Q2 2026 DHT Holdings Inc Earnings Call

August 6, 2026

Operator: Good day and thank you for standing by. Welcome to the Q2 2026 DHT Holdings, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Laila Halvorsen, CFO. Please go ahead.

Speaker #1: Today, and thank you for standing by, welcome to the Q2 2026 DHT Holdings, Inc. earnings conference call. At this time, all participants are in the listen-only mode.

Speaker #1: speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone.

Speaker #1: then hear an automated message advising you're handed raise. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded.

Speaker #1: then hear an automated message advising you're handed raise. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. conference over to your first speaker today, Laila Halvorsen, CFO.

Speaker #1: Please go ahead. I would now like to hand it over.

Speaker #2: Thank you. Good morning and good afternoon, everyone. Welcome, and thank you for joining DHT Holdings' second quarter 2026 earnings call. I am joined by DHT's president and CEO, Svein Moxnes Harfjeld. usual, we will go through financials and some highlights before we open up for your questions.

Laila Halvorsen: Thank you. Good morning and good afternoon, everyone. Welcome and thank you for joining DHT Holdings' Q2 2026 earnings call. I am joined by DHT's President and CEO, Svein Moxnes Harfjeld. As usual, we will 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, dhttankers.com. 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, dhttankers.com, until 13 August. Our earnings press release will be available on our website and on the SEC EDGAR system as an exhibit to our Form 6-K. As a reminder, on this conference call, we will discuss matters that are forward-looking in nature.

Speaker #2: dhthankers.com. Before we get started with today's call, I would like to make the following As remarks. A replay of this conference call will be available on our website, dhthankers.com, until August 13.

Speaker #2: In addition, our earnings press release will be available on our website and on the SEC EDGAR system as a Form 6-K. As a reminder, on this conference call, we will discuss matters that are forward-looking in nature.

Speaker #2: These forward-looking statements are based on our current expectations about future events as detailed in our financial report. Actual results may differ materially from the expectations reflected in these forward-looking statements.

Laila Halvorsen: These forward-looking statements are based on our current expectations about future events as detailed in our financial report. Actual results may differ materially from the expectations reflected in these forward-looking statements. We urge you to read our periodic report available on our website and on the SEC EDGAR system, including the risk factors in these reports for more information regarding risks that we face. As usual, we will start the presentation with some financial highlights. The Q2 2026 was by far the strongest quarter in the company's history, reflecting strong tanker market conditions and commercial performance. We achieved revenues on TCE basis of $255 million and adjusted EBITDA of $231 million. Net income came in at $198.3 million, equal to $1.23 per share.

Speaker #2: We urge you to read our periodic reports available on our website and on the SEC EDGAR system, including the risk factors in these reports.

Speaker #2: For more information regarding risks that we face. As usual, we will start the presentation with some financial highlights. The second quarter of 2026 was by far the strongest quarter in the company's history, reflecting strong tanking market conditions and commercial performance.

Speaker #2: In the second quarter, we achieved revenues on TCE basis of $255 million. An adjusted EBITDA of $231 million. Net income came in at $198.3 million, equal to $1.23 per share.

Speaker #2: After adjusting for the non-cash fair value gain related to interest rate derivatives of 1.3 million, we had ordinary net income for the quarter of $197 million, equal to $1.22 per share.

Laila Halvorsen: After adjusting for the non-cash fair value gain related to interest rate derivatives of $1.3 million, we had ordinary net income for the quarter of $197 million equal to $1.22 per share. Vessel operating expenses for the quarter were $18.6 million. G&A for the quarter was $5.6 million, which included approximately $0.7 million in non-recurring non-cash costs related to shares vested in the Q2. In terms of market performance, our vessels trading in the spot market earned an average of $162,600 per day, while the vessels on time charters achieved $90,800 per day. The average combined TC for the fleet in the quarter was $126,700 per day. Revenue on a TC basis for the H1 of the year totaled $412.2 million, while adjusted EBITDA reached $364.3 million.

Speaker #2: Vessel operating expenses for the quarter were $18.6 million, and G&A for the quarter was $5.6 million, which included approximately $0.7 million in non-recurring non-cash costs related to shares, vested in the second quarter.

Speaker #2: In terms of market performance, our vessels trading in the spot market earned an average of $162,600 per day, while the vessels on time charters achieved $90,800 per day.

Speaker #2: The average combined TCE for the fleet in the quarter was $126,700 per day. Furthermore, revenue on a TCE basis for the first half of the year totaled $412.2 million, while adjusted EBITDA reached $364.3 million.

Speaker #2: Net income was $362.9 million, exceeding DHT's previous full-year record earnings of $266.3 million, achieved in 2020, and establishing a new earnings milestone in the company's history.

Laila Halvorsen: Net income was $362.9 million, exceeding DHT's previous full year record earnings of $266.3 million achieved in 2020 and establishing a new earnings milestone in the company's history. For this period, our vessels trading in the spot market earned an average of $124,700 per day, while the vessels on time charters achieved $77,300 per day. We achieved combined TC for the fleet of $102,900 per day. We continue to maintain a very strong balance sheet, supported by conservative leverage and robust liquidity. At the end of Q2, total liquidity was $569 million, consisting of $161.7 million in cash and $407.5 million available under our revolving credit facilities. At Q2 end, financial leverage was 14.1% based on market values for the fleet, and net debt was $11.9 million per vessel, way below estimated residual values.

