Net income was $44.1 million, or $0.27 per share.
Robust Balance Sheet
DHT has significant liquidity of $277 million and low financial leverage of 16.9%. Net debt stood at $12.3 million per vessel.
Successful Vessel Sale
The sale of DHT Scandinavia resulted in a capital gain of $19.8 million, contributing to a net profit of $24.3 million after adjustments.
Positive Market Outlook
DHT expects an improved spot market with 72% of days booked at $48,700 per day, a meaningful increase from the previous quarter.
Long-term Time Charter Success
DHT Appaloosa entered a 7-year time charter with a major energy company, highlighting long-term earnings visibility and profit-sharing potential.
Negative Updates
Moderate Vessel Operating Expenses
Vessel operating expenses were reported at $17.8 million, which may indicate higher than expected operational costs.
Potential Market Challenges
Ongoing market dynamics and geopolitical factors, such as potential sanctions and OPEC decisions, could pose challenges to market stability.
Company Guidance
During the Q1 2025 earnings call for DHT Holdings, CFO Laila Halvorsen and CEO Svein Moxnes Harfjeld provided a comprehensive financial overview, highlighting a robust performance with revenues on a TCE basis of $79.3 million and an adjusted EBITDA of $56.4 million. The company's net income was reported at $44.1 million, or $0.27 per share, with a net profit of $24.3 million, or $0.15 per share, after adjustments. They reported vessel operating expenses at $17.8 million and G&A expenses at $5.5 million for the quarter. The average TCE rates were $36,300 per day for spot market vessels, $42,700 per day for time charters, and $38,200 per day overall. DHT's balance sheet was noted for its strength, with total liquidity at $277 million, including $80.5 million in cash. Financial leverage stood at 16.9%, and net debt was $12.3 million per vessel. The company allocated $27 million for cash dividends, reflecting their policy of distributing 100% of ordinary net income, marking the 61st consecutive quarterly cash dividend. Additionally, DHT announced vessel sales and time charter contracts, including a noteworthy seven-year charter for the DHT Appaloosa. Looking ahead, they expect improved earnings for Q2 2025 with anticipated time charter and spot market rates. The call concluded with a positive outlook on market dynamics, supported by favorable supply conditions and OPEC's production strategies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.