Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We're very happy, and we thank you very much, Svein and [indiscernible] doing such a great job |
| We believe our company is well structured for cyclical and volatile markets with our solid balance sheet and a strong liquidity at its foundation |
| And we're quite, quite stable and giving a sort of very, I think, good prospects going forward |
| We continue to show good cost control and operating expenses for the quarter were $18.7 million and G&A was $4 million |
| 2023 was the second best year in the company's history with net income of $161.4 million, equal to $0.99 per share |
| And I think then the big ships will stand to be well rewarded |
| And the fleet is rapidly aging, right? So would you consider investing in newbuilds or secondhand vessels today? Svein Moxnes Harfjeld DHT today already has got significant exposure to the market, and we feel we are very well positioned to sort of harvest a very interesting period ahead of us |
| I think you guys have done a great job, and we're very happy as shareholders for years now |
| We maintain a very strong balance sheet represented by low leverage and significant liquidity |
| And this shows that we see the future brightly, and we're reserving cash, we're strengthening our balance sheet even more rapidly than the rate in which you're doing it now |
| We have shown a robust spot earnings during 2023 with quarterly average rates ranging from $43,600 up to $64,800 per day |
| And you also see, at the same time, signs that the economy is looking more promising than it has done for quite a while |
| We would just like to see you come off optically I'm saying, as if this business has a very long-term future that's going to grow and significantly reward as you have in the past |
| But just taking a step back, if you look at our earnings last year, it's a pretty healthy number |
| So we are, of course, running numbers on everything, but I think it's important that we do get good fuel economics in all the ships, also relates to sort of CII trajectory, it relates to access to time charters in due course if that wants to -- if that’s something we want to have in the portfolio |
| And I think there is some merit in having a very clear and well-defined dividend policy that people understand that this fixed percentage of net income, it will allow the investors, although we are in a market where earnings vary, it's very clear what they will get out of the business without impairing the balance sheet of the company or reducing our ability really to be able to invest |
| So -- and we believe it will be possible to do things, to invest for the company and do good things for the company |
| So -- and we hope to find the right opportunities to expand the company with the right transactions |
| That being said, we are, of course, turning every stone to look at opportunities that can create value for our shareholders and increase earnings per share accordingly |
| So hopefully, we can uncover the right opportunity and put that to bed and continue to develop the company |
| As always, we keep our eyes on maintaining robust cash breakeven levels while still having meaningful market exposure and operating leverage being as profitable as we can, all the above with a defined and shareholder-friendly capital allocation policy of paying out 100% of ordinary net income as quarterly cash dividends |
| Svein Moxnes Harfjeld Well, thank you very much to all for listening in on DHT's quarterly earnings call, much appreciated, and wishing you all a good day ahead |
| Great |
| So you're right in your sort of, I guess, loaded question that VLCCs will stand to benefit from this, if this carries on for a while |
| Good morning and good afternoon, everyone |
| And we did this without issuing any new equity and that was cash reserves that were built up despite paying out 100% of net income, and that was accretive to earnings immediately for all the shareholders |
| We achieved revenues on a TCE basis of $390 million and EBITDA of $302 million |
| So -- and that's very important for us is that anything we do has to be accretive to earnings per share and not really distort the commitment to pay out 100% of net income |
| The key takeaway is, as we have stated many times over, the Atlantic is long crude oil and the demand growth is in Asia |
| Good afternoon |
| Statement |
|---|
| Even a significant effort to contract new ships will struggle to put a dent in this highly constructive supply picture |
| And we see now there's -- I think we understand there's some 10, 12 ships storing sanctioned crude in Southeast Asia that has been unsuccessful to deliver those crudes to end users because of payment problems |
| And it creates challenges for receivers to plan logistics, efficient port utilization and all of this |
| Fleet renewal stagnated, however, despite the meaningful number of ships being delivered once the eco designs came to the market in 2015 |
| These two graphs looks out to 2014 and suggests tankers, hereby illustrated by the green lines, will have a slow uptake or changeover |
| We suggest uncertainty related to future fuels to be one |
| The CII regime will likely result in part of the fleet having to slow down to stay in business, thereby reducing capacity further |
| Asset values have risen materially and I know it makes it difficult to get deals done, although the one you mentioned last year was -- looked like a good price at a good time |
| But I think in the actual freight market, as I said, the Red Sea issue has had very limited impact |
| And I think some of our key customers will also potentially not be as supportive as they are today |
| I personally, in my company, think that, that is a big mistake |
| Obviously, the world can be quite unstable at times |
| Energy Aspects, another highly respected firm, has laid out a dislocation between where future crude oil supply will come from and where it will be consumed |
| So I think it's a bit in our current format and strategy, it's unrealistic |
| And for VLCC specifically, we've seen the Red Sea has been an issue now for a few months now, but really over the past few weeks, we started to see the acceleration of tankers diverting |
| And I would be surprised if this not has got more legs in the imminent future |
| So we are already building cash, but still being able to retain the 100% of net income as a dividend because the cash breakeven is, as Laila talked about for 2024, is $8,900 per day lower than the P&L breakeven, which is a threshold for dividends |
| There's a lot of volatility in the smaller-sized ships for many of the geopolitical reasons that you spoke to or that we already know about |
| It further reduced to some seven years following the extensive deliveries between 2007 and 2012 |
| Three years later, we have seen some activity pick up, but the order book is, as we said, still only 2.5% |
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