Q2 2025 DHT Holdings Inc Earnings Call

Speaker #2: Good day and thank you for standing by. Welcome to the Q2 2025 DHT Holdings Inc. earnings conference call. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question and answer session. To ask a estion during the session, you will need to press star one-one on your telephone; you then hear an automated message advising your hand is raised.

Speaker #2: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speakers today, DHT President and CEO Svein Halvorsen and Laila Halvorsen, CFO.

Speaker #2: Please go ahead with your lines open.

Speaker #3: Thank you. Good morning and good noon, everyone. Welcome and thank you for joining DHT Holdings' second quarter 2025 earnings call. I am joined by DHT's President and CEO Svein Halvorsen here.

Speaker #3: As usual, we go through financials and some highlights before we open up for your questions. The link to the slide deck can be found on our website, DHTankers.com.

Speaker #3: Before we get started with today's call, I would like to make the following remarks. A replay of this conference call will be available on our website, DHTankers.com, until August 14th.

Speaker #3: In addition, our earnings press release will be available on our website and on the SSE Edgar system as an exhibit to our Form 6K.

Speaker #3: As a reminder, on this conference call, we will discuss matters that are forward-looking in nature. These forward-looking statements are based on our current expectations about future events, as detailed in our financial report.

Speaker #3: Actual results may differ materially from the expectations reflected in these forward-looking statements. We urge you to read our periodic reports available on our website, and on the SSE Edgar system, including the risk factors in these reports for more information regarding risks that we face.

Speaker #3: As usual, we will start the presentation with some financial highlights. In the second quarter of 2025, we achieved revenues on TC basis of 92.8 million, an adjusted EBITDA of 69 million.

Speaker #3: Net income came in at 56 million, equal to 35 cents per share. After adjusting for the 17 and a half million gain on sale of vessels, related to the sale of DHT Lotus, the company had a net profit for the quarter of 38 point 6 million, equal to 24 cents per share.

Speaker #3: Vessel operating expenses for the quarter were 19.6 million, and G&A for the quarter was 4.6 million. For the second quarter, the average TC for the vessels in the spot market was 48,700 dollars per day, the vessels on time charters made 42,800 dollars per day, while the average combined TC achieved for the quarter was 46,300 dollars per day.

Speaker #3: DHT continues to show a robust balance sheet with low leverage and significant liquidity. We have continued to strengthen our balance sheet, and the second quarter ended with total liquidity of 299 million, consisting of 82.6 million in cash and 216 and a half million available under our two revolving credit facilities.

Speaker #3: At quarter end, financial leverage was 14.1 percent based on market values for the ships, and net debt was 10 million per vessel, well below estimated residual ship values.

Speaker #3: On this slide, we present the cash flow highlights for the second quarter. We started the quarter with 18 and a half million in cash, and we generated 69 million in EBITDA.

Speaker #3: Ordinary debt repayment and cash interest amounted to 19 million, and 24 million was allocated to shareholders through a cash dividend. 6.1 million was used to acquire the additional shares in Goodwood Ship Management, 1 million was used for maintenance capex, and 39 million was used for a new building program.

Speaker #3: Proceeds from the sale of DHT Lotus was 51 million, 52.6 million was used for prepayment of long-term debt, while net issued related to the refinancing of DHT Jaguar was four and a half million.

Speaker #3: Positive changes in working capital and other amounted to 16 and a half million, and the quarter ended with 82.7 million in cash. With that, I will turn the call over to Svein.

Speaker #4: Thank you, Laila. It has been an active quarter for DHT. Both closing projects that had been in works for some time, as well as new ones.

Speaker #4: You will hear take you through our quarterly highlights, all those several of these events have been a communicated previously, as subsequent events to the first quarter report or as separate events post the first quarter report or in the most recent business update.