Speaker #2: For this period, our vessels trading in the spot market earned an average $124,700 per day, while the vessels on time charters achieved $77,300 per day.

Speaker #2: The achieved combined TCE for the fleet was $102,900 per day. We continue to maintain a very strong balance sheet, supported by conservative leverage and robust liquidity.

Speaker #2: At the end of the second quarter, total liquidity was $569 million, consisting of $161.7 million in cash and $407.5 million available under our revolving credit facilities.

Speaker #2: At quarter-end financial leverage was $14.1%, based on market values for the fleet, and net debt was $11.9 million per vessel, well below estimated residual values.

Speaker #2: Looking at our cash flow, we began the quarter with a cash balance of $126 million. During the quarter, operations generated $231 million in EBITDA.

Laila Halvorsen: Looking at our cash flow, we began Q2 with a cash balance of $126 million. During Q2, operations generated $231 million in EBITDA. Debt repayment and cash interest totaled $20 million. $103 million was distributed to shareholders through a cash dividend. In addition, we invested $7.2 million in vessels, $1.3 million in vessels under construction, and we also prepaid $56 million in long term debt. Changes in working capital and other items amounted to $7.3 million. The Q2 ended with $161.7 million in cash. With that, I will turn the call over to Svein to go through the quarterly highlights.

Speaker #2: Debt repayment and cash interest totaled $20 million, and $103 million was distributed to shareholders through a cash dividend. In addition, we invested $7.2 million in vessels, $1.3 million in vessels under construction, and we also prepaid $56 million in long-term debt.

Speaker #2: Changes in working capital and other items amounted to $7.3 million. And the quarter ended with $161.7 million in cash. With that, I will turn the call over to Svein to go through the quarterly highlights.

Speaker #3: Thank you, Laila. I will now walk through our key quarterly highlights. Strong market conditions were driven not only by fundamental supply and demand dynamics, but also by ongoing market consolidation and regional disruptions, most notably stemming from the conflict involving Iran, which drove significant expansion of global ton wires.

Svein Moxnes Harfjeld: Thank you, Laila. I will now walk through our key quarterly highlights. Strong market conditions were driven not only by fundamental supply and demand dynamics, but also by ongoing market consolidation and regional disruptions, most notably stemming from the conflict involving Iran, which drove a significant expansion of global ton-miles. Crucially, DHT's operational framework prioritizes the safety of our crew, cargo, and vessels above all else. In line with this policy, our fleet did not trade in the Persian Gulf during this period. Our teams delivered solid results through operational excellence without having to pursue trades to chase premium rates in the high risk conflict areas. We capitalized on strong term demand by securing two additional time charter contracts during Q2 for two of our older ships.

Speaker #3: Crucially, DHT's operational framework prioritizes the safety of our crew, cargo, and vessels above all else. In line with this policy, our fleet did not trade in the personal growth during this period.

Speaker #3: Our teams delivered solid results through operational excellence without having to pursue trades to chase premium freights in a high-risk conflict areas. The capitalized on strong term demand by securing two additional time charter contracts during the quarter for two of our older ships.

Speaker #3: Both the DHT Sundarbans built 2012 and DHT Amazon built 2011, entered into one-year contracts at an average rate of $109,000 per day. Looking to our long-term fleet development, we contracted a new build DHTC at Hanwha Ocean for early delivery in August 2028.

Svein Moxnes Harfjeld: Both the DHT Sundarbans, built 2012, and DHT Amazon, built 2011, entered into 1-year contracts at an average rate of $109,000 per day. Looking to our long term fleet development, we contracted a newbuild VLCC at Hanwha Ocean for early delivery in 28 August. She will be named DHT Oryx and will be a sister ship to the DHT Antelope and DHT Addax, both delivered from Hanwha Ocean earlier this year. The DHT Oryx will feature large carrying capacity and will come equipped with an exhaust gas cleaning system. We secured a new $250 million reducing revolving credit facility. All the banks in our banking universe participated. It is fair to add that it was meaningfully oversubscribed. The facility has a 7-year tenor, a 20-year repayment profile, and is priced at 135 basis points above SOFR. Additionally, it has an uncommitted accordion feature of $250 million.

Speaker #3: She will be named DHT Oryx, and will be a sister ship to the DHT Antelope and DHT Audax, both delivered from Hanwha Ocean earlier this year.

Speaker #3: The DHT Oryx will feature large carrying capacity and will come equipped with an exhaust gas cleaning system. We secured a new $250 million reducing revolving credit facility.

Speaker #3: All the banks in our banking universe participated, and it's fair to add that it was meaningfully oversubscribed. The facility has a seven-year tenure, a 20-year repayment profile, and is priced at $135 basis points above SOFR.

Speaker #3: Additionally, it has an uncommitted accordion feature of $250 million. Moving to events subsequent to the quarter. First, we secured a three-year time charter at $75,000 per day with a global energy company for the 2015-built DHT Jaguar.

