DHT Holdings Expands Fleet with Strategic VLCC Acquisition
DHT Holdings Enhances Fleet with New Acquisition
DHT Holdings, Inc. (NYSE:DHT) has made some exciting news recently by entering into an agreement to acquire a very large crude carrier (VLCC) originally built in 2018. This new vessel, constructed at Hyundai Heavy Industries, represents a significant investment of $107 million for the company. The expected delivery of this vessel is slated for the end of the third quarter of 2025, and it will be financed through DHT's available liquidity and projected mortgage debt.
Significance of the New VLCC
This latest acquisition is not just a routine transaction but a strategic move that emphasizes DHT’s commitment to maintaining a modern and efficient fleet. The vessel was known for being built to high specifications and comes with advanced features like an exhaust gas cleaning system. This enhancement will bolster DHT's operational efficiency and improve the age profile of its fleet, allowing the company to stay competitive in a demanding market.
Leadership Insights
Commenting on this investment, DHT’s President and CEO, Svein Moxnes Harfjeld, expressed the company’s proactive approach in seeking out opportunities that will ultimately improve earnings per share for its shareholders. He highlighted that this acquisition is closely tied to a design known for its significant carrying capacity and premium earning capabilities, which align with the trading patterns of DHT’s key customers.
DHT's Commitment to Growth
In the competitive world of crude oil transportation, DHT Holdings strives for growth by adding quality vessels to its portfolio. This acquisition aims to replace some of the earnings capacity that has been divested earlier this year, ensuring that DHT remains robust in a marketplace that shows promising potential. With their focus on modernizing the fleet, DHT is poised to capture better market opportunities.
About DHT Holdings
DHT Holdings is an independent crude oil tanker company with a renowned presence in the international market. Its fleet primarily consists of VLCCs, managed through wholly owned companies located in various parts of the globe, including Monaco, Norway, Singapore, and India. DHT's reputation is rooted in their commitment to providing first-rate operations and outstanding customer service.
Operational Excellence
What sets DHT apart from its competitors is its prudent capital structure, which offers steadfastness through business cycles. Their strategy of combining market exposure with fixed income contracts promotes financial stability and growth. They also prioritize transparent corporate governance, ensuring a high level of integrity within their business operations. In addition to effectively managing their existing fleet, DHT is prudent with capital allocation, focusing on cash dividends, vessel investments, debt prepayments, and share buybacks.
Looking Ahead
With the acquisition of this VLCC, DHT Holdings stands ready to continue making a mark in the global oil tanker market. The market prospects remain attractive, and the company is dedicated to optimizing its performance in line with the evolving demands of their customers. In a landscape that is in constant flux, adaptability and forward-thinking strategies are crucial, and DHT is employing both to secure its place among the industry's leaders.
Contact Information
For further inquiries regarding the company and its operations, please reach out to Laila C. Halvorsen, CFO. She can be contacted by phone at +1 441 295 1422 or +47 984 39 935. Additionally, emails can be sent to lch@dhtankers.com.
Frequently Asked Questions
What type of vessel did DHT Holdings acquire?
DHT Holdings acquired a 2018-built VLCC, enhancing their fleet's efficiency.
How much did DHT pay for the new VLCC?
The acquisition cost for the VLCC was $107 million.
When is the new vessel expected to be delivered?
The delivery of the new vessel is slated for the end of the third quarter of 2025.
What advantages does the new VLCC provide?
The new VLCC boasts advanced features, including an exhaust gas cleaning system, improving environmental compliance and operational efficiency.
Who can be contacted for more information about DHT?
Laila C. Halvorsen, the CFO of DHT, is the contact person for queries regarding the company's operations.
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