Speaker #4: Firstly, the DHT Appaloosa entered a seven to nine-year time charter contract with a global energy major. The contract has a fixed base rate of 41,000 per day, plus a profit sharing structure in which earnings and excess of the base rate will be shared 50/50 between the customer and us.

Speaker #4: She delivered into the contract in May. We entered into agreement to acquire a modern second-hand vessel built at Hyundai South Korea in 2018. She has large dead weight, is fitted with exhaust gas cleaning system, and is a sister of vessels already in our fleet.

Speaker #4: We are very od experienced with these ships, both commercially and operationally. The price is 107 million, and it's in line with current broker values.

Speaker #4: This fleet addition will replace some other divested earnings following the sale of older ships. The acquisition will be financed with available liquidity and projected new mortgage debt.

Speaker #4: Expect to take delivery towards the end of this quarter. We sold the DHT Lotus and DHT Peony built in 2011 at Buhai Shipbuilding in China.

Speaker #4: The two vessels were sold for a combined price of 103 million. These two vessels were acquired in 2017 as part of the acquisition of BW Group's Visa Seafleet for an aggregate price of 115.8 million.

Speaker #4: And that served as well. The DHT Lotus was delivered in April, and we recorded a capital gain of 17 and a half million during the quarter, and net proceeds were 50.9 million.

Speaker #4: The DHT Peony was delivered in July, and the expected recorded gain of 15 and a half million in the third quarter with net cash proceeds of 50.1 million.

Speaker #4: DHT Bahina built in 2007 was fixed on a one-year time charter contract to a global energy company at 41 and a f thousand dollars per day.

Speaker #4: She commenced the contract in May. Then we acquired minority legacy shareholder positions in Goodwood Ship Management for 6.1 million, and the company is now 100% owned by DHT.

Speaker #4: The company undertakes technical management and crewing for all our vessels, including recruitment, employment, and training of our seafarers. Through our offices in Singapore and Mumbai, India.

Speaker #4: The entire DHT fleet has been reflagged to the Marshall Island registry, and there were some expenses recorded in OPEX related to this during the second quarter.

Speaker #4: We have entered into a new credit facility to refinance the DHT Jaguar built in 2015. The facility is 30 million with a six-year tenure and a 20-year repayment profile.

Speaker #4: It is priced at sulfur plus a margin of 175 dips and is otherwise in line with the DHT style financing. On this slide, we will provide you with a new building financing update.

Speaker #4: We have entered into a 308.4 million secured credit facility to finance our four new buildings. The facility is co-arranged by ING and Nordea with backing from Kaiser.

Speaker #4: It is competitively priced at sulfur plus an average weighted margin of 132 bips. The facility has a 12-year tenure and a 20-year repayment profile.

Speaker #4: We should highlight that the facility does not include a prepayment option in favor of the lenders, halfway through the tenure. Hence, it has a true 12-year tenure with respect to both maturity and pricing.

Speaker #4: The financing underscores the confidence existing lenders have in DHT, our robust financial position, and our strategy. The new building project has a total capex just shy of 520 million.

Speaker #4: We are paid basically 180 million in installments to date. Combined with the now credit facility of a 308 million, we have an estimated 31.6 million in remaining capex, which we plan to fund through cash flows from operations and/or existing liquidity.

Speaker #4: We view this as a very comfortable position for the company. Now we will discuss capital allocation and dividends. As per our capital allocation policy of paying out 100% of ordinary net income as quarterly cash dividends, the dividend for the second quarter of 2025 is declared at 24 cents per share, and marks our 62nd consecutive quarterly cash dividend.

Speaker #4: The shares will trade ex-dividend on August 18, and the dividend will be paid on August 25 to shareholders of record as of August 18.

Speaker #4: In the graph to the left, we estimate our estimated P&L and cash break-even levels for the second half of 2025. As you will see, the difference between the two is estimated at 7,800 dollars per day for this period.

Speaker #4: This discretionary cash flow will remain in the company and be allocated to general corporate purposes, with the intention being to fund the remaining installments under our new building program.