Svein Moxnes Harfjeld: Moving to events subsequent to the quarter. First, we secured a three year time charter at $75,000 per day with a global energy company for the 2015-built DHT Jaguar, which is scheduled to deliver into the contract this September. Second, in line with our strategy to divest older tonnage, we finalized the sale of the 2007-built DHT Bauhinia, delivering her to the new owner in July. This transaction generated $51 million in total cash proceeds and a net capital gain of $34 million. Lastly, in July, we took delivery of the DHT Impala from Hyundai. This represents the fourth and final new building in our 2026 fleet program. Referring to our prior disclosures, the vessel was successfully delivered with the intended design upgrades completed. Back to you, Laila.

Speaker #3: Which is scheduled to deliver into the contract this September. Second, in line with our strategy to divest all the tonnage, we finalized the sale of the 2007-built DHT Bahinia delivering her to the new owner in July.

Speaker #3: This transaction generated $51 million in total cash proceeds and a net capital gain of $34 million. Lastly, in July, we took delivery of the DHT Impala from Hyundai.

Speaker #3: This represents the fourth and final new building in our 2026 fleet program. Referring to our prior disclosures, the vessel was successfully delivered, with the intended design upgrades completed.

Speaker #3: And back to you, Laila.

Speaker #2: Thank you. In line with our capital allocation policy, of paying out 100% of ordinary net income at quarterly cash dividends, the board has approved a dividend of $1.22 per share for the second quarter of 2026.

Laila Halvorsen: Thank you. In line with our cash allocation policy of paying out 100% of ordinary net income as quarterly cash dividends, the board has approved a dividend of $1.22 per share for Q2 2026. This marks our 66th consecutive quarterly cash dividend. The shares will trade ex-dividend on 17 August, and the dividend will be paid on 24 August to shareholders of record as of 17 August. Here we also present our estimated P&L and cash breakeven levels for H2 2026. Our P&L breakeven for the period is estimated at $29,700 per day, while our cash breakeven is estimated at $22,600 per day, which reflects all true cash costs. The difference between our P&L and cash breakeven is now estimated at $7,100 per day. This discretionary cash flow will remain within the company and be allocated for general corporate purposes.

Speaker #2: This marks our 66th consecutive quarterly cash dividend. The shares will trade ex-dividend on August 17, and the dividend will be paid on August 24 to shareholders of record as of August 17.

Speaker #2: Here we also present our estimated P&L and cash break-even levels for the second half of 2026. Our P&L break-even for the period is estimated at $29,700 per day, while our cash break-even is estimated at $22,600 per day, which reflects all two cash costs.

Speaker #2: The difference between our P&L and cash break-even is then estimated at $7,100 per day. This discretionary cash flow will remain within the company and be allocated for general corporate purposes.

Speaker #2: On this slide, we present an update on bookings to date for the third quarter of 2026. We expect $1,020 time charter days covered for the third quarter at an average rate of $75,900 per day.

Laila Halvorsen: On this slide, we present an update on bookings to date for Q3 2026. We expect 1,020 time charter days covered for Q3 at an average rate of $75,900 per day. This rate includes profit sharing for the month of July and the base rate only for the months of August and September for contracts with a profit-sharing feature. We also anticipate 1,029 spot days for the quarter, of which 58% or 600 days have been booked at an average rate of $152,700 per day. The spot P&L breakeven for the quarter is estimated to be less than zero, as the time charter earnings are expected to exceed forecasted costs. Turning to our 2026 dry dock schedule. As shown on this slide, we have 7 vessels due for dry docking during the year.

Speaker #2: This rate includes profit sharing for the month of July, and the base rate only for the month of August and September for contracts with a profit sharing feature.

Speaker #2: We also anticipate $1,029 spot days for the quarter, of which $58% or $600 days have been booked at an average rate of $152,700 per day.

Speaker #2: The spot P&L break-even for the quarter is estimated to be less than zero, as the time charter earnings are expected to exceed forecasted costs.

Speaker #2: Turning to our 2026 dry dock schedule, as shown on this slide, we have seven vessels due for dry docking during the year. DHT Lion completed its dry dock in the first quarter, while DHT Amazon, DHT Osprey, and DHT Puma completed their dry docks in the second quarter.

Laila Halvorsen: DHT Lion completed its dry dock in Q1, while DHT Amazon, DHT Osprey, and DHT Puma completed their dry docks in Q2. DHT Panther completed its dry dock earlier this week. All planned dry docks were completed on time and within our expectations. Looking at the remainder of the program, 2 vessels, DHT Harrier and DHT Redwood, are scheduled to undergo their second and third special survey and dry docks respectively during H2 2026. Upon completion of these surveys, we will have completed this year's dry dock program and enter 2027 with only 4 vessels scheduled for dry dock during next year, providing a rather light maintenance schedule from an operational and commercial perspective. Now I'll turn the call back to Svein.

Speaker #2: DHT Panther completed its dry dock earlier this week, and all planned dry docks were completed on time, and within our expectations. Looking at the remainder of the program, two vessels, DHT Harrier and DHT Redwood, are scheduled to undergo their second and third special survey and dry docks, respectively, during the second half of 2026.

