The DHT Holdings, has announced its plan sell three of its oldest VLCCs in connection to a bank debt that has to repaid.
What happened?
The Company has planned to sell its three oldest VLCCs; DHT Utah and DHT Utik, both built 2001 and DHT Eagle built in 2002. The vessels will be sold to a single buyer for a total price of $66.5. The part of the sale will be used to repay the bank debt of $33.5 million availed by the company.
Loss to the company:
The VLCCs ‘DHT Utah’ and ‘DHT Eagle’ will be delivered to its new owner before end of 2017 and the ‘DHT Utik’ in January 2018.
By selling these three VLCCs, the Company is expected to record a book loss of about $3.5 million in the fourth quarter of 2017 and the loss is mainly attributed to the sale of ‘DHT Eagle’.
The average age of DHT’s fleet of VLCCs is 6.1 years. The sale is in accordance with the company’s fleet renewal strategy. DHT enjoys a strong position with its robust balance sheet, high quality fleet, best-in-class cash break-even levels, competitive cost structure and attractive time charter contracts.
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Source: DHT Holdings, Inc.