Speaker #4: The graph on the right illustrates the accumulated dividends since updating our capital allocation policy from the third quarter of 2022. The umulated amount is now $2.75 per share, and reflects well during a period in which our share price has appreciated and we made share buybacks equal to 2.3% of the company in addition to the quarterly cash dividends.

Speaker #4: Now, with an update on the bookings to date for the third quarter of 2025. We expect to have 805 time charter days covered for the second quarter at 40,500 dollars day.

Speaker #4: This rate assumes profit sharing for the month of July, and only the base rate for the month of August and September for the time charter contracts that have profit sharing features.

Speaker #4: We assume 1,150 spot days in this quarter, of which 73% have been booked at an average rate of $38,500 per day. The third quarter started in a disappointing fashion, but we sense a potential turnaround as we speak.

Speaker #4: The spot P&L break-even for the third quarter is estimated at 20,000.00 per day, a number you may use to estimate the net income contribution from our spot fleet for the third quarter.

Speaker #4: As we have repeatedly stated, it is our view that the dynamics of our market is increasingly being a favorable supply story with a rapidly aging fleet exceeding a benign order book, of new ships, and a string of sanctions making it increasingly challenging to trade older ships in the shallow fleet.

Speaker #4: There are a number of other factors as well that we expect to come into play. The US is proposing tariffs on India's continued import of Russian oil.

Speaker #4: There are already signals of a shift in India sourcing its seed stock, supporting the Suzmax and the VFCC trades. OPEC has announced several increases in production, so far this has had limited impact on our market.

Speaker #4: But with peak season for domestic power generation demand in the Middle East nearing its end, we expect a rise in seaborne exports toward the end of Q3.

Speaker #4: We noticed that refining margins are reassuring, supporting demand for seed stock. And Brazil has recently entered into a supply contract for crude oil to China, which is supportive of the VFCC trade.

Speaker #4: In addition, we see several potential triggers that could act as tipping points in favor for a very strong VFCC market. One, improved arbitrage economics for Atlantic Basin barrel to be sold to Asia.

Speaker #4: Two, escalating levels of sanctions and, importantly, enforcement of these. Three, re-entry of Venezuelan crude oil into the compliant markets. Four, renewed attention to transshipment of sanctioned oil in Malaysian waters.

Speaker #4: Five, de-escalating in trade and tariff tensions. And six, macro tailwinds with a resilient global economy reasonable oil prices and a positive Chinese economic read-through.

Speaker #4: We continue as always to focus what we can control and delivering on what we believe is the resilient business approach and strategy. We receive encouragement from our y stakeholders, here under shareholders, customers, and lending banks.

Speaker #4: Irrespective of which consistency you belong to, you should expect us to focus on solid customer relations with safe and reliable services, accompany our itive cost structure with robust break-even levels, a solid balance sheet, a clear capital allocation policy to create long-term shareholder value.

Speaker #4: We appreciate the encouragement and entire DHT team continue to work hard and operate a leading governance standard and a high level of integrity. And with that, we open up for questions.

Speaker #4: Operator?

Speaker #2: Thank you. As a reminder, to ask a question, you will need to press *1 and 1 on your telephone and wait for your name to be announced.

Speaker #2: To withdraw your question, please press star one and one again. Please stand by as we compile a Q&A roster. Our first question comes from the line of Frodo Morcado of Clarkson Securities.

Speaker #2: Please go ahead, your line is open.

Speaker #5: Thank you. Hi, guys.

Speaker #6: Hi, Frodo.

Speaker #5: yeah, the first question that I had is on the mentioned it briefly. You know, this tariff on India, maybe you could elaborate what kind of effect you've seen so far, in terms of chartering activity, and, you know, do ou expect that to continue basically, have a meaningful impact on the, let's say, conventional type of market going ward?