Speaker #2: Upon completion of these surveys, we will have completed this year's dry dock program and enter 2027 with only four vessels scheduled for dry dock during next year.

Speaker #2: Providing a rather light maintenance schedule from an operational and commercial perspective. And now I'll turn the call back to Svein.

Speaker #3: Thanks, Laila. We will now turn to current market dynamics, where several structural forces are shaping the tanker landscape. Geopolitical friction and risk premiums remain. Middle East hostilities continue to force vessel rerouting, expanding tonne-mile demand and squeezing overall fleet efficiency.

Svein Moxnes Harfjeld: Thanks, Laila. We will now turn to current market dynamics, where several structural forces are shaping the tanker landscape. Geopolitical friction and risk premiums. Middle East hostilities continue to force vessel rerouting, expanding ton-mile demand, and squeezing overall fleet efficiency. While most operators, including DHT, avoid high-risk zones, operators willing to venture into the Persian Gulf are extracting substantial risk premiums. Structural supply consolidation. Spot supply remains tightly constrained following major fleet consolidation by a private aggregator earlier this year, which has reduced fragmented spot capacity. Asset price floor. Second-hand asset values continue to see strong institutional support underpinned by acquisitions by a Middle Eastern national energy company at premium valuations. China's shock absorber strategy. China temporarily blunted global oil price spikes by drawing on its strategic and commercial crude stockpiles while curbing refined product export quotas.

Speaker #3: While most operators, including DHT, avoid high-risk zones, operators willing to venture into the Persian Gulf are extracting substantial risk premiums. There has been structural supply consolidation. Spot supply remains tightly constrained following major fleet consolidation by a private aggregator earlier this year.

Speaker #3: This has reduced fragmented spot capacity. Asset price floors and second-hand asset values continue to see strong institutional support, underpinned by acquisitions by a Middle Eastern national energy company at premium valuations.

Speaker #3: And China’s 'shock absorber' strategy — China temporarily blunted global oil price spikes by drawing on its strategic and commercial crude stockpiles, while curbing refined product export quotas.

Speaker #3: Once this de-stocking cycle runs its course, we expect a sharp rebound in China’s seaborne crude import demand. Looking ahead, we see two primary structural catalysts driving market fundamentals.

Svein Moxnes Harfjeld: Once this destocking cycle runs its course, we expect a sharp rebound in China's seaborne crude import demand. Looking ahead, we see two primary structural catalysts driving market fundamentals. First, resolution versus continuation of regional conflict. If resolved, an operational mechanism for conflict resolution should normalize Iranian crude flows into compliant trade channels. This would shift transport volumes away from the non-compliant shadow fleet to independent compliant operators like DHT, substantially expanding our addressable markets. If unresolved, long haul crude routes will persist. While the shadow fleet may continue trading, its need for vessel replacements will support second-hand asset values and ultimately force the retirement of the fleet's oldest tonnage. Secondly, energy security and strategic reserve replenishment. Heightened global focus on energy security will necessitate a massive rebuilding of depleted national strategic and commercial inventories. This replenishment cycle will generate sustained transportation demand well beyond baseline daily crude consumption.

Speaker #3: First, resolution versus continuation of regional conflict. If resolved, an operational mechanism for conflict resolution should normalize Iranian crude flows into compliant trade channels. This would shift transport volumes away from the non-compliant shadow fleet to independent, compliant operators like DHT, substantially expanding our addressable markets.

Speaker #3: If unresolved, long-haul crude routes will persist, while the shadow fleet may continue trading. Its need for vessel replacements will support second-hand asset values and ultimately force the retirement of the fleet's oldest tonnage.

Speaker #3: Secondly, energy security and strategic reserve replenishment. Heightened global focus on energy security will necessitate a massive rebuilding of depleted national strategic and commercial inventories.

Speaker #3: This replenishment cycle will generate sustained transportation demand well beyond baseline daily crude consumption. To wrap up, our operational strategy focuses on creating healthy risk-adjusted shareholder value across the market cycles.

Svein Moxnes Harfjeld: To wrap up, our operational strategy focuses on creating healthy risk-adjusted shareholder value across the market cycles. Securing high margin fixed cash flow. We continue to lock in highly profitable revenue streams of fixed income across various tenors, backing up our forward cash generation and dividend capacity. Balanced market exposure. We maintain a deliberate balance, retaining significant spot market upside to capture rate spikes while layering on selective charter coverage to create cash flow and dividend visibility. Disciplined capital allocation. Our commitment to returning value remains absolute. We continue to operate under a capital allocation framework designed to translate market tailwinds directly into shareholder returns via quarterly cash dividends. Thank you for your time today. Operator, we are now ready to open the floor for questions.

Speaker #3: Securing high-margin fixed cash flow. We continue to lock in highly profitable revenue streams of fixed income across various tenors, backing up our forward cash generation and dividend capacity.

Speaker #3: Balanced market exposure. We maintain a deliberate balance, retaining significant spot market upside to capture rate spikes while layering on selective trade coverage to create cash flow and dividend visibility.

