DHT Holdings, Inc. provides the following business update amid coronavirus outbreak, reads the company’s press release
Time Charters
- DHT Scandinavia has been significantly delayed discharging cargo on her current voyage and has thereby failed to deliver in time for her 12-month time-charter previously announced. Consequently, the time-charter is cancelled.
- DHT Stallion has entered into a two-year time-charter agreement with an option to extend with an oil major at $41,800 per day. The ship is expected to deliver during July 2020.
- DHT then has ten of its ships on time-charters. Four of the ships have profit sharing structures on top of base rates, whilst the other six have fixed rates. The average of the fixed elements in these ten time-charters, i.e. of the four base rates and the six fixed rates, is $50,673 per day.
Capital Allocation
- In the current quarter, the company has made a voluntary prepayment of all regular instalments for 2021, amounting to $25.8 million, under the Nordea Loan Facility.
- Further, the Company has agreed to voluntary prepay all the 2021 installments, $33.4 million, under the ABN Facility on June 30, 2020.
Cash Break Even
- The Company estimates that the spot ships will need to earn $2,800 per day for the second half of 2020 for the company to cover all its expected cash costs for the period: OPEX, G&A, interest, debt amortization and maintenance capex.
- Similarly, the spot ships are estimated to need to earn $11,400 per day in 2021 in order to cover all expected cash costs for 2021.
Spot chartering update
- As of today, the company has covered 97% of its 2Q 2020 spot days at an average rate of $90,100 per day on a discharge-to-discharge basis.
- As of today, the company has covered 18% of its 3Q 2020 spot days at an average rate of $61,800 per day on a discharge-to-discharge basis.
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Source: DHT Holdings