Speaker #6: it's a it, early days, but, some sort of numbers, so far, at the end of the second quarter, so I end of June, India imported basically 2 million dollars, 2 million barrels per day of Russian oil.

Speaker #6: And this, oil was transported predominantly in smaller ships. for July, this has come down some 20% in volumes, and we see also similar sort of trend lines for, August.

Speaker #6: And this will, in general, just favor larger ships. So we have to, of course, continue to see this development. We could, course, also be some sort of deal with India and, and, and the US, that will maybe not take out all of this, but, so it's a bit early to say.

Speaker #6: But I think 20% start for July, maybe similar, levels for August, if not more. And, h, then let's see what happens. But, there, there are already inquiries in the market, you know, for them to, purchase feedstock from further afar.

Speaker #6: For it to be loaded on big ships.

Speaker #5: Okay. Yes. Good news. second question I had is on this fixture, you fixed on 18-year-old ships, for one year at 41 and a half thousand per day.

Speaker #5: Which, given the age of that ship, is, relatively strong, right? at least when I look at the investment values, you know, probably 44 million or so for a similar type of ship.

Speaker #5: if you assume, let's say, 10, 12 percent unleverable turn, you only require like 30,000 per day over time to justify that type of valuation, right?

Speaker #5: So, you know, that rate you achieved look, quite strong. so yeah, the question is, do you think this kind fixture can be repeated? And what does it tell you about the, you ow, the case of higher second-hand values?

Speaker #6: I think, you know, for last year or so, we have been quite successful in securing time charters for our older vessels. And, all these charters have basically started with a four handle.

Speaker #6: I think the lowest was 40, and the highest was 49 and a half. and, you know, that there are several things. This one, of course, is the return on the capital employed in this asset based on the cost.

Speaker #6: It's, it's y good return, for, for our shareholders. But also, you know, the older ships are a bit more exposed when you get the volatility in the spot market.

Speaker #6: So, when you have sort of weaker periods, then, you are, sort of exposed to waiting time and maybe, you know, less customers being willing to fix an older ship unless there's a discount.

Speaker #6: So to create sort of stability, in earnings for those ships, we, we, for us, we think has made a lot of sense. And, of course, we appreciate, the customers are fine with also, using, ships that are older.

Speaker #6: They are technically excellent condition and, run very well, we believe. So, so, you know, this is something we will try to continue to do, I, I think, as long as the, the, the money makes sense.

Speaker #5: Sounds good. Thanks, Svein.

Speaker #6: You're welcome. Thank ou. Bye-bye.

Speaker #2: We will now take our next question. Please stand by. Our next question comes from the line of Sharif Al-Maghabi of BTIG. Please go head, your line is open.

Speaker #7: Hi. Thanks for taking my estion. so, you know, ou talked about it in the presentation earlier this week, OPEC announced they're gonna finish unwinding those cuts, earlier than expected.

Speaker #7: Most of that crew's probably gonna find its way onto V's, and I'm ondering, how that's changed your conversations with charters given, all of this unexpected crude entering the market?

Speaker #6: Yeah. We, you know, as a company, we have a very sort of key focus on, on customer relationships. And, we have a lot of repeat business with our customer base.

Speaker #6: And, we, we, you ow, we are regularly talking with them, and we do sort of sense that there is, increased interest and focus on having, you know, good access to VFCC capacity in some shape or form.

Speaker #6: and, you know, that should bolt, well for us. And now, of course, the customers are very close to the action. So, if they are increasingly interested in having those conversations, I think this is a, a bullish signal for, for the VFCC market and also for DHT then.

Speaker #5: Thanks. And, and for the vessels you sold, Lotus and Peony, you've got two other ones in the fleet of a similar age and a handful that are just a little bit younger.

Speaker #5: When you think about fleet renewal, is there a focus on maintaining fleet size the ay you have? with the acquisition of the newer tanker on the water, or is it more of a case-by-case approach?