Speaker #3: Disciplined capital allocation. Our commitment to returning value remains absolute. We continue to operate under a capital allocation framework designed to translate market tailwinds directly into shareholder returns while quarterly cash dividends.

Speaker #3: Thank you for your time today. Operator, you're now ready to open the floor for questions.

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

Operator: Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now go to the first question. One moment, please. Your first question today comes from the line of Omar Nokta from Clarksons. Please go ahead.

Speaker #1: To withdraw your question, please press star 1 and 1 again. We will now go to the first question. One moment, please. And your first question today comes from the line of Omar Nocta from Clarkson's.

Speaker #1: Please go ahead.

Speaker #4: Thank you. Hi, Svein. Hi, Laila. Thank you for the update. I have a couple of questions, and maybe just first on Svein, you mentioned avoiding the Persian Gulf, given the high-risk area there.

Omar Nokta: Thank you. Hi, Svein. Hi, Laila. Thank you for the update. I have a couple of questions. Maybe just first on, Svein, you mentioned avoiding the Persian Gulf, given the high-risk area there. I wanted to ask about the situation in the Red Sea and how that's maybe affected what you're doing in that region. If I recall, you've been busy and others have been busy taking some of that Saudi crude from Yanbu, taking it to Asia. Obviously there's been a step up in hostilities, or at least the threat of it. What's happened there? Has that affected how you're trading your VLCCs in the region? I guess, how do you think about those Yanbu volumes moving going forward?

Speaker #4: But I wanted to ask about the situation in the Red Sea and how that's going to be affected what you're doing in that region.

Speaker #4: If I recall, you've been busy and others have been busy taking some of that Saudi crude from Yanbuu, taking it to Asia. And obviously, there's been a step-up in hostilities, or at least a threat of it.

Speaker #4: What's happened there? Has that affected how you're trading your VLCCs in the region? And, I guess, how do you think about those Yanbu volumes moving going forward?

Speaker #3: So to get to it, we did several Yanbuu loadings, both entering the Red Sea, but also exiting through the BEM Strait. So that has become a bit more challenging as it relates to following the threats from the Houthis.

Svein Moxnes Harfjeld: At the get-go, we did several Yanbu loadings, both entering the Red Sea but also exiting through the Aden Strait. That has become a bit more challenging as of late following the threats from the Houthis. The result of that is that our ships have then typically exited the Red Sea through the Suez Canal. Rerouted, of course, then adding significant transportation distances to the transportation work being conducted. That is, I think it's fair to say most of the VLCC loadings, not just ours, have been directed northwest bound.

Speaker #3: And the result of that is that our ships have then typically exited the Red Sea through the Suez Canal, and then rerouted—of course, then adding significant transportation distances to the transportation work being conducted.

Speaker #3: It's fair to say that most of the VLCC loadings, not just ours, have been directed northwestbound.

Speaker #4: Okay, thank you. And do you think that is a direct lifting from Yanbu, and then offloading partially ahead of the Suez Canal? Or are you starting to load directly out of the Med, and that's become a new trade pattern?

Omar Nokta: Okay. Thank you. Do you think that is a direct lifting from Yanbu and then offloading partially ahead of the Suez Canal? Or are you starting to load directly out of the Med and that's become a new trade pattern?

Speaker #3: Well, it's both. So we have ships loading at Yanbuu. You need to offload about half of the cargo in order for the VLCC to transit the canal.

Svein Moxnes Harfjeld: It's both. We have ships loading at Yanbu. You need to offload about half of the cargo in order for the VLCC to transit the canal, and then you reload on the other end. There are also some ships, not ours, or under our commercial control that are shuttling between Yanbu and Ain Sokhna. One of our time charter contracts is involved in that business. There's also been some fixtures now with ships coming from the Atlantic basin mostly, then loading directly at Sidi Kerir in the Med in Egypt, and then taking cargoes either to Europe or out to the Far East. There's a mix of things. All of this again is just creating disruption, reducing the efficiency of the fleet, and thereby making the general markets much tighter.

Speaker #3: And then you reload on the other end. There are also some ships not ours, or under our sort of commercial control, that are shuttling between Yanbuu and Ain Sukna.

Speaker #3: One of our time charter contracts is involved in that business. But there's also been some fixtures now, with ships coming from the Atlantic Basin mostly, then loading directly at Sidi Kerir, in the Med, in Egypt.

Speaker #3: And then taking cargoes either to Europe or out to the Far East. So there's a mix of things. But all of this, again, is just creating disruptions, reducing the efficiency of the fleet, and thereby making the general markets much tighter.

Speaker #4: Yeah, definitely. Thank you. And then maybe just a second question. And a bit more big picture on DHT specifically. You've taken I think you took the final of the four new buildings.

Omar Nokta: Yeah, definitely. All right, thank you. Maybe just a second question and a bit more big picture on DHT specifically. You took the final of the four new buildings due this year. You have the one that you recently ordered that is coming in 2028. The fleet now stands at 23, going to 24. Svein, you had mentioned a couple of months back at looking to expand DHT's footprint. Is that still the aim? Going beyond the 24 vessels that are spoken for, how would you go about doing so? Secondhand market, obviously values are high. Is it more new buildings? Thank you.

Speaker #4: Do this year, you have the one that you recently ordered that's coming in 2028. The fleet now stands at 23, going to 24. Svein, you had mentioned a couple of months back at looking to expand DHT's footprint.

Speaker #4: Is that still the aim? And going beyond sort of the 24 vessels that are spoken for? And how would you go about doing so?

Speaker #4: Second-hand market, obviously, values are high. Or is it more new buildings? Thank you.

Speaker #3: Yeah. No, it's our general ambition to continue to build out DHT. But as you rightly point out, second-hand values right now are in a territory making it challenging to, I think, invest for us.

Svein Moxnes Harfjeld: No, it is our general ambition to continue to build out DHT. As you rightly point out, secondhand values right now are in a territory making it challenging to, I think, invest for us. Patience here is key. There could, of course, be some corporate opportunities in due course and which we will look at. We have done a couple of those historically, one in 2014 and one in 2017. It is not easy, right? Rest assured that our eyes are on continuing to build out the company. It has to be at the valuations and the financial conditions that ensures that there is also profitable growth for the company, not just buying assets for the sake of buying assets.

Speaker #3: So patience here is key. The could, of course, be some corporate opportunities in due course, and which we will look at. We've done a couple of those historically, one in '14 and one in '17.

Speaker #3: But it's not easy, right? But rest assured that our eyes are on continuing to build out the company. However, it has to be at the valuations and financial conditions that ensure there is also profitable growth for the company.

Speaker #3: Not just buying assets for the sake of buying assets.

Speaker #4: Yeah. Thank you, Svein.

Omar Nokta: Thank you, Svein.

Speaker #3: Thank you for your question.

Operator: Thanks.

Svein Moxnes Harfjeld: Thank you for your question.

Speaker #1: Thank you. We will now go to our next question. And the question comes from the line of Gregory Lewis from BTIG. Please go ahead.

Operator: Thank you. We will now go to our next question. The question comes from the line of Gregory Lewis from BTIG. Please go ahead.

Speaker #5: Yeah, hi. Thank you and good afternoon. And thanks for taking my question. You know, Lars, I'm just realizing it's definitely a fluid situation, but I guess earlier this week, there was talk of European minesweepers potentially entering going into the Strait to kind of get things more in a position.

Gregory Lewis: Yeah. Hey, thank you. Good afternoon. Thanks for taking my question. Lars, I'm just realizing it's definitely a fluid situation. I guess earlier this week there was talk of European minesweepers potentially entering, going into the strait to kind of get things more in a position. Realizing there's not a real answer, if you thought about how you think this could proceed in the event that there is some sort of agreement, the minesweepers are there to clean out who knows what's in there, how long after that do you think things could actually return to normal? What I mean by that is companies like DHT and other companies that have certain requirement standards, limitations on what they're willing and not willing to do, really, you need a real open canal. We're here in August.

Speaker #5: Realizing there's not a real answer, but if you thought about how you think this could proceed: In the event that there is some sort of agreement and the minesweepers are there to kind of clean out what's—who knows what's in there—how long after that do you think things could actually return to normal?

Speaker #5: And what I mean by that is companies like DHT and other companies that have certain requirements, standards, limitations on what they're willing and not willing to do, really.

Speaker #5: You need a real open canal. We’re hearing August. What do you think is the most blue-sky, opportunistic time when things might actually return to normal?

Gregory Lewis: What do you think is a blue sky opportunistic time where things might actually return to normal?

Speaker #3: You know, the simple answer, I don't know.

Svein Moxnes Harfjeld: The simple answer, I don't know.

Gregory Lewis: Yeah. Understood.

Speaker #5: Understood.

Speaker #3: And that's just the holidays, right? And as you rightly point out, it's sort of the news flows is both volatile and fluid, and it's very hard to sort of make decisions on it because you might have some statements on a Wednesday, and you're going to fix the ship that might sort of enter the area in 10 days, 2 weeks, 3 weeks, right?

Svein Moxnes Harfjeld: That's just how it is, right? As you rightly point out, the news flows is both volatile and fluid, and it's very hard to make decisions on it because you might have some statements on a Wednesday, and you're going to fix the ship that might enter the area in 10 days, two weeks, three weeks, right? Things can change in that period. It's very hard to make credible plans. I think in general terms, we would like to see the prospective opening of the straits to be credible, meaning that we see numerous transits and it's all safely done, and it's not selectively trying to attack certain ships over other ships, or certain nationalities over other nationalities, or certain cargoes over other cargoes, things like that. We will unlikely be the first mover into this operation.

Speaker #3: And things can change in that period. So it's very hard to make sort of credible plans. I think in general terms, we would like to see then the prospective opening of the Straits to be credible, meaning that you see numerous transits and it's all safely done.

Speaker #3: And it's not sort of selectively trying to attack certain ships over other ships or certain nationalities over other nationalities or certain cargoes over other cargoes, things like that.

Speaker #3: So we will unlikely be the first mover into this operation, but we are, of course, keen to for this market to return to sort of more normality, right?

Svein Moxnes Harfjeld: We are, of course, keen for this market to return to more normality, right? Let's hope for this to happen in not too long.