Speaker #6: huh. of course, we have a fleet renewal, you know, concept in a way, but, we are looking at what creates most value for the company.

Speaker #6: the Lotus and Peony had a particular feature that they were, built at, Buhai Shipyard in, in, in China. And, given some of the dynamics, you know, with the, with the US, there was some benefits in sort of fine-tuning our, you ow, proposition to customers.

Speaker #6: hence, we decided to sell them. There have been, very profitable investments, and we, we think we got a good price for them. and the business that they have mostly been involved in, would sort of come to an end because of age.

Speaker #6: This is a particular trade where they've been active, so it was natural for us to sell them. We had a buyer who would take both the sister ships in one go.

Speaker #6: And, you know, we did replace, of course, one of them you could argue with the, the more modern ship we acquired in, in the second quarter.

Speaker #6: we are always on the lookout of, of, of new things. I dare suggest that we get to see everything. And, we also get to see things that we pass on.

Speaker #6: So it's not like we will buy everything that's So, but, focus is on creating shareholder value and on, earnings per share. so if we can, you know, do that confidently, for the business, we, we are still able and willing to invest.

Speaker #6: being presented to us.

Speaker #5: Understood. that's great color. Thank you.

Speaker #2: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Jonathan Shapel of Evercore

Speaker #2: ISI. Please go ahead, your line is open.

Speaker #8: Thank you. And good noon. Svein the market commentary you laid out all the possible positive catalysts that could happen to the VLCC market. And, but you also said the third quarter started out somewhat disappointing.

Speaker #8: So it feels like we've been waiting, you know, for this VLCC reversion, to be in the best performing crude carrier class, for some time.

Speaker #8: And it's just kind of stubbornly hasn't gotten there yet. So, maybe what's been in your mind the reason for the disappointment recently, and I ess just to be balanced, what are some of the negative, potential catalysts that can keep the VLCCs from performing as you expect for the rest of the year?

Speaker #6: Yeah. That's a good question, of course. and it's always icult to be very precise on this. But, we do believe that, you know, well, the second quarter had a, you know, a significant markup in earnings compared to the first quarter.

Speaker #6: And, I think some of that has been inventory, building in, in, in, in China. And, then, you know, you build inventory, then suddenly that comes to a halt or a temporary halt, so that combined with this additional barrels, from, from OPEC, PEC suddenly being then used for power generation, has not been a good combination also with the loss of the, of the sort of west-east arbitrage of the US crude were also production frankly has, has tapered off a bit.

Speaker #6: And, I read reports now that the US refining or refinery utilization is now up to 96%. That is not only because of demand growth in or robust demand in the US, but it's of some, you know, domestic production tapering off.

Speaker #6: I think the combination of these factors is, is what sort of now gave us a little bit, one on the nose, coming into the third quarter.

Speaker #6: But, I do sense it, it's temporary. so, and, I view, you know, Saudi Aramco in particular, I don't think there's anybody else that knows more about the oil market than those guys.

Speaker #6: so I have some confidence in them knowing what they're ing and, if you look at the oil price, you know, the market seems to be willing to absorb, you ow, these, these, h, reversals of cuts, and that oil coming to the market.

Speaker #6: There's still, sanctioned barrels at risk here. So, you know, exactly how this will play out is hard. I think the bigger question in terms of risks is so far the, the world economy has shown resilience to a lot of the, call it noise in, or uncertainty created by, created by trade and tariff discussions.

Speaker #6: So, you know, if the world economy is not able to hold up that resilience, then, of course, that will have a negative impact on where we are.

Speaker #6: But, so I think that's really the, the, the key risk is, is, is the latter to see how that really plays out. So far, so far.

Speaker #5: Thank ou. A little bit of a housekeeping. if I can get a follow-up really quick. seemed like there were some, scheduled off-hour days in 2Q.