Speaker #3: So let's hope for this to happen in not too long.

Speaker #5: Okay, great. And then realizing the OREX is getting delivered in '28 and I think you kind of were talking about this with Omar. As we think about fleet positioning, as we think about fleet positioning, in the time it takes to get a string of new orders, at this point, if we're in August '26, when barring resales, when could we actually see the turnaround time between placing a vessel order and actually taking delivery of a vessel a string of new VLCCs?

Gregory Lewis: Okay, great. Realizing the DHT Oryx is getting delivered in 2028, and I think you kind of were talking about this with Omar Nokta. We think about fleet positioning and the time it takes to get a string of new orders, at this point, if we're in August 2026, barring resales, when could we actually see the turnaround time between placing a vessel order and actually taking delivery of a vessel, a string of newbuild VLCCs?

Speaker #3: Yeah, so it depends a bit on which country and which shipyard you want to order at. Typically, we have been loyal to Hyundai and Honda Ocean in Korea, and they sort of opportunities those two shipyards are for 20 to 30 delivery.

Svein Moxnes Harfjeld: It depends a bit on which country and which shipyard you want to order at. Typically, we have been loyal to Hyundai and Hanwha Ocean in Korea, and the opportunities at those two shipyards are for 2030 delivery. There is a revival of an earlier closed shipyard in Korea that is offering a bit earlier delivery. I guess that the shipyard, they will have to demonstrate or make clients comfortable with how that revival of that shipyard is being made. I think that the top 10 shipyards in China that has the most experience, that's also 2030 delivery. Whereas you've seen these last few months, you've seen a number of orders at shipyards with no prior experience in building tankers, but maybe with great experience in building other types of equipment that has been able to offer earlier deliveries.

Speaker #3: There is sort of revival of an earlier closed shipyard in Korea that is offering a bit earlier delivery, but I guess that the shipyard that will have to demonstrate or make clients comfortable with how that revival of that shipyard is being made.

Speaker #3: I think that the high top-end shipyards in China, that has the most experience, that's also 20 to 30 delivery. Whereas you've seen these last few months, you've seen a number of orders at shipyards with sort of no prior experience in building tankers, but maybe with great experience in building other types of equipment, that has been able to offer earlier deliveries.

Speaker #3: So I would say today, if you're willing to venture into the Latin category, that's probably a 29 window. Whereby sort of the more established high-end shipyards in Korea and Japan is 20 to 30.

Svein Moxnes Harfjeld: I would say today, if you're willing to venture into the latter cargo category, that's probably a 2029 window, whereby for the more established high-end shipyards in Korea and Japan, it's 2030.

Speaker #5: Okay. And then just one more for me real quick. I guess, what, around 25% of the fleet rolls off contract in early '27, I think Q1 or maybe early Q2.

Gregory Lewis: Okay. Just one more for me real quick. I guess, what, around 25% of the fleet rolls off contract in early 2027, I think in Q1 or maybe early Q2. Do any of those vessels, I think there's five to six of them, do any of those have customer options that could see those extended longer?

Speaker #5: Do any of those vessels—I think there's like five to six of them—do any of those have customer options that could see those extended longer?

Speaker #3: No, there's limited options left in our sort of time chart of fleet now. So all these 5-to-1-year contracts that we did in the first half are only for one year, with no optional periods.

Svein Moxnes Harfjeld: No, there's limited options left in our time charter fleet now. All these five one-year contracts that we did in the H1 is only for one year, no optional periods. We have a couple of legacy charters that the firm periods will expire end of next year, if my recollection is correct, and they have some optional periods. The three-year charter we just announced has no optional period. The long-term charter we announced in March has sort of a wider window, if you like, but that's a very long-term charter, so it's nothing to think too much about for next year. As of now, our cover for next year is about one quarter of the fleet is on fixed income, of which one has a profit sharing, right, for the full year. The last one with profit sharing will redeliver in the Q1.

Speaker #3: We have a couple of legacy charters that will the firm periods will expire end of next year, if I'm my recollection is correct. And they have some optional periods.

Speaker #3: But the 3-year charter we just announced, no optional period, the long-term charter we announced in March has sort of a wider window, if you like.

Speaker #3: But that's a very long-term charter, so there's nothing to think too much about for next year. So as of now, our cover for next year is about one quarter of the fleet is on fixed income.

Speaker #3: Which one has a profit sharing, right? For the full year, the last one with profit sharing will redeliver in the first quarter. And we're down to below 20% coverage for '28, but this is going to be a little bit of an evolving portfolio.

Svein Moxnes Harfjeld: We're down to below 20% coverage for 2028. This is going to be a little bit of an evolving portfolio. We have some customers that are interested in developing more business with us. We'll just take our time and we'll be patient about it.

Speaker #3: So we have some customers that are interested in developing more business with us. We'll just take our time and we'll be patient about it.

Speaker #5: Okay, super helpful. Thank you very much.

Gregory Lewis: Okay. Super helpful. Thank you very much.

Speaker #3: Thank you.

Svein Moxnes Harfjeld: Thank you.