Speaker #5: It's been a while since that happened. Can you just, give us an update on what the dry dock schedule looks like, for the of this year and maybe even into 26?

Speaker #6: Yeah. So we have one ship now in the second half for dry dock. That's it.

Speaker #5: That's it? Great. Thank you.

Speaker #2: Thank you. We will now take our next estion. Please stand by. Our xt question comes from the line of Omar Nokta of Jeffries. Please go ahead, your line is open.

Speaker #7: Thank you. Hey, guys. Good afternoon. I a couple of quick ones for me and, and maybe just a follow-up to start on the, India discussion.

Speaker #7: Svein, you mentioned that volumes from Russia into India are down 20%, which is, say, 400,000 barrels. From your sense, or if you're able to see, has that 400,000 just disappeared from the market, or is it being shipped somewhere else?

Speaker #6: from, you know, from the report, that I've, 've read on these details, it, is gesting that the seed stock is acquired from other sources.

Speaker #6: And, the predominantly the Middle East. But, India has sort of widened their sourcing of feedstock. So, if you look at sort of statistics, over time or pre maybe the Russia-Ukraine conflict, then, Middle East represented about 60% of feedstock, and then the rest being sort of Atlantic barrels.

Speaker #6: So I'm not sure exactly of, of, how this is, you know, played out now. I guess we'll have to look at this after the fact, once, these trade statistics, come out.

Speaker #5: Okay. Yeah. I appreciate that. Thank you. And then just a, a financing question. And in terms of the 2018 vessel that ou're quiring, looking at the Jaguar, you've refinanced that with 30 million.

Speaker #5: which looks maybe to be about one-third or so of the value of that ship. What kind of debt are you looking to put on to this, latest acquisition?

Speaker #6: You know, we, we like run with a strong and, maybe for some people a bit of a conservative balance sheet. so, you know, we have several, offers to, , to, to finance this vessel.

Speaker #6: There are different considerations. because we have a sense that we can set a new level of cost, in financing second-hand vessels for the company.

Speaker #6: So it will be probably very competitive. maybe a bit longer tenure. So maybe we, you ow, on this particular facility, will borrow on a relative basis a bit more, but use maybe that excess funding to prepay some other debt and just improve the general cost, for debt for the company.

Speaker #6: So, this is sort of stuff in the works. We will advise the market in due course on that. But it's a super comfortable position to be in.

Speaker #6: And, so it's gonna be a competitive we think.

Speaker #5: Okay. Good. And, and maybe just one, one final one, then I'll pass it back. you know, the first of your four new buildings delivers in, say, perhaps maybe six months or so.

Speaker #5: what's a charter appetite look like, to take that on charter? And I guess what's your appetite to, to do so?

Speaker #6: the first ship is coming in January. And, there's been, you know, I would say, high-level interest from some of our core customers in these ships.

Speaker #6: for sort of different type of discussions, but it's a bit early yet. So, but, you ow, these ships are gonna be very, very good.

Speaker #6: I think there's gonna be well, there's nothing like it in the water today. so they do attract interest, from some, big customers. so, so let's see.

Speaker #6: It's, you ow, we ordered those ships without employment, and a comfortable of keeping them also in the market. They're gonna be phenomenal earners. But, if there's some true long-term business, available to those at, acceptable returns to DHT, then, of course, we will entertain that.

Speaker #6: So, it, it could be a mix, you know, and, we have to see. I, I do think that the next sort of six months or maybe less, four or five months will, will, give a better feel for how, this will develop.

Speaker #6: So, maybe on our next earnings call, we have a, you ow, b-better views, maybe the wrong word, but, we have more clarity on, on, you know, whether it's, initial interest will actually develop into, real business interest.

Speaker #5: Yep. Great. Okay. We'll, we'll thank you that, Svein. I'll pass it back.

Speaker #2: Thank you.

Speaker #6: Thank you.

Speaker #2: We will now take our next question. Please stand by. Our next question comes from the line of Jeffrey Scott of Scott Asset Management. Please go ahead, your line is open.

Speaker #8: thank you. Good afternoon. two questions. The first one, has to do with demolition activity or actually the lack of same. the, the sanctioned fleet, the dark fleet is, primarily the over 20s.

Speaker #8: to the extent that that dark fleet is, is highly utilized, there's little incentive to send them to the breakers. are you able to track the utilization rate of those, sanctioned vessels, the dark fleet vessels?

Speaker #6: it's, limited because, they are, not always keeping their AI systems on board. So you need, pretty advanced satellite systems to, to keep track on this.

Speaker #6: There are some companies doing this. So we have access to some of that information. we assume that in the best case, the productivity of this fleet is maybe 50%, compared to the compliant fleet.

Speaker #6: possibly less. So, but they get phenomenal freights for doing the, doing these jobs. So, so they maybe can afford it, and the, the ships are older.

Speaker #6: I think lack of scrapping is, the dynamic is so that, people that buy these older ships for, you know, to operate them in the shallow fleet or sanctioned fleets, they are, paying quite robust prices.

Speaker #6: And, of course, this is, then influencing, the price, ship owner wants to sell this crypto ship for demolition. And if you run a scrapyard, you know, you buy a ship and it takes you quite a good while to, you know, take it apart and to recycle and sell all the pieces.

Speaker #6: It's not just the steel. It's also, equipment, spare parts, you know, copper, from cables and stuff like that. So the working capital, load, for a, for a breakyard is, is quite significant compared to what it was when the old VFCC would cost 10 million bucks.

Speaker #6: So, this is a challenging dynamic. And, I've been on the, been on record saying I, I think, you know, ou need some global efforts get this business going.

Speaker #6: because, these guys, if they want to finance such an acquisition, they cannot do that with bank financing from a buyer that's sanctioned or been in sanctioned business.

Speaker #6: So this whole business sort of stalls. we would need a global effort, somebody like the World Bank stepping to, to sanction, the, you know, the, the demolition of these ships.

Speaker #6: And provide financing for all these breakers. So, to, for, for that to happen. Otherwise, the, the new scrapping will be that these ships will just be abandoned and left, sort of, you know, with, no people on board and, anchor dropped somewhere and become environmental disasters.

Speaker #8: Okay. Thank you for the color. another real quick question. back in, April, you announced the, the, financing, at SOFR plus 175, and then in July, the 380 million dollar facility at SOFR plus 132.

Speaker #8: was there something unusual in this facility or are banks just more interested in financing shipping business? Or is, is DHT just qualitatively better than any of your competitors?

Speaker #6: You know, we have a very strong balance sheet. And, we've been in this game for quite a while now. So think our track record in running the company, in a sort of, credible fashion, is, is there.

Speaker #6: So we have a very stable group of banks, seven banks that are supporting us. our leverage is very, very low. And the only thing they complain about is that they, they, they, they cannot lend us enough money.

Speaker #6: So, so, you know, when we need the debt, it's, it's competitive. The Jaguar is a bit of, I think, you ow, not, typical financing.

Speaker #6: It has a combination with part of the new building package you can say. and it's a bit of an older ship that was, was refinanced.

Speaker #6: we expect the acquisition we made now in the second quarter, the 2018 build ship, to be priced meaningfully less than that, DHT Jaguar financing.

Speaker #8: this, this spread is, is substantially lower than, than what's been disclosed by your competitors. Is that, is, do you see that as well?

Speaker #6: I, I ink, you know, we are, viewed as an attractive, counterpart for our banks. And, of course, that is then reflected in, in, in, in the pricing.

Speaker #8: Okay. Thank you very much.

Speaker #2: Thank ou. There are no further questions. Speakers, please continue.

Speaker #6: Well, thank you very much for all, listening in on DHT's conference call. We appreciate the interest and support. And, wishing you a good day ahead.