Speaker #2: Thank you. As a reminder, if you would like to ask a question, please press star 1 and 1 on your telephone. That is star 1 and 1.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star one and one on your telephone. That is star one and one if you would like to ask a question. We will now go to our next question. Our next question today comes from the line of Eirik Haavaldsen from Pareto Securities. Please go ahead.

Speaker #2: If you would like to ask a question, you will now go to our next question. And our next question today comes from the line of Eric Halvorsen, from Pareto Securities.

Speaker #2: Please go ahead.

Speaker #4: Yeah, hi, Svein. Just wanted to talk a little bit more about those time charters, because five of those vessels are obviously your five oldest ones.

Eirik Haavaldsen: Yeah. Hi, Svein. Just to talk a little bit more about those time charters. Five of those vessels are obviously your five oldest ones, the Nomico vessels. I guess given your track record, it must be tempting to fight for at least current asset values and try to sell them. Would you do that without any kind of replacement? I guess my question is, fleet size-wise, could you sell those 15-year-olds without any new builds in the pipeline?

Speaker #4: No need to go back to them, I guess. Given your track record, it must be tempting to kind of buy to at least exploit current asset values and try to sell them.

Speaker #4: But would you do that without any kind of replacement? So I guess my question is, street-size-wise, would you sell those 15-year-olds without any kind of new books in the pipeline?

Svein Moxnes Harfjeld: We are focused on maintaining earning capabilities or capacity with the fleet. In a scenario that we would like is not to dispose of those ships without having a clear path for renewals and hopefully also expansion as a net result. That being said, these values, as you say, are very high now. These five ships are also in very good condition and can service the industry easily for the remaining five, six years, if not longer, if need be. It's not an easy path to execute on all that, but that's how we think about it. Ideally, we would like to have a replacement plan. That can be a combination of things. If we decide at some point to divest them. As of now, there's no divestment plans for those assets.

Speaker #3: No, we're sort of focused on maintaining earning capabilities or capacity, right? With the fleet. So, the sort of scenario that we would like is not to dispose of those ships without having a clear path for renewals and, hopefully, also expansion as a net result.

Speaker #3: So that being said, these values, as you say, are very high now, but these 5 ships are also in very, very good condition and can service the industry easily for the remaining 5, 6 years, if not longer, if need be.

Speaker #3: So it's a bit of a it's not an easy path to execute on all of that, but that's how we think about it. So ideally, we would like to have a replacement plan that can be a combination of things, but if we decide at some point to divest them.

Speaker #3: But as of now, there's no divestment plans for those assets.

Speaker #4: So it will be kind of a decision as you when you get there, whether to charter them out or, of course, you can trade them, but I mean, we saw today also announced charter with startup 3 months into the future.

Eirik Haavaldsen: It will be a decision when you get there, whether to charter them out or, of course, you can trade them.

Svein Moxnes Harfjeld: Yes

Eirik Haavaldsen: We saw today also announced a charter with Starship three months into the future. Is that marked? Is that all liquidity? Is it something you can do now, charter out that source with Starship almost into 2027?

Speaker #4: Is that market at all liquid? Is it something you can do now, charter out that almost into '27?

Speaker #3: You can I think the the way it works is that you can create that liquidity with the pricing, the forward delivery, at a discount to relatively prompt delivery.

Svein Moxnes Harfjeld: I think the way it works is that you can create that liquidity with the pricing, the forward delivery at a discount to relatively prompt delivery. How deep the liquidity is maybe is not so active because most people that want a one-year charter want to have a pretty clear idea what the first cargo, the kickoff for the charter is going to be and how much profit they're going to make on that. That's the common path. I would say today that the one-year charter for a modern ship is probably $120, $125, maybe in that range. Forward delivery, I think on this reported fixture was just sub $110, if my recollection is correct. That's probably what has been put on the table to entice that forward delivery, I would assume, although I don't have the insights of the negotiations of that charter.

Speaker #3: So how deep the liquidity is, is maybe it's not so active because most people that want a 1-year charter they want to have a pretty clear idea what the first cargo or sort of the kickoff with the charter is going to be and how much profit they're going to make on that.

Speaker #3: So that's the common path. But if you I would say today that the 1-year charter for a modern ship is probably 120, 125 in maybe in that range.

Speaker #3: So forward delivery, I think on this reported fixture was just sub-110, if my recollection is correct. So that sort of probably the what has been put on the table to entice that forward delivery.

Speaker #3: I would assume, although I don't have the insight, so of the negotiations of that charter.

Speaker #4: Okay, thank you, Sven.

Eirik Haavaldsen: Okay. Thank you, Svein.

Speaker #3: Thank you.

Svein Moxnes Harfjeld: Thank you.

Speaker #2: Thank you. We currently have no further questions. I will now hand the call back to Svein for closing remarks.

Operator: Thank you. We currently have no further questions. I will now hand the call back to Svein for closing remarks.

Speaker #3: Thank you very much for everyone to tuning into DHT, much appreciated. I'm wishing you all a good day ahead.

Svein Moxnes Harfjeld: Thank you very much for everyone tuning in to DHT. Much appreciated and wishing you all a good day ahead.

Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Q2 2026 DHT Holdings Inc Earnings Call

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